Photo: Freepik 
A fertiliser designed to cut chemical use and improve crop yields has been waiting more than a year for approval from the Department of Agriculture. The delay has left its local distributor, Algjem Global Trading, unable to sell the product or move forward with a carbon finance project tied to it.
The logjam illustrates the pressure on Act 36 of 1947, the law that governs all fertilisers, farm feeds and agricultural and stock remedies. According to the government’s website, registration can take anywhere from a few months to a year.
Algjem’s first application was lodged more than a year ago. Its case might not seem unusual by the standards of South African bureaucracy, but the company faces a December 2025 cut-off date for farmers to join its carbon credit pilot project.
“Basically we’ve heard nothing,” said John Mann, Algjem’s chief operating officer. He described fortnightly check-ins with the department that return “no report at all”. The company filed its first application more than a year ago, but was told there was a conflict over the original product name. It was resubmitted on 14 November 2024.
Since then, Algjem has written to senior officials in both the agriculture and environment departments. Replies have acknowledged its complaints, but no progress has followed.
The product in question was developed by a local biotechnology company and licensed to Algjem for the South African market. It promises to restore compacted soil, reduce chemical fertiliser use by up to 35%, improve water retention and lift yields, according to Andrew Geddes, Algjem’s chief executive.
However, without an Act 36 registration number, none of it can be sold or distributed.
Registration comes at a cost. The department’s official checklist has the application fee as the very first requirement before the process can proceed. Mann confirmed that Algjem paid the upfront fee of R11,612 and pointed out that this did not cover consulting fees.
Carbon credits on hold
The fertiliser is meant to form part of a project to help farmers to earn carbon credits, which are tradeable certificates awarded for practices that store carbon in the soil.
An international company had agreed to buy the product from Algjem and distribute it free of charge to farmers, who would in turn sign contracts enabling them to generate credits. A local partner would ensure farmers applied the product correctly to meet carbon accounting standards. The deadline for farmers to register for this pilot project is 31 December.
“Even if the product is approved, the company needs the South African Department of Agriculture to provide a number for the label before it can start to finance the project,” Mann said.
Geddes explained that farmers and exporters risk penalties if they do not comply with carbon reduction policies. The risk stems from policies like the EU’s Green Deal and Farm to Fork strategy, which are pushing supply chains to cut emissions. One enforcement tool is the Carbon Border Adjustment Mechanism, a tariff on imports from countries with weaker climate policies.
South Africa, with its carbon-heavy economy, is seen as vulnerable, says a GreenCape report. Farmers who cannot demonstrate compliance could be excluded from key markets.
A solution lies in carbon credits, the report explains. Each credit represents a tonne of carbon dioxide avoided or stored. Projects that improve soil health – such as applying bacterial fertilisers – increase the amount of carbon locked underground. These gains are verified and converted into credits, and can either be sold on voluntary markets or used to offset domestic carbon tax.
By joining such a scheme, a farmer receives a carbon accreditation number, proving compliance for international buyers.
Digital fix in testing
The registration process under Act 36 is deliberately stringent, requiring safety data, efficacy results and contracts. But it remains paper-based, with files carried between desks.
Minister of Agriculture John Steenhuisen called this a “key frustration” and admitted that files often got lost or stuck. “There are a number of backlogs that exist,” he told Daily Maverick. “It’s very difficult to assess the backlog.”
The Department of Agriculture confirmed backlogs in “some areas”, including pesticides, stock remedies and fertilisers.
“An application would make its way through the process and, at some point, there would be a realisation that a document or certification was missing. And then this would have to go all the way to the beginning again,” Steenhuisen said.
On 17 September, speaking at a Business 20 side-event (the B20 is the G20 business dialogue forum), Steenhuisen unveiled a long-awaited digital solution. The new system will require complete applications before submission, automate routine functions and allow applicants to track progress online. Senior officials will have dashboards to monitor bottlenecks.
“The application process will be digitised. However, the scientific assessments of the applications will be conducted by technical experts, meaning it’s not AI or automatic. Industry is encouraged to migrate its applications to the online system,” the department said.
Steenhuisen described the project as part of a shift to e-government and a more transparent, accountable process. “It’s in the early stages of development and obviously there’s still testing to be done, but I’m very confident that this is the start of a new journey,” he said.
The department said pesticide applications would be the first leg in moving to the digital system, which should be functional by 1 April 2026. Other applications will be brought online over a timeframe to be communicated “in due course”.
To test whether Algjem’s experience was unique, Daily Maverick approached several companies in the animal feed and fertiliser sectors. Some responded anonymously, citing fear of retaliation.
They described long waits for registration under Act 36, often stretching 12 to 18 months for group one, two and three applications and about three years for agricultural remedies. The result, they said, is that multiple farming seasons are lost, disrupting marketing and supply.
Their main concerns included too few staff to handle the volume of applications, limited technical expertise among evaluators, inconsistent criteria that changes between reviewers, and minimal communication from the department. Some also suspected that certain applications are prioritised over others.
The cost of more complex applications makes market entry difficult for smaller firms, and slow approvals force companies to plan years ahead and deter foreign investors. Innovation, they said, is stifled.
Although they welcomed the idea of a digital system, they warned it would not solve the underlying shortage of skilled evaluators. They also pointed to weak infrastructure – outdated computers and poor bandwidth – as another obstacle.
A consultant who works on animal feed registration described Act 36 as “very strong legislation” that has endured because it protects public interest, and also pointed out how uneven the current system is. Some registration numbers are issued within a very short time, whereas other timelines can exceed eight months.
In the consultant’s view, the technical and administrative parts of Act 36 would be better handled by an independent body.
Notably, every entity or individual who responded to our queries requested anonymity, reflecting how sensitive the issue has become in the sector. The reluctance to go on record highlights the uncertainty felt about speaking publicly while still depending on the department for approvals.
Too late for some
For new applicants, the digital system may prevent the kind of delays Algjem has faced.
The Department of Agriculture confirmed that applications with pending submissions will not have to reapply or pay additional fees through the online portal and that it will allow for the prioritisation of critical applications as stipulated in Act 36.
Government documents show that registrations last three years before they must be renewed. Companies stuck in the queue risk facing new deadlines before the first approval even comes through. DM
This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
