As South Africa eagerly awaits the announcement of its new minister of agriculture, land reform and rural development following Thoko Didiza’s election as speaker of the National Assembly, Agbiz chief economist Wandile Sihlobo has outlined essential steps for the sector’s advancement.
Sihlobo stresses the critical need to maintain and implement the Agriculture and Agro-processing Master Plan, co-created by diverse stakeholders including business, organised agriculture, and labour.
“We need to use it as an overarching implementation to drive our sector forward,” he stated, noting the plan could potentially boost the gross value added (GVA) by 15% and significantly increase employment in agriculture, which already supports over 940 000 people in primary agriculture and more than 400 000 in the value chain.
To realise this potential, several key actions are necessary:
Land reform
Sihlobo emphasised the importance of releasing land promised by the government to bolster agricultural productivity and economic inclusivity. “The implementation has to be underscored by a range of things on land reform. Release the land that the government has said we will release,” he urged.
Animal disease control
Addressing animal diseases is crucial for the sector, as they have historically hampered exports. “Deal decisively, effectively with the animal disease challenge,” Sihlobo stressed, highlighting the need for robust measures to eliminate these export blockages.
“Half of our agricultural economy is the animal diseases and we know it very well as the whole industry that this is something that has been very difficult for some time and lead to blockages on exports.”
Regulatory reforms
Reviewing and modernising the Agricultural Products Standards Act and Act 36, which oversees the importation and registration of agrochemicals, is necessary to reduce transaction costs for producers and consumers.
“These issues of assigned needs are increasing the transaction costs in agriculture,” Sihlobo pointed out, adding that modernising these acts is essential for smooth operations.
“They are also increasing the cost for consumers. And there’s discomfort amongst many industries above them. They need to be reviewed. Act 36, which manages the importation, and the registration of agrochemicals and other inputs that we need in a sector. It needs to be modernised so that the process can be smooth.”
Embracing technology
Continuous adoption of scientific advancements, including improved seed varieties, remains vital.
“We have to continue to embrace science and not be anti improved seed varieties,” Sihlobo remarked, emphasising the importance of staying ahead with new cultivars to enhance productivity.
“That improvement I talked about from 1994 to today in addition to just the genetics, it has also been improvement of better seed cultivars and we have to stay ahead of the game so that the productivity can be open on that. And the seed breeders upbringing, the technology to the table. The government has to be open to accepting that technology because it is fundamental for our improvement as a sector.”
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Expanding export markets
With half of the country’s agricultural output destined for export, securing new markets is vital to accommodate increased production.
“We are exporting half of what we produce. If output increases, we need more export markets,” Sihlobo explained. “We have to have also more export markets to actually be able to send those product to water.”
Infrastructure development
Investment in water infrastructure, roads, and railways is crucial.
“Water infrastructure is another area that we have to be focusing on,” Sihlobo noted, stressing the need for robust logistics support. Enhancing research and statistics to guide decision-making within the sector is also critical.
“Statistics which guides decision making is something that the department of agriculture have to strengthen and work on that with organised agriculture.”
Rural security and development
Addressing issues like stock theft and improving rural safety will create a more conducive environment for agricultural activities. “We know about the stock theft. These are things that need to be addressed,” Sihlobo added.
Effective municipal operations are also necessary to support local infrastructure and agricultural growth.
“Aspects of roads, railway line, water policy and infrastructure, it has to remain fundamental and the operation Phakisa is prioritising those things. And I think that’s important that the municipalities to be effective because when they operate, it is only at that time where we could actually be able to deliver progress.”
Operation Phakisa, a government initiative aimed at fast-tracking key projects, is prioritising many of these elements. The collaboration between government and organised agriculture bodies is essential for the successful implementation of these goals.
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