Advancing an Inclusive and Sustainable Agricultural Sector in South Africa

The agricultural sector remains a fundamental component of South Africa’s economic framework, supporting millions of livelihoods and contributing substantially to national exports.

President Cyril Ramaphosa has emphasized the importance of fostering a diverse and inclusive agricultural sector in South Africa that not only drives economic growth but also ensures food security for all citizens. In his latest weekly newsletter, the President highlighted the necessity of transforming the farming industry to reflect the nation’s diversity while maintaining and expanding its contribution to the economy.

Agriculture: A Pillar of Economic Growth and Food Security

The agricultural sector remains a fundamental component of South Africa’s economic framework, supporting millions of livelihoods and contributing substantially to national exports. According to Agbiz, South Africa’s agricultural exports reached a record $13.7 billion in 2023, demonstrating the sector’s resilience and global competitiveness. These exports are distributed across multiple regions, with 44% going to African markets, 21% to Asia and the Middle East, 19% to the European Union, and 6% to the Americas.

Since the country's democratic transition in 1994, South Africa’s farming sector has more than doubled in value and volume, showcasing the collective efforts of government and industry stakeholders to enhance access to export markets. The integration of scientific advancements, such as improved seed cultivars and genetics, has played a crucial role in boosting productivity.

Investment in Agricultural Growth and Employment

Recognizing the sector's potential, President Ramaphosa reaffirmed the government's commitment to ensuring that agriculture remains a key driver of investment and employment. By the end of 2024, the agricultural sector employed approximately 924,000 people directly, with an additional 200,000 jobs linked to the broader agriculture value chain. As the industry expands, more employment opportunities are expected, particularly in rural areas, fostering economic rejuvenation and strengthening small towns.

To support sustainable growth, the government is collaborating with industry partners through sectoral master plans, including the Poultry and Sugar Master Plans and the Agriculture and Agro-processing Masterplan, signed in 2022. Additionally, a blended finance instrument has been launched in partnership with the Land Bank to provide capital to emerging farmers, ensuring inclusive participation in the sector.

Addressing Infrastructure and Service Delivery Challenges

Despite its successes, South Africa’s agricultural sector faces persistent challenges, including inadequate municipal service delivery, deteriorating infrastructure, and inefficiencies in road, rail, and port logistics. These issues hinder the timely delivery of agricultural products to markets. However, structural reforms initiated during the sixth administration are making strides in addressing these constraints. Ongoing projects focused on road transport, rail development, and bulk water infrastructure aim to enhance agricultural productivity and market accessibility.

Equity, Inclusion, and Land Ownership: Key to Sustainable Agriculture

A critical aspect of achieving sustainable agriculture is ensuring equitable access to land and resources. As highlighted by economist Wandile Sihlobo in his book, A Country of Two Agricultures, black farmers currently contribute only about 10% of South Africa’s commercial agricultural output. The President emphasized the importance of empowering black farmers by ensuring land availability and financial support through institutions like the Land Bank and commercial financiers.

To accelerate transformation, the government will continue its land reform initiatives and the release of state-owned land to emerging farmers. Multi-sectoral collaboration is essential, with organized agriculture playing a role in training and mentorship programs to equip black farmers with the skills and resources needed for commercial success.

A Collective Effort Towards a Thriving Agricultural Future

The path towards an inclusive and resilient agricultural sector requires concerted efforts from government, industry players, financial institutions, and the broader society. By prioritizing equity, sustainability, and investment in critical infrastructure, South Africa can harness the full potential of its agricultural industry to drive economic growth, enhance food security, and empower historically marginalized farmers. As the nation moves forward, collaborative action remains key to achieving a farming sector that benefits all South Africans.