Transport, protectionism and biosecurity are issues that must be dealt with to avoid emergencies
I spent most of July on the road, engaging with agribusiness and people in the sector in various regions of SA. The feedback about the near-term outlook was reasonably positive in all our engagements, with many attributing their optimism to the favourable 2022/23 summer crop and 2023/24 winter crop seasons.
Beyond that, everyone agreed that persistent load-shedding, rising protectionism in key export markets, high interest rates, intensified geopolitical tensions, continued dysfunction in municipalities and network industries and the deterioration of rural roads remain a significant threat to the sustainability of their businesses.
Compounding the issue is the reality that SA now transports more than two-thirds of its agricultural produce by road, as a result of well-documented rail constraints. Higher agricultural output without functional roads doesn’t yield the full financial benefit to farmers and agribusinesses; some of them even fund construction out of their own pockets to maintain roads.
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