Mail & Guardian
Mail & Guardian

Policy cannot disrupt food production

Remote work schedules, YouTube tutorials and livestreaming have turned lockdown into “business as usual” for the more fortunate among us. For most young South Africans, however, the shutdown of schools, universities and businesses has put the brakes on their ability to grow and learn — at a time when they could and should be growing and learning as much as they can.
Lindokuhle, a 21-year-old from Langa who is part of the Youth Capital network says: “Connectivity is a problem. Like most young people, I rely on internet cafes, as they have standard prices, to do my CV, apply for jobs and do my school work. Covid-19 has dramatically decreased our productivity and is threatening our possible livelihood.”
After an inquiry launched in 2017 — based on complaints from the public about the high cost of data — in December 2019 the Competition Commission confirmed that the country’s data prices were too high, especially for mobile prepaid data, and recommended that mobile networks reduce the price of bundles below one gigabyte. The commission also recommended that networks agree on an industry-wide approach to zero-rating public benefit and educational institution websites. 
Just days after the first case of coronavirus was confirmed in South Africa, Vodacom announced it was cutting the price of its 1GB bundle by 34%; MTN followed suit, announcing a reduction in the price of its monthly 1GB bundles and below by between 25% and 50%. And the day before national lockdown was put into place, the government publicised Telkom’s decision to make government and education sites access-free on their network. Vodacom and MTN have also since zero-rated many learning sites, with Vodacom offering a zero-rated e-school portal with content for grades R to 12. In addition to Free Basics, CellC also announced a lifeline package for prepaid customers and access to zero-rated content on selected public-benefit and government websites.
Although these price revisions and the zero-rating of educational content are a step in the right direction, we still have a long way to go if we want to ensure more equitable access to relevant content that could help those who need it most, now and post Covid-19. 
Telkom, Vodacom and MTN have each established their own zero-rated portals, with free access to network-curated content on education, jobs, health, news and government websites ­— CellC is adding content to its existing platform, including government sites. This content is limited and accessible for free if you belong to their network. Upskilling content for out-of-school youth is not prioritised in any of the zero-rated platforms. And this is cause for serious concern.
“We have seen a drastic reduction in the jobs available for the youth; young people should use this time to focus on learning a new skill and develop soft skills to increase the chance of finding employment post social distancing,” says Jaryd Raizon, CEO of graduate recruitment platform Trusted Interns. 
Twenty-eight-year-old Tumi from Johannesburg echoes Jaryd’s views: “As young people, we need to prepare ourselves for the loss of jobs and economic impact of Covid-19. Upskilling now could ensure you stand out from the crowd when things return to normal, but with the current data costs and lack of internet infrastructure in poor areas, that’s just not the case.”
With 56% of South Africans living on less than R41 a day, data doesn’t fall into the core basket of affordable essentials for the majority of households. Even with price reductions, data prices remain high for the average South African. Moreover, the process so far has focused on negotiations with individual mobile network operators, and not a co-ordinated, industry-wide approach towards securing universal access to information and services to all South Africans, regardless of the colour of their SIM cards.
Lindokuhle comments that not everyone can afford a gig of data because they have other needs.  In South Africa, looking for work is unaffordable for most young job-seekers, who spend an average of R550 a month job hunting, with data being one of the biggest contributors to this hefty sum. Many young people in the Youth Capital network admit they can look for work only when they have the money to do so. And with eight million young people (aged 15 to 35) unemployed and not in education, employment or training (NEET), we simply cannot afford for our young people not to have the means to look for work.
Recognising that price reduction on its own will not have a sufficient effect, the Competition Commission urged network operators to deliver a lifeline package of daily free data to all users to allow uninterrupted data access, regardless of income levels, while leveraging the increasing smartphone penetration. But the response received so far will not assist young people use this time productively.
A unified approach to zero-rating has the potential to unlock access to digital opportunities and information. A much-needed solution is freeing up all the education and upskilling content produced by public benefit organisations rather than a selection of content that is network-specific. This requires alignment and co-operation between the government and network operators, as a true example of social compacts in response to sudden changes in our society.
If the Covid-19 pandemic has shown us anything, it’s the power of technology to connect, educate and empower — but in South Africa, your access to digital resources still depends on which cell phone service provider you’re linked to and how much data you can afford. Let’s take the lesson and push for universal access, including for a generation of young people who are stuck at home and hungry to learn.
Remote work schedules, YouTube tutorials and livestreaming have turned lockdown into “business as usual” for the more fortunate among us. For most young South Africans, however, the shutdown of schools, universities and businesses has put the brakes on their ability to grow and learn — at a time when they could and should be growing and learning as much as they can. Lindokuhle, a 21-year-old from Langa who is part of the Youth Capital network says: “Connectivity is a problem. Like most young people, I rely on internet cafes, as they have standard prices, to do my CV, apply for jobs and do my school work. Covid-19 has dramatically decreased our productivity and is threatening our possible livelihood.” After an inquiry launched in 2017 — based on complaints from the public about the high cost of data — in December 2019 the Competition Commission confirmed that the country’s data prices were too high, especially for mobile prepaid data, and recommended that mobile networks reduce the price of bundles below one gigabyte. The commission also recommended that networks agree on an industry-wide approach to zero-rating public benefit and educational institution websites. Just days after the first case of coronavirus was confirmed in South Africa, Vodacom announced it was cutting the price of its 1GB bundle by 34%; MTN followed suit, announcing a reduction in the price of its monthly 1GB bundles and below by between 25% and 50%. And the day before national lockdown was put into place, the government publicised Telkom’s decision to make government and education sites access-free on their network. Vodacom and MTN have also since zero-rated many learning sites, with Vodacom offering a zero-rated e-school portal with content for grades R to 12. In addition to Free Basics, CellC also announced a lifeline package for prepaid customers and access to zero-rated content on selected public-benefit and government websites. Although these price revisions and the zero-rating of educational content are a step in the right direction, we still have a long way to go if we want to ensure more equitable access to relevant content that could help those who need it most, now and post Covid-19. Telkom, Vodacom and MTN have each established their own zero-rated portals, with free access to network-curated content on education, jobs, health, news and government websites ­— CellC is adding content to its existing platform, including government sites. This content is limited and accessible for free if you belong to their network. Upskilling content for out-of-school youth is not prioritised in any of the zero-rated platforms. And this is cause for serious concern. “We have seen a drastic reduction in the jobs available for the youth; young people should use this time to focus on learning a new skill and develop soft skills to increase the chance of finding employment post social distancing,” says Jaryd Raizon, CEO of graduate recruitment platform Trusted Interns. Twenty-eight-year-old Tumi from Johannesburg echoes Jaryd’s views: “As young people, we need to prepare ourselves for the loss of jobs and economic impact of Covid-19. Upskilling now could ensure you stand out from the crowd when things return to normal, but with the current data costs and lack of internet infrastructure in poor areas, that’s just not the case.” With 56% of South Africans living on less than R41 a day, data doesn’t fall into the core basket of affordable essentials for the majority of households. Even with price reductions, data prices remain high for the average South African. Moreover, the process so far has focused on negotiations with individual mobile network operators, and not a co-ordinated, industry-wide approach towards securing universal access to information and services to all South Africans, regardless of the colour of their SIM cards. Lindokuhle comments that not everyone can afford a gig of data because they have other needs. In South Africa, looking for work is unaffordable for most young job-seekers, who spend an average of R550 a month job hunting, with data being one of the biggest contributors to this hefty sum. Many young people in the Youth Capital network admit they can look for work only when they have the money to do so. And with eight million young people (aged 15 to 35) unemployed and not in education, employment or training (NEET), we simply cannot afford for our young people not to have the means to look for work. Recognising that price reduction on its own will not have a sufficient effect, the Competition Commission urged network operators to deliver a lifeline package of daily free data to all users to allow uninterrupted data access, regardless of income levels, while leveraging the increasing smartphone penetration. But the response received so far will not assist young people use this time productively. A unified approach to zero-rating has the potential to unlock access to digital opportunities and information. A much-needed solution is freeing up all the education and upskilling content produced by public benefit organisations rather than a selection of content that is network-specific. This requires alignment and co-operation between the government and network operators, as a true example of social compacts in response to sudden changes in our society. If the Covid-19 pandemic has shown us anything, it’s the power of technology to connect, educate and empower — but in South Africa, your access to digital resources still depends on which cell phone service provider you’re linked to and how much data you can afford. Let’s take the lesson and push for universal access, including for a generation of young people who are stuck at home and hungry to learn.

