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Africa|drives|Financial|Industrial|Infrastructure|Projects|Sustainable|Infrastructure
africa|drives|financial|industrial|infrastructure|projects|sustainable|infrastructure

Flightless job retention

4th April 2025

By: Riaan de Lange

     

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Listen very carefully; I shall say this only once: “Bolstering employment through job retention!” What do you make of such a slogan? You might find it uninspiring, point out its contradictions or react even more negatively. Before I continue, I must confess: I’m about to exceed my yearly quota by writing another column that might ruffle a few feathers. It is gallus domesticus time once again – and with it its Master Plan (not to be confused with the Grand Plan.)

For this week’s instalment, you need to consider the Department of Trade, Industry and Competition (dtic), which has a “mandate to develop the South African economy”, according to its ‘Media Statements’ page. Once there, turn to the statement from February 21, titled ‘More Than Fifty-Thousand Direct Jobs Retained Across the Value Chain under Phase 1 of Poultry Master Plan.’ The actual number cited is “approximately 52 930 direct jobs.”

In mathematics, ‘approximate’ refers to a value close to the actual one but not necessarily exact – usually achieved through rounding off or estimation. So, what is the actual number?

The Poultry Master Plan Executive Oversight Committee met at the dtic’s offices in Pretoria. The meeting, led by the Deputy Minister of Trade, Industry and Competition and the Deputy Minister of Agriculture, was attended by key stakeholders and discussed the progress of Phase 1 of the Poultry Master Plan.

The dtic’s chief director for agro-processing and forestry-based industries confirmed that “since the inception of Phase 1, the poultry industry has retained approximately 52 930 direct jobs”.

The chief director added: “This underscores the sector’s critical role in bolstering employment and contributing to South Africa’s economic growth. These are the stakeholders that have been involved in terms of the formulation of the master plan. That includes government departments, development finance institutions, farmers’ associations, feed manufacturers, labour and private-sector partners.”

‘Bolstering employment’? How does the retention of jobs improve employment and contribute to economic growth?

“The meeting highlighted the impressive investments directed towards infrastructure development and industry support, exceeding initial targets.” Additionally: “There was a case made by the South African Poultry Association for R1.5-billion to support [its members’] processing facilities and infrastructure. That target has been exceeded, with almost R2.02-billion allocated by major players in the industry.” This was said to be “further demonstrating government’s commitment to industry growth”. It was also noted that “financial interventions supporting emerging poultry businesses” were discussed.

Additionally: “Through the Industrial Development Corporation (IDC) and the Department of Agriculture and Land Reform’s Rural Agri-Industrial Fund, a total of R1.2-billion has been invested in 14 poultry projects. The Land Bank has also approved two projects valued at R31-million, while the Comprehensive Agricultural Support Programme has backed 42 initiatives aimed at empowering small-scale farmers”. (It should be ‘the Department of Agriculture, Land Reform and Rural Development Agri-Industrial Fund.) Who’s paying back the money? A donation then?

Incidentally, the IDC states on its website: “The Agri-Industrial Fund is to develop competitive, economically viable activities in agro-processing (food and non-food) sectors.” Would you classify the poultry sector as ‘competitive’ or even consider it to have ‘economically viable activities’?

Continuing: “The meeting reaffirmed the need for ongoing trade protection to counteract unfair competition posed by poultry imports, ensuring the sustainability of local producers. Discussions also focused on expanding exports, improving affordability, and strengthening biosecurity measures to mitigate disease outbreaks affecting the industry.”

As a side note, ‘trade remedies’ are not ‘trade protection’; they remedy both unfair trade practices and fair trade practices.

It concludes: “As Phase 2 progresses, stakeholders remain committed to supporting black-owned enterprises, increasing local production and sustaining employment. With a total investment commitment of R635-million, the Poultry Master Plan continues to be a flagship initiative that drives transformation and growth in the agricultural sector.”

So, the poultry sector is the poster child, the ‘flagship initiative’ “driving transformation and growth in the agricultural sector”. This then implies that the agriculture sector is, by definition, in severe decline, while its poultry star is merely ‘retaining jobs’ – at a cost.

The obvious question is: Just how sustainable is the practice of paying for agricultural job retention?

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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