This year's Budget Speech comes against the background of tough macroeconomic conditions, characterised by weak economic growth, less effective tax administration and collection, and rising demand for government expenditure, amongst other factors. The frank assessment by Minister Mboweni, as well as the recognition that economic growth is fundamental to fiscal sustainability, is welcomed, Agbiz stated in a media release following the Budget Speech. Please click here to peruse.

President Ramaphosa's State of the Nation Address earlier this month contained repeated references to dialogue and cooperation during the past six months or more between government, business,  labour and communities at numerous levels. These groups represent the so-called social partners within Nedlac, the National Economic Development and Labour Council, which functions under the Nedlac Act (35 of 1994) and within which certain outcomes were agreed between parties during the Jobs Summit. But there were also specific references to the Public-Private Growth Initiative (PPGI), led by Dr Nkosazana Dlamini-Zuma, Minister in the Presidency for Planning, Monitoring and Evaluation, Dr Johan van Zyl of Toyota International, and Mr Roelf Meyer of In Transformation Initiative (ITI), to develop sectoral plans in order to achieve vital economic growth. Agbiz CEO Dr John Purchase gives more background in the linked article.

Agbiz has awarded the 2019 Agbiz Centenary Bursary to Lerato Ramafoko (24) who has completed a BSc Agriculture degree with an agricultural economics major, at North-West University. Lerato is now enrolled at Stellenbosch University for a master's degree in agricultural economics with Prof Nick Vink as her supervisor. Her proposed research will focus on the trade-off relationship between food security and the environment.  Lerato has an exceptional academic record and her lecturers commended her for her eagerness to learn, her dedication to her work and her ability to tackle new challenges.  Agbiz established the Agbiz Centenary Bursary in recognition of Agbiz members who have celebrated 100 years of existence. The primary objective of the annual bursary to the value of R35 000 is to promote master's or PhD level research in agribusiness related fields and Agbiz is certainly proud to be associated with and to support the research of  Agbiz Centenary Bursary holders.

On the 15th of February, Minister Nkwinti from the Department of Water and Sanitation hosted a consultative forum on transformation in the water sector. Although the size and nature of the consultation made it difficult to meaningfully participate, the consultation shed some light on four key aspects related to water management in South Africa.  Agbiz head of Legal Intelligence Theo Boshoff gives feedback in the linked article.

South Africa's food and non-alcoholic beverages inflation remained unchanged in January 2019 at 3.0% y/y. But we think going forward there will be upside pressures which will emanate from a general increase in agricultural commodity prices, albeit having slowed somewhat from levels seen at the start of the year. The increases will, however, not be steep due to expectations of a decline in meat prices. We think South Africa's food and non-alcoholic beverages inflation could average about 5% y/y in 2019. A gbiz head of Agribusiness Research Wandile Sihlobo provides more insight in the  linked article .

The 2019/20 Budget Speech given to Parliament this week by Finance Minister Tito Mboweni confirms fiscal sustainability depends on a dramatic and sustainable boost in South Africa's growth rate on the basis of structural reform," says North-West University Business School economist Prof Raymond Parsons. Please click here for the media statement.