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.
The poor service delivery by municipalities is driving business away and leading to ghost towns. We have recently learned of a similar situation with Clover leaving Lichtenburg because of poor service delivery by municipal officials. This challenge is not unique to Lichtenburg but familiar across many towns across South Africa.
South Africa’s agricultural sector has not, in the recent past, had a season as good as the current one. This is evident from the Agbiz/IDC Agribusiness Confidence Index (ACI), which in the second quarter of this year reached a record high (since its inception in 2001) of 75, from 64 in the first quarter of 2021.
This week I joined The Finance Ghost and Mohammed Nalla (Moe-Knows) to discuss the investment opportunity in the South African agricultural sector.