What the land reform uncertainty is doing to agricultural sector investment
Rise of ‘radical economic transformation’ alongside controversial land reform statements rob the sector
Players in the agricultural sector including farmers are "becoming more reluctant" to invest in the field amid growing uncertainty over land reform. The agriculture business chamber (Agbiz), an organisation that represents commercial farmers and agribusiness enterprises nationally, said on Monday the rise of "radical economic transformation", alongside controversial land reform statements, had lessened prospects for investment in the sector. Its latest survey showed that confidence regarding capital investment among agribusinesses declined 13 points from the previous quarter to 56. A reading above 50 indicates expansion in local agribusiness activity. The broader agribusiness confidence index improved two index points to 57 in the first quarter of 2017, according to the survey by Agbiz and the Industrial Development Corporation. The index has been in expansionary territory for at least the past three quarters, signalling an improvement in agribusiness conditions following the crippl...