The Agbiz Congress 2024, held from 5 – 7 June at Sun City, offered a pivotal platform for reflections on domestic and global challenges impacting businesses within the agricultural sector. With the main theme "Sustaining Growth in a Changing Global Landscape," the Congress delved into pressing issues ranging from political uncertainty to emerging geopolitical tensions and ways to expand agricultural markets. Wandile Sihlobo, Chief Economist of Agbiz, remarked, "The selection of speakers and subject focus of various sessions mirrored the challenges of the day, including political uncertainty, rising geopolitical tensions, a desire to expand agricultural markets, economic conditions, and ways of improving the efficiency of network industries." "The Agbiz Congress has become a key event in the agricultural calendar," stated Theo Boshoff, CEO of Agbiz. "Under the theme 'Sustaining Growth in a Changing Global Landscape,' delegates gained critical insights into navigating emerging trends such as geopolitical uncertainty and trade protectionism, as well as unlocking sustainable finance and addressing activist campaigns." Click here to read full report by Agbiz Communication Officer Temba Msiza. Click here to access all images from congress.

Generative AI holds significant potential for enhancing productivity and public services but may also lead to job losses and increased inequality. An agile fiscal policy can mitigate these risks by enhancing social safety nets, reforming tax systems, and investing in education. Governments should upgrade unemployment insurance, ensure portable entitlements, and consider wage insurance to support displaced workers. Sector-based training and comprehensive social-assistance programmes are crucial for preparing the workforce for AI-driven changes. Tax policies must be rebalanced to avoid stifling innovation while addressing inequality. Strengthening taxes on capital income and corporate profits can help finance the necessary investments in social protection and education, ensuring AI's benefits are broadly shared. Click here to read full article derived from imf.org.

The Centre for Development and Enterprise (CDE) highlights the urgent need for South Africa's new government to place the most competent individuals in key governmental roles. Despite isolated excellence, the civil service suffers from widespread cadre deployment, skill shortages, and ineffective performance management. To reverse this decline, prioritising senior appointments in government entities is essential. The report urges the government to end cadre deployment, improve civil servant induction training, and empower the Public Service Commission (PSC) in hiring processes. Additionally, it recommends creating an anti-corruption tribunal and amending the Labour Relations Act to facilitate the removal of ineffective senior civil servants. Click here to read full CDE Agenda 2024 Report by cde.org.za.

Former agriculture minister Thoko Didiza was elected National Assembly Speaker at the first sitting of the National Assembly on Friday. In her place, Senzo Mchunu, the minister of Water Affairs and Sanitation, was appointed acting minister of Agriculture, Land Reform and Rural Development. Political analyst Theo Venter told Farmer’s Weekly that the constitution gave the president the prerogative to appoint whomever he pleased to the Cabinet but only two of these appointments could be made from outside the assembly. Ibrahim Patel, the minister of Trade and Industry, and Kgosientsho Ramokgopa, the minister of Electricity, are two examples of ministers who were chosen from outside the assembly. Click here to read full article derived from farmersweekly.co.za.

“The cannabis sector in South Africa is evolving rapidly, with significant legislative changes and growing investment opportunities. The country has made substantial strides towards integrating cannabis into its economy, particularly in the medicinal sphere. This article delves into the current state of the cannabis industry in South Africa, the regulatory framework, and the potential for investment, drawing insights from the comprehensive report by Wesgro on "Investing in Cannabis in South Africa.’’ The journey towards the legalisation of cannabis in South Africa has been marked by three pivotal events since 2017. Firstly, in 2017, the Department of Health introduced a licensing framework for the domestic cultivation and manufacture of medicinal cannabis. This was followed by a landmark decision by the Constitutional Court in 2018, which decriminalised the private use and cultivation of cannabis based on the right to privacy. Click here to read full report by Agbiz Agricultural economist and policy analyst Thapelo Machaba.

We are emerging from a week of celebrating the South African wool and sheep industry. On June 13, South Africa's National Wool Growers Association held its annual Congress in Gqeberha in the Eastern Cape. The discussions at the Congress were about inclusive growth and transformation, taking stock of the gains we have made since the dawn of democracy. We have not fared badly. I was encouraged by the spirit of the discussions and the sense of optimism in the sector. A consensus emerged on five areas that should be a primary focus in transformation. First, the South African government and wool industry must work collectively to improve genetics for the new entrant farmers and to assist the existing commercial farmers where there is a need. Second, the government and the wool industry must work together to develop infrastructure for the new farming areas and the former homelands regions of South Africa; this is key for success and depends mainly on the resources the government makes available. Read full report by Wandile Sihlobo here.

The South African agriculture sector is not immune to politics. Agriculture is a vital sector of the economy. This explains why it earned special attention in the National Development Plan, with an entire chapter, Chapter Six, dedicated to it. Recently, there have also been pragmatic plans such as the Agriculture and Agro-processing Master Plan that set out practical steps to realise a vision to grow the sector and bolster its global competitiveness while achieving inclusion and transformation. The sector must not be a casualty of politics. It is a force for good in growing the South African economy and advancing the country’s place on the global map. The government of national unity must keep the agricultural sector uppermost in their mind. This is a sector that should offer an avenue of convergence across the political spectrum: it is crucial for rural development, food security and job creation. Click here to read full article by Wandile Sihlobo for dailymaverick.co.za. Click here to watch interview with Newzroom Africa on the same topic.

