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Wine is now 17c more expensive per 750ml. Photo: Supplied/FoodForAfrika.com

South African budget: Infrastructure and taxes high on agenda

24 Feb 2022
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    The upcoming Senegal summit is a follow-up to the 2015 inaugural edition during which the “Feed Africa” strategy for Agricultural Transformation (2016-2025) in Africa was proposed. Photo: Supplied/FoodForAfrika.com

    Food production summit to open in Senegal

    Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

    Tanzania’s tomato harvest goes to waste

    Contextually, an average cow yields about 10 kilograms of dung per day, which corresponds to 1 000 litre biogas, equivalent to 2.14 kWh (electricity) while 1 000 litres of biomethane equals 10 kWh. Photo: Supplied/FoodForAfrika.com

    Biogas: ‘Cow dung can keep the lights on in SA’

    The Maputo Port is one of a number of harbours on the continent undergoing a changes to ready it for expansion. Photo: Wikicommons Media/Supplied

    ‘Ports race’ in Africa cuts both ways

    Mohamed Dhicis (19) started a beekeeping business in his hometown of Belet Weyne, in central Somalia. He is supported by an entrepreneurship develop programme of the United Nations Industrial Development Organization (UNIDO) in collaboration with the Somali Ministry of Commerce and Industries. Photo: Supplied/United Nations

    Bees and tractors: Agri leads the way in Somalia

    “EOS_SAT-1 is already fueled, configured for launch and integrated onto the upper stage of the rocket, waiting for the last remaining thing ¬– launch.” This notice and picture was posted on the Twitter page of aerospace start-up Dragonfly Aerospace. Photo: Twitter

    African agri satellite a world first

    Women attend a UNFPA-supported integrated community health outreach session on prevention and response to gender-based violence. Lokapararai village, Turkana county, Kenya. Photo: Supplied/UNFPA Kenya

    Drought puts Kenyan newborns at risk

    Child labour has increased exponentially over the course of the past four years, according to UNICEF and ILO. Photo: Wikkimedia Commons

    ‘Children exploited’ on Malawi tobacco farms

    5 ways tech is transforming agrifood systems

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    The upcoming Senegal summit is a follow-up to the 2015 inaugural edition during which the “Feed Africa” strategy for Agricultural Transformation (2016-2025) in Africa was proposed. Photo: Supplied/FoodForAfrika.com

    Food production summit to open in Senegal

    Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

    Tanzania’s tomato harvest goes to waste

    Contextually, an average cow yields about 10 kilograms of dung per day, which corresponds to 1 000 litre biogas, equivalent to 2.14 kWh (electricity) while 1 000 litres of biomethane equals 10 kWh. Photo: Supplied/FoodForAfrika.com

    Biogas: ‘Cow dung can keep the lights on in SA’

    The Maputo Port is one of a number of harbours on the continent undergoing a changes to ready it for expansion. Photo: Wikicommons Media/Supplied

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    Mohamed Dhicis (19) started a beekeeping business in his hometown of Belet Weyne, in central Somalia. He is supported by an entrepreneurship develop programme of the United Nations Industrial Development Organization (UNIDO) in collaboration with the Somali Ministry of Commerce and Industries. Photo: Supplied/United Nations

    Bees and tractors: Agri leads the way in Somalia

    “EOS_SAT-1 is already fueled, configured for launch and integrated onto the upper stage of the rocket, waiting for the last remaining thing ¬– launch.” This notice and picture was posted on the Twitter page of aerospace start-up Dragonfly Aerospace. Photo: Twitter

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    Child labour has increased exponentially over the course of the past four years, according to UNICEF and ILO. Photo: Wikkimedia Commons

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    • Agribusiness
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    Computer model to ease farmer-wildlife conflict

    It started with a handful of trees on her family farm. Today Wezi Mzumara is breaking new ground as a woman chocolate maker in Malawi. Photo: Supplied/FoodForAfrika.com

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    Support to improve women land ownership delivers life-changing benefits for women farmers in Tanzania, like Mariam Tungu, from Singida’s Ikungi district in central Tanzania. Photo: Supplied/FoodForAfrika.com

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South African budget: Infrastructure and taxes high on agenda

by Lucinda Dordley
24 Feb 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.

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“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.

“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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Food production summit to open in Senegal

by Staff Reporter
18 Jan 2023
0

African heads of state and government together with development partners will gather in Senegal to strategically map plans to unlock...

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Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

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