What is the Cape Chamber of Commerce and Industry’s role in business, and how does it incorporate agriculture?
We increase stakeholder awareness and mobilise co-operation to improve the competitiveness of enterprises, business precincts, value chains and the Western Cape business environment. This makes it easier for businesses to succeed.
Our key stakeholders in the agriculture sector include Agri Western Cape, fruit and wine exporters, and the relevant public-sector departments. Our key focus at present is reducing impediments to growth – including transport/logistics/port, electricity, safety and security, and skills issues – and red tape.
Can you give a few examples of how the chamber assists with agriculture-specific issues?
The chamber has established an industry network system that mobilises the relevant role players to address key issues. One industry in our network is the taxi industry and, specifically, the South African National Taxi Council (Santaco).
Our social capital and trust enabled us to broker a deal with Santaco to put an end to the recent taxi strike.
Two years ago, our business environment research identified transport and logistics as the key impediment to agricultural growth. We connected the South African Association of Freight Forwarders to the Western Cape Department of Economic Development and Tourism to sponsor a port operational performance dashboard, which is still in place.
Secondly, we lobbied the National Logistics Crisis Committee (NLCC) linked to the Presidency to include the Port of Cape Town in their work, asking them to set up an operational excellence centre at the port.
We also lobbied the Department of Transport to provide resources to assist the Port Improvement Task Team and established a team to improve public-private dialogue in the port and logistrics industry.
Thirdly, the Cape Chamber formally challenged the above-inflation increases to the national minimum wage.
Can you comment on the differences in agricultural challenges between the Western Cape and other provinces?
Challenges that affect Western Cape agriculture, such as energy and logistics, are also felt countrywide. Delays in moving produce to market are another common concern.
However, the Western Cape’s fruit sector has a narrow export window that is badly affected by congestion at the Port of Cape Town, especially over the past two export seasons. A reported 14% dip in this past season’s deciduous fruit volumes took the sheen off a bumper crop and came despite repeated private-sector pleas for a dedicated team to handle the crisis.
Recent provincial government figures show that the Western Cape is responsible for 55% of South Africa’s primary agricultural exports, with nearly 50% of these exports being either livestock or livestock products. This illustrates the importance of the need for the Cape Chamber to mobilise its resources to address the challenge.
Fortunately, the agriculture sector is incredibly resilient. The latest provincial statistcs show that agro-processing exports increased from R63 billion in 2018 to R104 billion in 2023 – an annual average growth of 11% – despite the ongoing challenges.
Crime is another concern impacting the national agriculture sector. In addition, uncertainty over government’s policies regarding land reform and expropriation without compensation also erodes investor confidence in the sector.
The poor service provided by Transnet contributes to an increase in the strain on the Western Cape’s roads caused by bulk transport. Is the chamber involved in addressing this on a provincial or national level, and is any progress being made?
The Cape Chamber, as part of the Association of South African Chambers, requested the removal of Transnet CEO Portia Derby, which resulted in her resignation a few days later.
The NLCC, linked to Business Unity South Africa and the Presidency, has tried to contribute to improving matters at a national level. Progress has been made, but the situation remains bleak.
Better collaboration, communication, and trust between public and private stakeholders has led to a deeper understanding of challenges and what needs to be done to overcome them.
Is the Cape Chamber involved in land reform efforts in the Western Cape?
The chamber is not currently involved in land reform policy.
We are seeing growth in the renewable energy sector and a resultant increase in costs for farmers, which are not offset by higher commodity prices. How does the chamber perceive its role in the energy sector, and what plans have been put in place to mitigate these challenges?
The chamber is pushing hard for reforms that will allow for the liberalisation of the energy market at all levels – generation, transmission and distribution.
Fortunately, the City of Cape Town and Western Cape government are leading the way, and we are seeing major advances in the renewable space.
We concur with Western Cape Premier Alan Winde that the province will be the first to beat load-shedding, a major bonus for the local agriculture sector.
The additional expense of implementing renewable energy infrastructure increases farmers’ input costs. We are putting pressure on government to support producers in innovative ways, one such way being to offer them greater tax incentives for moving to renewable energy.