In his budget vote speech today, agriculture minister John Steenhuisen reaffirmed government’s commitment to the Agriculture and Agro-processing Master Plan (AAMP), a comprehensive framework designed to foster inclusive growth within South Africa’s agricultural sector.
This is the view of Agbiz chief economist Wandile Sihlobo who commended the minister’s emphasis on continuity from the sixth administration and a dedicated push towards relentless implementation of the AAMP.
Steenhuisen highlighted the broad sectoral support that the AAMP has garnered since its adoption in 2022, emphasising his intention to focus on accelerating the implementation of its objectives rather than reinventing the wheel.
“The AAMP adoption process has enjoyed broad sectoral support, and I wish to clarify that I have no intention of reinventing the wheel. Instead, the focus will rather be on accelerating the implementation of the objectives of the AAMP and ensuring that my department upholds its commitments contained in the plan,” Steenhuisen stated.
This approach was lauded by Sihlobo, who underscored the importance of the plan’s “value chain deep dives,” which address the challenges and opportunities within each commodity and outline specific interventions to spur growth.
Regional focus and inclusive growth
A crucial aspect of the AAMP is its commodity corridor approach, aimed at unlocking the agricultural potential in regions that have lagged behind, such as the Eastern Cape, Limpopo, and KwaZulu-Natal.
The plan also seeks to utilise underperforming government-owned farms acquired through the Pro-active Land Acquisition Strategy (PALS). Sihlobo underscored the importance of clear communication and collaboration with stakeholders across all government levels to ensure the AAMP’s ambitions are understood and supported.
Sihlobo furthermore noted the significance of partnerships between the private sector, labour, and other social partners in achieving the AAMP’s goals. Steenhuisen echoed this sentiment, stating, “The collaborative approach we need involves leveraging the skills, resources, and knowledge already available in the private sector, industry, and agribusiness to work hand in hand with the government.”
A notable component of the AAMP’s success is financial support, particularly for new-era farmers. Steenhuisen acknowledged the barriers to finance faced by these farmers and highlighted the blended finance scheme, administered by Land Bank, as a solution.
This scheme combines state-provided grants with loans from private financial institutions, including development banks, to increase access to affordable finance for black producers in the agriculture and agro-processing sector.
Focus on innovation and biosecurity
Innovation, research, and development were identified as key drivers for technological advancement and best practices within the sector. Sihlobo welcomed the minister’s prioritisation of these areas and called for deeper engagement with scientists on new breeding technologies to establish a fit-for-purpose regulatory framework.
Moreover, biosecurity, especially animal health, remains a primary focus given its critical importance to the livestock and poultry industries, which constitute roughly half of South Africa’s farming economy. The minister emphasised ongoing collaboration between the private sector and the government to enhance biosecurity measures and support the country’s ambitions to expand its red meat and wool exports.
Sihlobo highlighted the necessity of collaboration with the department of land reform and rural development for the AAMP’s success. He urged the continued release of over two million hectares of state land to beneficiaries with title deeds, an initiative already underway by former minister Thoko Didiza.
The Land Reform Agency proposed by President Ramaphosa was identified as a pivotal instrument for efficiently managing land release, while the department of land reform and rural development should focus on critical policy issues like communal land tenure reform.
READ NEXT: Nedbank & Pals lead MPU farmers towards responsible leadership
