6 March 2020
Why land 'expropriation without compensation' is a bad idea

In an article for the Centre of Development and Enterprise, Agbiz chief economist Wandile Sihlobo and agribusiness trade specialist Dr Tinashe Kapuya argue that land reform (through both the state and the market) has made more progress than experts and policymakers care to admit and discuss why expropriation without compensation is a catastrophically bad idea. As in previous statements, Agbiz reiterated its position that land reform objectives can be achieved without resorting to expropriation at nil compensation, in its written submission to the Ad Hoc Commitee on the amendment of section 25 of the Constitution
Draft beneficiary selection and land allocation policy has potential, but may need some more work
Both the Presidential Advisory Panel on Land Reform and Agriculture as well as Parliament's High-Level Panel (Motlanthe Report) identified the opaque process used to select beneficiaries and allocate land as critical impediments to successful land redistribution. Since the Constitution was enacted in 1996, Parliament passed legislation that clearly outlines exactly who is entitled to claim land under the restitution and labour tenant programmes but no equivalent was ever developed to outline who should qualify for land redistribution. The Constitution simply provides that the state must foster conditions that enable citizens to access land on an equitable basis and left it up to the legislature and the executive to decide who should benefit and under what circumstances. As multiple studies have shown, this gap in the land reform policy space has sadly led to perceptions of elite capture and frustration for beneficiaries whose redress was not always matched to their needs or aspirations. It is precisely for this reason that both reports recommended the development of clear policy or legislation outlining the criteria, requirements and procedure to guide beneficiary selection and allocation for land redistribution. In response to these recommendations, the department published the draft Beneficiary Selection and Land Allocation policy for public comment in January 2020. This represented the first recommendation of the Presidential Advisory Panel which has made its way into formal government policy and as such Agbiz has compiled and submitted comprehensive inputs. Agbiz head of Legal Intellligence Theo Boshoff discusses this subject in the linked article. Please click here for Agbiz's submission.
SA farmers ready to supply but Asia slowdown likely to hit exports

There is a strong sense of unease in the world right now. The coronavirus outbreak in China is fast spreading across Asia and other regions, and the health implications present risks for global value chains. From a macroeconomic perspective, we have already seen organisations such as the Organisation of Economic Co-operation and Development slashing growth forecasts for the year. Some of the economic data released in China this week was quite weak. We have started to pick up concerns from various stakeholders who are worried about the potential effect of the coronavirus on their fortunes. With South Africa's agriculture being export-orientated and exports totalling about $10bn in 2019, the potential for disruptions to global value chains is significant. This is especially true with respect to Asia, the epicentre of the outbreak and also an area that accounts for a quarter of South Africa's agriculture exports. The commodities most exposed to the Asian market are wool, fruit, grains, beverages, vegetables and red meat. Wandile Sihlobo explores this subject in the linked article
The International Monetary and Financial Committee (IMFC) issued a statement following a teleconference call, chaired by governor of the South African Reserve Bank Lesetja Kganyago and managing director of the International Monetary Fund Kristalina Georgieva. Willis Towers Watson, a global advisory, broking and solutions company, provides more insight on the possible economic effects in the linked article.
Agbiz appoints Emily Nathi as Law and Public Policy Intern

Agbiz is exited to announce that Emily Nathi has joined the team to strengthen Agbiz's capacity to influence the policy and regulatory environment in which members operate. Emily obtained her LLB from the North-West University in 2019 and has a special interest in environmental law, contracts, family and estate law and is currently working to gain a better knowledge of expropriation and property right laws. As to what she looks forward to in the role, Emily stated: "To learn as much as I possibly can and to grasp as much knowledge about agriculture, finance, leadership and my own limits as a young person in South Africa. The attainment of knowledge will not be only to my benefit but to educate others and also to the betterment of communities that require assistance, as the saying goes 'When you reach the top, you should remember to send the elevator back down for the others.'" Regarding the challenges of the role, Emily is aware that it is a role where you need to get up to speed with a variety of topics: "Knowing everything about everything is a challenge as I am not an expert as yet in the field." Her aspirations are to leaving a better legacy for future generations, so that they may live in a country filled with endless opportunities. Also, to be able to leave a mark in the development of a sustainable environment. Emily is based at Agbiz's offices in Pretoria and can be contacted at policy@agbiz.co.za or 012 807 6686.
Amendment of section 25 - schedule for public hearings 

The Ad Hoc Committee on the amendment of section 25 of the Constitution resolved to host public consultations on the Bill in various provinces. Please click  the draft programme should you wish to participate.
SA farm economy to recover in 2020
South Africa's farming economy was not in good shape in 2019. This is clear from the agricultural GDP data released this morning by Statistics South Africa. The data show a 6.9% year-on-year contraction for 2019, which is a second consecutive year of contraction in South Africa's farm economy. While worse than our initial expectations of a 4.0% y/y contraction, this is unsurprising. The output of various crops and horticulture produce declined notably in 2019 because of the drought, while the livestock was negatively affected by the foot-and-mouth disease outbreak.This year, however, could be different. The improved weather conditions have led to an increase in summer crops area plantings and prospects of higher yields. Agbiz chief economist Wandile Sihlobo discusses this subject in the linked article.
Worse than expected GDP data highlights SA's economic damage

