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The impact of Climate Change on food security in South Africa

The impact of Climate Change on food security in South Africa

IOL News2 days ago

A loss in food productivity is making food more xpensive
Image: Tracey Adams/Independent Newspapers
As climate change continues to wreak havoc on South Africa's agricultural landscape, the future of food security hangs in the balance. With predictions indicating a potential 50% decline in agricultural production by 2050, the spectre of hunger looms ever larger for the 18 million households, or roughly 21% of the population, who are currently grappling with food insecurity.
Recent studies forecast a 25% increase in maize yield variability due to shifting weather patterns, including reduced rainfall and soaring temperatures. As the staple food source for many low-income households, maize is already feeling the pinch, with prices climbing by 30% in recent years, exacerbated by the impacts of climate change on agricultural productivity.
According to Roscoe van Wyk, a research fellow at Stellenbosch Business School, the agricultural sector must be restructured to effectively address these challenges. He argues that integrating enterprise development with climate adaptation strategies is crucial to ensuring that more people have access to adequate, affordable, and nutritious food.
'Growing the agricultural sector should be a key economic priority, particularly if we are to achieve the National Development Plan (NDP) goals of an integrated and inclusive rural economy and the creation of one million new jobs in agriculture by 2030,' van Wyk stresses.
Historical data indicates that agricultural productivity growth significantly reduces poverty, demonstrating that growth in this sector is often two to three times more effective than in others, such as mining or manufacturing. This is especially pertinent as rising food prices disproportionately affect low-income households that spend a considerable portion of their income on basic necessities.
Van Wyk's research highlights a stark correlation: a mere 1% increase in food prices can diminish household welfare by over 20%, subsequently limiting access to essential services like healthcare and education. The progress made in reducing poverty levels since South Africa's transition to democracy is now reversing, a trend further exacerbated by the Covid-19 pandemic and intensifying climate impacts.
'Climate change is manifesting itself not only through decreasing rainfall and higher temperatures but also through extreme weather events, leading to floods and prolonged droughts,' van Wyk elaborates. These conditions wreak havoc on crop and livestock health, thereby disrupting the agricultural supply chain and driving prices upward.
Compounding the problem, crop production has failed to keep pace with population growth over the last two decades. As the population continues to grow, the prospects for alleviating food insecurity diminish further. Van Wyk insists that simply maintaining current agriculture levels will not suffice; improvements in productivity are essential to meet the needs of a burgeoning population while contending with climate challenges.
The link between food security and the agricultural value chain is profound, particularly in rural areas where poverty is most entrenched. Enhancing support for both large-scale commercial and small-scale subsistence farming can create a pathway out of poverty for many. 'By empowering individuals to feed themselves, whether through gainful employment or viable farming, we can address the inequality gap and combat unemployment,' he claims.
Van Wyk advocates for a transformative approach to support small-scale farmers by merging enterprise development with sustainability. He argues that as these farmers often lack the resources for advanced agricultural technologies, financial backing must be coupled with education on climate adaptability and sustainable farming practices.
Moreover, he emphasises the importance of practical implementation of existing policies, as well as incentivising established farmers to mentor emerging counterparts. This cooperative model can pave the way for scaled-up production and increased employment opportunities as South Africa navigates an uncertain agricultural future.

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Scrutiny mounts over R86 million spent on South African Post Office business rescue
Scrutiny mounts over R86 million spent on South African Post Office business rescue

IOL News

time3 hours ago

  • IOL News

Scrutiny mounts over R86 million spent on South African Post Office business rescue

