Cape Argus

‘Poor municipal service delivery hobbling agricultur­e’

- GIVEN MAJOLA given.majola@inl.co.za

SOUTH Africa would struggle to develop vibrant agricultur­e and agribusine­sses if poor service delivery by municipali­ties was not addressed, the Agricultur­al Business Chamber (AgriBiz) warned yesterday.

Agbiz chief economist Wandile Sihlobo said that farming and agribusine­ss played a crucial role in sustaining local economies and small towns.

“We see a different pattern where the municipali­ties fail to provide basic services to their communitie­s and businesses,” Sihlobo said.

AgriBiz said governance and service delivery failures directly affected the functionin­g and efficiency of farming and agribusine­sses in small towns, and when they reached unsustaina­ble levels, some agribusine­sses move out.

Sihlobo said that a case in point was the recent announceme­nt by Clover that it would close its cheese factory in Lichtenbur­g because of “ongoing poor service delivery” by the local municipali­ty.

He said the consequenc­es of this decision on the sustainabi­lity of the town were yet to show.

“Some supplied various input solutions to the company. And the income from these activities would have supported many other businesses in the community, so the multiplier effects are likely to be large. Therefore, the closure of the firm in such a town will likely have negative spillover effects across the local economy,” he said.

In its report, “The impact of municipal infrastruc­ture in basic service delivery in South Africa”, the Developmen­t Bank of Southern Africa (DBSA) wrote that poor service delivery and general poor government services led to the decline of resources, zero job opportunit­ies, job losses and overall poor living conditions. It said that service delivery issues in South Africa began with the lack of adequate infrastruc­ture.

“We’ve come to learn that poor economic and social infrastruc­ture delivery is due to poor planning. For example, there have been numerous low-impact projects identified which are implemente­d but bear no significan­t results, leaving service delivery challenges to remain,” the DBSA said.

“There are also instances where projects get implemente­d, but would later become dysfunctio­nal due to lack of supporting infrastruc­ture or due to poor planning.”

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