Durban — An economist at Agri SA, Kulani Siweya, said that Finance Minister Enoch Godongwana’s Budget speech demonstrated an understanding of the particular difficulties faced by the agricultural sector, with significant implications for food security.
Siweya added that the sector welcomed the finance minister's budget for 2023, but said that he should have gone further in addressing the challenges facing agriculture.
While highlighting Agri SA’s expectations towards Godongwana’s 2023 budget, Siweya said that his organisation expected decisive interventions to be announced to protect food security.
He added that it was crucial for the finance minister to announce measures to protect the country’s food security.
“With load shedding, the most urgent threat to the country’s farmers, the government must be resolute in allocating resources to buttress farmers from the worst effects of the protracted electricity crisis, to ensure the sustainable production of food in the interests of all South Africans,” Siweya had said.
“Godongwana’s budget reflected a sober analysis of the environment in which the agricultural sector operated, and we welcome the debt relief for Eskom, recognising the dire condition of this critical entity,” Siweya added.
“It is important, however, for Eskom now to demonstrate how it will use this opportunity to position itself for future sustainability and profitability,” said Siweya.
Siweya further said that Agri SA also acknowledged the measures put in place to assist the agricultural sector while the government works to put Eskom on a firmer footing.
Siweya added that of particular importance is the extension of the rebate of the Road Accident Fund levy for diesel used by manufacturers of foodstuff. Siweya said this intervention would help contain the cost of food production to the benefit of consumers.
Siweya further said that the implementation of the Fiscal Support Package to address the energy crisis would also go a long way to assisting both households and businesses in this difficult environment.
“The planned spending of more than R480 billion on critical infrastructure, including transport and logistics, as well as water and sanitation, also reflects the treasury's understanding of the essential contribution of these vital projects to the national economy and the country’s food security,” he said.
In conclusion, Siweya said that there remained areas of concern in the National Budget, notably the public sector wage bill.
He added that this is a critical moment for the agricultural sector, which is being battered by load shedding.
Agri SA is the biggest agricultural organisations in South Africa established in 1904 and consists of provincial affiliates, commodity organisations and corporate members
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