Food security and agriculture were supported by 58% of companies in 2022, up significantly from 35% in 2010, due to lockdown-induced hunger relief. The sector received an average of 10% of CSI spend in 2022, up from 7% in 2010.
Within this sector there have been significant movements in the allocation of funds. Pre-pandemic levels of funding for food relief and feeding schemes were decreasing year on year (with a low of 24% of food security spend in 2010), and small-scale farming was seeing a year-on-year increase in share of spend.
These trends were abruptly disrupted when the pandemic hit, with 2021 seeing a 63% share of spend dedicated to food relief and feeding schemes, and a massive drop-off in support for survivalist and small-scale agriculture. In 2022, there has been a slight adjustment back, which we expect to continue as companies promote small- scale agriculture to reduce dependencies on feeding schemes.
Type of intervention
- Most of the CSI food security and agriculture spend continues to be allocated to food relief and feeding schemes (58%), though down from 63% in 2021. This is anticipated as the funding adjusts to pre-pandemic levels.
- The average spend on small-scale farming/commercial agriculture increased to 18% in 2022, from 15% in 2021.
- Funding on survivalist farming increased from 4% in 2021 to 16% in 2022.
- The average infrastructure, facilities and equipment spend decreased to 8% in 2022, from 15% in 2021.
The changing food and agriculture landscape in South Africa
– The 1997/98 agriculture budget was approximately R4 billion, or 2% of consolidated government expenditure of R190 million.
– The government adopted the White Paper on South African Land Policy to inform land reform in the country. It included programmes to provide security of tenure to people who are vulnerable, and to prevent unfair evictions.
– The Land Redistribution for Agricultural Development was launched as part of the contribution to the redistribution of 30% of the country’s agricultural land over 15 years.
– The Integrated Food Security Strategy (IFSS) was approved by Cabinet in a bid to integrate policies seeking to address food insecurity.
– The Agricultural Black Economic Empowerment (AgriBEE) Charter was introduced to address transformation constraints in the agricultural sector.
– According to the national budget, R1.2 billion was allocated to the Department of Rural Development and Land Affairs for the Comprehensive Rural Development Strategy, setting up a new grant to support on-site water and sanitation infrastructure as part of the rural housing programme.
– The Policy for Small Scale Fisheries Sector in South Africa was adopted in 2012. It recognised that artisanal fishers were excluded from the long-term rights allocation process under the General Policy on the Allocation and Management of Long-term Fishing Rights of 2005.
– Cabinet approved the National Policy on Food and Nutrition Security, which aimed to ensure the availability, accessibility and affordability of safe and nutritious food at national and household levels. It built on the IFSS, which aimed to eradicate hunger, malnutrition and food insecurity by 2015.
– The Integrated Agriculture Development Finance Policy Framework for Smallholder Farmers set out to integrate various types of agricultural finance for smallholder farmers, offered by the Department of Agriculture, Forestry and Fisheries (DAFF).
– Stats SA’s ‘Food Security in South Africa, 2017’ report 2020 revealed that about 2.5 million households (15%) were involved in agricultural activities in South Africa in 2017.
– Most of these households were found in Limpopo, the Eastern Cape and KwaZulu-Natal. About 1.7 million households experienced hunger in 2017. More than 60% of these households were in urban areas.
– According to the 2017 Land Audit Report, a total of 37 078 289 hectares of farms and agricultural holdings were owned by individuals: 72% of these were white; 15% were coloured; 5% were Indian; and Africans owned only 4%.
– Data from the annual General Household Surveys showed that between 2000 and 2018, the rate of child hunger among households with children in them declined from 35% to 16%, largely attributed to the successful rollout of the child support grant.
– According to Stats SA, 23% of South Africans were affected by moderate to severe food insecurity, while almost 15% experienced severe food insecurity.
– The National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) showed that there was a huge spike in reported household hunger in May and June 2020 following the hard lockdown, with one in four South African households (23%) reporting hunger in the previous week.
– The Department of Agriculture, Land Reform and Rural Development allocated R1.2 billion for relief efforts in the agricultural sector during the pandemic. R400 million was allocated to farmers within the Proactive Land Acquisition Strategy programme, while the rest went to commodity farmers.
– In the 2022/23 national budget, R27.5 billion was allocated to agriculture and rural development, constituting just over 1% of consolidated government expenditure of R2.1 trillion.
– The Russia/Ukraine conflict affected food prices, both through rising global inflation and supply disruptions. The South African annual food inflation rate rose to 9.7% in July 2022.
Source details: Trialogue Business in Society Handbook 2022