While finance minister Enoch Godongwana only briefly referenced South Africa’s troubled ports and ailing infrastructure network, agriculture leaders insist that a more focused approach in those areas would enable job creation and economic growth.
Delivering his mid-term budget in parliament yesterday, Godongwana said government was working with Transnet to stabilise the nation’s ports following a twelve-day strike earlier this month that disturbed fruit exports, amongst others.
He allocated R2.9 billion to Transnet to ensure the return of out-of-service locomotives.
“Inefficiencies in port and rail are costing the economy billions and further undermining our, efforts to raise growth. We welcome the end of the Transnet strike and are working with Transnet leadership and all stakeholders to urgently address the challenges in the sector,” he said.
According to Godongwana several steps were taken to introduce competition and efficiency into South Africa’s ports and rail networks, which is currently wholly owned by Transnet.
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Critical interventions needed
Agri SA chief economist Kulani Siweya said while Godongwana made some positive moves, it was rather disappointed that it failed to provide critical interventions to support South Africa’s hard-hit farmers.
“Agri SA was encouraged by the commitment to increase infrastructure expenditure. We are hopeful that this expenditure will have positive multiplier effects and, if carried out timeously and effectively, will set the economy on a growth trajectory,” he said.
Siweya added that while Eskom was being assisted with part of its debt (R400 million to be paid by government) he was hoping that this was going to give the power utility a chance to address its challenges regarding power cuts.
“Despite these positive steps, Agri SA is concerned by the Minister’s failure to provide any relief targeted at the agricultural sector.
“The sector, which is a key contributor to the South African economy and our guarantor of food security, has been hit hardest by rising input costs and farmers find themselves in dire financial circumstances.
“Yet minister Godongwana did not announce any measures to help ensure the sustainability of the sector,” he said.
Siweya said they were going to continue engaging government and the national treasury to ensure that a taxation and policy framework was included in his February budget. This is needed for the agricultural sector to thrive.
Infrastructure development key
Wine industry body Vinpro’s managing director, Rico Basson, said in the current economic climate it believed that sectoral challenges could be approached in a multilateral and strong partnership basis between the private and public sectors.
“Investment in strategic infrastructure, which include harbours, increased port efficiency and capacity, a focus on Cape Town harbour, roads, and water such as Brandvlei and Clanwilliam dams are desperately needed.
“Investment in energy security is also of utmost importance for our industry. A workable turn-around plan for Eskom and enabling the use of, as well as increasing the ease of use of alternative energy sources is crucial,” he said.
Meanwhile, Free State Agriculture president Francois Wilken called on government to redirect funds to grassroots workers to deal with challenges that are hampering the economy.
“We are calling on government to appoint road scraper operators and general administration workers to scrape roads and maintenance of waterways,” he said.
