Opinion

Agriculture: Productive farming necessary for stability of SA

Growth is an economic process where success or not is determined by the principles of market forces principles.

The last word will always be said by the market. The policy environment of the government had already been evaluated by market forces before Covid struck.

South Africa had already been downgraded to junk status by then. Success in an economy is determined by trust. Investors need to invest and run businesses.

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The role of the state is to create a climate that private investors are willing to invest their capital and expertise in.

Unfortunately, we must admit that the state is failing both responsibilities. The tool in the hands of the state to create trust and the right climate is, among other things, the policy environment that is created.

Which person in his right mind will invest his money in a country where the constitution or legislation stipulates that the state can deprive investors of assets without paying for them?

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To have a policy of expropriation without compensation is perhaps the most short-sighted approach that we can have if we want to gain economic growth.

The reality at this stage is that the policy environment creates in almost every sphere of our economic activities only uncertainty.

The ANC government sticks to a policy that all over the world has only created poverty and very much grief.

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What is the situation today?

The fair question to them should be: how will SA look when they are finished with it? In 1994 we had a functioning state with very effective parastatals such as Eskom, SA Airways, SA Railways, Denel and the Post Office.

What is the situation today? All are on the road to being dysfunctional and the reason is the transformation policy that includes cadre deployment, BEE and affirmative action, where the focus is on race and not on skills.

Within this policy the name of the game was looting of SA’s resources and the poorest of the poor pay the price, with unemployment going up every year.

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As South Africans, we have to take a different approach. We should be honest with ourselves and evaluate the outcome for the people of SA if we proceed on this road.

We need successful businesses that create job opportunities; a safe environment with effective police; we need a corruption-free government; we need a policy environment that creates trust and brings investments.

We also need a successful agricultural sector with productive and profitable farms. During the lockdown, it was the one sector that made the biggest contribution to stabilising our country.

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We also need a government that acts in the best interests of citizens and not only for their own benefit. The market principles will always have the last word.

Economic growth will bring along opportunities for those who accept the responsibility that life expects from everyone.

It is not possible for anyone to empower any other person if that person does not accept what is needed for success, such as a hunger for knowledge; sense of urgency; making tomorrow a better day; and acceptance of responsibility.

But if anyone sticks to a demand culture, believing that the world owes them something, they will end up empty-handed.

Taking our socioeconomic circumstances into consideration, to build a better life for our children we must grow the economy.

Every decision at all levels should be tested against the outcome of the impact on economic growth.

-Van Zyl is general manager of farmers’ organisation TLU SA

ALSO READ: One in five young farmers plan to leave the field within the next decade – report

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By Siphumelele Khumalo