Policy uncertainty fails to dampen foreign investment in agri-sector

Despite concerns around land expropriation without compensation, foreign investment in agriculture is on an upward trajectory.

According to AgriSA, foreign shareholding of JSE-listed companies active in the agri-value chain has risen over the past 12 months.

Commenting on the possible reason for this, the organisation’s head of corporate affairs and communication, Pietman Roos, said that while international finance was known to be risk-averse, foreign investors were taking a balanced view of the country.

“South Africa is not compared to relatively stable economies with minimal policy risks, but rather to emerging economies that are also dealing with some fundamental issues,” he said. “So when South Africans are terrified by various risks, foreign investors are able to weigh those risks against what is happening in the rest of the world.”

Roos pointed out that the increased investment was evidence of wide global sentiment that South Africa was able to manage and grow its agricultural value chain.

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