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INVESTMENT IN THE SOUTH AFRICAN AGRO-FOOD AND FIBRE COMPLEX: PERCEPTIONS, EVIDENCE AND ANALYSIS

Abstract The question of investment in the South African agro-food and fibre complex is explored in this article. The analysis is based on empirical values and opinions/perceptions from ±400 agribusinesses operating in this complex. Investment in the agro-food and fibre complex has increased recently after having declined for a few years. Competitiveness ratings are also increasing. A correlation analysis between annual investment and the annual competitiveness rating in the agro-food industry indicted a correlation coefficient of 78%. Various factors, common to most sectors, were identified by the industry as constraints on future investment. A concerted effort through innovative measures and policies will now be required to promote sustainable agricultural activity in South Africa to stimulate further investment.