The 2025-26 annual Budget has been subjected to an unprecedented degree of interrogation and deliberation. But two inter-related issues have not been debated with sufficient rigour: the overall economic strategy in the budget, and the proposed increase in Value Added Tax (VAT). The VAT debate has been based largely on conjecture and ideology, rather than on the actual evidence of the impact of VAT, and its role in the country’s larger economic strategy. I address these lacunae in the budget debate in two parts. Part A addresses economic strategy. Part B is focused on evidence on the impact of VAT in South Africa, part A: The Budget and economic strategy. There is widespread agreement that the key challenge facing South Africa is how to shift the economy to a trajectory of higher growth. Some would argue that any growth would be good, because ultimately the benefits would trickle down to low-income groups. The evidence does not support this view. Click here to read full report by econ3x3.org.

The benchmark measure of world food commodity prices increased in April, driven by higher quotations for major cereals, meat and dairy products, the Food and Agriculture Organization of the United Nations (FAO) reported on Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 128.3 points in April, up 1.0 percent from March and 7.6 percent from the same month last year. The FAO Cereal Price Index increased by 1.2 percent from March. Global wheat prices edged up slightly, supported by tightening exportable supplies in the Russian Federation, while the FAO All Rice Price Index rose on stronger demand for fragrant varieties. International maize prices rose due to seasonally tighter stock levels in the United States of America. Currency fluctuations influenced price movements in world markets, while tariff policy adjustments raised market uncertainty. The FAO Meat Price Index was up 3.2 percent in April compared to March, with quotations rising across all meat categories, led by those for pig meat. Click here to read full report derived from fao.org.

At the recent 111th Development Committee Meeting in Washington, D.C., global finance and development leaders acknowledged a critical juncture: the world is at a tipping point. Wars, weather shocks, economic insecurity, and persistent inequality demand more than incremental action—they demand a shift in ambition. The World Bank Group is responding to this call by not only scaling up financing and deploying new instruments but by setting transformative targets that drive systemic change and demand real outcomes, such as more and better jobs. As President Ajay Banga emphasized, "We must be impatient for impact."  The focus should be on transforming lives sustainably, inclusively, and equitably. In essence: Don’t just score. Change the game. The concept of a target-driven organization is well-established, with recognition that combining a clear mission with transformational targets can reshape organizational capabilities. Read full blogs.worldbank.org here.

We typically focus on the national level when considering agricultural development and the possibilities of growth and jobs the sector can bring. Most of our plans, such as the recent Agriculture and Agro-processing Master Plan, heavily emphasise the national level. Consultations are also held nationally to develop or craft these plans. This is an important starting point for establishing a national viewpoint and rallying the support of the various stakeholders. Beyond this stage lies another critical step: translating the broad national views into provincial and regional plans. This is vital as most agricultural development depends on the local government’s delivery. The face of the government and the experience of farmers and other stakeholders on the ground are defined by the engagement with the local officials. Therefore, we must have an efficient path of always translating the broad national agricultural programmes into local interventions, which may differ province by province. Click here to read full article by Wandile Sihlobo.

We continue to see encouraging data about South Africa's 2024-25 summer grain and oilseeds production outlook, although the crop quality in some regions may be challenging. For example, the Crop Estimates Committee (CEC) forecasts South Africa's 2024-25 summer grain and oilseeds production at 18.01 million tonnes, up 0.05% from March 2025. Indeed, this is a mild uptick, but it remains crucial when some are worried that we might see a downward revision of the crop due to the excessive rains. This estimate comprises yellow and white maize, sunflower seeds, soybeans, groundnuts, sorghum, and dry beans. Essentially, this harvest estimate is 16% higher than the 2023-24 production season, representing a decent recovery from drought. Indeed, while the overall production figure was mildly up, there were some adjustments in the various commodities. For example, the maize harvest is up 1% from the March 2025 estimate to 14,66 million tonnes. Click here to read full article by Wandile Sihlobo. Click here to listen to podcast about the same topic.

