The agriculture sector, deeply affected by South Africa’s worsening energy crisis, has commended Cyril Ramaphosa for “reading the mood”. This follows a decision by the president to cancel his trip to Davos in Switzerland where he was scheduled to lead the country’s delegation to the World Economic Forum (WEF).
According to presidency spokesperson Vincent Magwenya, the president cancelled his trip to urgently attend to the Eskom crisis.
“South Africa faces an extraordinary energy crisis. President Ramaphosa is correct in prioritising this issue and cancelling his attendance at the WEF,” says Wandile Sihlobo, chief economist of Agbiz.
“We need to sort out the energy crisis as it is a prerequisite for any major economic activity. This is a reality for agriculture and any other sector of the economy.”
Other senior government and business leaders will now promote South Africa in Davos as a place for investment at this year’s World Economic Forum.
A country falling into ruins?
Cancelling his attendance at Davos presents an interesting set of optics, believes Dr Caryn Abrahams, an agricultural expert and senior lecturer at the Wits School of Governance.
“The president is signalling to South Africans that the current energy crisis is serious enough to warrant his hands-on attention.
“Of course, this relates to public sentiment of late that notes a groundswell of organised protests against the rolling blackouts as well as the recent Nersa decision to raise energy tariffs,” Abrahams tells Food For Mzansi.
However, withdrawal of his attendance at the WEF also has a different optic, she explains..
“All participants at the WEF need to demonstrate that they are in touch with their base, and the local political climate, the nature of the (national) economy and its risks and volatilities.
“Attendance would suggest – at least to its participants – that the WEF meeting is an indulgence while the country falls to ruins. And of course, those who critique the elite gathering at Davos believe so.”
Nationwide shutdown planned
In the meantime, an agriculture-focused sector task team comprising government leaders, agriculture role players and energy specialists has been established. This is on the back of a sectoral meeting with the minister of agriculture, land reform and rural development, Thoko Didiza, last Friday.
During the meeting sector leaders conveyed the difficulties faced by businesses and workers and the associated costs.
The task team will monitor the impact of load shedding on the sector and its ability to provide safe and nutritious food to South Africans.
According to the department, a technical process to measure the financial costs is currently underway and this will help draft the sectoral strategy. Short, medium and long-term interventions are being explored to ease the burden of load shedding within the farming, food, fibre and beverages value chains, the department said.
“Despite the current challenges , the agricultural industries will continue to ensure that availability of food and fibre is assured,” said Didiza.
Meanwhile, with every passing day that South Africa’s energy crisis deepens, members of the public, civil society organisations and political parties are lending their support to a nationwide shutdown. Many plan to either march to the Union Buildings or Eskom’s Megawatt Park offices in Johannesburg.
Speaking to Food For Mzansi, Christo van der Rheede, Agri SA’s CEO said Agri SA has not taken a final decision on whether it would support such a shutdown.
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