Speech by MEC Nandi Mayathula-Khoza

Solidardad Conference

Tuesday 01st October 2013

Sandton Holiday Inn

Program Director, Ms Lusanda Mbane

Ms Annie Sugrue, Regional Director, Solidaridad Southern Africa

Mr Chance Kabaghe, from the Zambia Association of Manufaturers,

Mr Ishmael Sunga from SACAU

Distinguished guests,

Ladies and Gentlemen

Good morning, GooiMore, Good morning, Dumelang, Sanibonani.

I am delighted to be with you all this morning for this important conference, aptly called “Securing the sustained supply of agri-commodities in Southern Africa in the next decade”.

Program Director, I have been requested to speak on the role of government in supporting smallholder farmers in the value chain, a crucial aspect of farming, food security and government assistance.

Ladies and gentlemen, according to research, world food production will have to increase by 50% by 2030 to meet the growing demand. And having most of the productive agricultural areas already used, focus thus needs to be on increasing productivity elsewhere, especially in emerging economies. And it based on such findings that according to the International Fund for Agricultural Development, support for smallholders will be crucial to future food security.

And as MEC responsible for Agriculture and Rural Development in Gauteng, I think it is imperative to provide an overview of our province Gauteng. Program Director, Gauteng is the 3rd largest in Sub-Saharan Africa and 5th in Africa after Egypt and Algeria with a population of 12.3 million (Socio Economic Review, 2013). The total farmland in Gauteng is 774 265 ha, of this, 438 623 ha are potentially arable and 390 000 ha is grazing land. The amount of potentially arable land that is currently being cultivated is approximately 293 571 ha (67%).

Ladies and gentlemen, between 2004 and 2009, agriculture at a national level grew by an annual average of 3.9%, whereas Gauteng’s agriculture sector recorded growth of 2.4% on average over the same period. And indications are that the agriculture sector in both the country and Gauteng will expand at an annual average of 2.2% per annum between 2009 and 2013.

Program Director, while we are extremely pleased with the projected growth, the provincial government has also been at pains to zone off available high potential agricultural land. Understanding that we have stiff competition for land use in the province, Gauteng falls mainly within the highly intensive, diversified commercial and small holder agricultural zones of South Africa coupled with grain cropping, ranching, dairy, poultry and piggery.

Ladies and gentlemen, one of the aspects that I am extremely keen as MEC for Agriculture in Gauteng is encouraging our provincial farmers to investigate and enter the option of tertiary agriculture. As we know, Gauteng currently has a large number of processing factories in South Africa which are dependent upon agriculture for raw materials, such as sunflower seeds, peanuts and maize. This, therefore, clearly demonstrates that agriculturecreates a demand for goods and services through their backward linkages. It is labour absorptive capacity is high in comparison with other sectors of the economy because investment costs per work opportunity created are much lower than for other sectors. Thus agriculture as a sector has potential and an important role to play in the economy of the province

Program Director, in relation to imports and exports, the largely rural and underdeveloped nature of large parts of the African continent places agriculture at the forefront in any discussion on the economics of African development or growth. The agricultural sector directly accounts for over 60% of the total labor force; more than 20% of total merchandise exports and approximately 20% of total GDP for Africa as a region. In addition to providing the primary source of foreign exchange earnings, agriculture plays the vital role of often providing the only source of livelihoods for a large percentage of the continents population. Any attempts at broad based development across the region therefore have to take cognizance of both the contribution agriculture is likely to make and the role agriculture needs to play in development initiatives (NDA, 2006).

Noting this, ladies and gentlemen, the extent of infrastructure, and the resulting access to markets, is one of Gauteng’s strengths. The relative compactness of the province promotes cost effective communication and transport, as all extreme points are within a 200km radius from the centre of the province. This well-developed communication, commodity supply, transport and market infrastructure in the province facilitates the flow of information, the availability and transportation of production inputs and the marketing of agricultural produce both locally and internationally.

However, program director, irrigation infrastructure in the province, which the creation of high-value niche markets and related activities relies on, is limited by competing demands for water consumption. Agricultural ventures in much of the province rely on the comparatively limited water that is sourced from boreholes. The two major fresh produce markets in Gauteng handle 32%, Johannesburg, and 16% Pretoria, of all fresh produce marketed through formal channels and it is the highest of all markets in South Africa. The high population density of Gauteng therefore offers a stable and lucrative market for agricultural produce.

Distinguished guests, the development of alternative agricultural practices such as the conversion to high value commodities for niche markets, organic farming and highly intensive agricultural production under artificial conditions, namely aquaculture and hydroponics is of paramount importance. Gauteng as a whole is committed towards ensuring a brighter future for all inhabitants in the province and aims to enhance competitiveness and encourage sustainable growth that is inclusive.

In conclusion, let me reiterate that ultimately, the local economy needs to grow, compete and create more jobs, with a focus on those that have been previously disadvantaged. It is all about competitiveness, about enterprises thriving in competitive markets and locations with the aim to create sustainable employment at the local level.

I thank you.

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