According to the AG report, Sapo is not meeting their payment commitments to their creditors, including statutory creditors, resulting in interest and penalties being charged on late or non-payment. Image: Independent Newspapers Archives Parliament's Standing Committee on Public Accounts (Scopa) has expressed serious concerns regarding more than R86 million paid to the South African Post Office (Sapo) business rescue practitioners (BRPs), Anoosh Rooplal and Juanito Damons, since their appointment in 2023. Members of Parliament on Wednesday questioned the revelation of zero consequence management at Sapo as wasteful and fruitless expenditure was sitting above R200 million since 2021. This comes as R152m remains unaccounted for in the current year, with further reports of R136m being written off by the BRPs. "I would like to understand that it is two people, that is already R86m spent on them, please Auditor-General, take us nicely. Did you have sight of what the R86m was paying for? What are the other consultants? What is the period of these people being there," asked MP Veronica Mente-Nkuna. "History has treated us badly with business rescue We saw with SAA that has turned itself around but the busines rescue process did hot have much contribution in turning it around." Executives for the Office of the Auditor-General (AG) clarified that the R86m paid to the two practitioners was regulated with caps and rates on what they could charge for, further explaining that they needed to contract independent expertise. Some of the key things were the actual turnaround plan and implementing the plan as well, They also needed someone on the ground to support management, closing the Section 189 legal involvement, and the involement of other practitioners such as tax, legal, evaluators and others. According to the AG report, Sapo is not meeting their payment commitments to their creditors, including statutory creditors, resulting in interest and penalties being charged on late or non-payment. The fruitless and wasteful incurred for the current year was R152m, however R136m was written off as result of the business rescue process for the current year. Similarly, the opening balance was decreased by R484m as a result of the business rescue process. Sapo's consequence management for fruitless and wasteful expenditure is inadequate, with delayed investigations, poor record-keeping, and weak disciplinary actions, undermining accountability and allowing financial inefficiencies to persist, the AG reported. "What is the Sapo's culture around fruitless and wasteful expenditure is marked by weak accountability, poor financial management—such as entering contracts without cash flow confirmation—and a tolerance for inefficiency, resulting in repeated financial losses," noted the AG report.. "Its consequence management is reactive and permissive, with delayed actions often justified by financial difficulties, undermining effective financial control." The AG said weak internal control environment around cashflow management, ineffective contract management, and lack of accountability were the main contributing root cause to the culture Sapo's fruitless and wasteful expenditure. Cash flow constraints further delay payments, leading to avoidable costs such as interest and penalties. The AG said weak consequence management stemmed from lack of leadership and oversight, delayed investigations, inadequate disciplinary action, and poor record-keeping of evidence supporting fruitless and wasteful expenditure cases, often excused by financial difficulties. The AG said executive management must enforce accountability on all responsible officials accountable for financial decisions and contract management through capacitating the Financial Misconduct Committee (FMC) in order to change the culture of fruitless and wasteful expenditure. It also recommended that the board to be appointed should strengthen oversight over the FMC, and the Department of Communications and Digital Technologies, together with the board, should ensure strict monitoring and consequence management. BUSINESS REPORT

Are social grant numbers increasing (and is that a bad thing)?
Are social grant numbers increasing (and is that a bad thing)?

Daily Maverick

time9 hours ago

  • Daily Maverick

Are social grant numbers increasing (and is that a bad thing)?

Spending on social grants is a powerful way to support economic growth, because almost 100% of every rand spent flows back into local economies in the form of consumer spending, promoting economic activity and livelihoods. Following the release of the 2024 General Household Survey (GHS), we have seen many headlines pointing to an increase in the number of social grant recipients compared with 2019. These claims need to be interrogated and nuanced. It is not necessarily the case that the overall proportion of monthly social grant recipients continues to increase. At the same time, in South Africa's macroeconomic and historical context, it would not be such a bad thing if it did. The number of social grant recipients is often taken as a sort of proxy indicator for the health of the economy — the implication is that social grant numbers going up is bad, because they track the extent of poverty and unemployment in the country. 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It is of course true that there are more social grant recipients today than there were in 2019, as the social protection system has been extended to include working-age adults in extreme poverty who previously had no access to social assistance. But since 2021, access to the SRD grant has decreased, as has access to the Child Support Grant (CSG). It is easy to be misled by how the SRD recipient data is measured and presented in the GHS. For the longer-standing social grants, including the CSG and Old Age Pension (OAP), eligibility is assessed on application, and, once verified, a beneficiary receives the grant on a continuous monthly basis, unless the government becomes aware of a change in their circumstances. For the SRD grant, people's eligibility is reassessed on a month-to-month basis (a highly problematic methodology), and the grant is paid only in the months they are deemed eligible. 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We do not know why the GHS data shows an annual increase in the proportion of people receiving the SRD grant since 2020, but we suspect that it does not reflect the true number receiving it on a regular basis. We note that self-reporting is generally less reliable than administrative data. If you look at monthly SRD grant recipient numbers as shown in the graph below, based on data obtained from Sassa, the picture is very different. But the SRD grant is only one component of the social protection system. It's conceivable that an aggregate increase in social grant coverage could have been driven by significant increases in the proportion of children receiving the CSG, or seniors receiving the OAP. However, this is not the case. The proportion of the eligible population (people aged 60+) receiving the OAP has remained relatively stable over the period in question, ranging from 71% to 73%. The proportion of all children covered by the CSG has fallen from a peak of 69.1% in 2021 to 65.5% today — a significant drop. This does not reflect a reduction in the child poverty headcount. Analysis from the Children's Institute at UCT suggests that the proportion of children in poverty (measured at the Upper Bound Poverty Line) has increased since 2019, reaching 70% in 2022. The declining proportion of children receiving the CSG instead reflects the fact that the government has made it harder to access the CSG in recent years. Newborn babies and their caregivers (who make up the bulk of new CSG applicants) were less likely to access the CSG in 2024 than in 2021. This worrying trend dovetails with the introduction of procedural hurdles in the grant system, like onerous requirements for identity verification and additional documentation. Has dependence on social grants increased? 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Only half of that number receives the SRD grant each month. The percentage of persons who experienced hunger increased from 11.1% in 2019 to 14.3% in 2024. As mentioned above, vulnerable children are also falling through the cracks, as approximately 4.5% of children in poverty are not receiving the CSG. It is often claimed that South Africa spends a high proportion of its GDP on social grants compared with peer countries, usually by those who would seek to limit this area of spending. Yet, according to the International Labour Organization's (ILO) World Social Protection Report 2024-26, South Africa's social protection coverage — at 63.4% of the population — is below average for upper-middle income countries (UMICs), which have an average coverage of 71.2%. Our coverage of non-contributory benefits (ie excluding UIF) is 44%, compared with an average of 51% among UMICs. The ILO, alongside many local and international experts, recommends that countries move towards universal social protection coverage — that is 100% of the population. Many high-income countries are already there. As to the claim that South Africa's social protection expenditure is higher than peers, this is also untrue. As a proportion of GDP, our spending on social protection excluding health is much lower than the UMIC average (5.4%, compared with an average of 8.5%). At the same time, we have much higher levels of income poverty and inequality compared to other UMICs. South Africa is the most unequal country in the world based on the World Bank's Gini Index. Among UMICs, we have by far the highest proportion of people below the international extreme poverty line — at 20.1% (aside from Turkmenistan, which at 43% is an extreme outlier and relies on very old data). 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Employer groups seek urgent interdict against Employment Equity regulations
Employer groups seek urgent interdict against Employment Equity regulations

