By Maile Matsimela
Des Lesele, senior manager for agribusiness client value propositions at Nedbank Commercial Banking, welcomed the balanced approach of Budget 3.0.
Lesele says the withdrawal of the proposed VAT increase is a significant relief for consumers, which indirectly benefits the agricultural market by maintaining purchasing power and demand for our products.
However, Lesele says, the increase in fuel levies (15 cents per litre) and diesel (15 cents per litre) is a concern. “Farmers are already struggling with the cost squeeze on agricultural inputs, and higher fuel costs will impact transportation and production expenses, potentially leading to increased prices for agricultural goods. It is crucial for the government to consider additional support measures for farmers to mitigate these costs and ensure food security.”
Lesele said that on a positive note, the allocation of over R1 trillion to infrastructure projects over the next three years is a promising development. “The largest investment will go to transport and logistics to maintain the national road network, which is expected to enhance productive capacity and benefit the agricultural sector by improving logistics and reducing transportation costs. This is also essential for local municipalities.”
