Budget 2023
Share

Treasury: SA will be a net importer of maize

Cape Town – Two successive droughts have hit South Africa’s agriculture sector hard and the country subsequently has to resort to being a net importer of maize, says National Treasury.

In its medium-term budget, Treasury outlined how the drought has hurt South Africa’s economy.

The agriculture, forestry and fishing sector contracted by 8.3% in the first half of 2016 compared with the same period in 2015, said Treasury.

“Two successive seasons of severe drought in the summer rainfall regions resulted in six consecutive quarters of falling output, following robust growth in 2014,” said Treasury.

“As a result, South Africa will be a net importer of maize in 2016/17, with imports expected to exceed 2 million tons."

However, Treasury said exports of certain fruit, nuts and beef products have “remained resilient, supported by the weaker rand, global demand and market diversification”.

“Output is expected to recover as weather conditions improve,” Treasury added.

A struggling agriculture sector is a key reason behind Treasury’s decision to lower its overall growth forecast for South Africa.

As part of its mini budget, Treasury on Wednesday said it has revised South Africa’s growth forecast for 2016 from 0.9% to 0.5%.

Treasury said it further expects a moderate recovery over the next three years, with gross domestic product growth reaching 2.2% in 2019.

* Visit our Budget Special for all the budget news and in-depth analysis.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders