South Africa’s deteriorating road infrastructure undermines agri sector growth and rural development

[{“type”:”text”,”content”:”The results of this study led to a [comprehensive report](/storage/files/roads_rural_road_report.pdf) in which the findings were shared with members of the media and supported by input on the day by various of Agri SAu2019s provincial and commodity members.nnWith findings from the report, Kulani Siweya, Agri SAu2019s agricultural economist, set the scene for the dire economic impact of the dilapidated state of roads. The survey revealed that participating farmers relied on on-road transportation to move an average of 94% of their produce. On average, participants transported an estimated R23 million worth of agricultural produce by road in the last financial year for a combined total of more than R7,1 billion.”,”position”:0,”id”:”OHfXko27LA5C0zTl”},{“type”:”image”,”content”:”https://agrisaonline.com/images/703″,”position”:1,”id”:”2CPDFYbbtD2eYVZg”},{“type”:”text”,”content”:”13% of the respondents relied on-road transportation weekly while more than 87% relied on roads daily. This explains why 69% of the respondents had at some point attempted to fix affected roads themselves. The respondents on average incurred to repair and other related costs of more than R200,000 per participant. While this may be affordable for the biggest sector players, it is untenable for South Africau2019s small-scale farmers.nnAll but two respondents experienced operational challenges because of the state of our roads, with an estimated average of 16% in turnover losses during the last financial year.nnThe survey included participants from the five worst-affected provinces with 19% in horticulture, 30% in agronomy, and 51% in animal production.nnThe consequences of the challenges related to deteriorating roads are varied and costly for South Africau2019s food producers. The costs incurred range from engine and trailer damage to shorter vehicle lifespans and accidents. The increased transport and maintenance costs ultimately affect the consumer, determining how much they pay and how fresh the produce they receive is. Producers themselves are price takers and donu2019t necessarily pass the cost on to consumers. The increased risk due to bad road conditions also escalate the cost of insurance and maintenance which in turn suppresses the profit margin. The latter ultimately undermines the viability and sustainability of the sector.”,”position”:2,”id”:”cIIrhvnfScpuilnF”}]