Political landscape of the South African Agricultural Sector

The Political Landscape of the Agricultural Sector in South Africa

                                                                                                                                   Stes de Necker

There is little space left in South Africa for mediocre economic activities and peace meal handouts to satisfy the needs of the masses. South Africa is the most modern economy on the African continent and has already established itself as the gateway to the rest of Africa for most overseas business wishing to invest in Africa. Retaining this position will however require the speedy development of major reliable and economically viable business ventures.

Away from the resources and energy of the main agricultural producing areas of South Africa, polite political expressions of loyalty, poor service delivery and sheer incompetence seems to be the order of the day. Creative and effective participation in the global economy, by all farmers in the agricultural sector, requires an entirely different mindset – a mindset that dares to be less governmental, that challenges conventional development policies and foster competitive regional and global linkages.

With the best intentions in the world, present South African Government policies, mentorships, NGO’s and commodity organizations have at best only succeeded in the establishment of a few subsistence farming operations. These efforts are doomed to failure unless a long term remedy can be found to stop the continuous decline in economically viable agricultural production.

Nowhere in modern history has governments been able to conduct farming operations economically and sustainably within the confines of rigid governmental policies and statutory regulations. Communist Russia, Cuba and most recently Zimbabwe are prime examples of this incapacity. Numerous regimes in the rest of Africa have also failed to effectively produce food for their citizens.

Inadequate agricultural development policies coupled with constant rising input costs and the accompanying inability of many farmers to maximize revenue in the market place, have forced many farmers off their land. Further more the majority of South African farmers, especially emerging and existing small to medium scale farmers, are unable to stay abreast of modern scientific methodology and technology due mainly to financial constrains and inadequate support structures. The proportional contribution of the agricultural sector to the Free State’s GGP has shown a constant annual decline since 2000. This decline has resulted in a net loss of some 175,000 jobs during the period 2000 – 2009. The biggest threat to future food security in South Africa is the current exodus of farmers from the agricultural sector due to economic pressures. 

Countries like Brazil, The Ukraine and China have largely converted to new generation fuel efficient tractors and farming equipment. Combined with modern production methods like for example scientific minimum tillage and water harvesting techniques, this change-over not only made it possible for many established farmers to survive the international economic pressures on agriculture, but also to increase their production and profitability. In South Africa the only successful farmers are those who are applying modern scientific methodologies and technologies in order to ensure their eventual success.

As a result of stable government and disciplined macro-economic policies, South Africa has managed to remain part of the international mainstream economy since 1994. This is however proving to be increasingly more difficult. Greater efficiency in terms of government service delivery, increased productivity and economically productive investment is critically necessary.

Should South Africa loose further ground in competing in the international economic arena it would most certainly join the likes of Zimbabwe, Myanmar, North Korea and Somalia as the failed states of the recent world order. South Africa faces real and possible ejection from the first world economy to a position of a typical third world economy. This could happen sooner rather than later. Kenya’s recent political upheavals demonstrated just how rapidly a country can tumble towards this position.

Anyone interested in engageing in debate with Stes de Necker on this issue is welcome to do so. Stes can be contacted by Email at: stesdenecker@telkomsa.net or fax him at 0866125254

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