The extreme drought could result in trade losses of up to R2 billion, said Western Cape economic opportunities MEC Alan Winde.
Winde will table a detailed report on the effect of the drought during a meeting of ministers and MECs in Gauteng tomorrow (Friday) but told online news publication, BDLive, that the 42% drop in national production had shaved 1.1% off South Africa’s gross domestic product (GDP).
Meanwhile, member of parliament (MP) for the Democratic Alliance, Annette Steyn, was quoted by agriculture publication, Farmers’ Weekly, as saying that the reason government hadn’t declared the drought a national disaster was because there wasn’t enough money in the budget.
“We are all aware of the #feesmustfall campaign that is putting huge pressure and constraints on the fiscus,” she said.
Steyn added that the agriculture sector was also already highly indebted, with the total debt averaging about R117 billion in November last year, an increase of about 14% from the previous year.
