The development of the Free State agricultural sector with the aim of ensuring it becomes profitable is beset by deteriorating infrastructure and prolonged load shedding.
Dr Lindie von Maltitz, a lecturer in the Department of Agricultural Economics at the University of the Free State (UFS), had identified the failing infrastructure and load shedding as the biggest problems crippling agriculture profitability.
She highlighted these aspects during the Free State government’s investment conference, presented on 27 February.
This was organised by the Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea), with the chief objective of attracting investors. Representatives of financial institutions, academic institutions, national and provincial government departments, chambers of commerce, corporates, investors, and embassies attended the conference.
Von Maltitz emphasised the importance of quality road infrastructure and addressing load shedding to unlock the numerous possibilities for investment in the agriculture sector.
“Our roads are among the worst in the country, making timely access to markets more difficult,” said Von Maltitz.
“Load shedding has an enormous impact on any processing facility.
“Climate change is something we need to incorporate into our planning process, continuously developing new risk management strategies for the sector.”
According to Von Maltitz, the agricultural sector in the Free State is of vital importance to its economy.
“Our income from agriculture and its related industries is the second largest in the country, after the Western Cape.
“There are numerous possibilities for investment in the sector, not limited to production, but expanded to the entire agricultural value chain. Connecting with the right strategic partners can ensure the success of investment projects.
“The UFS can contribute as a strategic partner, bringing knowledge, expertise, research, and local and global networking to the table,” she stated.
The importance of investing in the agricultural sector, according to Von Maltitz, is linked to two of South Africa’s biggest challenges: unemployment and poverty.
“Investing in agriculture addresses both issues. Jobs are created for both unskilled and skilled labour, while producing and processing food. The higher agricultural investment is on the agenda, the better for economic growth in our province and country.”
“Assured by a supportive policy environment, functional infrastructure, and expert knowledge base, investors can be encouraged to invest in the agricultural sector in the Free State,” said Dr Von Maltitz.
“With food security for a global population that has expanded from 2,5 billion in 1950 to 7,9 billion in 2021, agriculture and its related industries are the sector that will remain important until time immemorial,” said Von Maltitz.
She believes the province’s agriculture sector presents several enterprising opportunities and at the conference further highlighted the very few agricultural products that cannot be produced in the Free State.
“For example, fruit produced in our province is market-ready before that of the Western Cape. This allows us to access local and international markets early when prices are higher due to a supply shortage.
“Because we have cold temperatures in winter, our area has fewer livestock diseases than those found in other parts of the country,” said Von Maltitz.