IOL News

time13 hours ago

  • IOL News

Employer groups seek urgent interdict against Employment Equity regulations

The Department of Employment and Labour is forging ahead with the implementation of the Employment Equity Amendment Act. Image: Leon Lestrade/ Independent Newspapers The National Employers' Association of South Africa (Neasa) and Sakeliga have officially notified the Minister of Employment and Labour, Dr Nomakhosazana Meth, of their intent to seek an urgent interdict against the contentious Employment Equity (EE) regulations. This comes after the department published two sets of EE Regulations on 15 April - the General Administrative Regulations, and Regulations on Sector Numerical EE Targets - following the commencement of the Employment Equity Amendment Act, No. 4 of 2022, on 1 January 2025. The proposed regulations mandate employers to adhere to strict hiring quotas based on race, sex, and disability, with penalties for non-compliance reaching up to 10% of a company's turnover. Section 15(A) of the Equity Employment Amendment Act empowers the minister to set numerical targets. According to the Act, the Minister may, after consulting the relevant sectors and with the advice of the Commission for Employment Equity (CEE), for the purpose of ensuring the equitable representation of suitably qualified people from the designated groups at all occupational levels in the workforce, by notice in the Government Gazette set numerical targets for any national economic sector identified in terms of subsection (1). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Neasa on Wednesday said the urgency of this interdict stemmed from concerns voiced by the associations about the potential for these regulations to inflict irreparable harm on both public and private sectors. Neasa and Sakeliga argue that the minister's plan risks the allocation of resources ineffectively in a futile attempt to meet what they describe as 'impossible' compliance requirements. Under the proposed framework, companies would be required to categorise themselves into one of 18 economic sectors and adjust their workforce composition according to a series of demographic quotas. These quotas, referred to as 'numerical sectoral targets,' highlight a drastic shift in hiring practices, where businesses are instructed to limit appointments or promotions of employees from so-called over-represented groups, which includes many white male staff members. The end goal of these targets is to ensure that every single designated business (50 or more employees) in South Africa, regardless of industry, has a workforce that is representative of the racial and gender demographic composition of the country. The 2025 CEE Annual Report shows that at Top Management, the White population representation at 61.1% is approximately eight times their Economically Active Population (EAP), and the Indian population representation at 11.9% is more than four times their EAP at the Top Management level. In contrast, said the report, the African population representation is at 18.0%, which is approximately four times below their EAP, and the Coloured population representation at 6.2% is below their EAP at this occupational level. The CEE Report concludes that the lack of equitable representation at the Top Management level does not bode well for the future sustainable economic growth of the country and the representation of the demographic population distribution in the workplace in terms of population groups, gender, and disability. The Report said that at the Senior Management level, the picture remains appalling for the Africans, with the White and Indian Population representation remaining significantly higher than their EAP. However, critics of the regulations, including Neasa and Sakeliga, maintain that the measures contravene established constitutional rights and impose unachievable demands on employers. The economic repercussions, they argue, could be dire, potentially leading to significant job losses and overwhelming legal uncertainties that would disrupt business operations across the board. "The regulations and the Employment Equity Act (as amended in 2023) establish unlawful, unconstitutional, and impossible demands. Their consequence would be severe financial harm to businesses and extensive social harm through economic disruption, increased unemployment, and legal uncertanty," Neasa said. "We informed the minister that, in addition to our urgent application against the 2025 administrative regulations and sectoral targets, we also intend to challenge the Employment Equity Act on additional grounds."

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