The global recovery continues but momentum has weakened, hobbled by the pandemic. Fueled by the highly transmissible Delta variant, the recorded global Covid-19 death toll has risen close to 5 million and health risks abound, holding back a full return to normalcy. Pandemic outbreaks in critical links of global supply chains have resulted in longer than expected supply disruptions, feeding inflation in many countries. Overall, risks to economic prospects have increased and policy trade-offs have become more complex. Read more in the linked IMF blogpost, by Gita Gopinath, economic counsellor and director of the Research Department at the International Monetary Fund (IMF).

Development policy has long been divided between two types of approaches. One approach targets poor people directly and seeks to alleviate the poverty of individual households – through income support, health and education interventions, and enhanced access to credit. The other focuses on enhancing economic opportunities and raising overall productivity – through economy-wide macroeconomic and trade policies or legal and regulatory reforms. Call the first social policy and the second growth policy. Read more in the linked article by Dani Rodrik, professor of International Political Economy at Harvard University’s John F. Kennedy School of Government, first published on ProjectSyndicate.

Earlier this year (2021) the World Bank released its Container Port Performance Index 2020 (CPPI) which set in place a comparable assessment of container port performance across the globe. This is the first of its kind in several respects, most notably that it uses independent data sourced from IHS Markit’s Port Performance Program which is aimed at driving efficiency improvements in container port operations and supporting programs to optimise port calls. The CPPI rated the Port of Durban at 349 (of 351 ports) using their statistical approach and 351 (of 351 ports) using their administrative approach. Durban EDGE publishes a series of short opinion pieces focusing on the transformation of the South African economy. The first in this series focuses on the Durban Port logistics, which is a fundamental component of the South African economy and is both an enabler and inhibitor of economic competitiveness. These opinion pieces are intended to critique the status quo and provide alternatives in the spirit of building a constructive democracy as well as a prosperous and inclusive economy. Please click here to peruse.

On 23 September, the International Bar Association, in association with the Ukrainian Bar Association, hosted the world’s first international conference on agricultural law. The discussions were rich and relevant, focusing on land reform, climate change, the European Union’s Green Deal as well as biotech where South Africa’s Dr Lukeshni Chetty, general manager at SANSOR, delivered a thought-provoking and insightful presentation on the evolution of GMOs. The aspect that caught the eye of Agbiz head of Legal Intelligence Theo Boshoff was the contrast between South Africa’s land reform programme and that of Ukraine. Read more in the linked article by Theo Boshoff, written for and first published in Farmer's Weekly.

South Africa's export-oriented agricultural sector is heavily reliant on the African continent, accounting for over 40% of annual exports. The African Continental Free Trade Area (AfCFTA) is expected to propel South Africa's market presence beyond the South African Development Community (SADC) region. However, in the linked article, written for and published on Econ3X3, Agbiz chief economist Wandile Sihlobo and Tinashe Kapuya, senior programme officer at Alliance for a Green Revolution for Africa in Nairobi, argue that this optimism might be misplaced, given specific structural challenges that will likely limit the potential for South Africa to increase agricultural exports in untapped African markets.

South Africa's agriculture remains dualistic, with large-scale commercial farmers who are predominately white and small-scale and subsistence farmers that are mainly black. These disparities in fortunes result from the long history of segregation policies and apartheid. The efforts to build an inclusive agricultural sector through the upliftment of black farmers by the new democratic government since 1994 have failed. As such, black farmers in South Africa still constitute between 5 and 10 per cent of the overall commercial production. In the linked article, written for and first published on ResearchGate, Wandile Sihlobo and Prof. Mzukisi Qobo, of the University of the Witwatersrand, explore the constraints to inclusive growth drive in the agricultural and agribusiness sector and offer recommendations for improvement.