It is increasingly clear that South Africa will need to strengthen its trade relations with the U.S. in light of the current tariff difficulties while also attempting to deepen trade with China. After all, these are both South Africa's leading trade partners. China has recently stated that it will oppose any country negotiating trade deals with the U.S. at its expense. Now, this may not apply to South Africa, as we are not looking to resolve our challenges with the U.S. at the expense of anyone. However, I would argue that the essence of China's comments highlights the broader point that South Africa should cultivate friendships with as many countries as possible and strengthen them with those countries. I suppose we can learn something from India, which appears to be friendly with many countries. To underscore a point I have made here previously, it is rather that we have a naked national interest – prioritising South Africa – and not be distracted by much else. Click here to read full article by Wandile Sihlobo.

This month, farming businesses in the Western Cape will start preparing the land for the 2025-26 winter crop production season. In the northern regions of South Africa, we had excellent rains, and perhaps excessive rains in certain areas. Rainy weather has cleared in these regions as the winter sets in and producers prepare for harvest. In the Western Cape, a winter crop region, the focus will be on whether the province can receive much-needed rains to support the 2025-26 winter crop production season in a similar way we saw with the summer crop regions of the country. In its monthly Seasonal Climate Watch released on 2 May, the South African Weather Service (SAWS) signalled a worrying outlook about the rain prospects for these regions. The SAWS stated that, " the south-western parts and the southern and eastern coastal areas are expected to receive mostly below-normal rainfall early-, mid- and late-winter."1 These regions include the Western Cape, where over two-thirds of South Africa's winter crops are cultivated. Still, we are early in the season, and this view may change in the coming months. Click here to read full article by Wandile Sihlobo.

The downside of excessive rain on livestock is typically through the prevalence of certain animal diseases. It is not unusual to hear farmers discuss Rift Valley fever and heartwater, among other diseases, during rainy seasons. There are vaccines available to address such diseases, but access to some of these can be difficult for smallholder farmers. This is not yet our reality in much of South Africa, although I have recently highlighted the problem of excessive rainfall primarily affecting crops. It is perhaps fair to say that we are generally happy with the better grazing veld after the recent rains. The improved grazing veld helps somewhat ease some farmers’ feed costs. Still, in areas such as the Karoo, which has also received favourable rains this year, I hear of bluetongue disease in sheep. This means we may hear of some casualties for some farmers there. It also means that in regions that wouldn’t typically require close monitoring and vaccines, one would have to pay closer attention during such a wet season. Click here to read full article by Wandile Sihlobo.

Whenever I post about the challenges in the maize industry on X, I often see responses from people arguing that South Africans should consume more sorghum. They correctly highlight the crop's nutritious value and resilience in challenging climatic conditions. But despite all these benefits, the sorghum industry has not taken off. The challenge is not that farmers refuse to plant it. This is due to its weak demand—consumers are not buying sorghum products like other staple grains. The issue of weak demand partly gave farmers hope that using sorghum in biofuels would provide a much-needed market for farmers. But this venture also did not take off. Thus, sorghum production has continued to decline in South Africa. South African farmers planted 41,150 hectares of sorghum in the 2024-25 production season, down 75% from the area we planted in 1990-91. The production is estimated at 137,970 tonnes in the current 2024-25, down by 54% from 1990-91. Click here to read full article by Wandile Sihlobo.

In addition to better seed cultivars and genetics, South Africa's prosperous agricultural sector has benefited from mechanisation to improve efficiency. The country imports a range of agricultural machinery, which we see under various brands. During the current trade wars, there has been confusion about how much South Africa levies in tariffs on agricultural machinery imported into the country, specifically tractors. It is essential to clarify that South Africa has no duties on imported tractors – check under Harmonised System (HS) code “8701.9” in the tariff book for greater details. We can't place import duties on essential equipment we don't produce. Importantly, we want this equipment to be affordable so that the farming sector can continue to thrive. The table below clearly illustrates the various tractors imported into South Africa and the duties the country applies. Beyond these import confusions, South African agricultural machinery sales continue to show signs of recovery from last year's modest sales. Click here to read full article by Wandile Sihlobo.

