Agri SA successfully negotiates to keep water affordable for agriculture

18 May 2020

Agri SA welcomes the reduced increases in the proposed raw water charges for the irrigation sector for the 2020/21 financial year. The raw water tariffs for the 2020/21 financial year were officially published by the Department of Water and Sanitation on 15 May 2020.

Following the sector-specific consultations which were held in Pretoria on 7 August 2019, Agri SA requested that proposed increases in water resource infrastructure charges be limited to 16.5% (i.e. 10% plus PPI as at April 2019) in lieu of the initially proposed increases of up to 50% in certain areas. Agri SA accepted the proposed water resource management charge increase of 6.5% for all water management areas (apart from the Orange management area where an increase of 15.66% was proposed in accordance with the National Water Pricing Strategy).

Government accepted Agri SA’s proposal and presented its revised charges during national consultations which were held in Boksburg on 28 August 2019. The revised charges became official through their publication last week.

“South Africa’s agricultural sector stands to be severely affected by the economic consequences of the COVID-19 pandemic as well as the lingering effects of droughts in certain part of our country” says Wayman Kritzinger, Chairperson of Agri SA’s Centre of Excellence: Natural Resources. “The relatively moderate increases will go some way to alleviate the input cost and economic burdens and ensure farmers keep producing.”

Agri SA will continue to consult with and strengthen its relationship with government to ensure that water not only remains affordable, but also that its management and regulation improve to ensure quality water supply. This will safeguard food security and economic growth for South Africa.

Issued by Thea Liebenberg, Media Liaison Officer, Agri SA, 18 May 2020