Durban – Agri SA is expecting decisive interventions to be announced to protect food security in the Budget Speech this week.
Agri SA agricultural economist Kulani Siweya said as South Africa awaits the 2023 Budget Speech to be delivered by Finance Minister Enoch Godongwana on Wednesday, February 22, it is crucial for Godongwana to announce measures to protect the country’s food security.
“With load shedding the most urgent threat to the nation’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 said.
He said that the Budget Speech comes on the heels of the State of the Nation Address by President Cyril Ramaphosa, in which a number of interventions were announced to help alleviate the electricity crisis.
“But more than appointing a minister of electricity or declaring a State of Disaster, the country’s food producers need concrete and practical budgetary and fiscal measures to assist in their plight,” Siweya said.
He said Godongwana must focus on the following three things:
∎ Providing higher rebates on diesel and petrol used for electricity generation.
∎ Implementing incentives to promote grid-connected generation capacity and reconnection of off-grid systems.
∎ Lowering or removing cumbersome taxes on struggling agricultural industries such as the excise taxes on tobacco, wine and beer, as well as the health promotion levy.
Siweya said that with Ramaphosa announcing a tax incentive for businesses to install rooftop solar, Godongwana needs to provide detail on this intervention and any special provisions for the agricultural sector.
He said the Budget Speech must also provide for the allocation of resources to building new infrastructure and repairing existing infrastructure, especially the crumbling road and rail networks to enable the sector and value chain partners to reliably supply food across the country.
“This intervention is particularly urgent now as more than half the country’s provinces have been battered by floods with devastating consequences for farmers. On this score too the State of Disaster concerning the floods urgently needs to be accompanied by sufficient funding to provide meaningful relief to the affected communities and farmers,” Siweya said.
He said Agri SA is deeply concerned about the confluence of challenges that have come together to make food production in South Africa especially difficult at this time.
“For the sake of the public that relies on the sector for sustenance, and for the workers who rely on us for their livelihoods, these challenges must be prioritised in the Budget. This is the only way to prevent sharp increases in food prices, food shortages, and job losses in South Africa,” Siweya said.
He added that Agri SA continues to work with urgency to engage crucial stakeholders and ensure that they find solutions to pressing problems timeously.
On Wednesday, Godongwana will table the 2023 Budget in the Cape Town city hall.
According to National Treasury, on Monday, Godongwana, South Africa’s Revenue Service commissioner Edward Kieswetter and the National Treasury executive council are putting the final touches to the Budget Speech ahead of Wednesday.
On Sunday, Eskom said Stage 6 load shedding is to be implemented continuously, until further notice.
It said that since Sunday afternoon a generating unit each broke down at Arnot, Hendrina, Lethabo and Majuba power stations as well as two units at Camden power station, which had to be taken off-line for repairs.
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