by Wandile Sihlobo | Apr 14, 2025 | Agricultural Environment and Natural Resource
It is probably fair to say the South African leadership is working actively to mend relations with the U.S. There was never any doubt in this as official statements from the Presidency have consistently highlighted how South Africa values its relations with the U.S. This was true after the expulsion of Mr Ebrahim Rasool as South Africa’s Ambassador to the U.S., and after the U.S. imposed tariffs on South African exports and many other nations.
For example, on March 15, after the expulsion of Mr Rasool, the Presidency stated that “South Africa remains committed to building a mutually beneficial relationship with the United States of America.”
Again, after the U.S. announced tariffs, the Presidency said, “Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity. The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S. as an essential step to secure long-term trade certainty.” This is a constructive tone and affirms the view that South Africa values its relations with the U.S.
In this revitalization process of the relationship between the two countries, President Ramaphosa, on April 14, appointed Mr Mcebisi Jonas as his Special Envoy to the U.S. In this capacity, he will serve as the official representative of the President and the Government of the Republic of South Africa.
Mr Jonas certainly has a challenging task ahead as the U.S. has raised several issues about South Africa. Amongst others, the U.S. leadership misunderstood the reality of the land issues and the farming sector in South Africa. A case in point is the issue of land reform, where President Trump has repeatedly suggested that there are widespread land confiscations in South Africa.
Land issues
Amongst other things leading to this vast misinterpretation of reality in South Africa is the widespread lobbying by some against the Expropriation Act, where the Act has been wrongly presented in discussions as a “permit” to allow the government to expropriate people’s property. This is, again, untrue, as we have argued at length in this essay.
Essentially, some view this Act as a new direction for land reform. This is not the case – land reform policy in South Africa hasn’t changed and is still under the three pillars of (1) restitution, (2) redistribution, and (3) tenure. Land reform is still under market principles, such as a willing buyer and willing seller approach.
This is unlikely to change as expropriation is no ‘shortcut’; it is a long and cumbersome process, and the law safeguards that it may only be used where attempts to purchase the property on reasonable grounds have failed. The other important thing to underscore is that South Africa is not unique in having an Expropriation Act; most countries have one.
Notably, the Expropriation Act, per se, is not new; we see an update from the 1975 existing piece of legislation here. (I have discussed this here at length).
Importantly, the South African agricultural sector is flourishing and has more than doubled since 1994. This isn’t to say there aren’t domestic issues. Inept municipalities, poor road infrastructure, stock theft, and port inefficiencies are some of the domestic challenges the sector faces. But the threat to property rights isn’t one of them.
Trade issues
Amongst other things, Mr Jonas will also be tasked with addressing trade matters with the U.S. South Africa faces tariffs as high as 31% (thanks to the 90-day pause, we now face 10% like most countries). Before these tariffs, South Africa enjoyed tariff-free access to the U.S. market through the African Growth and Opportunity Act. The tariffs against South Africa have nullified this, and we must find a path forward.
I prefer South Africa to work to get a Free Trade Agreement with the U.S., cognisant that such brings a challenging environment for some industries. There will be winners and losers. Still, it may be the best path for South Africa.
Such engagement, however, will take time to negotiate. This means that in the near term, we must find a way for South Africa to continuously trade at favourable tariff levels or be duty-free with the U.S. This is key for industries such as agriculture and the auto sector.
Mr Jonas’s work is significant to South Africa, and he and his team deserve all our support – from business, civil society, etc.
The U.S. is a vital market and trading partner to South Africa. Mr Jonas’s presence as South Africa’s official representative is key in reviving the relations.
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by Wandile Sihlobo | Apr 14, 2025 | Agricultural Trade
Over the weekend, Chinese President Xi Jinping correctly remarked that there are ‘No Winners’ in tariff wars. The full consequences of the unfolding tariff war are yet to be clear on a global growth scale, but they are certainly on the downside.
However, a few countries may emerge as winners from a sectoral perspective. Brazil and Argentina are evolving as the leading agricultural exporters to China, as U.S. farmers face higher retaliatory tariffs in China.
The Financial Times published an article this past weekend that explains what is unfolding in just these few months. It states that:
“Brazil’s beef sales to China climbed a third in the first quarter of 2025, compared with a year earlier, while Chinese imports of its poultry increased 19 per cent year on year in March, according to local trade associations. Meanwhile, foreign demand has seen Brazilian soybeans trading at a $1.15 premium to their U.S. counterparts on global markets, having sold at a 25-cent discount only in January.”
