President Cyril Ramaphosa's State of the Nation Address (Sona) touched upon the growth of South Africa's agriculture sector while acknowledging its persistent challenges. Agbiz chief economist, Wandile Sihlobo, commends the government's plans to address these issues, emphasizing the need for land reform, policy improvements, and a focus on sustainability.
President Cyril Ramaphosa's State of the Nation Address (Sona) on Thursday offered a brief but significant overview of the agricultural sector. While acknowledging the remarkable growth of South African agriculture over the past three decades, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), highlighted the persistent challenges facing the sector.
These include port inefficiencies, deteriorating roads, rural crime and stock theft, rising global protectionism, and inadequate municipal services. Sihlobo commended Ramaphosa for outlining government plans to address these issues, such as professionalizing civil servants, improving water infrastructure, simplifying regulations, and enhancing logistics. The president's emphasis on supporting farmers, improving logistics networks and rural supply chains, and opening new export markets resonated with Sihlobo's view of the sector's potential. He believes South Africa's agriculture sector could grow its total economic contribution (gross value added) by 30% in the coming years, creating numerous job opportunities. However, Sihlobo urged the president to prioritize the urgent release of 2.5 million hectares of state land for agriculture to selected beneficiaries with title deeds. He argues that this, coupled with policy reforms announced in the Sona and expanded export opportunities, would significantly propel the sector's growth and bridge the divide between commercial and subsistence farming. This disparity, according to Sihlobo, hinders the sector's full potential and requires immediate attention. He envisions a more inclusive sector with a shared vision and accelerated growth, starting with the equitable distribution of state land, empowering young people, women, and addressing racial disparities. He also underscored the importance of sustainability, acknowledging that South Africa has made strides in implementing sustainable farming practices. Sihlobo emphasizes the need to continue caring for the farming environment to ensure its long-term sustainability for future generations. This commitment to sustainability, he argues, will be crucial in maintaining access to key markets like the European Union, where environmental concerns in agriculture are increasingly debated
AGRICULTURE GROWTH CHALLENGES LAND REFORM SUSTAINABILITY
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