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    Fertiliser financing: Fertiliser distribution agent Apollo displays products in a Nairobi retail shop (Source: African Development Bank Group (AfDB)

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    Fertiliser financing: Fertiliser distribution agent Apollo displays products in a Nairobi retail shop (Source: African Development Bank Group (AfDB)

    $2 Million investment in fertiliser financing for Kenyan smallholders

    Some 10 000 operators in Tanzania’s horticultural value will receive financial support from the African Development Bank. Photo: Supplied

    AfDB empowers Tanzanian horticulture with $2.5m boost

    Dr Lovanomenjanahary Marline’s pioneering research on bryophytes and lichen in Africa receives prestigious Jennifer Ward Oppenheimer Research Grant, empowering innovative solutions to environmental challenges. Photo: Supplied

    Malagasy scientist wins $150k grant

    Kodjovi Dansou and his employees pick “adémen”, a popular leafy vegetable in Togo. Photo: Supplied

    Solar irrigation fuels agricultural boom in Togo

    AgriPitch competition winner Adja Sembene Fall, earned $25 000 in seed money for her Contanna tea company. Photo: Supplied

    AgriPitch: Senegalese tea entrepreneur triumphs

    Wheat and maize imports: During a State House meeting, President William Ruto revealed a ban on wheat and maize permits, aiming to protect Kenyan farmers from unfair competition and ensure economic stability. Photo: Kenyan Presidency

    Ruto announces restriction on wheat and maize imports

    The DRC pledged $6.6 billion to boost agriculture, marking a significant step towards fulfilling its vision to become the breadbasket of Africa. Photo: Supplied

    DRC invests $6.6 billion to boost agriculture

    Hamond Motsi explores Africa’s political turmoil and its impact on agriculture, revealing farmers’ silent struggles and pressing food security issues. He calls for urgent solutions to transform the continent’s agricultural future. Photo: Supplied

    Agriculture under siege: Africa’s silent food security crisis

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    Agricultural land bill public hearings sparks mining clash in SA

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    • Farmers
    • Innovation
    AgriPitch competition winner Adja Sembene Fall, earned $25 000 in seed money for her Contanna tea company. Photo: Supplied

    AgriPitch: Senegalese tea entrepreneur triumphs

    Ibrahim Thiam at Allido’s flagship store in Dakar where tradition and innovation converge. Photo: Supplied

    Ibrahim Thiam: A taste of Senegal’s past and future

    Nathaniel Nyarenda, a leader among Katete farmers, reviews food safety protocols on his farm, embodying a shift towards sustainable agriculture and bigger market opportunities. Photo: Ronelle Louwrens/FoodForAfrika.com

    Katete’s farmers embrace food safety and innovation

    Food safety is personal for this Zambian farmer

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    From rice farmer to agripreneur: Kébè Lamah leads a cooperative of 500 women farmers in Guinea, thanks to the support of the INTEGRA programme. Photo: Supplied

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    Namibia's Popular Democratic Movement party has tabled a motion of insurance for farmers, that will compensate for the loss of livestock due to conflict with wildlife. Photo: Supplied/Food For Mzansi

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    Nature-based biopesticides are now offering a safer alternative to locust control. ©FAO/Ismail Taxta/Arete

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South African budget: Infrastructure and taxes high on agenda

by Lucinda Dordley
24 February 2022
in Agri News, Markets
Reading Time: 4 mins read
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Wine is now 17c more expensive per 750ml. Photo: Supplied/FoodForAfrika.com

Wine is now 17c more expensive per 750ml, according to the new excise taxes announced by South African minister of finance Enoch Godongwana. Photo: Supplied/FoodForAfrika.com

South African minister of finance Enoch Godongwana delivered his maiden budget speech on Wednesday, 23 February 2022 at Parliament, in Cape Town. This is one of the country’s most awaited addresses, as the budget speech impacts a number of different industries across South Africa.

South Africa’s alcohol industry has been struggling since the first alcohol ban at the start of the Covid-19 pandemic, and now minister Godongwana announced new excise taxes for this and the tobacco industry.

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Prices will be implemented immediately, and the increases are as follows:

  • The price of a bottle of spirits will increase by R4.83
  • A 750ml bottle of wine will be 17c more expensive
  • A pack of cigarettes will cost consumers R1.03 more
  • 11c will be added to the price of a 340ml can of cider or beer
  • Sparkling wine will cost 76c more
  • Cigars weighing 23g will be R6.77 more expensive
  • For every 25g of pipe or rolling tobacco, 37c will be added
  • Vaping products will also be R2.90 more expensive for every ml from 1 January 2023

Prioritising infrastructure

The minister also touched on infrastructure development, and announced that a total of R17.5 billion will be made available for infrastructure projects in South Africa.

According to FoodForMzansi, sister publication of FoodForAfrika.com, a number of agricultural stakeholders raised concerns that a lack of attention being paid to infrastructure has been hindering the sector.

South Africa’s finance minister Enoch Godongwana delivered his maiden budget speech. Photo: Parliament South Africa/Supplied

Mr Godongwana said the National Treasury will be working to execute the results of a review of the Public-Private Partnerships framework, and the department of finance will be collaborating with the Treasury to more quickly implement infrastructure investment.

“We aim to create a centre of excellence for PPPs and other blended finance projects. This centre of excellence will be established with direct Treasury oversight. It will be a direct interface with private financial institutions for investments in critical government infrastructure programmes,” he said.

The budget facility for infrastructure approved funding for the following water and dam projects:

  • The Lepelle Water Board will receive R1.4 billion for the Olifantspoort and Ebenezer plants
  • R2.1 billion will be allocated for the raising the Clan William Dam in the Western Cape
  • The Umgeni Water board will receive R813 million for the Lower uMkhomazi Water Supply Scheme

Many of the country’s farmers have complained about a lack of infrastructure prioritisation, particularly farmers in the Free State province; a province known for being an agricultural hub. Here, farmers have been asking the department of transport and roads to pay attention to the badly potholed roads farmers make use of to transport their produce and livestock.

Infamously, ex roads minister Sam Mashinini went to investigate the state of the roads in person, and agreed it was untenable. Later, when he was sacked, farmers in the province rejoiced as they were dissatisfied with his lack of action, despite acknowledging the issue.

Fuel tax levies and climate change

Minister Godongwana added that the South African National Roads Agency (Sanral) will receive R9.9 billion to maintain the non-toll road network. He also touched on fuel levies, saying that the higher prices of inland fuel in 2021 had a knock-on effect on the prices of transport and food, which impacted both farmers and consumers. Therefore, he said no more increases will be made to the general fuel levy for both diesel and petrol in 2022/23.

“This will provide tax relief of R3.5 billion to South Africans. There will also be no increase in the Road Accident Fund levy. Minister Mantashe and I have agreed that a review of all aspects of the fuel price is needed. Our teams have already begun to engage on this critical work.”

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Another hot topic the minister covered was climate change, saying that the carbon tax rate will increase from R134 by R10, to R144. This was implemented from 1 January 2022 already.

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“As required by legislation, the carbon fuel levy will increase by 1c to 9c per litre for petrol, and 10c per litre for diesel, from 6 April 2022. The first phase of the carbon tax, with substantial allowances and electricity price neutrality, will be extended to 31 December 2025,” he said.

ALSO READ: South Africans waste more food despite surge in hunger

Tags: Enoch GodongwanaParliamentSouth Africa
Lucinda Dordley

Lucinda Dordley

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