Industry body the Agricultural Business Chamber (Agbiz) has urged the South African government to finally take a firm stance against the injustices prevailing in the world, and align the country with its existing and potential trading partners.

Chairperson Francois Strydom and CEO Theo Boshoff, during a recent council meeting, commented on the changing geopolitics globally and South Africa’s ambiguous foreign policy, which seems to support Russia.

As such, South Africa risks strong commercial relationships it has with key regions of the world that have stood up against Russia’s invasion of Ukraine.

Strydom believes government and other policy influencers should be careful not to risk trade and investment relations with Western countries, among others, that have taken many years to cultivate and have served the economy well.

Boshoff, in turn, says the envisaged growth of the agricultural sector through various programmes, including the Agriculture and Agroprocessing Master Plan, rests on the expansion of exports to new markets, while retaining ones in the African continent, Asia, Europe and the Americas.

“This demands from us as South Africans a clear stand on foreign policy, that does not place South Africa as a pariah. The South African government should do the right thing and stand up to injustices in the world, while aligning South Africa with its strong economic partners,” Boshoff states.

Meanwhile, the executives have also urged government to demonstrate more commitment to partnering with agribusinesses, for the sake of economic growth and retaining these businesses.

Strydom says South African agribusinesses have repeatedly demonstrated their unrelenting support to the economy, even in trying times; however, to sustain growth of the rural economy going forward and continue navigating difficult operating conditions, credible partners are needed.

He adds that South Africa has some of the best and most resilient agribusinesses in the world but their resilience should not be taken for granted, especially as operating conditions become more challenging daily.

Strydom also mentions that rural municipalities are simply not performing optimally and businesses have to spend millions of rands each year to make up for it. “This is not a sustainable solution. We need leaders to step up and take accountability for the state of business conditions in our country.”

He highlights that if agribusinesses are left without proper support, they may well take the skills, knowledge and capital they have to operate elsewhere in the world.

“The mere fact that they are still here shows a deep sense of patriotism and commitment to this country. This is not something we should take for granted and it is especially relevant for our political leaders to take note of when positioning South Africa in a volatile geopolitical situation,” he points out.

Boshoff adds that agribusinesses are operating under increasingly difficult circumstances. Declining service delivery and infrastructure, unreliable energy supply and increased crime and instability do not bode well for investment, he states.

“The private sector has reached out to government and offered to assist where it can. Agribusinesses are willing and able to invest in energy generation and rail and port operations but we need willing partners.

“These sectors are highly regulated so it is not something the private sector can do on its own. Public-private partnerships are needed,” Boshoff explains.

Agbiz is engaging at the highest possible level to drive these initiatives; however, there seems to be little urgency from government’s side. At the current rate, some of these initiatives will only yield benefits several years from now.

“We fear that businesses may not be in a position to assist government by the time the red tape is cleared or the partnerships are established,” Boshoff warns.