Infrastructure challenges are harming competitiveness and having a negative effect on SA agricultural exports
SA’s infrastructure challenges are resulting in lost competitiveness and are having a negative effect on the country’s agricultural exports. The agricultural industry is a big foreign exchange earner, with minerals, vehicles and niche manufacturing, and the sector’s continued competitiveness relies on access to effective and efficient logistics systems.
The ports of Cape Town, Durban, Gqeberha and Ngqura, all managed by parastatal Transnet, are among the worst-performing in the world, according to a 2020 assessment by the World Bank, and the recent floods in KwaZulu-Natal will have made the situation in Durban worse. Transport problems are eroding the profitability of the farming sector, placing its future under threat. The roundtable discussion was told that port inefficiencies cost producers of yellow maize up to R200/ton in additional costs and that rail inefficiencies add a further R150/ton.
This not only hits the bottom line of producers, it also results in a deepened trust deficit between the agriculture sector and the government. Farmers are less likely to participate in land reform or other government-led initiatives when they feel let down. The industry has warned that any ill-conceived attempts to expropriate productive land will not only undermine agricultural growth and food security, but would also do enormous harm to SA’s reputation as an attractive investment destination.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ANN CROTTY: Why Ukraine is the poorest country in EuropeHome-grown oligarchs have been keeping the former Soviet republic poor, even in days of plenty.
Read more »
Zuke reveals Lebese & Masango plansFormer Kaizer Chiefs development player Sandile Zuke has shared what has kept him playing going despite the challenges and reveals the conversations with George Lebese and Mandla Masango. SLSiya Read more:
Read more »
Human rights activist Rhoda Kadalie passes on - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Human rights activist Rhoda Kadalie has died at the age of 68 in Los Angeles.
Read more »
Human rights activist Rhoda Kadalie remembered following her passingZain Johnson speaks to SA Human Rights Commissioner, Rev. Chris NIssen.
Read more »
KZN floods: Donations needed as recovery and rebuilding beginsHot meals, blankets, bottled water and warm clothes are needed by people who have lost everything
Read more »
Road closures in flood-ravaged KZN put strain on agriculture sector — UnionThe export of produce and imports of agricultural goods have been significantly affected by the recent severe weather conditions in in KwaZulu-Natal, the KZN Agricultural Union said on Friday.
Read more »