SECTOR NEEDS STABILITY
WANDILE SIHLOBO: Land reform clarity will help advance the agriculture sector
‘The optimism and desired growth in the agricultural sector could be short-lived if SA delays endorsing a unified and responsible land policy’
Informed debate and decision-making is required to address the issue of land reform and protection of property rights, since the issue could have serious implications not only for the agriculture sector, but our entire socioeconomic spectrum. One critical sector would be the financial industry, which over the years has consistently shown growing confidence in the agricultural sector. In 2015, total South African farm debt was at R142bn in real terms, a record level in a database starting from 1980. Given that 2016 was characterised by drought, the figure is expected to have increased further. Therefore, the land issue needs to be managed responsibly as it could pose a serious risk to the financial sector. In addition, agriculture is viewed by many political leaders as the epicentre of potential growth in SA. However, for that to be achieved, the sector needs a stable and conducive environment that can inspire confidence and attract much-needed investment. The land restitution issue ...
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