As ANC delegates gather to deliberate on several policy issues at Nasrec this weekend, leaders in the agricultural sector are calling for the ruling party – whose policies ultimately inform national government – to set the scene for more meaningful private-sector investment in the country.
As it stands, there is significant potential and an appetite from the farming sector to commit to new ventures, but for this to happen, a sound and certain landscape is needed, key players in the sector say.
“Policy certainty is required. We need policies that will encourage investment into the sector; that will ensure real tenure security,” says Theo Boshoff, CEO of the Agricultural Business Chamber of South Africa (Agbiz).
The four-day congress kicks off today (Thursday, 28 July 2022) and will see ANC delegates discuss policy issues ranging from economic affairs, state security and education to health, rural development, arts and culture.
Talks on land reform and the state of agriculture in the country are also expected to feature on the agenda.
According to Boshoff, Agbiz would like to see policies that promote certainty within South Africa’s farming community, investment, stability and growth. These policies should not only be aimed at land reform, he adds, “but at building vibrant rural areas with good infrastructure, services and opportunities”.
“Focussing on job creation without addressing the investment environment cannot succeed as the one always follows the other.”
As far as land reform is concerned, Boshoff warns that perpetual uncertainty is detrimental to the sector and the country.
Land reform alone is not enough
Boshoff believes that South Africa needs decisiveness on attracting big spenders. “We need policies that contain incentives for business and existing commercial farmers to get involved in more joint ventures, and that will encourage public-private partnerships generally.”
He mentions the blended finance scheme, a government-driven initiative that will give developing farmers access to a mixture of state and private-sector funding, as a prime example. “It holds great potential to transform the sector, but the required urgency is not forthcoming.”
Land alone is not enough to achieve the growth anticipated through land reform for agricultural purposes. Finance, market linkages and efficiently networking industries are also required, Boshoff says.
“There is significant potential and appetite from the agricultural sector to solve challenges [such as ravaging poverty and slow economic growth], but the policy environment is still not conducive for private-sector investment into, for instance, infrastructure or energy generation.”
Boshoff believes if a clear and robust framework for public-private partnerships is developed, much-needed private investment would be unlocked.
Embed AAMP in policy framework
Saamtrek Saamwerk Northern Cape chairperson Sehularo Sehularo feels that the ruling party needs to reconsider how it enables developing farmers to access financing and support. “The Land Bank now needs urgent attention from government. Emerging farmers are struggling to make ends meet and reach help from such entities. We also call for the end of red tape and government institutions working in silos.”
Meanwhile, Agri SA executive director Christo van der Rheede says the organisation would like to see the Agriculture and Agro-processing Master Plan being embedded into the policy framework of the ANC going forward.
He says there should be a renewed commitment from everyone to ensure that infrastructure such as municipal markets, roads, rail and harbours are upgraded and well maintained.
“A policy framework must, however, lay a solid foundation for the implementation of policies. This, sadly though, remains a big challenge and one would like to see what the plans are to hold entities and people accountable for non-implementation and delivery,” he says.
Boshoff agrees, adding that too many past plans had failed because of a lack of proper implementation.
“The effective implementation of the master plan will indeed require a huge joint effort by all stakeholders on clear deliverables.”
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