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In a conversation with FT’s Africa editor David Pilling, Wandile Sihlobo, a member of South Africa’s Presidential Economic Advisory Committee, talks about the value of free markets in improving farmers’ incentives, reducing agriculture and food aid, and improving resistance to GMOs.
David Pilling: We tend to think of aid as funding the healthcare system, but there are also a lot in the food and agriculture space. What was the impact of the cut?
Wandile Sihlobo: Looking at the budget for the World Food Program, about half of it comes from USAID. It raises questions about where money comes from in times of disaster. The second tier was that USAID funded many research and agriculture support in regards to fertilizer input or conducting area studies. This year, sub-Saharan African regions received great rain, allowing farmers to increase their yields by double digits. It provides cushioning. There will be a real impact of (admission reduction) in 1-2 years.
DP: With a few exceptions such as South Africa, yields tend to be very low on the continent. Why is it so difficult to grow them?
WS: Considering staple foods such as corn, yields have stagnated at about 1 ton per hectare for the past 30 years. There are about six per hectare in South Africa, all due to differences in seed varieties and the adoption of genetically modified organisms. People say, it’s okay – Africa is increasing its production. But that production comes at the cost of cutting trees and using more land instead of saying, “How do we increase productivity in already agricultural regions, how do we maintain biodiversity on the continent?”
DP: What were the main obstacles to yield?
WS: The main obstacle is the African government. When William Root became president of Kenya (2022), he advocated a policy of embracing technology and adopting genetically modified crops. However, NGOs and activists then took him to court, and Kenya did not adopt those.
It’s not the climate, not the rain, but the fact that the South African government is putting its foot down when NGOs say “prohibit hybrid seeds and prohibit the adoption of genetically modified species.”
DP: Why is GMO so controversial?
WS: One dimension is the long history of colonization and the suspicion of outsiders’ motivations. People say that when you bring those seeds, you no longer have your own indigenous species, and you will depend on buying seeds every year. So, what happens to your country if the multinational company selling you decide to withdraw from Africa?
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And in today’s environment, with Trump’s policies and this fragmentation of the global trade system, that voice actually finds fertile ground in a country that says, “No, no, we have to be self-sufficient.” That’s African politics.
And this hesitation is not something we can simply dismiss. Multinational seed companies should explain how to work with local governments on seed breeding and transferring skills so that they still have seed breeding capabilities in their country. Because I think there are some grounded concerns.
DP: Are there any other obstacles?
WS: There are many other issues. The difficulty of moving crops from one area to another, and the fact that farmers have a shortage of storage, grain silos, you can get a big harvest loss.
There is also a government that sets a cap on prices. This can put farmers at a disadvantage as they are said to be able to procure inputs at a certain price and sell them at market prices. The same issue affects cocoa farmers who are not benefiting from higher prices as the Cocoa Commission sets prices. Keep these communities poor. Therefore, a policy reset is required to ease the pricing mechanism and open it on a free market basis.
The second obstacle is public infrastructure. Farm infrastructure such as silos and packhouses for farmers who produce either roads and rail lines, flowers and fruits.
Looking at sub-Saharan Africa, 80% of all rural land except South Africa has no act. In such an environment, you can never have a large farmer. And you need a big farmer in the system.
DP: What about agricultural expansion services (services that provide advice and training)?
WS: That’s a big part of the disease, especially in animals. Extensive services to farmers are needed to teach them how to manage this. If it is not well managed, it prevents exporting livestock, or even food and grains elsewhere.
DP: Many say that the lack of proper expansion services allows technology to fill the gaps left behind. do you agree?
WS: Not everyone can read English, not everyone can control their phones. When you go to the village, you will find many elderly people, some of whom are unable to navigate this technology. A generational transition period is required before this arrives.
DP: What is the potential conflict between cultivation of cash crops for export and the need to feed the continent’s growing population? Is there tension there?
WS: I think you can have both. If the UK produces mangoes on a large scale because they need them, they will produce more for the domestic market. In South Africa, about 55% of what we produce is administered to the export market. Last year, it was valued at $13.7 billion. But, for example, when we improve the quality of grapes, according to the EU, this standard is necessary, which means we improve the quality of everyone. After that, we go to Woolworths (such as a supermarket in South Africa). Or pay to eat it with the same quality of produce that is delivered to Belgium.
The important thing is the market. If there is local demand, farmers respond by planting more, as they increase prices and profitability for farmers. These market powers need to be demonstrated.
Wandile Sihlobo is a senior lecturer in the Faculty of Agricultural Economics at Stellenbosch University.