This is not new. China started shifting to Latin America after the first trade friction with the U.S. during President Trump’s first term. I have shown this chart several times (featured chart), which accurately illustrates what is happening with China’s agricultural imports.
We think more about China in agriculture because China is a dominant player in global trade. In 2023, China was a leading agricultural importer, accounting for 11% of global farm imports, totalling over US$200 billion.
The leading suppliers of agricultural products to China in 2023 were Brazil, the U.S., Thailand, Australia, New Zealand, Indonesia, Canada, Vietnam, France, Russia, Argentina, Chile, Ukraine, the Netherlands, and Malaysia.
The U.S. position will likely decline further this year.
Reflecting on the current shifts in China’s agricultural imports and the dominance of Latin America has partly motivated us to argue that South Africa should also position itself among the key suppliers of farm products to China.
South Africa remains the only African country in China’s top 30 agricultural suppliers, ranked 28 in 2023. Still, South Africa remains a negligible player in the Chinese agricultural market, accounting for a mere 0.4% (US$979 million) of China’s agricultural imports of US$218 billion in 2023.
Given this reality and China’s efforts to diversify its agricultural suppliers, it is key that the South African message in engagements with the Chinese authorities should be more firm and persuasive in promoting agricultural exports.
South Africa has an agricultural surplus yearly, exporting about half of its yearly production. In 2024, South Africa’s agricultural exports amounted to a record US$13.7 billion. Indeed, this is nowhere close to the amount of money China spends annually importing agricultural products from the world, a staggering US$218 billion.
South Africa is not currently deeply involved in China’s agriculture, among other things, because of the higher import tariffs and some phytosanitary constraints on various products.
With China focused on trade matters nowadays, South Africa must press them to open up the market and strengthen agricultural trade with our country. I think this should be a topic of conversation in engagements with Chinese authorities.
The Brazilian and Argentinian farmers cannot be the only winners in this challenging time; South Africa’s agriculture must be part of this global story.
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by Wandile Sihlobo | Apr 13, 2025 | Africa Focus
While other countries have taken a confrontational tone in trade policy, SA must continue strengthening relations and widening export opportunities for all the export-reliant sectors of the economy. Agriculture is one sector that largely depends on exports and has benefited immensely from the trade opportunities the SA authorities have successfully negotiated in recent decades.
SA must make an accelerated effort to maintain relationships and strengthen friendships. One region that requires some attention is the Southern African Customs Union (Sacu), a free-trade customs union that includes Botswana, Namibia, Lesotho and Eswatini.
In 2021 Botswana banned imports of vegetables from SA, which continued until the partial removal of restrictions by President Duma Boko in December. This month the government of Botswana plans to remove the remaining import restrictions on beetroot, butternut, cabbage, carrot, garlic, ginger, green melons, herbs, lettuce, onions, potatoes, sweet pepper, tomatoes and watermelons from SA.
This is a welcome development for SA fresh produce suppliers and retailers. Notably, the easing of vegetable imports will mainly benefit consumers in Botswana.
As Botswana removes all the restrictions on vegetable imports from SA this month, the focus will shift to Namibia. In the case of Namibia, the restrictions on vegetable imports from SA started at about the same time as those in Botswana. Both countries’ rationale for banning vegetable imports was that they were building their domestic industries, and that this required cushioning from imports.
However, these bans on imports of agricultural products added uncertainty and have weighed on SA exporters. Moreover, they have fuelled sentiment in some quarters that Sacu needs to be reviewed, especially in the context of SA sharing some financial resources with the region. However, we caution against an unfriendly approach in the Sacu region.
While SA’s agriculture has experienced some challenges recently, the country continues to benefit from the free trade area. For example, Trade Map data shows that the Sacu region accounted for about 19% of SA’s agricultural exports of $13.7bn in 2024. This is the same value as SA’s agricultural exports to the EU. The only difference between the EU and Sacu is the products in the export basket. The EU imports more fruits and wines, while the Sacu basket mainly includes staple grains, vegetables and beverages.
SA imports less than $1bn in products from Sacu, averaging $816m over the past five years. This is about an 11% share of SA’s agricultural imports in the past five years. The imports are mainly live animals (cattle) and sugar. The major exporters to SA in Sacu are Eswatini and Namibia.
