Georgieva emphasises the crucial role of central bank independence in combating inflation and fostering sustainable economic growth amid mounting political pressures. Independent central banks played a pivotal role in steering economies through the pandemic, mitigating financial crises, and maintaining price stability. Research underscores the correlation between central bank autonomy and successful inflation management, highlighting the imperative of strong governance and transparency. Fiscal prudence, robust financial regulation, and collaborative efforts between central banks and governments are vital to upholding independence and ensuring economic stability. The IMF advocates for tailored technical assistance and accountability measures to fortify central bank autonomy, aiming to secure long-term growth and stability for all stakeholders. Click here to read full article derived from IMF Blog.

“Since the start of the year, we have seen persistent global inflation pressures. Headline inflation rates are generally lower than they were a year ago, but underlying inflation is still elevated. Goods inflation has declined significantly, as supply shocks wear off, but there is evidence of stronger inflation in services, across a range of economies. Meanwhile, unemployment rates remain low – especially in the United States. In these circumstances, major global central banks are expected to cut rates at a slower pace, and to start cutting at a later stage. A few emerging market central banks have been reducing rates already, but these economies had the largest hikes previously, and their interest rates are now well above inflation. The Monetary Policy Committee (MPC) also noted that the Bank of Japan has moved its policy rate into positive territory, increasing interest rates for the first time since 2007.” Click here to read full statement Issued by Lesetja Kganyago, Governor of the South African Reserve Bank.

Johann Kirsten and Wandile Sihlobo provide insights into President Cyril Ramaphosa's assertion that South Africa's land reform progress is reaching 25%. By meticulously examining data on land restitution, redistribution, private transactions, and government acquisitions, they offer a detailed perspective on the journey towards land transformation. The article underscores the importance of accurate reporting and policy interventions to foster a fair and equitable agricultural landscape. Through their analysis, they advocate for the establishment of a Land Reform and Agricultural Development Agency to streamline processes and ensure effective implementation of government policies. This comprehensive assessment sheds light on the complexities of land reform and underscores the need for continued efforts to achieve inclusive agricultural growth in South Africa. Click here to read full article first published on theconversation.com.

The Minister of Forestry, Fisheries, and the Environment, Barbara Creecy, emphasises the urgent need for transforming the biodiversity sector for sustainable rural socio-economic development. She advocates for meaningful inclusion of rural communities and historically disadvantaged individuals, highlighting successful land restitution projects like the Tshivhula CPA and the Isimangaliso Wetland Park Authority. The Minister stresses the importance of financial support, market access, and private sector involvement to sustain conservation and grow the biodiversity economy. Through the Biodiversity Economy and Investment Indaba, over 100 proposals were pitched to investors, showcasing opportunities for collective action and thriving people and nature. The National Biodiversity Economy Strategy aims to leverage biodiversity for conservation, transformation, and fair benefit sharing, aligned with the goals of the White Paper on Conservation and Sustainable Use of South Africa's Biodiversity. Click here to read full article derived from SAnews.gov.za.

There have been several attempts since 2008 to replace the 1975 Expropriation Act. The latest attempt was the Expropriation Bill that was tabled in Parliament on 15 October 2020.After a lengthy parliamentary process the Bill was finally passed by Parliament on 27 March 2024. The Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure adopted a number of amendments to the Bill, which amendments were approved by the Portfolio committee on Public Works and Infrastructure. These amendments include a new clause 2(3) which provides for the compulsory acquisition of property directly or indirectly by a third-party beneficiary through an expropriating authority in the public interest. Read full report by Agbiz Head of Legal intelligence, Annelize Crosby here.

Agbiz hosted a workshop on 13 March 2024 in Pretoria on the subject of campaigns that are aimed at bringing about change in the agricultural sector. The workshop was attended by members, some in person and some attending online. The aim of the workshop was to create awareness amongst members of the role and impact of campaigning by non-governmental organisations in the policy and implementation space in the sector. By way of background, Agbiz has, as one of its core objectives, a role to try and create and maintain an enabling environment for our members to function in. Agbiz is therefore very involved in the policy space. There are however many other actors that are also active in the policy space and sometimes their views are diametrically opposed to that of Agbiz and its members. The approach of many of these NGO’s can be quite ideological, emotionally driven and even confrontational. It is important that members understand how these groupings operate and how to respond appropriately. Click here to read full report by Head of Legal Intelligence Annelize Crosby.

