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Dr Lindie von Maltitz explores investment opportunities in agriculture at FS Investment conference

29 February 2024 | Story Leonie Bolleurs | Photo SUPPLIED

Dr Lindie von Maltitz, a Lecturer in the Department of Agricultural Economics at the University of the Free State (UFS), contributed to the programme of the Free State Investment Conference (27 February), which was presented by the Department of Economic, Small Business Development, Tourism, and Environmental Affairs (DESTEA).

The primary objective of the conference, held in the Centenary Complex on the UFS Bloemfontein Campus, was to promote the province as an investment destination of choice and to showcase strategic investment projects across different municipalities. Additionally, the conference sought to connect local businesses with local and international investors and opportunities.

Representatives from financial institutions, academic institutions, national and provincial government departments, chambers of commerce, corporates, investors, and embassies attended the conference, which was opened by Councillor Gregory Nthatisi, the Executive Mayor of the Mangaung Metropolitan Municipality. The honourable Mxolisi Dukwana, the Premier of the Free State, delivered the keynote address.

The sectors covered by the presentations at this conference included mining and gas extraction, transport and logistics, energy, infrastructure, tourism, and the agriculture and agro-processing sector. Dr Von Maltitz’s presentation, ‘Required investment to improve the performance of the agricultural sector in the Free State’, focused on the latter sector.

Representing the UFS in the session ‘Driving Inclusive Growth and Food Security: Agriculture’ – Dr Von Maltitz first focused on what agriculture in the Free State entails, and how it relates to the rest of the country. She then provided a brief overview of the role and importance of agriculture in the South African and Free State economy, adding to that the advantages that investment in the agricultural sector in the Free State will bring.

Numerous possibilities for investment in the sector

According to Dr Von Maltitz, the agricultural sector in the Free State is of vital importance to its economy. “Our income from agriculture and its related industries is the second largest in the country, after the Western Cape. There are numerous possibilities for investment in the sector, not limited to production, but expanded to the entire agricultural value chain. Connecting with the right strategic partners can ensure the success of investment projects. The UFS can contribute as a strategic partner, bringing knowledge, expertise, research, and local and global networking to the table,” she stated.

The importance of investing in the agricultural sector, according to Dr Von Maltitz, is linked to two of South Africa’s biggest challenges: unemployment and poverty. “Investing in agriculture addresses both of these issues. Jobs are created for both unskilled and skilled labour while producing and processing food. The higher agricultural investment is on the agenda, the better for economic growth in our province and country,” said Dr Von Maltitz.

"With food security for a global population that has expanded from 2,5 billion in 1950 to 7,9 billion in 2021, agriculture and its related industries are the sector that will remain important until time immemorial,” remarked Dr Von Maltitz.

She is of the opinion that the Free State presents many opportunities for this sector. Dr Von Maltitz believes there are very few agricultural products that cannot be produced in the Free State. “For example, fruit produced in our province is market-ready before that of the Western Cape. This allows us to access local and international markets early, when prices are higher due to a supply shortage. Because we have cold temperatures in winter, our area has fewer livestock diseases than those found in other parts of the country,” she added.

“Assured by a supportive policy environment, functional infrastructure, and expert knowledge base, investors can be encouraged to invest in the agricultural sector in the Free State,” said Dr Von Maltitz.

In the Free State, however, the development of the agricultural sector is facing several challenges. In her view, failing infrastructure and load shedding are the biggest problems. “Our roads are among the worst in the country, making timely access to markets more difficult. Load shedding has an enormous impact on any processing facility. Climate change is something we need to incorporate into our planning process, continuously developing new risk management strategies for the sector,” she elaborated.

