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Rolling blackouts the biggest threat to agriculture sector growth

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Rolling blackouts the biggest threat to agriculture sector growth

Rolling blackouts the biggest threat to agriculture sector growth
Photo by Reuters

29th August 2023

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

Loadshedding is the single biggest limiting factor in the growth of the agriculture sector, according to the BFAP Baseline Agriculture Outlook 2023. The Outlook is a comprehensive research document that identifies the current state, risks, and opportunities of agriculture in South Africa.

The Western Cape Department of Agriculture has stepped up to support our agri-industry, hosting an Energy Summit where stakeholders could raise their concerns and look to concrete solutions to make sure our agriculture sector, and the 200 000 people it employs, is not left in the lurch.

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According to a parliamentary reply from the Department, the impact of stage 6 loadshedding on agriculture in the Western Cape is estimated at R2.4 billion per year. Furthermore, 90% of producers in the sector are dependent on Eskom as their main provider of electricity, with 50% of all electricity used in agriculture being used for irrigation.

This means that irrigation often cannot take place at the necessary intervals, which leads to lower yields, higher food costs, and a higher risk of food insecurity.

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While farmers and agri-businesses have always had their fair share of challenges to navigate, including drought, rising input costs and international trade conditions, they should not be expected to carry the consequences of ANC incompetence.

To this end, the Department will create a special purpose vehicle for the financing of alternative energy generation. The feasibility of a containerised system of electricity generation in one town in each district municipality in the province is being explored, with tenders for service providers to go out in due course. Furthermore, the Western Cape is privileged to be among the first distributors to pilot the battery energy storage facility at Breedevallei substation, where they are partnering with various partners to develop solutions tailored for the Western Cape and South Africa.

The effects of loadshedding on agriculture affect every single person in not only the Western Cape, but the entire country. We will not allow our residents to carry the costs of ANC-sponsored loadshedding, and where we govern the DA will continue to be proactive and go above and beyond our mandate to end loadshedding.

 

Issued by Andricus van der Westhuizen, MPP - DA Western Cape Spokesperson on Agriculture, Environmental Affairs and Development Planning

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