To achieve net-zero emissions by 2050 in emerging markets and developing economies, $2 trillion annually by 2030 is needed, primarily in energy, a fivefold increase from current investments. The private sector must play a significant role, despite financial market limitations and low credit ratings. Phasing out coal plants, responsible for 20% of emissions, requires substantial private and public investment. Many banks lack alignment with net-zero targets, and sustainable investment funds often prioritise ESG over climate concerns. Low and middle-income countries lack incentives for environmental policies due to insufficient credit ratings. Policies should prioritise climate impact, with transition taxonomies considering emissions improvements. Regulators must enforce sustainability labels, improving transparency and alignment with climate objectives. Public-private risk sharing is crucial for climate investment. Multilateral development banks and donors can support blended finance and guarantee mechanisms. Click here to read full article first published on IMF Blogs.

In a recent phone call, U.S. National Security Advisor Jake Sullivan and his South African counterpart, Sydney Mufamadi, discussed several crucial aspects of their nations' partnership. Sullivan praised South African President Ramaphosa for addressing concerns related to the vessel "Lady R." Both advisors reaffirmed the strong alliance between their countries and committed to advancing shared priorities, including trade, investment, infrastructure, healthcare, and climate initiatives. They also pledged to continue discussions on achieving a just and lasting peace in the context of Russia's conflict with Ukraine. National Security Advisor Sullivan expressed gratitude for South Africa's hosting of the African Growth and Opportunity Act (AGOA) Forum, underscoring the significance of this initiative for U.S. relations with the region. Additionally, he offered condolences on the passing of Aziz Pahad, a prominent South African figure known for his dedication to peace, justice, and racial equality. This conversation underscores the commitment of both nations to strengthen their partnership and address global challenges collectively, with further collaborations anticipated in pursuit of their shared objectives. Click here to read statement by The White House.

In a recent meeting, Minister Thoko Didiza of Agriculture, Land Reform, and Rural Development engaged with retailers to discuss the effects of Avian Influenza on South Africa. This follows prior meetings with the South African Poultry Association and ongoing dialogues between government officials and industry stakeholders. During the meeting, the Minister outlined containment measures to curtail the disease's spread and proposed short and medium-term solutions, including vaccination. The primary challenge observed was in egg production, leading the Minister to focus on improving egg supply availability and disease containment. Efforts also involve streamlining import permits and exploring vaccination possibilities for adequate chicken meat supplies, demonstrating a coordinated approach with Minister Patel. Click here to read full report by the Department of Agriculture, Land Reform and Rural Development.

Biosafety South Africa hosted its fourth sustainable bio-innovation symposium at Diep in die Berg in Pretoria on the 28th of September 2023. The symposium was well attended by academics, scientists, industry representatives and members of the media. The purpose of the symposium was to provide a platform for all stakeholders to discuss the prerequisites for a sustainable genome editing (GEd) innovation system in South Africa. Bio-innovation is crucial for coping with the challenges posed by climate change, as well as environmental and economic sustainability. More and more, we are experiencing crop failures caused by extreme storms, drought and heat waves that threaten the food security of a growing global population. Gene editing has various applications. With gene editing it is possible to change the genetic code of an organism's own DNA – no foreign DNA is introduced. Natural mutations occur constantly in nature. The types of genetic changes that are introduced using genome editing, do not differ from those which occur naturally and are exploited through traditional breeding and mutation breeding. With this technology, genes from a plant can be accurately edited to increase, decrease, or alter gene expression. In this way plants can be made drought- and pest resistant and higher yields and better nutritional value can be ensured. Gene editing could therefore potentially provide new solutions to the food and nutritional insecurity that the world faces. Click here to read full article by Agbiz Head of Legal Intelligence, Annelize Crosby.

The Western Cape, which accounts for over two-thirds of South Africa's winter crops and a large share of wine grapes and various horticulture products, faced another heavy and destructive flood this past week. The rainfall peak was mainly the Bredasdorp in the Southern Overberg region. Significant damages to farm infrastructure, electricity supply and road networks are reported in various small farming towns of the province, mainly the southern areas. Still, the impact of the floods on wine grapes and table grapes remains unclear as industry horticulturalists continue assessing the fields. We have seen anecdotal evidence of damages in some storage facilities and crop fields in the southern regions of the province. Another challenge caused by wet soils has been the difficulties of tractors spraying herbicides and fertilizers, so some farmers now use drones to spray the fields. Perhaps this is a positive step toward technological advancement accelerated by unfavourable weather conditions. Regarding the winter crops, mainly wheat, barley and canola, the focus has been on whether the excessive rains would undermine the yield potential. Click here to read full article by Agbiz chief economist Wandile Sihlobo.