I have just read an interesting article on News24 that warns about the possibility of the U.S. exploring new markets for the agricultural exports they used to send to China. One product the piece uses as an example is soybeans. It correctly argues that South Africa has a huge soybean market, which is used in animal feed. But I want to clarify: South Africa no longer relies on imports of soybeans and soybean oilcake. We have managed to lift our domestic soybean production robustly over time. South Africa’s soybean production has grown significantly since the dawn of democracy, from 67,700 tonnes in the 1993/94 production season to an expected 2,3 million tonnes in 2024/25. The growing demand for soybean oilcake or meal by the animal feed industry stimulated this growth. This, in turn, has been driven by an increase in the demand for high-protein food, particularly poultry products. South Africa’s per capita consumption of poultry meat has almost doubled over the past 17 years, currently estimated at around 41 kilograms. Click here to read full article by Wandile Sihlobo.

My first step into grain handling and storage was at MKB (now part of Overberg Agri) in Moorreesburg, Western Cape more than 20 years ago. As a young agriculturalist, I was assigned to take dust samples in the silos as part of a Southern African Grain Laboratories (SAGL) project to monitor the silos for karnal bunt. I not only got to know the darkest crevices of a silo, but developed a passion for this wonderful industry. From there, my path in grain administration and marketing led to me overseeing the grain division at MKB. NWK in Lichtenburg was the next stop on my grain journey, where I was the regional manager and responsible for compiling the budgets of the grain handling division. Silobags, bunkers, and dams became an alternative method of storage at the beginning of the 21st century. I learned more about these storage methods at Suidwes Landbou in Leeudoringstad, where establishing new depots was part of my responsibilities. Click here to read full article by Dr Charl van der Merwe, newly appointed general manager of Agbiz Grain.

The May 2025 issue of Agbiz Grain Quarterly is now available, offering fresh insight into South Africa’s grain handling and storage sector. This edition features early impressions of the soya bean multiple reference point location differential trial and explores the Bureau for Food and Agricultural Policy’s (BFAP) analysis of malting barley. Readers can also delve into critical topics such as the role of grain storage in national food security and the economic outlook stemming from South Africa’s 2025 budget. The Industrial Development Corporation’s (IDC) role in advancing industry development is unpacked, alongside a comparison of grain bags versus bulk carriers for sea transport. Other key features include best practices for preventing grain losses in silos, the benefits of square or rectangular silos, updates on land reform efforts, and an overview of labour law reform developments from Nedlac. Whether you're an industry stakeholder or an agri-policy enthusiast, this issue offers valuable knowledge and insight. Click here to read.

Mounting debt in developing economies is a growing concern. Some countries, including Sri Lanka and Zambia, have already declared that they cannot service their debts and have sought international assistance. Many others face onerous debt service obligations amounting to several percentage points of GDP. Debt is a blessing and a curse. It enables developing economies with promising prospects to finance the investment in roads, schools, hospitals, and other areas they need to turn those prospects into realities. If investment produces the expected high rate of return, countries can service their debts. That was the case in Korea in the 1960s. Back then, Korea was a poor country with a low saving rate of less than 10 percent. It borrowed about 10 percent of GDP a year, but its fast-growing economy generated such high investment returns that its debt servicing ratio actually fell. Over time, its domestic saving rate rose so that it could sustain strong investment-led growth without recourse to foreign debt. Today Korea is among the world’s richest nations. Click here to read full article by imf.org.

We have long benefited from your expertise, most recently when one of your fellows, Don Kohn, gave a star performance last month at our South African Reserve Bank Research Conference in Cape Town. It is great to be with you in DC today. The focus of my talk is the Group of Twenty (G20), for which South Africa currently has the presidency. As you will all know, the G20 started in the 1990s as an informal arrangement for discussing macroeconomic developments and financial stability. It was designated the premier forum for international economic cooperation during the Global Financial Crisis (GFC)1 and, at the time, it proved this status was well deserved. First, unlike the Group of Seven, it brought together all the major economies, not just the richer ones. This balanced participation made it a genuinely global institution. Second, it was just small enough that it could act decisively.  Click here to read full Keynote address by Lesetja Kganyago, Governor of the South African Reserve Bank, at the Brookings Institution, Washington DC, 22 April 2025. Click here to read SARB Governor -- The role of ethical leadership amid threats to academic freedom.

