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ECONOMIC OUTLOOK need to be supported. Major risk areas include
FOR THE FUTURE health- and labour-related issues. Government
Although a lot is needed to continue taking South must improve the current systems by the upgrading
Africa forward, there is optimism in the agricultural of infrastructure in rural areas, water systems,
sector, and experts like Dr John Purchase (CEO transport systems and the improvement of service
of Agbiz), have a positive outlook on the future, delivery. For the small-scale cotton farmer, access
which is encouraging. Dr Purchase remains to ginneries and transport of seed cotton remains
hopeful that the agricultural sector will grow in a hurdle, as well as the costs of agri-chemical
the next decade, as indicated late in 2019 on inputs. For the commercial farmer, access to cost-
an Agbiz-VKB information day. According to effective seed and new technologies are crucial
him, current government engagement is far more to sustain the industry and promote growth.
positive than with previous country leaders. Investment is crucial to move the South African
Growth, investment, and increased agribusiness agricultural sector forward. A clear indication of
confidence are slowly but surely increasing. Amid what rules to follow to secure future investment will
this positivity, clear rules and building blocks to lead to business confidence and the attractiveness
encourage investment need to be put into place. thereof for local and global investment. In return,
These building blocks must include partnership the agricultural sector should continue to grow
with government, labour and the private sector. to create opportunities for employment and skills
Mentoring programmes to guide upcoming development. Land reform and expropriation
farmers, provision and access to funding, and without compensation leave most farmers and
clear rules regarding land expropriation and agribusinesses insecure, and they are not
reform to prevent any negative impact on food investing in the purchase of infrastructure and
security will be needed. new implements, as there is no certainty that they
This will improve and attract investors and will benefit from their investment. Land reform,
investor confidence. Markets need to be expanded water-usage and -provision, labour legislation,
locally and internationally, capital needs to be and other disabling policy issues need to be
substantiated and acquired, more equitable and clearly defined to create certainty. State-owned
sustainable farming practices should be applied entities need to become the enablers and not be
to attract global “greener” markets, and access the disablers as they are currently viewed by
to new technologies and the application thereof farming communities.
Figure 2: Whom farmers owe money to. (Source: Department of Agriculture, Forestry and Fisheries, 2019)
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