‘Agro-processors must spend less time battling red tape and more time growing businesses’ – Ramokgopa

The Gauteng government wants agro-processing businesses in the province to spend less time navigating bureaucracy and more time expanding production, creating jobs and supplying markets.

By Maile Matsimela, digital editor at African Farming

This was the central message from Vuyiswa Ramokgopa, Gauteng MEC for Agriculture, Rural Development and Economic Development, as she opened the second Gauteng Agro-Processing Convention and Expo at Emperors Palace on Thursday, 2 July.

Ramokgopa said agro-processing has become one of the province’s priority sectors because it brings together agriculture, manufacturing, logistics, research, finance and exports into a value chain capable of driving economic growth.

“We want promising businesses to spend more time growing their businesses and less time navigating all of the red tape and all of the barriers to your growth,” she told farmers, processors, investors, financiers, researchers and retailers in the audience.

Also read: R100m agro-processing fund helps 58 Gauteng businesses – more projects in pipeline

Industry challenges openly acknowledged

Ramokgopa acknowledged the challenges that continue to slow the growth of agro-processing enterprises.

Among the biggest obstacles she identified were:

Expensive industrial premises;
The high cost of food safety certification and compliance;
Packaging costs;
Access to retail supply chains;
Distribution expenses; and
Working capital pressures caused by lengthy payment cycles.

She said these were common challenges affecting businesses of all sizes and that government interventions must be designed around these realities.

Also read: ‘How I navigated the GDARD-NEF Blended Finance Programme successfully’ – Quinty Rabophala

Beyond funding

Ramokgopa said government had also learnt an important lesson from implementing the province’s R100 million blended finance programme, launched in partnership with the National Empowerment Fund. While access to finance remains critical, she said funding alone is not enough.

Businesses also need support to become investment-ready by strengthening governance, financial management, compliance systems, bankable business plans and market strategies.

“It is not because they don’t have a great idea. It is not because the entrepreneur is not hardworking. Often, the technical requirements are simply not in place,” she said.

Agro-processing key to Gauteng’s future

Ramokgopa said agro-processing now forms part of the Gauteng City Region Economic Growth and Development Plan 2030 because of its ability to stimulate broader economic activity.

She noted that while Gauteng occupies less than 2% of South Africa’s land area, it contributes roughly one-third of the country’s GDP and already possesses many of the ingredients needed for a globally competitive agro-processing sector, including sophisticated logistics, manufacturing capacity, research institutions, financial services and the country’s largest consumer market.

“If we are serious about re-industrialising Gauteng, agro-processing has to be part of that story,” she said.

Also read: GDARD responds to agro-processors’ rejected funding applications

Localisation means more than buying local

Ramokgopa also challenged delegates to rethink localisation. She argued that localisation should not simply encourage consumers to buy South African products, but should also focus on building stronger domestic supply chains, expanding local packaging manufacturing, and integrating township and emerging agro-processors into formal markets.

She said government wants agricultural products to be processed closer to where they are produced while ensuring more procurement opportunities flow to local businesses that meet the required standards.

Looking beyond South Africa’s borders

Ramokgopa urged agro-processors to position themselves for growth beyond South Africa’s borders.

She said demand for processed food would continue to rise under the African Continental Free Trade Area, given that Africa’s population is expected to account for about one-quarter of the world’s population by 2050.

“Our domestic market is still too small for the kind of growth that we need as a country,” she said. “We need to service the domestic market, but also see ourselves as a regional anchor for manufacturing and agro-processing.”

Also read: Agro-processing emerges as a growth engine, but the workforce must evolve

Success measured by jobs

Ramokgopa said the true measure of success would not be the speeches delivered during the convention, but the tangible outcomes achieved over the coming year.

“When we gather again next year, we should be talking about new investments, export growth, stronger value chains and, most importantly, how many people have found employment through this sector.”