Despite all the commendable government work in opening up export markets, helping to control the spread of animal diseases, and supporting smallholder farmers over the recent past, South Africa's agriculture has been operating from one crisis to another. This has limited the sector's full potential growth. Last year, the big challenge was load-shedding and its effects on agricultural production. Later in the year, there were widespread animal diseases and crises at ports, railway lines, and roads. This means many government programmes aimed at addressing the sector's long-term growth remain on the periphery as government officials and the private sector throw their weight on the present issues. For example, the interventions needed for the long-term expansion of the sector contained in the Agriculture and Agro-processing Master Plan have seen limited implementation thus far. Read full report by Wandile Sihlobo here. 

South Africa's consumer food inflation slowed to 6,0% in February 2024, from 7,0% in the previous month. This was underpinned by the deceleration across most food products, except for "sugar, sweets and desserts", which remained roughly unchanged from the last months. We expect this broad moderation path to continue for most of the products within the food basket over the near-to-medium term. However, there are significant upside risks for the "bread and cereal products" in the food basket because of the potentially poor white maize harvest on the back of the current heatwave and dryness. There are notable crop failures in the western regions of South Africa, which are primarily white maize-producing regions. It is unclear what the white maize harvest will be as the weather conditions remain challenging. At the end of February, the estimates from the Crop Estimates Committee placed South Africa's 2023/24 white maize harvest at 7,0 million tonnes, down 17% year-on-year. This estimate will likely be lowered over the coming months. We have gone through March with virtually no rains in the white maize regions. Click here to read full report by Wandile Sihlobo. 

After deteriorating by 10 points to 40 in Q4 2023, its lowest level since Q2 2020 at the height of the pandemic, the Agbiz/IDC Agribusiness Confidence Index (ACI) was unchanged in Q1 2024. The Q1 2024 reading is below the neutral 50-point mark, implying that South African agribusinesses remain downbeat about business conditions. This pessimism emanates from mostly the same factors as in recent surveys, which are yet to be addressed , and new challenges on the weather front. These include the ongoing El Niño induced drought that is devastating the summer grains and oilseed regions, persistent inefficiencies at the ports, poor rail and road infrastructure, and the worsening municipal service delivery. The rising crime, lingering animal disease challenges, uncertain policy environment ahead of the elections, persistent episodes of load-shedding and increased geopolitical uncertainty also remain top of mind challenges for agribusinesses. This survey was conducted in the first three weeks of March, covering businesses operating in all agricultural subsectors across South Africa. Click here to read full statement by Wandile Sihlobo. Alternatively, click here to watch the summary.  

SA departments should create a list of products for investment and map up any barriers. The Middle East is deepening its economic ties with Africa. The Economist magazine recently ran an article, “The Gulf’s scramble for Africa is reshaping the continent,” which focused on growing geopolitical ties and significant investments in infrastructure projects such as ports in various African countries. The leading countries are the United Arab Emirates (UAE), Saudi Arabia and Qatar. For countries such as SA, with diverse interests worldwide, the Middle East’s growing interest in Africa requires proactive engagement, particularly for drawing in investments and opening up the market for exporting sectors of the economy. Read full column by Wandile Sihlobo for businesslive.co.za here. 

The fumigation of grains and oilseeds is not an issue to be taken lightly. New service providers put the good name of the industry on the line. Growing concern prevails over the easy availability of registered hazardous drugs for fumigation and their illicit trading. In addition, the training of fumigators and their assistants by new service auctioneers is poor. The latter disregard the industry's how training standards. The increase in the mishandling of chemical agents used in the fumigation of grains and oilseeds is forcing the industry to act strictly. Agbiz Grain, CropLife and Sapca will together focus on expose those who provide training that does not meet the legal standards. Click here to read full article by Agbiz Grain General Manager, Wessel Lemmer for Landbouweekblad.

