With ample agricultural harvests, why is South Africa still seeing food prices rising – and what is the outlook for the rest of the year?
South Africa’s agricultural sector could have expanded more than what we observed in the past decade had it not been hindered by the following challenges, (1) inefficiencies in state administration, (2) infrastructure challenges, (3) lack of security in rural areas and (4) prevailing uncertainty.
The high court on the ruling Ingonyama Trust leasing land held in custody highlights the dangers.
The United States Department of Agriculture reaffirmed its view that Zimbabwe’s 2020/21 maize crop could amount to 2,7 million tonnes, almost 200% from the 907,628 tonnes produced in the previous season. Notably, this is the largest harvest since 1984/85. With Zimbabwe’s annual maize needs at roughly 2,0 million tonnes, there will be enough, and the country could even export if needs be, something that would be the first since 2001, when the country last exported maize.
163 of the 278 local authorities in South Africa are in financial distress, and 40 are in serious financial and service delivery crisis.