Africa aims to shift from being a net importer of about $50 billion worth of agricultural products annually to a global food exporter by 2050, leveraging the AfCFTA agreement. The agreement is expected to boost intra-African agricultural trade by 574% after the elimination of import tariffs by 2030. However, despite these aspirations, various African countries, particularly in Sub-Saharan Africa, grapple with severe food insecurity due to factors like climate change and conflict. The continent must focus on comprehensive agricultural policies, increased investments, and gender-inclusive measures to ensure sustainable food security. This transformation is critical as Africa currently faces challenges, with over 282 million people experiencing food insecurity. Achieving these goals requires renewed commitment to the Maputo Declaration and structural support for small-scale farmers. Click here to read full article from moderndiplomacy.eu.

With the election date set for May 29, the South African political landscape is evolving. In the 2019 national elections, three major parties—the ANC, DA, and EFF—secured 89% of the vote. However, the 2021 local government elections saw shifts, indicating potential changes in voter preferences. Recent polls suggest the ANC's support is at 45%, while the DA and EFF stand at 23% and 13%, respectively. The introduction of new parties like RISE Mzansi and Build One South Africa adds complexity. Coalitions may emerge, especially if the ANC falls below 50%, potentially reshaping provincial governments. Policy continuity is expected, focusing on structural reforms in key sectors like electricity and railways. The budget indicates financial prudence and commitment to reforms. As South Africa heads to the polls, questions arise about potential shifts in the long-standing one-party-dominant state paradigm. Click here to read full article by Political & Trend Analyst, JP Landman.

This article discusses the complexities of economic policies that improve aggregate social welfare but generate winners and losers, as exemplified by the consequences of deindustrialization in the US. While economists advocate for policies like free trade, compensating the disadvantaged is challenging due to resistance and unclear beneficiaries. The article emphasises the non-economic impact, such as the decline of traditional industries affecting community cohesion. It explores the difficulty of compensating for intangible losses, like the value of a close-knit community. Ultimately, politics becomes the mechanism to weigh these challenging-to-measure values as societies make choices that balance economic growth with the preservation of community, culture, and family. Click here to read full article by imf.org.

Ethiopia and the Netherlands collaborate on the construction of a cooling centre, Cool Port Addis, located 70 kilometres from Addis Ababa. The project, funded by Invest International and the Ethiopian government, aims to enhance the cooling and export capabilities of horticultural crops to markets, including the Port of Rotterdam. This initiative promotes sustainability in the supply chain, allowing Ethiopian growers to diversify their exports beyond flowers to include vegetables. The first phase, requiring a $27.5 million investment, engages Dutch companies specialising in cooling logistics and horticulture. The project, led by developer Flying Swans, seeks to establish fair and environmentally friendly trade corridors, creating opportunities for Ethiopian farmers and contributing to CO2 reduction. Jeroen Bos from Flying Swans emphasises the importance of efficient cooling logistics for international vegetable and fruit purchases, marking a significant milestone for Ethiopia's horticulture sector and potential access to export markets. Read full article from freshplaza.com here.

South Africa's decision to regulate all gene-editing products as genetically modified organisms (GMOs) rather than adopting a product-by-product approach poses significant challenges for its agriculture sector. While technological innovation, particularly gene editing, offers solutions to pressing issues like climate change resilience and improved crop quality, the current regulatory framework hampers timely adoption. The automatic classification of all new breeding technologies (NBTs) under the GMO Act incurs high compliance costs, hinders local businesses, and stifles innovation. The South African National Seed Organisation (Sansor) has urged corrective action to avoid market access loss, regulatory burdens, and impeded progress in addressing climate and pest challenges. The misalignment with global practices may result in missed opportunities and increased risks to food security. Click here to read full article by Sansor General Manager Lukeshni Chetty for dailymaverick.co.za.

