Economic Survey 1995

The agricultural sector faces a crisis this year following a successful farming year and the liberalization of grain imports. This has resulted in farmers being stuck with millions of bags of maize either harvested or yet to be harvested which could not be sold because there are no buyers willing to offer a high price. Several trends that have emerged in the past few years are expected to continue. Donor support is unlikely to return to the levels of the 1980's given the increased competition from within the region and from Eastern Europe. The liberalization process is expected to continue. So far in 1995, some textile clothing and leather factories have already closed due to stiff competition from imported goods. South Africa's influence in the region will increase in terms of increased competition as their goods enter the market.