Drought causes $1 bln loss in S. Afrca's agricultural sector

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South Africa's agricultural sector has suffered losses worth 16 billion rand, or about one billion US dollars due to a severe drought, Minister of Rural Development and Land Reform, Gugile Nkwinti said on Tuesday.

The government's response to the drought crisis now amounts to over 63 million dollars, including the allocation of about 33 million dollars to smallholder farmers and at least 8.2 million dollars to support indebted commercial farmers by the Industrial Development Corporation and Land Bank, the minister said at a press briefing in Parliament.

"As the drought has a direct impact on the country's food security, we will import an estimated four million tons of maize to meet domestic needs," Nkwinti said.

Moreover, the Department of Water and Sanitation has reprioritized about 32 million dollars to deliver water, protect springs and refurbish boreholes in response to drought conditions.

Funds have also been provided to feed and support for livestock farmers as well as disaster relief measures, added the minister.

South Africa is experiencing a severe drought that hasn't been seen in 100 years due to the El Nino effect.

AgriSA, the country's biggest farmers' organization, said agricultural stakeholders need about 800 million dollars in disaster relief for the next three years.

The worst drought is envisaged to eat into the country's economic growth, which is predicted at 0.9 percent this year, compared with 1.3 percent last year.

The government has repeatedly rejected calls to declare the drought a national disaster although five of the country's nine provinces have been declared disaster areas.

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