President Cyril Ramaphosa’s State Of The Nation Address (SONA) has given us some nutritious nuggets to chew on. You see, although South Africa’s agriculture has grown tremendously over the past three decades (more than doubled), it faces some challenges.
Governance
Some of the challenges confronting the sector include port inefficiencies, deteriorating roads, rural crime and stock theft, rising global protectionism, and inept municipalities.
President Ramaphosa outlined the government’s plans to address many of these challenges in his State of the Nation Address. The need for professionalization of civil servants, planned improvement of water infrastructure and simplification of regulations, ongoing reforms of Operation Vulindlela in the broader network industries, interventions on logistics, and improving safety and reducing crime are some areas the SONA highlighted.
The President captured the core of agricultural matters by stating, “By supporting our farmers, improving our logistics network and rural supply chains, and opening new export markets for products, we can significantly expand our agricultural sector.”
Social
We believe South Africa’s agriculture will see its gross value added (fortunes) expand by 30% in the coming years, creating more jobs.
Still, we think the one fundamental area that the President should have highlighted is the urgent release of the 2,5 million hectares of state land for agriculture to appropriately selected beneficiaries with title deeds.
The release of this land, combined with the reforms outlined in the SONA and the opening of the export markets, would help us grow the sector and end the dualism that has made South Africa a “Country of Two Agricultures.”
This disparity limits the sector’s growth potential and must be addressed urgently. The Agriculture and Agro-processing Master Plan outlines the appropriate approach for inclusive growth.
A more inclusive sector would have a much stronger shared vision and possibly grow faster. The land currently in the government books is one area where the inclusive approach could be kicked off, including more young people and women and closing racial disparities.
Environment
Another point that is silent in the SONA but broadly discussed in agriculture is sustainability. You see, South Africa has already made inroads in improving the farming methods. We must continue caring for our farming environment to ensure the land sustainably serves the next generation.
Our efforts to improve farming will also provide continuous access to key markets such as the EU, where environmental issues in agriculture are becoming a big debate.
Closing remark
Overall, while the agricultural statement was brief in the SONA, the President addressed the fundamental matters.
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