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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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