Latest news with #BoitshokoNtshabele
Zawya
28-05-2025
- Business
- Zawya
South Africa: Govt backs citrus exports with $2.8bln Transnet guarantee
The South African citrus industry has welcomed the government's recent approval of a R51bn guarantee facility for Transnet, viewing it as a vital step to support the logistics giant's recovery and improve export capabilities ahead of the 2025 citrus season peak. The Citrus Growers' Association of Southern Africa (CGA) highlighted that the guarantee comes alongside encouraging developments in Public Sector Partnerships (PSPs), which are seen as essential to reshaping South Africa's logistics infrastructure. According to Transnet, a critical part of their recovery strategy is 'strong collaboration with customers and industry partners,' a sentiment echoed by the CGA, which said that export growth depends on effective cooperation between Transnet and private sector players. Peak citrus export season preparation As oranges begin moving to export markets, the CGA appreciates the preparational steps taken by Transnet Port Terminals (TPT), including recruiting 256 additional fixed-term staff, maintaining all refrigerated container plug points, and adding 100 new pieces of equipment. "There are challenges on the horizon, but if all goes well, Southern Africa is expected to export 171,3 million 15kg cartons of citrus, according to the latest figures," says Boitshoko Ntshabele, CEO of the CGA. He adds: "Shifting produce in an efficient and timely way is essential to the profitability of our industry. The season has started smoothly, but the real test will be the peak over the next two months." Private sector partnerships key to logistics efficiency The CGA emphasises that long-term solutions to logistics inefficiencies and costs lie in large-scale Public-Private Sector Partnerships (PSPs) at ports and within the rail network. While recent policy changes are promising, the industry has yet to see tangible benefits from operating PSPs. "Partnering with business brings faster upgrades, specialised knowledge, a performance-driven culture, and constant innovation, which almost immediately stimulates employment growth," says Ntshabele. Rail access and Durban terminal PSP projects On rail transport, Ntshabele highlighted recent progress: "The progress made over the past few months in opening the rail network to private players is encouraging. Urgency on this front, as well as ensuring attractive options for the private sector, will unlock growth opportunities in the citrus sector, which currently only moves 10% of its citrus to the ports by rail." However, the CGA also pointed out that the PSP project, poised to be a game-changer for citrus—the upgrading and management of Durban Container Terminal Pier 2—is still "tied up in a court battle." Looking ahead, Ntshabele expressed optimism about the industry's future, saying, "As we look towards the future, and our industry's ability to create 100,000 jobs by 2032, we appreciate Transnet's commitment to PSPs and we hope the momentum is kept and that more projects are urgently pursued." All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
30-04-2025
- Business
- Zawya
South Africa: Citrus export volumes set to rise 3.6% in 2025, but risks remain
The Southern African citrus industry is forecasting exports of 171.1 million cartons of 15kg citrus for the 2025 season, reflecting a 3.6% increase on last year's final export figures. "We are cautiously optimistic about the season," says Dr Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa (CGA). This outlook comes as the industry maintains its steady growth trajectory, though challenges persist. "The solid growth trajectory the industry has been on has held, so far. But serious threats remain. A significant one for this season is the tariff turmoil that could disrupt the US market for a portion of our growers," says Ntshabele. Ntshabele adds that it is imperative that a trade deal or exemption for seasonal fresh produce be agreed on by the governments of SA and the US before a paused 30% tariff comes into effect in two and a half months' time. Although the US represents only 4% - 6% of SA's citrus exports, the US market is the lifeblood of Western Cape rural towns such as Citrusdal. The figure for the expected total 2025 citrus exports from SA has been calculated after the estimates for late mandarins were finalised recently. The latest mandarin variety estimates show impressive growth and breakdown as follows: • Leanri - 2.1 million 15kg cartons, slightly down from 2.2 million cartons in 2024 • Orri - 2.1 million 15kg cartons, stable from 2024's 2.1 million cartons • Nadorcott/Tango - 25.7 million 15kg cartons, up significantly from 23.3 million cartons last year, due to young trees coming into production • Other late mandarins - 3.2 million 15kg cartons, up from 2024's 2.7 million cartons These estimates come after the CGA released season estimates in March for lemons, oranges, grapefruit and early mandarins. Those figures represented stable growth overall, with: • Lemons at 32.9 million 15kg cartons, a 5% decrease from 2024 • Navel oranges at 26.1 million 15kg cartons, a 5% increase from 2024 • Valencia orange at 52 million 15kg cartons, a 6% increase from 2024 • Grapefruit at 13.5 million 17kg cartons, also a 6% increase from 2024 • Satsuma (early mandarin) at 1.8 million 15kg cartons, no change from the previous year • Nova (early Mandarin) at 4.5 million, a 2% increase from 2024 • Clementines (early mandarin) at 5.4 million 15kg cartons, a 10% increase from 2024 "It seems to be a favourable start to the 2025 season so far," highlights Ntshabele. "The early season is mostly dominated by exports of lemons and grapefruit. Lemons are in demand, and the lemon price also looks good. Also, we've exported 55% more grapefruit than last year at this point." Paul Hardman, chief operating officer of the CGA, says: "If we can address the main challenges our growers face - and these are logistical inefficiencies at our ports, the US tariff uncertainty, existing tariffs in other markets and difficult access to markets like the European Union due to unnecessary phytosanitary (plant health) measures - only then will the citrus success story continue." As a result of many new plantings over the past few years, the industry can export more citrus, and add 100,000 new jobs to the South African economy by 2032, if these obstacles are removed, added Hardman.