The latest Global Trade Update from UNCTAD indicates a rebound in international trade in 2024 following a 3% contraction in 2023, amounting to roughly $1 trillion. Despite this decline, the services sector demonstrated resilience with a $500 billion, or 8%, increase, while trade in goods experienced a $1.3 trillion, or 5%, decline compared to 2022. Developing countries, particularly those in Africa, East Asia, and South Asia, experienced growth in trade in the fourth quarter of 2023. Major economies witnessed declines in merchandise trade throughout 2023, although certain exceptions like China and India showed growth towards the end of the year. Geopolitical tensions and mixed sectoral performance characterised the trade landscape, with some industries experiencing declines while others, such as electric vehicles, saw growth. Notably, tourism and travel-related services exhibited a significant rebound, increasing by almost 40% last year. Click here to read full report by UNCTAD.

“We have received some showers in the eastern regions of South Africa, which slightly improved soil moisture. Still, the summer grain and oilseed growing conditions in various regions are in bad shape. We need more rainfall, although it may not improve conditions in areas where it's already too late and the crop is damaged. The central and western regions remain dry, and there haven't been any good rains in a while. There are crop failures in various regions of the North West, Free State, Gauteng, and other provinces. We have yet to determine what South Africa's 2023/24 summer grain and oilseed harvest will be. Still, it will likely be a notable reduction from the estimates the Crop Estimates Committee released at the end of February. The update of the production figures will be out at the end of this month.” – Wandile Sihlobo, Agbiz. Click here to read full weather outlook by World Weather, Inc.

The Bureau for Food and Agricultural Policy (BFAP) disputes statistics. South Africa's Stats SA reported a 12.2% year-on-year decline in the agricultural sector's gross domestic product (GDP) for 2023. BFAP's analysis suggests a much smaller decline, possibly only ranging from -2% to -5%. Despite challenges such as producer price declines and reduced volumes in various sectors, BFAP highlights significant discrepancies in input costs and consumption. The report questions the reported increase in farm input costs, citing significant decreases in input prices according to Department of Agriculture data. BFAP emphasises the importance of accurate quantification for informed policy-planning and budgeting in the agricultural sector. Read full article derived from engineeringnews.co.za here.

India's increasing demand for South African citrus could receive a significant boost with the potential relaxation of import duties and the implementation of in-transit cold chain processes, as highlighted during a Fruit SA delegation visit to the country. Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa, emphasised the importance of addressing high import duties to maintain South Africa's competitive edge against countries with preferential trade agreements. Furthermore, the delegation discussed the potential for in-transit cold treatment, which could enhance the marketability of South African fruit in India. Despite these challenges, South African fruit is gaining traction in the Indian market, with commendations for its quality and competitive pricing. Traders expressed optimism about the growth potential across various categories of South African fruit and highlighted consumer preferences for specific varieties. Chadwick provided insights into the dynamic and demanding Indian market, where traders prioritise quality and consistency to meet the needs of the rapidly expanding consumer base. Click here to read full article by freightnews.co.za.

This update offers a comprehensive view of South Africa's supply chain and global trade status. Port operations faced setbacks due to adverse weather, equipment shortages, and congestion, notably in Cape Town and Eastern Cape Ports. Meanwhile, a fatality in Durban disrupted operations. The Port of Richards Bay's development as an energy trade hub is underway. In the global maritime industry, the Red Sea crisis led to diversions and increased transshipment cargo volumes. Container throughput fluctuated, with concerns about port congestion in Durban. Shifts in alliances address tonnage shortages. In the air cargo sector, ORTIA handled increased volumes, while the Asia Pacific market saw growth post-Lunar New Year. Regional road freight trade showed decreased transit times but persistent challenges at border crossings, emphasising the need for industry collaboration to enhance operational efficiency. 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.

• 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.