The Sustainability/ESG Workshop held at the Grain Building in Pretoria recently, offered a comprehensive exploration of Environmental, Social, and Governance (ESG) considerations within the agricultural and agribusiness sectors. Led by Agbiz and Agrifusion, the workshop delved into the significance of ESG, a six-step process for creating an ESG roadmap, emerging trends in 2024, and insightful case studies from the agribusiness domain. Participants emphasised the necessity of addressing key risks, compliance challenges, and financing opportunities, particularly in the face of varying levels of awareness and resource constraints. The workshop stressed the importance of robust data management systems, scoping exercises to identify sector risks, and collaboration in ESG reporting. Click here to read full report by Agbiz Agricultural Economist and Policy Analyst Thapelo Machaba.

South Africa, Zambia and Zimbabwe have recently published reports indicating a potential decline in grain harvest because of intense El Niño-induced dryness. These developments could put the entire Southern Africa maize supply chain at risk, with Zambia and South Africa hard hit by heatwaves and dryness. The neighbouring small producers such as Zimbabwe, Botswana, Lesotho and Namibia are also struggling with dryness. Given that South Africa, Zambia and Zimbabwe are among the largest maize producers within the Southern Africa region, a potential decline in the harvest in these countries suggests there could be an increase in the risk of food insecurity. This would necessitate imports to meet the shortfall in the region’s maize supplies. The dryness in an El Niño event is not unexpected in the Southern Africa region as this weather phenomenon is typically accompanied by dryness. The year started favourably, with excellent rains. But the dryness intensified from the end of January. Major damage has been caused to crops since then. The unusual pattern may be part of the broader climate change challenges. Click here to read full article by Wandile Sihlobo for theconversation.com.

South Africa’s agricultural sector faced several challenges in 2023, but we didn’t think the overall annual performance would drop sharply. Along with the Bureau for Food and Agricultural Policy (BFAP), we expected a mild contraction in 2023 because of the animal disease challenges in the livestock and poultry sub-sector. But the figures released today by Statistics South Africa show that the gross value added fell notably by 12,2% year-on-year. The headwinds in the livestock and poultry industry weighed on the sector more intensely than we anticipated. The livestock and poultry industry, which accounts for nearly half the sector’s value, was hit by animal diseases such as foot-and-mouth, avian influenza and African swine fever. Regarding the field crops, the harvest was robust but insufficient to boost the overall sector performance. For example, the 2022/23 maize harvest reached a solid 16,4 million, 6% higher than the 2021/22 season’s harvest and the second-largest harvest on record. Soybean harvest was at a record 2,8 million tonnes. Read full article By Wandile Sihlobo for wandilesihlobo.com here. 

The excessive heat and scant rains across South Africa are a significant concern for farmers, particularly in the summer grains and oilseed-producing regions. The 2023-24 summer crop season started on favourable footing. We received widespread rains, which was unusual in an El Niño season that would typically start with drier weather conditions. Those good early-season rains led us to believe the country would have a decent harvest in the 2023-24 production season. But this view has now changed. We worry about possible poor harvests if there is no widespread rain within the first two weeks of March. The Crop Estimates Committee (CEC) also fears the possible decline in the summer grains and oilseed harvest. Its first production estimate for the 2023-24 season placed the summer grains and oilseed harvest at 17.4 million tonnes, down 13% year-on-year. This is a function of the expected lower yields in some regions. Click here to read full article by Wandile Sihlobo for mg.co.za.

There are divergent views about the efficacy of South Africa's agricultural policies. Since 1994, the sector has grown substantially – as illustrated in Figure 1 below. Data from the Department of Agriculture, Land Reform and Rural Development show that domestic agricultural output in 2022/23 was twice as high as in 1993/94. Whether this growth has been inclusive and transformative is a key question. But for now, it's important to emphasize the growth of the industry and the drivers of its expansion. Significantly, this expansion was not driven by a few sectors but has been widespread -- livestock, horticulture and field crops have all seen strong growth over this period. Although the production of some crops, most notably wheat and sorghum, has declined over time, this had to do with changes in agroecological conditions and falling demand in the case of sorghum. It was not a failure of policy. Reade full article by Wandile Sihlobo for econ3x3.org here.

