Agriculture is a vital part of our growth story

Dear Fellow South African,

Agriculture is one of the most important sectors in our economy. The goods and services produced across the agricultural value chain underpin our country’s food security and account for a significant portion of South Africa’s exports.

According to data from the Agbiz, last year South Africa’s agricultural exports reached a record $13.7 billion. These agricultural exports are diverse, with 44% of these products exported to other African countries, 21% to Asia and the Middle East, 19% to the European Union and 6% to the Americas.

The value and volume of the farming sector has more than doubled since the dawn of democracy in 1994. This is testimony to the ongoing efforts of both Government and industry to ensure that South Africa products access as many export markets as possible.

Beyond the role of expanded export markets, agricultural economists have attributed the sector’s growth to Government’s embrace of science, allowing the private sector to register better seed cultivars and genetics to boost productivity.

The agricultural sector remains ripe for investment because of its recognised growth prospects. In addition, the revenue the state collects from agricultural enables Government to provide services that improve the lives of our citizens.

The sector is a major source of employment. By the end of 2024 approximately 924,000 people worked directly in agriculture and over 200,000 worked elsewhere in the agriculture value chain.

Given the critical role of agriculture in our national life, Government is working with all stakeholders to ensure the survival, sustainability and growth of this sector.

In collaboration with partners in the industry, we are undertaking growth-enhancing measures such as the sectoral master plans. The Poultry and Sugar Master Plans were the first steps, culminating in the Agriculture and Agro-processing Masterplan that was signed by organised agriculture and other partners in 2022.

The Department of Agriculture has launched a blended finance instrument in collaboration with the Land Bank to help farmers who require capital to continue growing the sector.

As this labour-intensive sector expands, more work opportunities will be created in the most vulnerable areas of the country, particularly rural areas. This in turn will support their economic rejuvenation.

Agriculture, like other sectors, is affected by municipal service delivery challenges, and by the poor state of key infrastructure such as roads, rail and ports. This constrains the delivery of agricultural goods to markets.

The structural reforms that started during the sixth administration are making progress towards addressing the port and rail challenges. Several road transport and bulk water infrastructure projects are underway that will boost the growth of agriculture.

We cannot talk about sustainable agriculture in South Africa without addressing issues of equity and inclusion in farming and land ownership.

Transformation remains a challenge in agriculture. In his book, A Country of Two Agricultures, economist Wandile Sihlobo notes that black farmers currently only account for around 10% of the commercial output in South Africa's agriculture. Our growth agenda must therefore have a bias towards the empowerment of black farmers.

The inclusion of black farmers in commercial agriculture necessitates that land is made available to them. The ongoing land reform process and release of Government land will continue to benefit emerging farmers and ensure that they too add to the growth of South Africa's farming economy.

This is an effort that requires multi-sectoral collaboration. The Land Bank and other commercial financiers will need to collaborate by providing capital. Organised agriculture can come on board to deploy the necessary training.

The farming sector of South Africa is vital to our growth agenda. It has shown resilience in the past and will likely continue along this encouraging and promising path. It will therefore be critical that the sector embraces the onward march of transformation.

It is in the interests of all South Africans that we have an agricultural sector that is representative and inclusive, that contributes to the growth of our economy and that produces the food our country needs.

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