Here is Sihlobo...

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He refers to the Economic Transformation Committee of the ANC and Business for South Africa (B4SA), which each released their discussion documents about the post-Covid-19 inclusive economy for South Africa.

On the priority sectors for growth and job creation, agriculture features prominently in both documents. On a positive note, both the ANC's and B4SA's agricultural development views are framed from chapter six of the National Development Plan (NDP). This  highlights the need to expand irrigated agricultural land by one-third by 2030 and expand commercial agricultural production as well. The prioritisation of subsectors and regions that have high potential and are labour intensive also need to be expanded. According to Sihlobo there is also focus on the need for increased transformation in agriculture and its value chain.   Both plans recognise poor infrastructure in the former homeland regions and general logistics to move produce to the ports and processing plants for established agriculture. This is an area that needs urgent attention. Another point of commonality that arises from both B4SA’s and the ANC’s economic recovery document is the need to improve agricultural finance through stabilising the Land Bank.

What these documents are perhaps silent on is a recognition that the aforementioned agricultural ideas have been touted since 2012, but accompanied by limited success on implementation over the past couple of years. This is not to suggest  there is a need for change in the framing of agricultural development. The ANC also notes “the state should mobilise development partners, including the World Bank, the African Development Bank, the private sector and impact funders to contribute towards developing a thriving rural economy centered on agriculture.”  He says there is evidence that partnerships between the private sector and government have, in some cases, piloted successful programmes to drive transformation.  Another important point of deviation between the ANC and B4SA is land reform, which is crucial to fully realise the aforementioned vision of agricultural expansion.

On this point, B4SA argued for strengthened property rights and the extension of secure tenure or tradable leases in government land as part of means to attract investment, which in the long run leads to growth. Meanwhile, the ANC argues the state should release land to individuals, but is not clear on whether on tradable leases or another form of tenure rights will be afforded to the holders and occupiers of these land parcels.  Moreover, the ANC argued  “to acquire land for redistribution, the programme to expropriate land in line with the existing legal and constitutional prescripts should be continued. To further accelerate land redistribution consideration should also be given to the taxation of unused land.” A position which was not shared by B4SA.

That was Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz. To listen to inserts  go to www.ofm.co.za, click on News, Agriculture, and the Agri Hour. Tune into OFM weekdays at 11:00 and 13:30 for your latest agricultural news bulletins.  To listen to these inserts again go to http://www.ofm.co.za, click on News, Agriculture and Agri Hour. Stay tuned for the 11:00 and 13:30 agricultural news bulletins on weekdays only on OFM. 

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