The beginning of the Jacob Zuma era in South Africa has seen the appointment of an agricultural leader who has drawn a favourable response from the fruit sector.
Although the new South African Minister of Agriculture is a relative newcomer in the national arena, sources in the South African fresh produce industry have hailed the appointment of Tina Joemat-Pettersson as a positive step.
Ms Joemat-Pettersson replaces the axed Lulama Xingwana, who was appointed to the post by former leader Thabo Mbeki. Ms Xingwana did not have a favourable relationship with commercial agriculture and was often accused of neglecting agricultural advancement in favour of a haphazard land transformation programme.
Originating from the Northern Cape region, she was provincial member of the executive board responsible for agriculture where she had close contact with Orange River table grape producers. Leading grower Piet Karsten, who knows Ms Joemat-Pettersson well, believes that she will do well in her new position if she is given enough support by the sector.
"Capacity building in her department and having an open door and a keen ear to listen to the problems of the commercial sector will be her biggest challenges," he said.
Mr Karsten also welcomed the deployment of the former Minister of Finance, Trevor Manual, to the President\'s Office where he is Minister responsible for the newly created National Planning Commission. "This move is clearly a sign by the President that he is setting new standards for the various departments and ensuring that they are adhered to," he added.
Under Mr Manual’s management the South African economy has experienced strong growth during the past few years.
In fact, the country\'s recent elections and the subsequent transfer of power to Mr Zuma went so well that confidence in the country has been enhanced, stalling the previously predicted slump in the value of the South African currency. Over the past month the South African rand actually strengthened considerably against other major currencies, touching levels not seen for two years.
This strong currency does not favour the export industry which has already had to cope with production inflation of around 30 per cent this season. The rand has strengthened by around 17 per cent against the US dollar, by more than 20 per cent against the British pound and by more than 13 per cent against the euro, hitting apple, pear and citrus growers extremely hard.
While the peaceful and orderly transformation to the new political era certainly created much confidence, analysts believe that political developments are not the key factors behind the strengthened currency – the repatriation of cash reserves from big international deals conducted some time ago has also boosted the local balance sheet.
Analysts have warned that this inflow of capital is now nearing the end, with the rand set to come under pressure once more. The fruit sector is one that will hope it will happen sooner rather than later. |
