WANDILE SIHLOBO: Trading climate gets nod from agrifirms
But policy uncertainty remains the key risk to the agricultural sector
THE South African agricultural sector is still battling with the aftermath of the 2015-16 drought. However, there is some light at the end of the tunnel. The recent Agbiz/IDC Agribusiness Confidence Index suggests that in the third quarter of 2016, South African agribusinesses had a relatively positive view of business conditions in the country.After remaining below 50 index points for five consecutive quarters, the index recovered significantly, by 13 index points to 60, in the third quarter. It is the highest reading since the third quarter of 2014.An index above 50 indicates expansion in agribusiness activity.The index covers the 10 most important aspects or sub-indices influencing business activity in the agricultural sector: turnover, net operating income, market share, employment, capital investment, export volumes, economic growth, general agricultural conditions, debtor-provision for bad debt and financing costs.The third quarter provides hope, but it is important to highlig...
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