FINANCIAL
AGBIZ
WELCOMES
THE MEDIUM-TERM BUDGET POLICY STATEMENT
“ Growth and reforms ” was a key theme of Minister Godongwana ’ s statement . The National Treasury expects the South African economy to grow by 5,1 % in 2021 , from a 6,4 % contraction in 2020 .
Annette Willemse Communication Specialist
Agbiz welcomes the Medium- Term Budget Policy Statement , which showed continuity between former Finance Minister Tito Mboweni and his successor Enoc Godongwana .
The emphasis on the government ’ s commitment to fiscal consolidation and structural reforms to lift economic growth is a welcome move .
In terms of structural reforms , the focus on improving the efficiency of South Africa ’ s logistics infrastructure to support export growth is one the of the vital positive interventions for the South African agricultural sector . “ Our country currently exports nearly half of its agricultural pro- ducts in value terms , and with the expected increase in production in the coming years , efficient ports and border posts will be key to sustaining South Africa ’ s agriculture ,” says Dr John Purchase , Agbiz CEO .
Moreover , the intention to ensure that Transnet Freight Rail allows third-party access to the freight rail network by the end of 2022 will also assist the agricultural sector , which has long desired to increase its share of products transported by rail . “ At the moment , over 70 % of South Africa ’ s grains and oilseeds are transported by road . We want to reduce this percentage and increase the rail share ,” added Dr Purchase .
The consistent focus on improving the management of bulk water resources and fast-tracking the water use licence application process to ensure that the 90-day target for issuing single-use water licenses is met , is vital for the success of agriculture .
The finance minister ’ s signalling of the restructuring of state-owned companies , informed by assessing their strategic relevance , is a further welcoming move . “ For the agricultural sector , the priority is the Land Bank , which faces liquidity challenges . We hope that the government interventions will ensure that this critical institution continues to play a vital role in agriculture and is well managed . Agbiz will continue working with the government in this regard , as finance is increasingly a crucial part of the growth strategy in South Africa ’ s agriculture .”
SENWES SCENARIO | SOMER � SUMMER 2021 9