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.
The decline in the sector’s output for the 3 months ending March likely to be temporary with bumper harvests expected.
Production forecasts suggest that global crop prices from June going forward could soften slightly from the recent months’ levels, which could also influence the South African consumer food price inflation outlook.