Last week, South Africa's Crop Estimates Committee (CEC) released its 2022/23 8th summer crop production forecasts. In these 2022/23 production estimates, there were no new surprises or significant adjustments to the existing forecasts. For example, if we can highlight maize, the 2022/23 commercial harvest is 16,4 million tonnes, roughly unchanged from August figures (-0,09% m/m). This crop is 6% more than the 2021/22 season and the second-largest harvest on record. The expected ample harvest is primarily on the back of large yields, as the area planted is slightly down from the 2021/22 season. Notably, a crop of 16,4 million tonnes implies South Africa will have sufficient supplies to meet domestic maize needs of roughly 11,4 million tonnes and have approximately 3,3 million tonnes for export markets in the 2023/24 marketing year (this marketing year corresponds with the 2022/23 production season). Furthermore, the soybeans harvest was unchanged from August's record estimate of 2,8 million tonnes (up 24% y/y). The annual crop improvement is due to an expansion in the area planted and higher yields. The ample soybean harvest means South Africa could meet its domestic demand and remain with about 420 000 tonnes of soybeans for export markets (from 277 504 tonnes in the previous season). Click here to read full report by Wandile Sihlobo and click here to listen to the latest Agricultural Market Viewpoint with Wandile Sihlobo on the same topic.

The Agbiz Grain and Oilseeds Value Chain Symposium, conducted as a hybrid event in Pretoria, recently aimed to delve into various aspects and prospects within South Africa's grain storage industry. The symposium comprised four sessions, each tackling different themes concerning the profitability, traceability, and risk management of the grain and oilseeds sector. Plaas TV also participated in the event to provide insights. Among the topics discussed were future challenges, access to stock, and price convergence in the second session. The third session focused on traceability and regulatory compliance in grain storage, and the fourth session centred on the insurability of the storage sector. Various experts shared their perspectives during these sessions, shedding light on critical issues in the industry. Links to the discussions are provided for those interested in exploring these topics further. Watch Plaas TV insert on Grain storage industry seeking sustainable solutions here, future challenges and solutions here, traceability and regulatory compliance here and insurability of the storage sector here.

Many nations are implementing programs to cut emissions since the window of opportunity to slow global warming is fast closing. Several heavily rely on spending strategies, like raising public investment levels and providing financial aid for renewable energy sources. We applaud their decarbonisation efforts. However, these policies can come at a high financial cost. Taking climate action forces severe compromises on policymakers. To achieve climate goals, relying mostly on expenditure measures and scaling them up would grow more expensive, perhaps increasing debt by 45 to 50% of GDP by the middle of the century. Public finances will become much more difficult to balance as a result of high debt, rising interest rates, and dim economic prospects. However, continuing "business as usual" makes the earth more susceptible to global warming. Carbon price gives nations the chance to raise money to lower their debt loads, but depending solely on carbon pricing may violate political redlines. Read full article on managing the climate transition calls for a fiscal balancing act with the right mix of policies, first published on IMF Blogs here.

The only solution to address the issues of increasingly fragmented global commerce, according to Deputy Director-General Jean-Marie Paugam, is to strengthen the multilateral trading system as enshrined in the WTO. DDG Paugam stated at the Vine and Wine World Trade Forum in Dijon, France, that a new trade narrative centered on geopolitics, climate and sustainability, and quality-related laws is beginning to take root, resulting in some trade fragmentation. His "number one condition to confront these challenges is more of the multilateral trading system, not less," he stated. "What Future for International Trade of Vine and Wine Products?" is the question posed for this Forum. resonates directly with the day's important discussions and across all international trade institutions, the WTO foremost among them: Have we entered a new period of deglobalization, or are we at the dawn of something different, what my Director General has dubbed “reglobalization.” Click here read full news item by the World Trade Organization.

South Africa's hosting of the AGOA Summit is seen as a positive development, with Finance Minister Enoch Godongwana welcoming the event. AGOA has been instrumental in boosting South Africa's economy, benefiting sectors like mining, manufacturing, and agriculture. In 2022, AGOA facilitated $46.5 billion in two-way trade between AGOA countries and the U.S., with a consistent trade surplus for African nations. Despite political differences within the ANC coalition, significant disruption to AGOA is unlikely. Recent international engagements have highlighted the importance of revitalizing U.S.-African relations, with President Biden's commitment to AGOA 2023 underscoring this dedication. AGOA remains pivotal, providing duty-free access to the U.S. market for eligible nations, contingent on fulfilling strict criteria. South Africa's eagerness for AGOA renewal, expiring in 2025, reflects its recognition of the initiative's importance for the nation's economic growth and international standing. As the AGOA Summit approaches, South Africa aims to ensure the continued success of this essential trade partnership. Click here to read full opinion piece first published on Cape Times.

