Treasury is sticking to its guns on Denel

Recent statistics released by Stats SA showed that agriculture supplied goods worth R267bn.

About R5bn of this was used as inputs for other agricultural production. Most agricultural supplies were used by the manufacturing sector to produce goods we find in stores.

The sector was surpassed in 2014 by the information and communication technology (ICT) industry for its contribution to the gross domestic product.

Stats SA said ICT’s contribution was slightly higher at 2.7 percent, larger than agriculture’s 2.4 percent, while the sector had slipped in ranking to fall from seventh to 10th place, contributing 2 percent to the GDP last year.

Adesina said the private sector, women and young people had an important role to play in transforming agriculture to create wealth on the continent. He urged more youth to engage in agriculture. New narrative “I am convinced that we must change the narrative about African agriculture, which will be a $1 trillion business by 2030. And the entertainment world agrees with me. One of the results of this meeting is that we have collectively seen the need to make dramas – not just documentaries – about agriculture, so as to engage a younger audience,” Adesina pointed out.

The World Bank estimates that the agricultural industry, which is currently valued at about $313bn, would be worth $1 trillion by 2030.

The bank said the sector would provide jobs for 70 percent of the poorest people on the continent. But it cautioned that governments, the private sector and farmers would need to work in unison to achieve the projected growth. THE NATIONAL Treasury on Friday reiterated its opposition to the application by stateowned arms manufacturer Denel to establish a joint-venture with Gupta-linked VR Laser SA.

This comes after Denel said it was forging ahead to re-establish itself in the east Asian market via its joint-venture with VR Laser, despite a court bid to halt the undertaking.

Denel wants to create Denel Asia in partnership with the Asian-based business of VR Laser as a vehicle to penetrate the Asia-Pacific markets.

VR Laser Asia is owned by the Guptas.

It was revealed in court papers that VR Laser SA might be a technically insolvent company and as such did not appear to be in a position to raise the funds that would enable VR Laser Asia to establish the joint venture with Denel.

In a statement, the Treasury said it had noted Denel’s statements in relation to the Denel Asia transaction.

“National Treasury would like to place on record that Minister Malusi Gigaba held a meeting with Denel chairman Daniel Mantsha to discuss the Denel Asia joint venture.

“At the meeting, Minister Gigaba reiterated his opposition to the joint venture with VR Laser Asia, given the fragile financial situation that Denel is in,” the Treasury said.

“The minister further invited Denel to withdraw its litigation against the National Treasury.

“The position of the minister of finance has not changed in this regard. He remains opposed to the transaction for reasons stated elaborately in the Treasury affidavit to the high court,” the statement pointed out.