Purchase spoke in response to the Finance Minister Tito Mboweni's Budget Speech.

Acknowledging the tough macroeconomic conditions, characterised by a weak economy, poor revenue collection and the need for increased government spending, Agbiz has welcomed what is terms a frank assessment by the minister.

"Moreover, support from National Treasury should focus on enabling municipalities to meet their financial obligations, most notably to Eskom," Agbiz said. 

“From an agribusiness perspective, the power disruptions experienced as a result of municipal non-payment over the recent past have created tough operational conditions,” Purchase said. 

“Prudent financial management at local government is critical for economic development in rural areas.” 

The pronouncement of a R3.7 billion allocation to agricultural development to help black farmers purchase land and acquire title deeds was significant, he said, "as a way which would unlock the liquidity of the land market and, in turn, boost production". 

However, he said that spending on agriculture remained marginal.

“Appreciating the economic constraints at the present moment, there is a need for increased allocations in this sector to address systemic challenges such as biosecurity and research and development, if we continue to deem it as key for job creation and inclusive growth in the South African economy,” Purchase said.

Purchase also hailed the increase in allocations to the Jobs Fund and the expansion of the Employment Tax Incentive, because they have shown that they are viable and work well. 

African  News Agency (ANA)