FIRST DRAFT
This annex sets out the first draft of a matrix to describe the policy stances of countries, prepared by the policy officers at FAOSAFR. The matrix can be further developed as studies of investment programmes and projects proceed. A similar approach can be taken to documenting the sector policy stances of individual countries, for analysis of their impacts on farmer decisions.
Country |
National Policy Issues |
|||||
Fiscal policy |
Sector development |
Credit and savings |
Trade |
Exchange rate |
Institutions |
|
Angola[10] |
May not be favourable to agriculture as government is seeking to broaden the tax base |
Improve food security through increased agricultural production |
Increase available domestic resources to finance investment. Incitation for private investment |
|
Harmonisation between official and parallel rates. Current rates are unfavourable to agriculture |
|
Botswana |
Tax payable annually for period ending 30th June. 25% company tax. 15% on dividends |
The main sector initiative is the NAMPAADD whose implementation is about to begin |
Farmers have benefited from on-farm investment and support with marketing of cattle. |
Botswanas main exports are minerals and meat products while imports, mainly from South Africa are made up of consumer goods |
Free market |
Fairly strong marketing and farmer support institutions including budgetary support. |
Lesotho |
70% of government revenue derived from distributed share of SACU[11] tariff and excise revenue |
State controlled grain markets -untargeted input subsidies. Direct participation of government in productive activities and in marketing of agricultural output. |
Non-existent. Subsidy policy effectively substitutes for credit and savings |
Part of SACU[12] Common external tariff regime. |
Free market |
Prevalence of state agricultural parastatals - slow privatisation and deregulation is in process. |
Malawi |
Taxes: 35% company; 45% for branch companies. Personal taxes range between 3 - 40 % |
Dualism between subsistence agriculture and commercial agriculture |
Not very well developed and savings are low due to low incomes. |
Export processing zones offering lower corporate taxes. |
Free market |
Strong institutions but government controls on commodities such as maize. |
Mozambique |
Being reformed to broaden rates and reduce double taxation -Policy being decentralised to district level activity plans |
Sector under rehabilitation and reform mainly under PROAGRI program |
Low levels of savings due to low incomes. |
Commercial trading margins high due to poorly developed markets. High cost induced by margins. |
Free market |
Institutions being transformed from command economy to free market. |
Namibia |
|
|
|
|
Free market |
|
South Africa |
Recent tax cuts are expansionary in 2003 budget. |
Diversity of products in agriculture. High levels of agri-processing. |
Fairly high levels of saving by regional standards. |
Diverse exports and imports. |
Unified |
Institutions well developed. |
Swaziland |
Rate of 37.5% for companies. |
Diversity of agricultural products. |
Moderate savings rates. |
Import/export restrictions. |
Free market |
Institutions well developed. |
Zambia |
Several schemes: PAYE, company tax; W.T etc. |
Dualism between subsistence and commercial farms. |
Modest savings rates. |
Diverse exports and imports |
Free market |
Institutions well developed. |
Zimbabwe |
Several schemes operated: Company, personal, capital |
Highly developed agriculture sector but slump due to economic slow down. |
Declining in public and private sector savings. |
Trade is diversified but slump of exports due to economic slowdown. |
Dual rate |
Strong institutions challenges from slump of the economy. |
FAO TECHNICAL PAPERS
FAO LAND AND WATER DISCUSSION PAPER
1. A perspective on water control in southern Africa - support to regional investment initiatives, 2003 (E)
Availability: December 2003
Ar - Arabic
C - Chinese
E -
English
F - French
P - Portuguese
S -
Spanish
Multil + Multilingual
* Out of print
** In
preparation
The FAO Technical Papers are available through the
authorized
FAO Sales Agents or directly from Sales and Marketing
Group,
FAO, Viale delle Terme di Caracalla, 00100 Rome, Italy.
[10] Angola just came out of
a long period of war. It is preparing its PRSP which is defining new policies
and institutions to be put in place. [11] southern Africa Customs Union [12] Set by South Africa Common external tariffs in force, combined with Intra-SACU import controls to protect local farmers. |