Improving Agricultural Market Performance:
Creation and Development of Market Institutions
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South Africa’s institutions and policies have made equally important contributions to the
efficiency and competitiveness of its agri-food sector. These include trade and agricultural
policy liberalization, but they also include the country’s business and investment climate.
South Africa ranks 4th among countries in Africa, after Mauritius, Botswana, and Rwanda, 74th
in the world, and 9th among OIC Member Countries in the 2017 Doing Business indicators.
South Africa’s industry associations in the agri-food sector have played an important role, both
as policy reform advocates and as providers of services to their members, especially those
from previously disadvantaged groups. In many OIC member countries, chambers of
commerce, many of which include agriculture sub-chapters, often function as de facto – and,
not infrequently, de jure – arms of Government. Membership is often compulsory, and
activities are mandated and limited by law. In South Africa, membership in industry
associations such as Agri SA is voluntary, and revenue depends on members’ contributions.
This obliges such organizations to provide their members with useful services they are willing
to pay for.
In the context of South African agriculture, it is difficult, if not impossible, to single out one or
even a few key institutions. This may, in fact, be one of the key strengths that have enabled
South African agriculture to thrive. The interplay of public and private, Government, for-profit
and non-profit, financial, technical, commercial, educational, and research institutions has
created a vibrant and interconnected system that offers essential support to virtually every
participant in the agri-food sector. This system is underpinned by intelligent regulation which
seeks to protect the integrity and proper functioning of markets, support technological
development and dissemination of knowledge, protect public health and safety, and enhance
the competitiveness of South African agribusinesses.