Last week, Zambia declared a national disaster due to drought, with President Hakainde Hichilema revealing that the El Niño weather phenomenon had adversely affected over one million farmers and one million hectares of planted land. Zimbabwe has announced plans to import more than 1 million metric tonnes of maize within the next year to mitigate the potential impact of the unusually warmer weather pattern on food security. Concerns about El Niño's repercussions extend to Botswana and Lesotho. Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz), provides insights into how El Niño is affecting Africa's crops in an interview with CNBC Africa. Watch the interview here.

Agricultural economist Wandile Sihlobo has cautioned that South Africa's upcoming summer harvest for 2023/2024 may face challenges due to insufficient rainfall and the ongoing heatwave across the country. Despite a promising start to the planting season late last year, characterized by consistent rains from October 2023 to January 2024, farmers are now grappling with uncertainty regarding the crop quality at the time of harvest. For further insights, you can view the complete interview on SABC News by clicking here.

Despite all the challenges at the ports and various export markets, the South African agricultural sector has continued to realize excellent export activity. Total agricultural exports reached a new record of US$13.2 billion in 2023, up 3% from the previous year. This is stronger than our earlier expectations of a modest export activity this year. The products that dominated the export list were citrus, maize, apples and pears, nuts, wine, soybeans, sugar, wool, grapes, berries, avocados and fruit juices. This improved export activity was a function of improvement in volumes and prices. That said, pricing developments over the year were significantly more varied than the average data suggest. While fruit prices picked up, grains and oilseed prices have declined notably from the 2022 levels. Click here to listen to full episode of the Agricultural Market Viewpoint by Wandile Sihlobo. 

Dive into the latest edition of Agbiz Grain Quarterly, a digital magazine dedicated to the grain handling and storage industry. The February release delves into key discussions from the 2023 Agbiz Media Day, providing insights into challenges faced by grain handlers and storers. Experts simplify complex topics such as storage costs and the proposed grain passport system. The issue covers diverse subjects, including the 30-year performance of South Africa's agricultural sector, the economic outlook for 2024, explanations for the falling wheat grading numbers, JSE's storage cost definitions, risks in malting barley, and considerations for the grain passport system. It also explores standards for fumigation training, health and safety aspects like noise monitoring, and the applicability of Competition Act buyer power guidelines to storers and producers. Don't miss the Freight Logistics Roadmap and much more in this comprehensive February edition. Explore the digimag or download the PDF version.

This report provides an update on the status of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), as of February 2024. What is the CBAM? It is border measure that places a tax or carbon price on emissions-intensive imports from non-EU countries/jurisdictions. The tax is relative to the carbon emitted during the production of these goods. This is meant to level the playing field with the equivalent carbon price already placed on EU producers under the EU’s Emissions Trading System (ETS) or carbon trading market. If EU did not do this, EU producers would possibly relocate to non-EU locations to avoid these EU carbon taxes. In other words, the EU seeks to steadily reduce the amount of carbon utilised to produce goods in an identified set of sectors. Manufacturers must account for the carbon emissions they generate and buy allowances or credits to cover their emissions. There is also a cap on what you can emit. Anything over the cap is fined. Over time the cap decreases, to encourage greener production methods. Allowances can also be traded between companies. The fines go mostly to EU member state national budgets. Click here to read full report by Agbiz Fruit General Manager, Wolfe Braude. 

The fresh produce industry is considering a legal challenge against the revamped Packaging and Packaging Waste Regulation (PPWR) proposed by the European Parliament and Council. The PPWR aims to enhance food safety and circular economy efforts by making all packaging in the EU recyclable and reducing harmful substances. However, the revised rules now single out plastic packaging for fresh fruit and vegetables, raising concerns among industry leaders. Critics argue that the ban on single-use plastic packaging is poorly conceived, discriminatory, and could lead to increased food waste. Industry representatives suggest potential legal action, citing the lack of impact assessment in the proposal. The agreement, which must be formally approved, sets packaging reduction targets and requires EU countries to reduce plastic packaging waste. Read full article by fruitnet.com here. 

