South Africa: Mixed Reactions to the 2021 National Budget by the South African Agricultural Sector

On February 24, South African Minister of Finance Tito Mboweni presented the 2021 National Budget. The budget was met with mixed reactions by the agricultural sector. The 8 percent increase in excise duties on alcohol (wine, beer and spirits) has been heavily criticized and is likely to hamper the recovery of the financially distressed liquor industry. On the other hand, the budget has been positively received by some due to the increased support for the financially distressed land bank, which plays an important role in advancing loans in the agricultural sector, including commercial agriculture which is the largest contributor to production in South Africa. While the impact of the budget to U.S trade is still uncertain, the budget seemed fair and not prejudicial to U.S agricultural exports.

South Africa: Mixed Reactions to the 2021 National Budget by the South African Agricultural Sector