Stop sending mixed messages

IF AGRICULTURE Minister Senzeni Zokwana was contemplating a career as a negotiator, he had better think again.

It is Negotiation 101 that you do not reveal what it is you really need to achieve, as opposed to which demands are merely tactical. Mr Zokwana does not seem to get that: he told Reuters last week that the 12,000ha cap on land ownership that President Jacob Zuma announced in his state of the nation speech was just a "negotiating tactic".

That should stop anyone taking the government’s proposal seriously. Yet far from making things better, it is likely to make them worse, further eroding land reform efforts and SA’s beleaguered agricultural sector. The government has floated a variety of proposals aimed at transforming the sector, from a ban on ownership by foreigners, the 12,000ha ceiling, and a suggestion that farmers should transfer 50% of their farms to their workers. More

Source: www.bdlive.co.za

Zuma stance may harvest a food crisis

IN his state of the nation address, President Jacob Zuma said foreign land ownership was a threat to South Africa’s control of its own food security and therefore foreigners would not be allowed to own land. In addition, the government would cap all land ownership at 12 000ha, he said.

The only part of this that Omri van Zyl, the head of agribusiness at Deloitte, agrees with is that South Africa, as he spells out in a recent report, really is facing a looming food security crisis. But the only effect of Zuma’s comments, whether anything comes of them or not, will be to bring this crisis forward, he says.

Zuma’s remarks about foreign land ownership threatening our control over food security have no basis in fact and only add to, and illustrate, the policy uncertainty that bedevils the local agriculture sector and deters foreign investment. More

Source: www.bdlive.co.za

Cape aims for ‘at least 70% success’ in agricultural land-reform projects

THE Western Cape wants to ensure that at least 70% of all agricultural land-reform projects are successful over the next five years, finance MEC Ivan Meyer said on Thursday.
Delivering the Western Cape’s R52bn budget in the provincial legislature, Mr Meyer said that an amount of R2.4bn over the next three years would be made available to focus on the value chain of agricultural support and services for the sector with specific emphasis on transformation.
The issue of land reform has taken centre stage in recent times with the government under pressure to transform the agricultural sector and address the injustices of the past. In his state of the nation address in February, President Jacob Zuma said that land had become a critical factor in achieving redress for past wrongs.
Mr Meyer said in his budget speech that the agricultural sector in the Western Cape was an important contributor to the regional economy.
"The Western Cape is also South Africa’s key agricultural export region ... the province wants to ensure that at least 70% of all agricultural land-reform projects are successful over the next five years," Mr Meyer said.
Among other things, the province would support the farmers and industries to increase sustainable agricultural production by at least 10% over the next 10 years and boost agricultural and related economic opportunities in selected rural areas. More

Source: www.bdlive.co.za

Electricity supply constraints weigh on confidence of S Africa’s CEOs

More than half CEOs surveyed as part of the latest Merchantec CEO Confidence Index, said load-shedding was negatively impacting businesses, as it lowered productivity and raised costs.

The index, released on Wednesday, showed that 76.2% of CEOs felt that load-shedding would have a greater impact on their business activities than the positive impact of the drop in the oil price.

Eighty-nine per cent of CEOs in the basic resources sector expected load-shedding to have a significant negative impact on their bottom lines. As a result, CEOs suggested that the provision of energy should be opened to the private sector and believed that this would provide job opportunities, competitive prices and sustainable energy provision in the medium to long term. More»

Source: Engineering News

Eight African business trends to profit from in 2015

Defining your business strategy generally involves setting goals, determining actions to achieve the goals, and mobilising resources to pursue your strategy. And knowing current market trends is key to smart strategic planning in Africa. Here are eight business trends and a few tips for increased profitability in 2015.

1. Bet on value addition

2. Fast-moving consumer products will make up Africa’s top sector

3. Intra-African trade is growing fast

4. E-commerce is gaining momentum

5. Africans are looking for export markets

6. The East African Community growing into a top market destination

7. Women-focused business is a smart success strategy

8. Africa needs managers

1. Bet on value addition

African governments are promoting value addition for economic development and there are huge gaps to be filled. This means manufacturing processes that add value to raw products and materials will happen increasingly, generating more money on the continent.

Can you for example imagine an economic powerhouse like Nigeria is annually importing tropical fruit concentrate worth millions of dollars from the west? The value of these imports was estimated at $140m in 2014. Yet fruits are regularly rotting away in Nigeria and across the continent because farmers cannot transport them to major markets either in time or at a profit. This is one example of adding value to raw produce and increasing your profitability, tapping right into African market gaps and trends... READ MORE

Source: www.howwemadeitinafrica.com

Chicken imports may rise as duty lapses

Preliminary antidumping duties against imports of frozen bone-in chicken from three of SA’s trading partners in the European Union have lapsed in the new year, opening the way for increased inflows until SA completes an antidumping investigation.

Although the lapsing of the duties that range from 22% to 73% means poultry from Germany, the Netherlands and UK can enter SA duty free, the detection of bird flu in these countries since November last year is expected to put a lid on imports into SA.

International Trade Administration Commission (Itac) communications manager Foster Mohale said on Wednesday that its investigation into the allegations by the South African Poultry Association, that these countries were dumping frozen bone-in chicken in the Southern African Customs Union market, would be finalised by the end of next month.

However, Itac still had until the end of April to decide if it was necessary to impose the duties for at least five years. READ MORE

Source: www.bdlive.co.za

Agriculture holds untold opportunities for youth

Heavy travelling in the region of the Kei River during the festive season made me think of the importance of making agriculture more fashionable and glamorous, especially for those leaving school or seeking a better life.

With last year’s matric results out, now is the time to convince many young matriculants of the opportunities in the farming sector. More money needs to be invested in training young black farmers if the country is serious about transforming this sector and dealing with high unemployment.

This duty does not lie with the government alone — it is the responsibility of all who have a voice in society, including the financial services sector, which has the funding key to making the fertile land more productive. 

To the doubting Thomases, let me tell you I have seen it with my own eyes — there is so much unused green land in the countryside that is in need of serious farmers, especially those from previously disadvantaged communities.

If you do not believe me, drive through the Kei and see how many hectares of green land, especially in rural areas, lie fallow. I would not be shocked if this is not restricted to this part of SA.

During the festive season, I spoke to two elderly farmers, one an Afrikaner and the other Xhosa. The number of cows and sheep they say they sold in this festive season and the cash they generated convinced me that it is possible to lead a wealthy life just through farming. For those young people aspiring to buy Porsches and Ferraris and own multimillion-rand houses, I bet these can be bought through farming and not just through state tenders from the local municipality. If you are unconvinced, spend some time with established farmers to see what I am talking about. READ MORE

Source: www.bdlive.co.za
BY PHAKAMISA NDZAMELA