Miller Magazine Issue: 117 September 2019

SOUTH AFRICA 84 MILLER / SEPTEMBER 2019 South Africa is an upper middle-income economy, with a population of 57 million people. It is one of the most advanced and diverse economies on the African continent. It has a well-developed business market, and is a gateway to Sub-Saharan African markets. The country is an attractive business destination, due to its growing market and a well-developed infrastruc- ture, catering to efficient distribution of both imported and locally produced agricultural products to major urban centers and the entire Southern African region. The economy of South Africa is the second largest in Africa, after Nigeria. It is one of most industrialized countries in Africa. Since 1996, and the end of over twelve years of international sanctions stemming from apartheid rule, South Africa’s Gross Domestic Prod- uct almost tripled to peak at $400 billion in 2011, but has since declined to roughly $350 billion in 2017. In the same period, foreign exchange reserves in- creased from $3 billion to nearly $50 billion creating a diversified economy with a growing and sizable mid- dle class within two decades of ending apartheid. The South African administration aims to acceler- ate economic progress, build a more inclusive soci- ety, eliminate poverty and inequality, and double the GDP by 2030. The government is in the process of addressing the challenges that have led to South Af- rica’s deterioration in the business environment as scored by the World Bank, including skills shortage and a weak education system, which exacerbates South Africa’s growth and service delivery. There are eleven official languages in South Africa, but English is the principal language used in commerce. Although property, jewelers and cars represent ob- vious signs of wealth, there is another, less apparent indicator of the country’s growing affluence: the food consumers are putting on their plates. Over the past two decades, steady economic growth and increased average income per capita, pushed large numbers of consumers towards protein-filled diets and as a result meat consumption levels have skyrocketed. The commercial agricultural sector in South Africa is highly diversified and is self-sufficient in most pri- mary foods with the exceptions of wheat, rice, chick- en meat, and oilseeds. South Africa has a well-de- veloped agribusiness sector, which plays a significant role in job creation and economic development. South Africa is the largest exporter of agricultural products in Africa, primarily citrus, wine, fruits, and corn. The agricultural sector contributed around 10 per- cent to South Africa’s total export earnings in 2018 at a value of $11.1 billion. Major exports included fresh oranges, fresh grapes, wine, corn other than seed corn, fresh apples, wool, fresh or dried lemons and limes, fresh pears, mandarins, and food prepa- rations. And it imported $7.7 billion in agricultural and food products in 2018. The major products im- ported were rice ($437 million), wheat ($395 mil- lion), chicken cuts and offal ($389 million), palm oil ($305 million), corn ($208 million) and soybean meal ($173 million). The grain industry is one of the largest agricultur- al industries in the country, contributing more than 30% to the total gross value of agricultural produc- tion. The industry is comprised of several key stake- holders including input suppliers, farmers, silo own- ers, traders, millers, bakers, research organizations, financiers, etc. CORN: THE MOST IMPORTANT FOOD SOURCE Corn is the largest locally produced field crop, and the most important source of carbohydrates in the SADC region for animal and human consumption. South Africa is the main corn producer in the region, with an average production of around 12 million tons per annum. Local commercial consumption of corn