There is a need to follow up commitments made by President Cyril Ramaphosa during his state of the nation address with real action, the agricultural business organisation Agbiz said.
It said there were several positives, including South Africa’s removal from the grey list and the classification of foot-and-mouth disease as a national disaster.
While the commitments regarding local government reform and infrastructure spending were encouraging, “we will hold off on celebrating until we witness tangible implementation of these reforms”, Agbiz chairperson Sean Walsh said.
Agribusinesses spend millions each year performing the functions that municipalities should fulfil.
— Sean Walsh, Agbiz chairperson
He said for agribusinesses operating in rural towns, interruptions in water and electricity supply and neglected infrastructure such as roads and rail were Agbiz’s single biggest challenge to doing business.
“Agribusinesses spend millions each year performing the functions that municipalities should fulfil. We do so because we have to, but it increases the costs and erodes our ability to operate sustainably.”
He said there must be financial consequences for municipalities that did not perform.
Walsh said Agbiz was calling on the government to follow through with its threat to remove functions from local governments that did not perform.
Agbiz CEO Theo Boshoff called on the government to protect critical industries that drove inclusive growth.
“From an agribusiness point of view, it was good to hear the president emphasise the contribution that the agricultural value chain makes to inclusive growth and employment in the country.
“Be that as it may, it cannot be taken for granted that the sector will always be competitive in the face of serious challenges.”
Boshoff said reference to increased excise and restrictions on advertising in the liquor industry was a case in point.
“On the one hand, a new structure is being created to investigate illicit trade, but on the other hand, we are making policy pronouncements that make it near-impossible for the legitimate industry to compete with the illicit economy. A dose of realism and pragmatism is sorely needed.”
“While we recognise that the state must play the central role in eradicating a controlled disease, the state’s efforts must be complemented by pre-emptive, voluntary vaccination by the sector as soon as sufficient vaccines are available for purchase.”
— Theo Boshoff, Agbiz CEO
Addressing animal health and collaboration with the private sector, Boshoff said, to Ramaphosa’s credit, he recognised the importance of combating foot-and-mouth disease, but Agbiz would have liked to see more details and the extending of an olive branch to the private sector to assist.
“While we recognise that the state must play the central role in eradicating a controlled disease, the state’s efforts must be complemented by pre-emptive, voluntary vaccination by the sector as soon as sufficient vaccines are available for purchase.”
Boshoff said the focus must now be to vaccinate as many animals as possible in the shortest possible time.
“For this to work, we need to collaborate in the same manner as we did during the Covid-19 vaccine rollout.”
Agbiz also welcomed the announcement that additional capacity was being made available for trade negotiations at such a critical time.
“Many subsectors are trying to find alternative markets after the imposition of 30% tariffs by the United States. The private sector can find markets, but we will only be competitive if the state can negotiate tariff concessions akin to those enjoyed by our biggest competitors in the southern hemisphere,” Walsh said.
TimesLIVE
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