COMMENT

South Africa is ranked as the most food secure country on the continent, and is 44th out of 133 countries worldwide, according to the Economist Intelligence Unit’s 2017 Global Food Security Index.

The index evaluates the most critical aspects of food security, namely affordability and availability, as well as quality and safety.

South Africa’s relatively high rating has been made possible by robust agricultural output over the years, making it one of a few net exporters of agricultural products.

This is a remarkable achievement because South Africa is relatively resource poor compared with many other African countries. But what differentiates it from the other countries is the high level of investment in the sector, which is largely because of transparent markets, strong institutions and robust property rights, which can be enforced by the courts.

This brings us to our key point — expropriation without compensation. If this was to happen, it would threaten investors’ confidence in South Africa’s property rights framework and have negative implications for agricultural investment.

The agricultural sector needs investors who will develop resources to grow production. If a policy of expropriation without compensation is adopted, investors will fear that they will probably not be able to recover the value of their investments.

In turn, this will affect agricultural production and, subsequently, the availability and affordability of food in the country. This is undesirable because South Africa is already food insecure at household level. Statistics South Africa estimates that currently 13.8-million South Africans live under the food poverty line.

A clear implication of lower agricultural production was witnessed in the 2015-2016 drought, when food price inflation — the pace at which prices increase — averaged 10.5% in 2016. This was the result of South Africa becoming a net importer of staple grains such as maize, soybeans and peanuts.

This meant the country was buying these products at an import parity price, which is determined by the world market, the cost to transport the product to the market and the exchange rate. This is definitely not ideal, particularly for staple foods.

In addition, the results of this were largely felt by the indigent, who spend a far greater share of their monthly income on food.Although food inflation peaked at 12.7% at the height of the drought, it would be far more severe if there is a policy of expropriation without compensation.

Above all, we must ensure that land reform happens but in a sustainable way so that agricultural production and food supply remain vibrant in the coming years to prevent basic nutrition from becoming unaffordable.

Currently, StatsSA estimates that 13.8-million South Africans, or one in every four, live under the food poverty line, which means they cannot afford their basic food demands and are food insecure. If the price of food increases because of uncertainty regarding expropriation without compensation and the associated disinvestment in the sector, the situation will become worse. Therefore, it is vital that we find solutions to accelerate land reform without causing large-scale uncertainty in the agrifood system.

On the one hand, we need to find more land for redistribution and, on the other hand, we need to secure property rights to maintain investor confidence in our agrifood sector. But these needs do not have to be conflicting.

Instead of lowering the cost of acquiring land, more funds could be made available for land reform by raising private sector capital through public-private partnership models. This would be the best way to accelerate land reform without raising the price of basic food items.

Wandile Sihlobo is head of agribusiness research at Agbiz. Theo Boshoff is the manager of legal intelligence for Agbiz