" The worse than expected GDP data for the fourth quarter of 2019 confirms that not only did the South African economy experience a 'technical recession' in the second half of 2019, but that growth in 2019 as a whole was also only 0,2%."  This is according to Prof Raymond Parsons, a well-known economist and academic from the North-West University (NWU) Business School.  "The economic damage done to South Africa's growth prospects - mainly by Eskom's dysfunctionality and load shedding - has been stark. This also comes at a time when global headwinds are suggesting that slower world economic growth is now likely, primarily because of the impact of the coronavirus on international supply chains," he adds. Prof Parsons says the latest bad GDP growth news means that the recent budget assumption of 0,9% growth in 2020 now looks too optimistic, and that growth forecasts for 2021 and 2022 will also need to be revised downward. Read more in the  linked article.
What it will take to build a capable state in South Africa

A major factor that undermines South Africa's social and economic progress is the deficit in the capabilities of the state. This gap was identified long ago by the National Planning Commission, first in its diagnostic report in 2011, and again when it issued its final National Development Plan in 2012. The plan is the country's blueprint for fixing its problems, writes Prof Mzukisi Qobo, head: Wits School of Governance in the linked article, first published on The Conversation. " I define a capable state as a system of government that functions with relative autonomy from narrow ideological interests. Its parts work in a coordinated fashion to achieve clearly defined goals. It conducts its work efficiently and is effective in delivering services and critical economic infrastructure."
Cargill and BASF enter distribution collaboration 

At this year's AFMA Forum 2020 at Sun City, Cargill and BASF announced that they have entered into a distribution collaboration in the Middle East and Africa (MEA). The collaboration positions Cargill as the strategic marketing and sales channel partner of selected innovative BASF animal feed enzymes.Coen van der Laan, strategic marketing and technology director for Cargill's Animal Nutrition business in the Middle East and Africa, believes this collaboration will provide the region with access to a large range of enzyme solutions which are key to optimise feed cost and consistently enhance animal performance. Read more in the joint Caragill/BASF media statement.
News from the pork industry

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.
News from the citrus industry

Read the latest news from the citrus industry, in the weekly newsletter of the Citrus Growers' Association of Southern Africa. Please click here to peruse.
Diarise annual CCMA Labour Conference
The CCMA is convening its 3rd Annual CCMA Labour Conference at Emperor's Palace, Ekurhuleni on 11 March. It is organised by the CCMA and hence any interested party can attend. If you would like to attend the event, please RSVP by following this link to complete the registration form and for more information about the conference.This conference is an annual event intended for the CCMA and its stakeholders, where prominent and leading professionals share a stage to deliberate on the ever-changing and demanding labour market environment, in which the CCMA plays a pivotal role. In light of the aforementioned context, and being cognisant to the current socio-economic climate and the Fourth Industrial Revolution, the 2020 CCMA Labour Conference will focus on employers and the business community under the theme "The role of employers in the changing world of work". 
The South African food waste agreement: The agricultural sector workshop
9 March 2020  | Protea Fire & Ice | Cape Town

Women in Tech Africa 2020 Conference 
18-19 March 2020 | Century City Conference Centre  | Cape Town

GOSA Symposium 2020
19-20 March 2020 | Diaz Hotel & Resort | Mossel Bay
Theme: "2020 and beyond"

NSTF Plant Health discussion forum - IYPH 2020
6-7 May 2020 | Future Africa  | University of Pretoria | South St  | Koedoespoort

Agritech Africa
17-19  June 2020 | Cape Town International Convention Centre  | Cape Town

Agbiz Congress 2020
Theme: "Building resilient and sustainable agri-food ecosystems".
15-17 July 2020 | Sun City Convention Centre | South Africa

PMA Fresh Connections: Southern Africa Conference and Trade Show
19-20 August 2020  Sun Arena, Time Square, Menlyn Maine, Pretoria

3rd African Symposium on Mycotoxicology joint MYTOXSOUTH conference 
6-9 September 2020 | Stellenbosch

Soya Bean for Human Consumption Symposium
17 September 2020  | Pretoria

Second International Congress of Biological Control (ICBC2) 
26-30 April 2021 |  Davos, Switzerland
Why join Agbiz?
  • 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.

                                      Like us on Facebook            Follow us on Twitter            View our profile on LinkedIn                                    
The Agbiz Newsletter may contain a few links to websites that belong to third parties unrelated to us.  By making these links available, we are not endorsing third-party websites, their content, products, services or their events.  Agbiz seeks to protect the integrity of its newsletter and links used in it, and therefore welcomes any feedback.
In this newsletter