NEWS
BASTION RECEIVES MINING RIGHTS LICENSE RENEWAL
Mbali Skosana Specialist : Digital Content
Bastion recently received a renewal of their mining license . The license , valid for the next 29 / 30 years , will ensure that the company continues with their two mining operations in Northwest . The license was handed over by the North West regional manager of the Department of Mineral Resources and Energy , Mr Phumudzo Nethwadzi .
The renewal , came a day before Bastion turned 54 and the staff at Head Office cele- brated the two occasions accordingly .
22 | The Way Forward In Terms Of Agri-Exports Into Africa
This narrow scope of expanding agricultural exports in the African continent is what typically leads to frustration amongst business leaders , who continue to see improvement in production domestically , but limited avenues for sales .
NIGERIA AND KENYA AS MAJOR ECONOMIES
The major economies in the East and West of the African continent , Nigeria and Kenya , remain very small markets for South Africa ' s agricultural exports , each accounting for a mere 2 % a year . Still , Nigeria spends over US $ 6.0 billion on agricultural imports a year , despite its new policy of reducing food imports . The key beneficiaries in the Nigerian agricultural market are Brazil , the US , China , Russia , Canada , New Zealand and Germany amongst others . This is through imports of wheat , dairy products , sugar , processed food , palm oil and maize , amongst other products .
Meanwhile , Kenya is a relatively small market with just over US $ 2 billion worth of agriculture and food imports a year . The key suppliers are Indonesia , Malaysia , Argentina , Russia , Pakistan , Uganda , Tanzania , India and Egypt . The key agricultural and food products Kenya imports are palm oil , wheat , rice , sugar , processed food , maize , dairy products , pasta and sorghum , amongst other products .
The composition of food and agricultural imports into these two countries is also indicative that South Africa ' s scope to export high-value horticulture , meat and wine products is limited . These countries primarily import staple food products , and as such , they are a market that would have been worth pursuing for grain farmers .
Still , the non-tariff barriers we referred to earlier remain a stumbling block , even for grains , as Kenya still prohibits the importation and growing of genetically modified ( GM ) maize . This is a significant hindrance for South Africa as roughly 80 % of maize grown in the country is genetically modified .
LIMITED AGRI-EXPORT OPPORTUNITIES CALL FOR A NEW APPROACH
What is clear is that South Africa ' s agricultural export opportunities will not only be limited in general , but will also most likely be opportunistic and focused on specific commodities or products in the short to medium term .
For instance , South Africa ' s maize exports have been relatively high during drought periods in East Africa , and under special circumstances that require short-term contingent policy measures to allow for GM maize exports .
Beyond maize , the approach will have to be more deliberate . For example , South Africa will have to consider a shift towards exports of processed food products . Data from Trade Map shows that Africa ' s imports of processed food products grew by 25 % between 2018 and 2020 , which is an opportunity for South Africa to explore .
The sector will have to develop markets for processed food in East and West Africa , which represents the remaining frontier to grow the African market further beyond current levels . From a policy perspective , the South African government may need to revise the Africa Strategy and establish task teams that can facilitate and broker market access for agri-businesses that seek to establish a market presence and investments in these key regions .
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SENWES SCENARIO | SOMER � SUMMER 2021