It is with great excitement, and much anticipation that the World Potato Congress Inc. announces Kenya will be hosting the 2026 World Potato Congress! This location change comes following an agreement reached between the Polish Potato Federation (PPF) and WPC to cancel the event scheduled for Gdansk, Poland in June of 2026. In late March, the WPC Board of Directors reviewed the formal request led by the National Potato Council (NPCK) of Kenya to have their initial bid reconsidered for a future Congress. “Initially, the 2026 Congress had been awarded to Kenya.” says President VanderZaag “And it had been with great regret to announce in May of 2024 that the WPC would need to step away to allow for Kenya to further develop contractual relationships in country”, says President Peter VanderZaag. “Hosting a World Potato Congress comes with many important factors to be considered. We are excited that the Kenya host committee was immediate and proactive in addressing the key areas to ensure a global success story for their country.” Click here to read full article.

Logistics services and supply chain solutions company DP World has started the $165-million expansion of its container terminal at the Port of Maputo as part of a long-term strategy to meet global trade demand, create thousands of new jobs and contribute to Mozambique’s economic growth. The project is aimed at enhancing the capabilities of the port, positioning Maputo as a trade and logistics hub for Southern Africa and opening a gateway for larger container ships, the company said on May 1. “The container terminal expansion signifies our intent to strengthen Mozambique’s economic growth, together with the government of Mozambique and our partners in the Maputo Port Development Company,” said DP World sub-Saharan Africa CEO and MD Mohammed Akoojee. “The Port of Maputo is at the heart of transforming trade on the African continent, as it has the potential to connect the landlocked countries of Southern Africa to the rest of the world. Click here to read full article.

The African Union Commission through its Department of Agriculture, Rural Development, Blue Economy and Sustainable Environment (DARBE) jointly with the African Union Development Agency- New Partnership for African Development (AUDA) NEPAD is Launching the Comprehensive African Agricultural Programme (CAADP) Strategy and Action Plan 2026-2035. The official launching event will be hosted by the Government of The Republic South Africa. The Comprehensive Africa Agriculture Development Programme (CAADP) has been the driving force behind Africa’s agricultural transformation since its adoption in 2003 in Maputo, Mozambique. The Maputo CAADP framework aimed to accelerate economic growth, reduce poverty, and enhance food security through agriculture led growth, targeting a 6 percent annual agricultural GDP growth by 2015 and at least 10 percent of public expenditures spent on agriculture. In 2014, the Malabo Declaration expanded CAADP's agenda to seven agricultural transformation commitments with specific goals and targets to be achieved by 2025. Click here to read full article.

Transnet National Ports Authority (TNPA) has opened the bidding process for a terminal operator to take over the design, funding, construction, and long-term management of a multi-purpose terminal at the Port of Durban. The concession will run for 25 years and will focus on handling fresh produce and compatible break bulk cargo, Transnet said on Monday. This comes as Transnet has already awarded the tender for the concession of Durban Container Terminal’s Pier 2 – SA’s biggest shipping container handling facility – to Philippine ports giant International Container Terminal Services (ICTSI) as part of a joint-venture deal. However, ICTSI and Transnet have been taken to court by a disgruntled losing bidder, which has delayed the project. Cash-strapped Transnet is looking for more private sector participation in SA’s major ports as a way to unlock much-needed multi-billion-rand investment into port infrastructure. Click here to read full article.

South Africa’s cargo movement faced multiple operational constraints in the week ending April 27, 2025, including widespread inclement weather, equipment breakdowns, and berth shortages, especially in Cape Town and Durban. Average port handling was 11,783 TEUs daily—down slightly from the previous week. Rail out of Durban saw a modest 6% increase in container movement. Air cargo volumes dropped 8% week-on-week, reflecting post-Easter slowdowns and uncertainty around US trade policy. Cross-border freight through Lebombo and the N4 Corridor decreased, with average queue and processing times remaining just over three hours. Border crossing times at South African-controlled posts spiked to 12.5 hours (↑27%), while times in the greater SADC region fell to 4.7 hours (↓15%). Globally, container throughput is projected to contract by 1% in 2025, only the third decline since 1979, while air cargo capacity grew 3% year-on-year despite falling rates. The update underscores both global and local logistical volatility in the current trade environment. Click here to read full report.

