The chief economist at the Agricultural Business Chamber of South Africa (Agbiz), Wandile Sihlobo, adds that the tourism and agricultural sectors could help ease some of these challenges. 

However, they face various constraints that limit their growth potential.

“Beyond the big topics of ambiguous land reform and international trade in the case of agriculture, the everyday challenge for farmers, agribusinesses and tourism entities is the dire state of local road networks, deteriorating water infrastructure and high crime levels.

“Many people, myself included, have tried to keep this issue at the forefront of public policy discourse over the past two years. 

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"Food and beverage group Clover’s decision in 2021 to move its cheese production from Lichtenburg in the North West to an existing plant outside Durban in KwaZulu-Natal as a result of ongoing poor service delivery, brought to light the real economic consequences of these challenges.

“The company had provided more than 400 jobs in Lichtenburg and there were other positive economic spin-offs for the community,” shares Sihlobo.

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He adds that other similar instances include Astral in the Lekwa Local Municipality in Mpumalanga, where the poultry-producing company lost millions of rands because of the municipality’s failure to provide reliable water and electricity supplies.

“In my home province, the Eastern Cape, dairy-producing organisations such as Amadlelo Agri and others are struggling to move their fresh milk to market because of the dire state of the roads, especially after recent heavy rains.

“They also face challenges of poor maintenance of water infrastructure.”

Sihlobo says that if municipalities could resolve the ongoing water, sewerage and road infrastructure issues in rural communities, farmers and tourism businesses would receive a much-needed financial boost. 

This is because tourists would visit these areas and farmers would be able to transport their produce to markets and farm with fewer challenges.

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