The Economic Commission for Africa (ECA) reports that the African share of global trade remains below 3%, primarily driven by merchandise trade, indicating a higher reliance on global trade than regional trade. The report, presented by ECA Director Stephen Karingi, reveals slow progress in Africa's regional integration agenda, with challenges in meeting macroeconomic convergence criteria. Infrastructure development through the Programme for Infrastructure Development in Africa yielded mixed results, and financing remains a challenge. The report emphasises progress in fulfilling the first 10-year plan of Agenda 2063 but notes less encouraging outcomes in crucial areas. Despite the launch of the African Continental Free Trade Area, intra-African trade's share declined, posing challenges for the continent's overall development. The report calls for addressing ongoing challenges and emphasises the importance of regional integration for productive and sustainable development in Africa. Click here to read full article Issued by Communications Section Economic Commission for Africa.

Transnet has obtained board approval to finalise the contract for the operation of Durban Container Terminal 2, designating ICTSI as the preferred bidder. The financial due diligence process, completed last month, confirmed ICTSI's financial capability for the 25-year joint venture, which is expected to enhance terminal productivity and boost South Africa's economy. However, the deal is contingent on resolving legal, regulatory matters, ministerial approval, and union consent. The privatisation aims to improve Transnet's container supply chains without triggering employee retrenchments. The partnership involves a joint venture with Transnet Port Terminals and is crucial for the development and upgrade of the largest container terminal, handling a significant portion of Port of Durban throughput and South African traffic. Read full article derived from freightnews.co.za here. 

The BUSA Board of Directors announces changes in executive leadership, appointing Khulekani Mathe as the new Chief Executive Officer (CEO) effective January 2025 upon the retirement of current CEO Cas Coovadia. Khulekani, who has been serving as Deputy CEO since February 2023, played a vital role in addressing the transport and logistics crisis. With a background in executive roles in the Banking Association of South Africa and government, Khulekani brings extensive experience. Mxolisi Mgojo, BUSA President, expresses gratitude to Coovadia for steering the organisation through challenging times, highlighting his successful leadership during the COVID-19 pandemic. Coovadia oversaw key partnerships addressing the energy crisis, transport and logistics issues, and combating crime and corruption. The Board looks forward to Khulekani's leadership during these challenging times and extends its best wishes to Coovadia in his retirement. Click here to read full statement by Mxolisi Mgojo, Business Unity SA President.

The latest Seasonal Climate Watch, issued on March 4, 2024, reports that Southern Africa is currently experiencing a strong El Niño state, impacting weather conditions. The El Niño event is expected to persist through the autumn of 2024, bringing generally drier and warmer conditions during the remaining summer months. As South Africa transitions from summer to autumn, the occurrence of cut-off low weather systems is expected, particularly along the southern to southeastern coastal areas. The South African Weather Service (SAWS) multi-model rainfall forecast indicates below-normal rainfall over most of the country for the next few months, with above-normal rainfall expected in parts of KwaZulu-Natal and the Eastern Cape. Minimum and maximum temperatures are forecasted to be mostly above-normal nationwide. The SAWS will closely monitor weather and climate conditions, providing updates as needed. The report also highlights the SAWS Prediction System, recognised by the World Meteorological Organisation, which incorporates a fully interactive coupled modelling system for long-range forecasts. Click here to read full update. 

This update provides a comprehensive overview of the South African supply chain and international trade. Severe weather conditions and equipment breakdowns impacted port operations, with the Port of Cape Town experiencing windbound conditions, and Durban facing rain and equipment challenges. The rail network also faced disruptions due to cable theft. Transnet and Sasol announced a groundbreaking public-private partnership to enhance rail transportation, focusing on repairing 128 ammonia tankers. In the international maritime industry, the Cape route witnessed a surge in containerships, while global trade lane patterns shifted due to the Panama Canal drought. Air cargo handling at ORTIA increased, and the airline industry saw significant cargo tonne-kilometre growth in 2023. The regional cross-border road freight trade reported increased queues and transit times. Efforts to address the vessel backlog at Durban Port continue, with optimism expressed amidst challenges, emphasizing the need for sustained efforts to restore port operations and boost the economy.  Read the full update in the latest BUSA Cargo Movement Update.

In the most recent issue of AGDA's bi-monthly newsletter they bring you thrilling updates and noteworthy news. Stay informed with a concise overview of essential information and receive timely reminders about upcoming significant events. Explore the latest insights by clicking here.

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. 

• 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.