Africa’s domestic savings have been on a decline from 1918 to 2016 and are currently lower than areas like Asia. This was according to Dr Uma Lele, agricultural economist at the Institute of Economic Growth at the University of Delhi in India. Lele delivered the second annual Mohammad Karaan memorial lecture on 29 March.
The theme of this year’s lecture was ‘Africa’s developmental challenges’ and was hosted at SU’s faculty of agrisciences.
Karaan was the former dean of the faculty of agrisciences and a professor in agricultural economics at Stellenbosch University (SU). He passed away on 13 January 2021, according to an article on the SMF News website (previously MatieMedia).
Dr Uma Lele, agricultural economist at the Institute of Economic Growth at the University of Delhi, India, delivered the second annual Mohammad Karaan memorial lecture on 29 March. PHOTO: Liam Voorma
Need for education
An emphasis needs to be placed on “consumer and producer education to promote sustainable environments”, said Lele. She also explained that farmers’ organisations need to be promoted.
An increase in investment in agricultural and rural development is needed in South Africa, said Lele. “If countries are not saving and investing, and are expecting foreign companies to help them, then the situation is dire,” Lele explained.
The faculty of agrisciences at Stellenbosch University (SU) recently hosted the second annual Mohammad Karaan memorial lecture. Over 100 people attended the event, said Bongiwe Mhlongo, SU’s faculty of agrisciences marketing manager. PHOTO: Liam Voorma
Local agricultural challenges
“For foreign investment to come into the agricultural sector, there are three fundamental issues that must be addressed,” according to Prof Umezuruike Linus Opara from the faculty of agrisciences and South African Research Chairs Initiative (SARChI) chair in Postharvest Technology at SU.
Investors need a consistent, predictable policy, according to Opara during an interview with SMF News. “You won’t tell someone the tax rate is 13%, then when the money comes to the country, you ask 13.5%,” said Opara.
Infrastructure, such as road transport and railways, were also important factors for foreign investors, stated Opara.
Thirdly, is the problem of instability, said Opara. “When you don’t have stability in your country, it doesn’t matter how cheap it is to invest, or that the tax rate is high, people will be scared to come. People want stability,” explained Opara.
“Land reform within South Africa is also an issue that needs to be resolved, but because of problems such as Covid-19 and the energy crisis, [land reform] has taken a back seat,” said Kennedy Dzama, vice-dean of the faculty of agrisciences at SU.
