The Public-Private Growth Initiative has been launched at a Business Unity SA (BUSA) indaba in an effort to revive the economy. The indaba has brought together leaders of business who with government will reflect on sector plans for inclusive growth through the Private Public Growth Initiative (PPGI), explore the scope for collaboration to drive investment and how to address poverty, inequality and unemployment frankly and constructively, as well as map a future vision for the economy. The PPGI - led by Toyota Europe and Africa CEO Johan van Zyl, the Gordon Institute of Business Science (GIBS) Prof. Nick Binedell, and former constitutional negotiator Roelf Meyer - has done work in 22 sectors, several of which made presentations at the indaba.  Andries van Zyl of RSG Geldsake discussed the outcome of the BUSA Economic Indaba with Agbiz CEO Dr John Purchase who also presented at the event. Please click here to listen to the interview.

In the Agbiz Newsletter of 18 January 2019 it was reported that following discussions with Minister Senzeni Zokwana regarding the foot-and-mouth disease outbreak in Limpopo, three Public-Private Partnership Task Teams, namely a Technical Task Team, a Communications Task Team and a Trade Task Team were set up, to address the various challenges the respective industries face. The task teams met over the past two weeks and can report that constructive progress has been made to contain the outbreak. The affected area is under quarantine and no movement of animals and animal products is allowed. To this effect roadblocks have been established at strategic points to monitor the movement of animals. The Department of Agriculture, Forestry and Fisheries (DAFF), in collaboration with the Limpopo Department of Agriculture, has deployed 23 teams to inspect and vaccinate animals. To date, 11 000 animals have been inspected and it was found that three more villages in close proximity of the original village are also affected. A total of 10 000 animals in the disease management zone have been vaccinated. Going forward, DAFF needs to prove that (i) infected animals have not left the disease management zone, (ii) that the disease is contained in the disease management zone and that the rest of the country's cattle have not been affected and (iii) the disease management zone is cleared from infected animals. Currently DAFF is inspecting animals in the surrounding areas to ensure that the disease has not spread. Agbiz serves in the Trade Task Team and will assist the South African government to negotiate a workable solution with our trading partners in order to ensure continued exports. This includes the option to allow for the certification that products, destined for export, originate from an area where the disease does not exist. DAFF has contacted South Africa's trading partners to inform them about the situation and are in the process of negotiating new certification criteria with various importing countries. Local exporters are advised to convince their trading partners to continue importing low-risk commodities and to request their trading partners to liaise with the importing country's veterinary authorities regarding the issue.
DAFF has assigned designated contact persons in its Import Export Policy Unit to liaise with the industry representatives in the Trade Task Team regarding specific industry related trade issues.All affected industries are urged to work through the government structures and to not rush the process as the integrity of the South African government and its veterinary services could be compromised if the due process is not followed.

Late in 2018 the Department of Economic Development published two draft sets of regulations for public comment. The regulations seek to promote the ability of small and medium enterprises, especially those owned by previously disadvantaged individuals, to compete on an even playing field with larger enterprises when supplying goods and services. The first set of regulations seeks to do this by preventing large businesses from pushing out competitors by offering goods and services as a supplier at rates which smaller businesses cannot compete with. The logic is that large companies can afford to take a 'hit' and offer goods and services at a rate so low that companies with smaller reserves cannot compete. The second set of regulations is the corollary in that it seeks to prevent companies that buy goods and services from using their position to impose conditions that make it impossible for smaller suppliers to compete for their business, thereby abusing their position as a buyer. Where a dominant supplier or buyer truly abuses its power in bad faith to push smaller competitors out of the market, a compelling argument can be made that some intervention is necessary. One can therefore hardly fault the reasoning, but as always, the devil is in the detail and one must be careful not to over-regulate to the extent that innovative and hardworking companies are no longer rewarded for their efforts.  Agbiz head of Legal Intelligence provides more insight in the  linked article.

The Crop Estimate Committee's summer grains preliminary plantings data showed that the area planted to maize is 2.3 million hectares. About 1.3 million hectares is white maize, with 1.0 million hectares being yellow maize. This came as a surprise as we had projection of 1.98 million hectares. We suspect that the late plantings might have been more than anticipated following early January rainfall. While this a welcome development, it is important to stress that these are initial estimates, there could be a revision next month and our view still leans towards a possible downward adjustment.  Agbiz head of Agribusiness Research Wandile Sihlobo provides more insight in the linked article .