Advantages of the UFS as a strategic partner

She stated that the Free State is an agricultural hub open to many more possibilities. “Speaking as a representative of the UFS, I want to highlight the advantages for investors of the UFS as a strategic partner. Our Faculty of Natural and Agricultural Sciences is one of the best in the country and offers knowledge, skills, and expertise in every field related to agriculture, including soil scientists, animal scientists, climate scientists, crop scientists, wildlife and grassland scientists, plant breeders and pathologists, agronomists, agrometeorologists, and agricultural economists. The value we offer can be attractive to investors who will be reassured by our competence, as supported in the university’s Vision130, which defines our values, namely excellence, innovation and impact, accountability, care, social justice, and sustainability,” Dr Von Maltitz said.

News Archive

The failure of the law

2004-06-04

Written by Lacea Loader

- Call for the protection of consumers’ and tax payers rights against corporate companies

An expert in commercial law has called for reforms to the Companies Act to protect the rights of consumers and investors.

“Consumers and tax payers are lulled into thinking the law protects them when it definitely does not,” said Prof Dines Gihwala this week during his inaugural lecture at the University of the Free State’s (UFS).

Prof Gihwala, vice-chairperson of the UFS Council, was inaugurated as extraordinary professor in commercial law at the UFS’s Faculty of Law.

He said that consumers, tax payers and shareholders think they can look to the law for an effective curb on the enormous power for ill that big business wields.

“Once the public is involved, the activities of big business must be controlled and regulated. It is the responsibility of the law to oversee and supervise such control and regulation,” said Prof Gihwala.

He said that, when undesirable consequences occur despite laws enacted specifically to prevent such results, it must be fair to suggest that the law has failed.

“The actual perpetrators of the undesirable behaviour seldom pay for it in any sense, not even when criminal conduct is involved. If directors of companies are criminally charged and convicted, the penalty is invariably a fine imposed on the company. So, ironically, it is the money of tax payers that is spent on investigating criminal conduct, formulating charges and ultimately prosecuting the culprits involved in corporate malpractice,” said Prof Gihwala.

According to Prof Gihwala the law continuously fails to hold companies meaningfully accountable to good and honest business values.

“Insider trading is a crime and, although legislation was introduced in 1998 to curb it, not a single successful criminal prosecution has taken place. While the law appears to be offering the public protection against unacceptable business behaviour, it does no such thing – the law cannot act as a deterrent if it is inadequate or not being enforced,” he said.

The government believed it was important to facilitate access to the country’s economic resources by those who had been denied it in the past. The Broad Based Economic Empowerment Act of 2003 (BBEE), is legislation to do just that. “We should be asking ourselves whether it is really possible for an individual, handicapped by the inequities of the past, to compete in the real business world even though the BBEE Act is now part of the law?,” said Prof Gihwala.

Prof Gihwala said that judges prefer to follow precedent instead of taking bold initiative. “Following precedent is safe at a personal level. To do so will elicit no outcry of disapproval and one’s professional reputation is protected. The law needs to evolve and it is the responsibility of the judiciary to see that it happens in an orderly fashion. Courts often take the easy way out, and when the opportunity to be bold and creative presents itself, it is ignored,” he said.

“Perhaps we are expecting too much from the courts. If changes are to be made to the level of protection to the investing public by the law, Parliament must play its proper role. It is desirable for Parliament to be proactive. Those tasked with the responsibility of rewriting our Companies Act should be bold and imaginative. They should remove once and for all those parts of our common law which frustrate the ideals of our Constitution, and in particular those which conflict with the principles of the BBEE Act,” said Prof Gihwala.

According to Prof Gihwala, the following reforms are necessary:

• establishing a unit that is part of the office of the Registrar of Companies to bolster a whole inspectorate in regard to companies’ affairs;
• companies who are liable to pay a fine or fines, should have the right to take action to recover that fine from those responsible for the conduct;
• and serious transgression of the law should allow for imprisonment only – there should be no room for the payment of fines.

Prof Gihwala ended the lecture by saying: “If the opportunity to re-work the Companies Act is not grabbed with both hands, we will witness yet another failure in the law. Even more people will come to believe that the law is stupid and that it has made fools of them. And that would be the worst possible news in our developing democracy, where we are struggling to ensure that the Rule of Law prevails and that every one of us has respect for the law”.

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