The South African Agricultural Machinery Association indicated that tractor and combine harvester sales were up by 29% and 91% in September 2021 compared with the corresponding period last year, with 724 and 21 units sold. This placed total tractor sales for the first eight months of this year at 5 382 units, up by 30% year-on-year (y/y). Combine harvester sales were also up 30% y/y over the same period with 197 units sold. As we noted in the previous commentaries, 2020 was also a good year in South Africa's agricultural machinery sales, so surpassing it means we are witnessing some good momentum this year. In 2020, the tractor sales amounted to 5 738 units, up by 9% from 2019. The combine harvester sales were up 29% from 2019, with 184 units sold in 2020. Wandile Sihlobo discusses the latest data in the linked article.

Stakeholders in the grain and oilseed sector gathered virtually for the Agbiz Grain Symposium, which was hosted from 21 to 23 September. The theme of this year’s symposium was "The grain-handling and storage sector beyond 2021". One of the issues that were raised is the impact of increased storage costs on Agbiz Grain's customers in the total grain and oilseed value chain. In the linked interview, Tom Meintjes, vice-chair of Agbiz Grain, puts the discussion that dealt with the handling and storage costs of grain during the symposium in perspective. Rural municipalities' expected increase in electricity tariffs will have a significant impact on the future costs associated with the handling and storage of grain and oilseeds. One of the panelists at the Agbiz Grain Symposium, energy and mining consultant Ted Blom shares his expectations regarding future increases in electricity costs in the linked interview.

Several of South Africa’s leading companies have announced their intention to introduce mandatory vaccination policies within their organisations. The debate around this matter is growing both in South Africa and globally where several countries and companies have introduced mandatory vaccination. On Friday 8 October 2021, B4SA held a webinar on mandatory vaccinations with a panel of experts and business leaders to discuss: the legalities of mandatory vaccination, the official position of organised business, and explore insights generated by Discovery Health, Sanlam, and Life Healthcare which have all adopted mandatory vaccination policies. The presentations and recording of the webinar can be accessed here.

Please join B4SA on Friday 15 October 2021, from 13:00 to14.30, as they explore South Africa’s new vaccination campaign and international best practice with experts from the United Nations Institute for Training and Research (UNITAR). Their researchers have studied Covid-19 campaigns around the world and will share their insights into what communications and incentives work for companies and countries. They will take members through practical case studies and provide free downloadable “General Use” and “Strategies for Companies” toolkits. B4SA will also reveal more of the new national #RollUpYourSleevesSA and get vaccinated! campaign launched last week by the Solidarity Fund in support of the National Department of Health. In addition to being an umbrella call to action through all media, the campaign also includes resources for business and social partners to use.

Presenters include:

There will be an opportunity to ask questions and links to the resources will be provided.

Kindly follow this link to join the webinar: Zoom link.

Next week, the COP 26 team will be hosting two briefing sessions for businesses on COP26. This will be for any business around the world to hear from senior UK officials on plans for COP, as well as how they can follow and support the activities going on in the blue and green zones as well as regional activity. In order to accommodate businesses joining from different time zones, two briefings will be hosted. These will both be the same, so each business will only need to sign up to one. Herewith the links to dial into each below, which can be shared with your networks. 

As further context ahead of the COP 26,the We Mean Business Coalition has put forward a letter to the G20, calling for ambitious action from those governments. This now has over 600 signatories from business. Please click here to peruse.

The shortcomings of the current LOA system are increasing due to its inability to regulate "dumping”, which causes a significant threat to fair trade and the safety of South African citizens. In addition, there is a general lack of control escalating due to ever-increasing imports against severe capacity constraints. Unfortunately, only a small percentage of products can be inspected, which is why the pre-approval LOA process, and its limitations should be evaluated. The linked BUSA Occasional Paper on streamlining national regulation and certification processes to enhance the facilitation of trade contains an overview of the requirements of various governmental entities in trading across borders. This has particular relevance in light of BUSA's recent work undertaken at Nedlac and elsewhere on challenges experienced by many of their members vis-à-vis the NRCS and related entities. Please click here to peruse.