He doesn't want to be overoptimistic, Safpro's Craig Jensen says, but the season is looking extremely positive for South Africa and, externalities aside, "the only people who could wreck it in many ways are probably ourselves. We will need to be very circumspect about the quality of fruit being placed." Public holidays and continuous rain slowed down the Eastern Cape harvest. "April would normally have seen us done with Satsumas some weeks ago already, and a good volume of lemons packed. We're now in week 18, and we should be digging into clementines quite vigorously, but we're struggling to get started." Lemons are obviously extremely sensitive to oleo, so the rain is making that a lot more difficult. "The estimate in the industry, and certainly in the Eastern Cape, was for a drop in lemon volumes, related largely to the early season crops. So, the April-May crop is much lower than normal. We still feel that the main season crop, the June-July-August crop, will be fairly normal, possibly slightly below the previous year, but not a long way off normal." Click here to read full article by freshplaza.com.

Agbiz is proud to announce the appointment of Dr Charl David van der Merwe as the new manager of the grain desk, succeeding Wessel Lemmer, who previously led the desk with dedication and expertise, starting in May. With a career spanning over 27 years in the agricultural sector, Dr van der Merwe brings extensive experience in grain handling, procurement, market analysis, and strategic development. His leadership and industry knowledge will be instrumental in advancing Agbiz Grain’s mission of supporting and promoting the interests of its members. Dr van der Merwe has held key roles across the grain value chain, from agricultural economics and commodity management to procurement and strategic business development. His previous positions at major agricultural organisations, including NWK, Suidwes Landbou, Tiger Brands, and CMI, have equipped him with a deep understanding of the challenges and opportunities within the sector. At Agbiz Grain, he will focus on policy advocacy, stakeholder engagement, and industry representation, ensuring that the grain industry remains competitive and sustainable. Click here to read full statement. 

We are pleased to share that Dr Lukeshni Chetty, General Manager of the South African National Seed Organisation (SANSOR), has been elected as the second Deputy Chairperson of Agbiz. Her election was confirmed at the Agbiz Annual General Meeting held on 16 April 2025 in Pretoria, following a vote by the Agbiz Council. She joins Deputy Chairperson Antois van der Westhuizen and the broader leadership team in guiding the strategic direction of Agbiz. Agbiz Chairman, Sean Walsh, welcomed the appointment, saying: “We are very pleased that Dr Lukeshni Chetty is joining the Steerco of Agbiz. Her depth of knowledge, not only in leading member organisations but also across the wider agri-value chain, will add immense value to our leadership team.” Agbiz CEO, Theo Boshoff said, “we want to extend our congratulations to Dr Chetty and certainly look forward to leaning on her vast knowledge, experience and insights into the value chain.” Click here to read full press release. 

Agbiz is pleased to welcome Maphuti Mawasha as our new Finance Manager. She brings over a decade of experience in financial services and business strategy. Her expertise includes budgeting, financial forecasting, and compliance management. Maphuti has worked with top financial institutions, ensuring sound financial oversight. She holds a National Diploma in Public Finance and Accounting and is pursuing a BCom. We thank Phyllis Strydom for her dedication and contributions.

The Citrus Growers’ Association Grower Development Company (CGA-GDC) shares the latest developments in grower support, transformation, and industry initiatives in its April 2025 newsletter. Stay informed on the key activities shaping the future of citrus growers in Southern Africa. Click here to read the full update.

BUSA Sustaining Progress Conference 2025

29 May 2025 | Focus Rooms, Modderfontein

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Potatoes SA Innovation Symposium

23 & 24 July 2025 | CSIR Convention Centre, Pretoria

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3rd Annual Food Waste Solutions Summit

26-27 June 2025 | Hotel Sky, Sandton

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International Fresh Produce Association’s Southern Africa Conference

23-24 July 2025 | Pretoria, South Africa

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South African Sugar Technologists’ Association Congress 2025 

12-14 August 2025 | ICC Durban

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• Agbiz is the only organisation that serves the broader and common over-arching business interests of agribusinesses in South Africa.
• Agbiz addresses the legislative and policy environment on the many fronts that it impacts on the agribusiness environment.
• Agbiz facilitates considerable top-level networking opportunities so that South African agribusinesses can play an active and creative role within the local and international organised business environment.
• Agbiz research provides sector-specific information for informed decision-making.
• Agbiz newsletter publishes members' press releases and member product announcements.