Agriculture
Resilience of South Africa’s agricultural sector explored─── ELSABÉ RICHARD 05:00 Tue, 13 Dec 2022
An agriculture economist expects that there will be a mild contraction in the agricultural sector's gross value added (GVA) following two years of solid growth.
The chief economist at the Agricultural Business Chamber of South Africa (Agbiz), Wandile Sihlobo, says it is essential to note that overall activity in the sector has remained strong and that agriculture has maintained its core contribution of improving national food security and job creation.
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He adds the Agriculture and Agro-processing Master Plan (AAMP) and the Land Bank's Blended Finance programme in collaboration with the Department of Agriculture, are essential for the long-term growth of the sector.
“The one area where there has been minimal progress and expectations were high at the start of the year is with the launch of the Agricultural Development and Land Reform Agency, which I believe could help accelerate the redistribution pillar of the land reform programme.
“The Agency was mentioned on various occasions by South African President Cyril Ramaphosa and Minister of Agriculture, Land Reform, and Rural Development, Thoko Didiza.
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“I understand that there has been considerable progress in structuring this agency, and when launched, it could play an important role in land reform.”
He further states that the sector faced some highs and lows this year, citing the foot-and-mouth disease (FMD) outbreak in the majority of the country’s provinces, high input costs, the EU not allowing citrus from South Africa to enter and the heavy rainfall as having a negative impact on the sector’s economy.
However, this has also highlighted the agricultural sector as resilient as stakeholders and producers keep working together to find solutions for the issues.