Globally, economies need to reduce emissions to net zero by 2050 and implement roughly 50% reductions by 2030 to avoid the worst effects of climate change. As outlined in South Africa’s National Development Plan, the Just Transition refers to a transition towards a low carbon economy and a climate-resilient society in a manner that does not impede socio-economic development, is socially just and results in an increase in sustainable jobs. Eskom and Meridian Economics recently presented at Nedlac on Just Energy Transaction and Just Transition Transaction respectively.

South African rail, port and pipeline company Transnet's Freight Rail subsidiary, TFR, on 7 October officially reopened the Cookhouse-Blaney branch line, in the Eastern Cape. This follows the completion of an R26 million investment in the reinstatement and rehabilitation of the 200 km branch line. Upgrades on the line were completed in March and test runs to improve speed and efficiency in June. The line connects Gqerbha to East London via Cookhouse – thereby reducing the time it takes by train from East London to Gqeberha by almost half. Read more in the linked article, first published on Engineering News.

The ENSO Outlook has been raised to a La Niña alert. This means that the El Niño-Southern Oscillation is currently neutral, but the chance of La Niña forming in the coming months has increased to around 70%. This is roughly three times the normal likelihood of an event forming in any year. This status change follows continued cooling in the tropical Pacific Ocean towards La Niña thresholds and an increase in trade wind strength during September. Climate models indicate further cooling is likely, with the majority of models meeting La Niña criteria from November.” Read more and check the probability here.

The Global Forum for Food and Agriculture (GFFA), organised every year, provides a unique platform to discuss key issues for the future of the global food and agricultural sectors. During the week-long event, international experts discuss different aspects of pressing topics in a wide range of panel discussions. The world’s largest conference of agriculture ministers, regularly attended by around 70 agriculture ministers, marks the end of each GFFA (www.gffa-berlin.de/en). To introduce the special perspective of the young farming generation, about 20 young farmers from around the globe meet in the Young Farmers’ Forum. They draw up their own declaration on the GFFA’s subject. Two group representatives present the declaration to the agriculture ministers’ conference on 28 January 2022. We are currently seeking candidates to participate in the 2022 Young Farmers’ Forum. Please click here for more information.

The South African Grain Information Service (SAGIS) is looking for a new general manager. For more information or to apply please click here.

In the past year, BKB has successfully addressed a number of challenges while delivering strong earnings growth. The value of its business grew 19% year-on-year to R13.2bn, while earnings before interest, taxation and dividends grew 66% from R170.2m to R282.5m. The group posted a profit before tax of R148.9m for the 12 months to end-June 30 2021, compared with R18.8m in the previous year. The group’s improved financial results can be ascribed to its diversified business model, in particular the strong performances of its fibre, livestock, retail trading and sugar businesses. Read more in the linked article, first published on Business Day.

Bayer Crop Science recently announced the appointment of Kobus Meintjes (42) to the position of Crop Science country commercial lead, South Africa effective from 1 November 2021. In this position, he will be responsible for leading and coordinating the implementation of Bayer Crop Science strategy and commercial goals in South Africa. Kobus started his career in agriculture in 2009 as a field biologist with Syngenta after which he joined Dow AgriSciences as technical support manager and later marketing specialist for South Africa. This expanded his technical knowledge and commercial experience in South Africa and South East African markets. Following the merger between Dow and Du Pont, Kobus was appointed into Corteva as the crop protection leader for Southern Africa. Prior to taking on this role with Bayer, Kobus was the programme manager for crop protection and seeds in the Africa and Middle East region for Corteva. He is also the current vice-president of CropLife South Africa.

The Animal Feed Manufacturers Association (AFMA) announced the directors elected to the AFMA Board at the 74th Annual General Meeting on 3 September 2021. New members to the board are Dieter Fleischman, Heiko Köster. Returning directors include Anina Hunter, Sharlene Moodley, Michael Schmitz, and Thinus van Lill. Wouter de Wet and Thinus van Lill were re-elected respectively as chairperson and vice-chairperson of the board of directors. Read more in the linked AFMA media statement.

Read more about the latest developments and news in the pork industry in the South African Pork Producers' Organisation's (SAPPO) newsletter, SAPPO Weekly Update.