By Dr Thulasizwe Mkhabela
The South African economy has been bedevilled by multifaceted structural and policy-related challenges that have magnified the oft-referred to triple challenges of unemployment, inequality and poverty.
The ongoing electricity crisis and dilapidating logistics infrastructure are chief among immediate bottlenecks stifling economic growth in the country.
Although agriculture is a relatively small sector in the South African economy in terms of its contribution to the Gross Domestic Product (GDP), it has been a stellar performer in shoring up the economy and thus has become one of the major redeeming features of the South African economic performance.
The agriculture sector thus warrants focused attention from both the public and private sector to create and maintain a conducive environment within which to grow and thrive.
Agriculture, by its very nature, is often predominant in far-flung remote rural areas. These remote and rural areas bear the brunt of neglect in terms of both a paucity and decay of critical infrastructure such as roads, bulk infrastructure, and limited capacity of municipalities to provide and maintain infrastructure and basic service delivery.
Most of the agriculturally important regions in the country have some of the worst maintained road networks with gaping potholes for kilometres on end. This adversely affects the performance of the agriculture sector and puts a strain on an already difficult economic activity.
It is often said the first and the last miles are most important in delivering quality agricultural products to the market and engendering competitiveness on the part of producers. The poor state of most rural roads in South Africa can thus be seen as a hindrance for the agricultural sector to flourish and acts as a barrier to entry to new entrants in the sector, thus flying in the face of the rhetoric on land reform and rural development championed by the Department of Agriculture, Land Reform and Rural Development (Dalrrd).
There can be no doubt that South Africa urgently needs to address the provision of agri-logistics and rural infrastructure for agricultural and rural development to be realised.
The country needs investment in agricultural and rural infrastructure that supports expansion of production and employment, small-scale farming, and rural development.
The rural areas of South Africa are in a desperate need of infrastructure such as facilities for storage (silos, fresh produce facilities, packing houses, etc), transport links to main networks (rural roads, branch trainlines, ports, etc), and the fencing of farms.
Other critical infrastructure includes irrigation schemes in poor and underdeveloped areas, improved research and development (R&D) on pertinent rural issues (including the expansion and revitalisation of agricultural colleges), processing facilities such as abattoirs, feedlots, and dairy parlours, aquaculture incubation schemes, and rural tourism infrastructure.
To bridge this gap, provinces like KwaZulu-Natal have started implementing programmes such as Agri-Hubs following on pioneer ones in other provinces. For example, by 2017, three Agri-Hubs were operational in Ncora (Eastern Cape), Springbokpan (North West) and Westonaria (Gauteng).
The idea of improving rural infrastructure is not alien to the South African policymaker. For example, in 2012, the government adopted a National Infrastructure Plan. This plan was then subdivided in several Strategic Infrastructure Plans (SIPs). Agri-logistics and rural infrastructure was allocated under SIP 11.
The overarching objective of the National Infrastructure Plan was to transform the South African economic landscape while simultaneously creating significant numbers of new jobs and strengthening the delivery of basic services. The plan was also intended to support the integration of African economies and now espoused in the Africa Continental Free Trade Agreement/Area (AfCFTA).
The initial plan was to invest R827 billion in building new and upgrading existing infrastructure over three years from 2013/14. Much was made of the National Infrastructure Plan, also known as the Presidential Strategic Infrastructure Plan, but the outcomes of such remain shrouded in mystery.
While the intentions were noble and congruent with a developmental state approach, it still remains to be seen if the desired outcomes and impact were obtained. There is little circumstantial evidence to suggest that the plan worked, as one is still faced by a paucity of functional strategic infrastructure in support of the agricultural sector.
The South African landscape is littered with structures and infrastructure that were established, but have either become mothballed or were white elephants from the start due to ill-conception, poor planning and an over-exuberance to spend on the construction of such.
While South Africa’s recent record with the provision of strategic infrastructure in support of agricultural and rural development is dismally poor, there is no doubt that the need remains for the provision of such as a precondition for the successful take-off and thriving of both agricultural and rural development.
The value of off-farm infrastructure cannot be overshadowed or substituted by the provision of on-farm infrastructure. The two are not mutually exclusive but complementary.
This is particularly important as the government has put on hold its on-farm support for the land reform programme under the erstwhile Recapitalisation Programme (Recap).
South Africa is known for its ability to conceptualise grand ideas, but the ability to plan and strategise is hampered by an overwhelming inability to execute and implement programmes. Hence there is a need for an evaluation of the National Infrastructure Plan to elucidate lessons learnt and identify gaps that still exist.
Dr Thulasizwe Mkhabela is an independent agricultural researcher and policy analyst with extensive experience on South African and African agricultural and development issues, including stakeholder engagement and social transitioning in mining. He is also a director and senior researcher at Outcome Mapping: [email protected].
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