Ramaphosa says govt will try to protect S Africans from rising prices, urges corporations to assist

6th June 2022 By: Thabi Shomolekae - Creamer Media Senior Writer

Ramaphosa says govt will try to protect S Africans from rising prices, urges corporations to assist

President Cyril Ramaphosa

President Cyril Ramaphosa said on Monday that while government is investing to improve local capacity and supporting small-scale farmers to ensure food security, he is also urging corporations to ensure that consumers are not paying more than they have to for food.

Many South Africans are struggling with the effects of rising fuel and food prices as Russia’s invasion of Ukraine continues. Both countries are major exporters to international markets of fertilisers, grains and oilseeds that are needed for a range of items including cooking oil.

Food inflation is at 6.2% with the price of basic food goods skyrocketing.  

While government has suspended the fuel levy for another month, Ramaphosa warned that it could not continue to do so indefinitely as it significantly affected public finances.

“It has become increasingly more expensive to buy food and other essentials, to pay for basic services and to use public or private transportation. While these rising costs affect everyone, low-income households are feeling them the most. While many of these events are beyond our control, government is doing what it can to shield South Africans from current and future price increases,” Ramaphosa said.

Further, climate change is resulting in lower agricultural output. 

To protect South Africa from the current and future shocks, Ramaphosa said food security was vital.

SUPPORT FOR FARMERS

The Presidential Employment Stimulus has seen more than 65 000 smallholder farmers receive input vouchers and government is hoping to extend this to 250 000 more farmers.

Government is also providing subsistence farmers with fertilisers and equipment to produce food, and is helping South Africans to start their own food gardens.

Ramaphosa added that through the Pro-Active Land Acquisition Strategy and the release of State-owned land for agriculture, government is supporting more small-scale farmers to expand their businesses and make them commercially successful.  

Government hopes to create more public-private partnerships to expand black commercial farming through initiatives like the Partners in Agri Land Solutions and the Agricultural Development Agency. 

To enhance biosecurity and safeguard animal health against diseases like foot-and-mouth, government is strengthening its capabilities.

Animal movement control measures and vaccine production capabilities are being strengthened to help protect animals against diseases.

“In addition to boosting local food production, our extensive social grants system and zero-rating of basic goods helps to protect the poor from rising costs. Through free basic services like water and electricity for indigent households, we can ensure that no family goes without basic services,” Ramaphosa said.

He said government would continue to monitor the situation closely and would do everything within its power to protect South Africans from unsustainable increases.

“Though oil prices and extreme weather are events over which we have little control, there is still much we can do, as government, business, labour and communities to help the people of South Africa through this difficult time,” he said.