South Africa's hosting of the AGOA Summit is seen as a positive development, with Finance Minister Enoch Godongwana welcoming the event. AGOA has been instrumental in boosting South Africa's economy, benefiting sectors like mining, manufacturing, and agriculture. In 2022, AGOA facilitated $46.5 billion in two-way trade between AGOA countries and the U.S., with a consistent trade surplus for African nations. Despite political differences within the ANC coalition, significant disruption to AGOA is unlikely. Recent international engagements have highlighted the importance of revitalizing U.S.-African relations, with President Biden's commitment to AGOA 2023 underscoring this dedication. AGOA remains pivotal, providing duty-free access to the U.S. market for eligible nations, contingent on fulfilling strict criteria. South Africa's eagerness for AGOA renewal, expiring in 2025, reflects its recognition of the initiative's importance for the nation's economic growth and international standing. As the AGOA Summit approaches, South Africa aims to ensure the continued success of this essential trade partnership. Click here to read full opinion piece first published on Cape Times.

Kenya has joined the Pan African Payments and Settlement System (PAPSS), allowing East African enterprises to conduct business with peers in other African countries using their local currencies. The Central Bank of Kenya signed the deal, which a cabinet minister claimed will benefit African free trade by lowering foreign exchange costs connected with using the US dollar or euros to execute transactions. "The Central Bank of Kenya has signed the instruments that have finally seen Kenya join the Pan African Payments and Settlement System (PAPSS)," Trade Cabinet Secretary Moses Kuria announced on X, formerly known as Twitter. "This means that Kenyan companies can trade with their peers from other African Member States using our local Currencies, a major boost for the African Continental Free Trade Area (AfCFTA)." In January 2021, African countries began officially trading under AfCFTA, a continent-wide free trade zone. The bloc seeks to combine more than one billion people in a $3 trillion economic bloc that will be the world's largest free trade zone since the World Trade Organization's creation. Read full article first published on zawya.com here.

Over the next few days, the prevailing atmospheric circulation patterns will bring warm and dry conditions across the country, with no significant weather system in sight for widespread rain. Although some showers are expected over the winter rainfall region and isolated thundershowers may occur in the western parts next week, these won't be associated with strong upper-air systems. The development of low-pressure systems over the southern regions typically results in higher rainfall for the Cape provinces, while the interior remains predominantly dry due to continental air dominance. Moisture levels in the central to northern interior are still insufficient for widespread rainfall. The large-scale circulation patterns will likely keep dry conditions in place for the near future. Forecast models hint at potential widespread rain along the coast and eastern interior by October 7th, with monitoring for exact strength and distribution. The heavy rain observed in the south recently was associated with an intense upper-air low, with little rainfall in the northern interior. A secondary low brought thundershowers to some areas in the north but with limited impact. In the coming days, expect temperatures to be normal to above average, below-average rainfall, minimal frost risk in summer grain areas, and occasional cold fronts affecting the winter rainfall region. Windy conditions may persist in some areas, with isolated thundershowers possible in parts of the Northern Cape and Eastern Cape. Read full report on the CUMULUS season 2023/2024 update by J Malherbe, R Kuschke here.

This 156th edition provides a unified picture of the South African supply chain and the present situation of foreign commerce. Commercial ports handled an average of 7 010 containers per day, a considerable decrease from the previous week's healthy rebound of 8 612. Inclement weather, numerous equipment breakdowns and shortages, vessel ranging, and congestion incidents characterized port operations this week. This week, the Port of Cape Town lost around 64 operational hours owing to bad weather, while the same hazard caused structural damage at NCT. The Durban port's helicopter was taken out of service this week, citing "EDU Snags," with no expected time of return given. Furthermore, the latest indications indicate that four sets of shore tensioners are on their way to South Africa and will reach by the end of October. These shore tensioners will be distributed evenly throughout our container-handling ports. There was a significant shift in global trade optimism in September 2022. Rising inflation and interest rates reduced demand for low-cost imports, resulting in surplus inventory and decreased cargo movements through US ports. The Dallas Fed's factory survey and global trade indices show that trade volumes are dropping, which poses difficulties and opportunities for adaptation and innovation in the changing global trade scene. Read the full update in the latest BUSA Cargo Movement Update.

The Citrus Growers' Association of Southern Africa (CGA), shares the latest news in the citrus industry in its weekly update, From the desk of the CEO. Please click here to peruse. 

In the latest edition of Keeping it Fresh, the Fresh Produce Exporter's Forum (FPEF)'s newsletter, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

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