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Deputy Minister Godlimpi called for the introduction of innovative financing methods for sugarcane producers
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Food For Mzansi
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Deputy Minister Godlimpi called for the introduction of innovative financing methods for sugarcane producers

Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, called for a more coordinated and innovative approach to financing farmers who grow sugarcane, including small landowners. These efforts are being undertaken by the state and the industry with the aim of strengthening the sustainability and growth of the sugar value chain.

The speech took place at a recent seminar on financing sugar industry farmers and interaction with the government. The main focus of the event was identifying structural obstacles preventing sugarcane producers from obtaining financing, as well as finding practical ways to make them more attractive to banks.

Godlimpi emphasized the need to discuss structural problems that hinder financial institutions from providing funds to cane producers. He proposed that the government, financial organizations, and industry study mechanisms that allow small producers to consolidate their plots and jointly obtain financing, including the use of proper insurance and credit agreements.

Furthermore, Godlimpi highlighted the importance of better harmonizing existing funding sources between development institutions and other sources, rather than simply looking for new cash flows. He stated: 'My instinct is not to look for new money. My instinct is to try to optimize existing money.'

The approach should also include personnel training and readiness to receive financing, especially for those producers who cannot get funds due to non-compliance with requirements. Godlimpi also noted the need to address gaps in farmer insurance and develop financing models capable of supporting investments in areas such as renewable energy, infrastructure, mechanization, and diversification.

He added that the transition to new sugarcane-based opportunities, including bioethanol, will require the industry to demonstrate sufficient production capacity while simultaneously protecting sugar supplies to ensure food security. Godlimpi concluded: 'We need to create this structural capacity to meet demand on both sides of the equation, maintain the tonnage you provide for food, and have enough raw material for this thing we are talking about.'

The seminar was organized to inform further work on practical solutions in the field of sugar industry financing, and the deputy minister announced that the discussions and recommendations would be passed on for further consideration.

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Finance Minister Godongwana under pressure over fuel costs and government spending
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iol.co.za

Finance Minister Godongwana under pressure over fuel costs and government spending

Finance Minister Enoch Godongwana is facing increasing pressure amid the presentation of the Medium-Term Budget Policy Statement (MTBPS), as he is expected to take steps to cut spending and propose solutions to combat rising fuel prices.

Godongwana must present plans for public expenditure, revenue forecasts, and public financial management for the next three years. However, the Cosatu union stated that workers are in a difficult position due to youth unemployment at 48% and economic growth of only 1.2%. Parliamentary Coordinator Matthew Parks emphasized that today's MTBPS cannot be routine.

Parks stated: 'The government must demonstrate a decisive shift to stimulate growth, restore public and municipal services, assist workers and the poor, and instill hope in the nation. It is time to stop proven and unsuccessful neoliberal austerity policies that have undermined growth. Now we must invest to develop the economy and solve the unemployment problem.'

DA prioritizes debt reduction and accountability

DA's finance representative Kingsley Wakelin noted that today's MTBPS will show how seriously the government is committed to fixing public finances. He insisted on the need to improve spending, accelerate reforms, and increase accountability.

Wakelin stated that the government must stabilize debt, spend money on necessary things, and accelerate reforms. He added: 'The government must fulfill its obligations to stabilize debt and increase the primary surplus. This year, South Africa will spend R432.4 billion servicing its debt. This is money that could go to schools, clinics, police, and roads.'

Wakelin also reported that tax collection is expected to exceed February estimates. He stressed: 'This money should not be locked up in new recurrent expenditures. Debt must be paid down and growth supported first.'

Parties demand fuel price relief and anti-smuggling measures

ActionSA MP Alan Bisley stated that his party expects Godongwana to develop immediate assistance for South Africans facing rising fuel prices and the cost of living. Bisley noted that the government must act, recognizing that rising fuel prices lead to increased food prices, basic goods, services, and virtually the entire transport-dependent economy.

He also pointed out that given strong SARS revenue collection above targets, largely due to expanded capabilities, the government has a strong opportunity to provide significant relief through fuel levies without compromising fiscal targets. Bisley called on Godongwana to tackle the illegal economy.

Bisley demanded that the minister announce a three-year moratorium on increasing excise duties on these goods above the inflation rate to provide greater certainty for legitimate businesses, protect jobs, and help curb the growth of the dangerous black market. He also noted that combating the illegal economy would expand the tax base by moving economic activity into the formal sector and recovering revenue lost to the treasury.

Bisley concluded that combining fuel levy relief with decisive action against illegal trade would mitigate the cost of living crisis, strengthen revenue collection, and support economic growth. He added that support for ActionSA's corrective budget would depend entirely on the willingness of the National Unity Government to provide urgent aid to needy South Africans and take action against the illegal economy. 'We cannot support a budget that requires South Africans to bear most of the burden while the government fails to address the fundamental issues constraining our economy.'

Build One South Africa MP Nobuntu Khlazo-Webster proposed that Godongwana cut the VIP budget by 20% and redirect those funds to strengthening local police forces. Khlazo-Webster stated that the MTBPS is an opportunity to strengthen parliamentary power to block wasteful expenditure before it occurs.

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