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07 May 2024 | Story Valentino Ndaba | Photo Supplied
South African Democracy
Back (from left) Dr Brand Claassen (Head of the Department of Private Law), Dr Jacques Matthee (Vice-dean Faculty of Law), Dr Marianne Sèverin (Institute for African Studies at Bordeaux University, France), Dr Marda Horn, Dr James Faber, Dr Lerato Ngwenyama. Front (from left) Dr Caroline Müller-Van der Westhuizen, Dr Anthea-lee September-Van Huffel and Portia Senokoane.

The University of the Free State’s Department of Private Law in the Faculty of Law recently hosted an enlightening seminar titled 30 years of democracy in South Africa on 26 April 2024. Dr Marianne Sèverin, from the Institute for African Studies at Bordeaux University in France, graced the event with her expertise. Her doctoral research delved into the Political Networking of the African National Congress (ANC), providing a rich backdrop for her discussion on South African democracy with the faculty’s esteemed staff and eager students.

Navigating the adolescent years

In her engaging discourse, Dr Sèverin likened South African democracy to that of “a teenager”, acknowledging the strides made since the advent of democracy in 1994. However, she astutely pointed out that despite the country boasting a robust Constitution, the pervasive issues of corruption and poverty remain significant hurdles. Drawing from her deep knowledge of the ANC, she shed light on the party’s overwhelming dominance in politics, which, unfortunately, provides fertile ground for corrupt practices to flourish unchecked.

The perspective of the ‘born free’ generation

Of particular interest to Dr Sèverin were the perspectives of the young attendees, affectionately known as the ‘Born Free’ generation, who never experienced the apartheid era firsthand. Their casual acceptance of democracy struck a chord with her. Dr Marda Horn, Senior Lecturer in the Department of Private Law noted, “She found through her discussions that they seemed to take democracy for granted and did not appreciate how lucky they were to live in a democracy.”

Lessons from across the continent

Throughout her presentation, Dr Sèverin artfully weaved in anecdotes from other African nations, such as Zimbabwe, Congo-Brazzaville, and the Democratic Republic of the Congo, where democracy has faltered. Her passion for South Africa was palpable as she recounted the emotional moment she experienced during the Rugby World Cup in France in 2023 when the national anthem resonated. Expressing her admiration for the ethos of “ubuntu” demonstrated by the Springboks, she confessed that this philosophy has become her guiding principle in life, a testament to the profound impact of South African culture on her.

A call to cherish and safeguard

The seminar provided a platform for deep reflection on the progress and challenges of democracy in South Africa, urging participants to cherish and safeguard the hard-won freedoms of the nation. As South Africa approaches the elections scheduled for 29 May 2024, the seminar serves as a timely reminder of the importance of youth engagement in shaping the country’s democratic future.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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