We continue to observe a welcome easing in South Africa's consumer food inflation. The data released this morning by Statistics South Africa shows that consumer food inflation slowed to 4,3% in May 2024, down from 4.4% in the previous month. This deceleration was primarily driven by price moderations in "bread and cereals", "milk, eggs and cheese", "oils and fats", and "sugar, sweets and desserts". Meanwhile, other products in the food basket experienced a mildly increase. However, in the coming months, we may start to see a slight change in the direction of consumer food price inflation, with potentially a slight uptick as the price increases of the past few months in the grain-related food products begin to filter through to the consumer. The mid-summer drought in South Africa resulted in a 25% decline in white maize harvest to an estimated 6,4 million tonnes. This led to a surge in white maize prices from the end of the first quarter to the second quarter. Click here to read full report by Wandile Sihlobo.

First-quarter export figures are encouraging, but the trend may not be sustained. The collaboration between Transnet, organised business and agriculture sector stakeholders to improve efficiency at SA ports must go on. Efficient logistics are the lifeblood of SA agriculture and other exporting sectors of the economy. Admittedly, the deciduous fruit industry faced many challenges at the Port of Cape Town at the start of 2024 related to delays that proved costly to farming businesses. Still, continuous collaboration to ensure improvements is the only viable path forward. Click here to read full article by Agbiz Chief Economist Wandile Sihlobo for businesslive.co.za.

Chief economist at the Agricultural Business Chamber, Wandile Sihlobo, delves into Africa's agricultural sector navigating the complexities of policy, infrastructure hurdles, technological progress, and market fluctuations in the first quarter of 2024. During this period, the industry grappled with systemic infrastructure deficiencies, including deteriorating roads and railway networks and bottlenecked port facilities. He emphasises the urgent need for lasting stressing collaborative efforts between Transnet and the private sector to improve network efficiencies and infrastructure investments. Despite persistent challenges, constructive dialogues provide glimpses of optimism for revitalising vital transport hubs crucial for agricultural trade. Click here to listen full ofm.co.za interview.

With votes counted and the ANC’s support having fallen sharply to only 40%, some form of coalition government is likely to govern SA. The nature of such an arrangement is likely to emerge in coming days and weeks. As with any coalition negotiations, trade-offs are likely to be made involving several government functions and policies. The question that should be addressed in the agriculture sector is: what are the implications for potential changes in government functions on agriculture and land reform policy? Regardless of the formation of the coalition the ANC settles with, the policies of the agriculture, land reform and rural development department should be maintained. Click here to listen to full Khaya FM interview with Wandile Sihlobo.

The collaboration between Transnet, organised business and agriculture sector stakeholders to improve efficiency at SA ports must go on. Efficient logistics are the lifeblood of SA agriculture and other exporting sectors of the economy. Admittedly, the deciduous fruit industry faced many challenges at the Port of Cape Town at the start of 2024 related to delays that proved costly to farming businesses. Still, continuous collaboration to ensure improvements is the only viable path forward. We are already seeing the benefits of the improvements in the agricultural sector through the rise in the value of exports. In the first quarter, agricultural exports increased 6% year on year, reaching $3.1bn according to Trade Map data, a result of both higher volumes and prices. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo.

Global crude oil trends impact the South African economy, as the country depends heavily on imported oil to produce its fuel products. Over the past months, there has been a steady increase in global crude oil prices, attributed to factors such as rising tensions in the Middle East and higher interest rates among major global central banks. We saw the Rand appreciating against the US dollar on average in May. The average Rand/US Dollar exchange rate for the period from 26 April to 30 May 2024, was R18.46, compared to R18.90 during the previous period. This led to a lower contribution to the basic fuel price of petrol. Since January 2024, local fuel prices have been increasing, mirroring the global pricing of Brent crude oil. Click here to read full report by Agbiz Agricultural economist and Policy analyst Thapelo Machaba.

For over eight decades, the IMF has stood as a pillar of global macroeconomic and financial stability. Originating from the Bretton Woods conference attended by 44 delegations, the IMF now encompasses 190 member countries, with Africa’s 54 members forming the largest regional group. This growth reflects a significant evolution from the original framework designed to support the gold standard of fixed exchange rates. The collapse of that system 50 years ago shifted the IMF’s role from underwriting fixed exchange rates to promoting flexible exchange rates. In response to these shifts, the IMF has evolved into a development financing institution. Click here to read full article first published in imf.org.

The Agbiz Congress 2024, which took place from 5 to 7 June at Sun City in North West, was an important event for businesses in the agricultural sector to discuss domestic and global challenges. The main theme was “Sustaining growth in a changing global landscape”, focusing on issues like political instability, geopolitical tensions, and ways to grow agricultural markets. Wandile Sihlobo, chief economist of Agbiz, remarked, “The selection of speakers and subject focus of various sessions mirrored the challenges of the day, including political uncertainty, rising geopolitical tensions, a desire to expand agricultural markets, economic conditions, and ways of improving the efficiency of network industries.” Click here to read full article by Duncan Masiwa for foodformzansi.co.za.

India's apple imports are set to reach a record 510,000 metric tonnes in the 2023–24 marketing year, driven by a 70% increase in the first nine months compared to the previous year. This surge in demand is fueled by a growing population and a preference for healthier foods. Although domestic production is slightly up, limited infrastructure hampers the distribution of lower-quality domestic apples. Imports from Iran have nearly doubled, now comprising over a third of total imports, despite a minimum import price set in May 2023 to protect domestic prices. However, an export duty imposed by Iran in March 2024 might slow these imports. U.S. apple imports rose from 2,000 to nearly 20,000 tonnes after the lifting of a retaliatory tariff in September 2023, though they remain below the 10-year average. Other key exporters include the European Union, Turkey, and South Africa, with the latter benefiting from a bilateral agreement for in-transit cold treatment. Read full USDA report 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. 

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.

Discover the latest updates from Fruit SA’s newsletter! Delve into essential information, highlights, and upcoming events shaping the fruit industry. Don't miss out – click here to explore the newsletter.

• 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.