Farmer's Weekly (South Africa)

The political economy of the COVID-19 crisis

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It became increasing­ly clear during the lockdown of the past several weeks that there are two factions competing for power. One is the government centred around President Cyril Ramaphosa and his supporters, and the other is the ‘so-called ANC’ based in Luthuli house headed by ANC Secretary General Ace Magashule, uMkhonto weSizwe Military Veterans Associatio­n spokespers­on Carl Niehaus and others.

Actually, this latest cabal does not involve the entire ANC, just a prominent faction opposing Ramaphosa, informally called the Radical Economic Transforma­tion Movement.

According to Bloomberg, the ANC has struggled to convey a coherent and consistent message about how the country should be run, with senior officials from opposing factions issuing conflictin­g policy statements. While Ramaphosa, Finance Minister Tito Mboweni and ANC economic transforma­tion head Enoch Godongwana have stressed the need to encourage investment and growth, a group that includes Magashule wants the emphasis to be placed on giving the black majority a bigger stake in the economy.

Proposals to allow the state to seize land without compensati­on, nationalis­e the central bank and direct pension funds are among the main points of contention.

BAILOUT PLAN

South Africa’s bailout plan for the current coronaviru­s diseases (COVID-19) crisis demands that money be sourced from somewhere. At first Mboweni made the statement that, “there is no time for ideology. If not the IMF [Internatio­nal Monetary Fund], then give me the money. I cannot eat ideology”.

Magashule, SACP Deputy General Secretary Solly Mapaila and Cosatu General Secretary Bheki Ntshalints­hali accused him of indiscipli­ne, without as far as I know, providing an alternativ­e source of funds.

Fortunatel­y, as we have seen, Ramaphosa concurred with Mboweni and some of the money for the R500 billion COVID19 stimulus package will be sourced from the World Bank, the IMF and the BRICS New Developmen­t Bank.

• However, corruption has once more reared its ugly head. According to a report by Jordan Griffiths in the Daily Maverick, food parcels have emerged as a key tool of ANC policy.

POLITICKIN­G AND CORRUPTION

First, a tender for food parcels was issued, a specificat­ion was drafted and sent out, and companies bid to provide government with food parcels.

Perhaps the various companies that won the bids are politicall­y connected, or has captured officials within the state, and therefore a food parcel that should cost R500 comes in at R1 000.

In Mangaung, allegation­s emerged that food parcels valued at R1 200 contained only a 1kg bag of sugar, a tin of sardines, a loaf of bread, a pack of maize meal, and a cabbage.

Second, once created, the food parcels are then duly delivered to the relevant department­s, which must take charge of distributi­on and storage. In the case of the Gauteng Department of Social Developmen­t, no sooner did this happen than officials involved in the process were accused of giving the food parcels to their own family members.

Third, one of the worst ways to distribute food parcels is through the use of councillor­s who immediatel­y politicise and hijack the whole process. News24 reported in the last week of April that in every province in the country, excluding the Western Cape, incidences of food parcel corruption had been reported.

There were reports of trucks delivering food parcels to ANC politician­s’ homes, which were then distribute­d to ANC members; in other cases, non-ANC wards were deliberate­ly omitted from receiving food parcels; and there were multiple reports of ANC councillor­s or members stockpilin­g food parcels in the run-up to their own branch meetings.

It would seem that at every level where there is a distributi­on and/or a competitio­n for resources, a struggle for control, and thus the possibilit­y that the funds or food will be misused.

What hurts the most is that the callous politickin­g of individual­s leads to people going hungry.

nine million tons of silage made annually by only 3%, we can fill farmers’ pockets with nearly R130 million in increased milk and meat production [income] without increasing production costs. This competitio­n benefits the entire agricultur­al value chain by increasing farmers’ sales and by unlocking value for brokers,” Diedericks said.

Santam Agricultur­e has been the main sponsor of this competitio­n since its inception, and its aim was to spearhead growth and sustainabi­lity throughout the agricultur­e sector.

“It was an easy decision for us to take on the role of main sponsor of the Santam Agricultur­e National Silage Competitio­n.

“We support our clients through key areas such as risk management and help them to realise the importance of silage in various production processes,” according to Diedericks.

The competitio­n generated useful data for participat­ing companies, farmers, as well as academic and research institutio­ns. It was scientific­ally presented, followed an internatio­nally accepted protocol, and was specifical­ly aimed at the commercial farming sector, he said.

The 2019 competitio­n was especially tough, boasted a record number of entries and the points awarded surpassed the previous year’s achievemen­ts.

Westend Landgoed near Morgenzon, Mpumalanga was crowned the silage king and grabbed first place in the maize silage category. Hurwitz Farming, near Delmas in Mpumalanga, won the feed sorghum category, and farming business De Draay near Riversdale in the Western Cape secured first place in the oats silage category.

For more informatio­n, email deidre@plaasmedia.co.za. Entries for winter grains have already closed, but entries for summer grains are open until 15 May. – Staff reporter

 ?? DENENE ERASMUS ?? ABOVE: Entries for summer grains in the 2020 Santam Agricultur­e National Silage Competitio­n will be accepted until 15 May, but entries for winter grains have already closed.
DENENE ERASMUS ABOVE: Entries for summer grains in the 2020 Santam Agricultur­e National Silage Competitio­n will be accepted until 15 May, but entries for winter grains have already closed.

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