In an effort to stimulate the growth of the agro-processing sector, the Department of Trade and Industry (the dti) will be putting its focus on the development and revitalisation of the critical agro-processing infrastructure.
As part of the implementation of its Critical Agro-processing Infrastructure Support Programme, the department is in the process of engaging stakeholders around critical enabling infrastructure for smallholder farmers, producers and processors. This will feed into the support for planned initiatives that strengthen the economy. The focus will be on market-enabling facilities, particularly for marginalised economic actors.
According to the Minister of Trade and Industry, Dr Rob Davies, the Critical Agro-processing Infrastructure Support Programme aims to achieve increased participation, competitiveness and integration of marginalised processors into the agricultural value-chain, and a reversal of the under-investment in the support structure for agricultural exports.
“This is part of our efforts to boost the growth of the agro-processing sector in order to increase its contribution to the country’s Gross Domestic Product, creation of employment and re-industrialisation of the country’s economy,” says Minister Davies.
Agro-processing is one of the priority sectors that are identified in the Industrial Policy Action Plan (IPAP) and are targeted for intensive government support measures because it has high labour ratio, as such given the necessary support it can translate to the desired macroeconomic objectives of the country.
“IPAP 2016/17 includes the design of sector-specific incentives for the agro- processing and rail components sectors. These are of particular importance in the context of our ongoing efforts to support labour-intensive sectors of the economy. Revitalisation of agriculture and the agro-processing value chain is also in the government’s 9-Point Plan announced by President Jacob Zuma with the aim of igniting economic growth and creating jobs in the country,” says Minister Davies.
He explains that the Critical Agro-processing Infrastructure Support Programme will go a long way in completing the agricultural value-chain as the dti will be providing the infrastructure required for the processing of primary products from the farms.
“We are working with various national, provincial and local government structures including the provincial investment promotion agencies in different provinces. One of the platforms that we are collaborating in will be the agri-parks that are being established by the Department of Rural Development and Land Reform to stimulate the rural economy. the dti will be contributing in providing critical agro-processing facilities to ensure that the primary products are processed and beneficiated,” stresses Minister Davies.
He continues that the collaboration will also contribute towards economic transformation, creating employment, diversification of the country’s economy, increased manufacturing of exportable processed agricultural products and ensuring that rural communities are roped into the mainstream economy of the country.
Source: Department of Trade and Industry