South Africa: Labor Strikes Could Cripple South African Agricultural Trade

The current labor disputes at Transnet, South Africa’s state-owed port, rail and pipeline authority, have caused severe staff shortages at ports resulting in a significant slowdown of port operations and caused the company to declare fore majeure. This poses a major risk for South Africa’s trade-orientated agricultural sector. Delays at South Africa’s ports will negatively affect both agricultural import and export activities and, ultimately, profitability of producers which will limits future investments in the sector. The impact of the labor strikes on the agricultural sector will depend largely on the duration. South Africa’s agricultural sector have urged labor unions and Transnet to reach a favorable outcome.