The disparity in trade is partly because of the lack of production volume from some of the Sacu countries that are not as naturally endowed as SA. That said, we believe restrictive policies are not the best way for Sacu countries to lift production. Instead, a more collaborative approach that seeks to leverage SA’s technology and scientific know-how could be more helpful.
Considering that this is an enormous export market for SA agriculture and an essential one for importing Sacu nations, the logical steps should be to preserve trade and reduce the frequent occurrence of export bans targeting SA. The policy ambitions of the Sacu members to increase their domestic production could focus on leveraging scientific advancements and investments from SA, which has mature agriculture and food, fibre and beverage value chains. Ideally, collaboration should be the path forward rather than confrontation.
As Botswana lifts its remaining restrictions on vegetable imports from SA, the focus and tone of engagement in both countries should move to collaboration. Botswana must outline the areas of agriculture in which it intends to grow, and thereafter leverage SA technology and skill as it embarks on that journey.
This could be communicated through the respective ministries of agriculture, requesting private sector involvement. Namibia must also move towards this collaborative approach and remove the restrictions on vegetable imports from SA.
Written for and first published in the Business Day.
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by Wandile Sihlobo | Apr 6, 2025 | Agricultural Trade
At a time of heightened geoeconomic tensions, it is tempting to argue that countries, industries and businesses must align with particular interests or regions. For businesses and industries, the ideal path should be to remain neutral and continue to broaden business activity with a wider range of countries.
This is especially critical for South Africa’s agriculture. The sector is export-oriented, with exports reaching a record US$13,7 billion in 2024, up 3% year-on-year. The export markets and products are varied, with the African continent absorbing nearly half, while the EU, Middle and Asia, and the UK are also sizable markets. South Africa should not rest on this success but should maintain and deepen trade relations in regions where capacity remains.
The EU-South Africa agricultural trade has had a few frictions, mainly related to citrus. There is a growing sentiment amongst EU farmers that the region must manage its imports and protect the domestic producers. We don’t believe the EU policymakers would respond to farmers’ needs through tariffs or stronger policies discouraging imports. Still, there remains a chance that we could see occasional non-tariff barriers raised in sensitive products.
Critically, the EU market may not offer a lot of growth opportunities for South Africa in our view. Still, maintaining openness and friendship with the EU is vital and key to keeping the current access to agricultural exports that South Africa currently enjoys in this region.
The Middle East promises more potential for expansion, as it is not as saturated as what we observe in the EU, and there are no competing domestic farmer interests in this region. While a significant share of South Africa’s agricultural products are already exported to the Middle East, the presence of South African agriculture in this region is arguably still peripheral.
For example, according to Trade Map data, Saudi Arabia imports roughly US$25 billion of agricultural products a year. South Africa is one of the minor exporters, accounting for a mere 1% of the Saudi Arabian imports, and ranks 31st in the agricultural imports list.
Moreover, the UAE is a large agricultural market that imports roughly US$22 billion of agricultural products annually. South Africa has a 2% share and is the 16th largest supplier. Qatar imports about US$4 billion of agricultural products a year. But here, South Africa also plays a minor role, ranking 10th in the list of suppliers to Qatar and having a 2% market share in Qatar’s agricultural imports.
The countries that occupied a larger market share in these Middle Eastern countries were India, Brazil, Australia, the United States, Canada, New Zealand, United Kingdom, Denmark, Netherlands, Italy, Spain, Argentina, Russia, France, and Turkey. Regarding the products, the Middle East primarily imports various meat products, grains, oilseeds, and fruits, amongst other products.
Given this peripheral participation and the possibility of increasing South Africa’s agricultural production in the coming years, there remains room for greater participation in the Middle-East market. There is a need for targeted promotion and marketing of products, along with government support, to nudge the Middle Eastern countries to address any remaining phytosanitary barriers and tariffs for South African products in these countries.
Equally, South Africa must work to retain the current access for agricultural products and other products in the US. However, a framework for a post-AGOA path must focus on a free trade agreement, and how we manage the higher tariffs imposed by the US government.
The African continent, which remains an anchor of South Africa’s agricultural exports, also requires continuous engagements to strengthen relations. This is ideal to avoid the friction we observed with the vegetable export ban in Botswana (now resolved and reopened) and Namibia (restrictions have not been lifted).
Overall, South Africa should take a long-term vision and appreciate that industry growth relies on relationships with varied countries. The government should lead these efforts collaboratively with businesses to open the export markets continuously. The growth, inclusiveness, and job creation all hinge on the sector’s ability to open as many export markets as possible.
Written for and first appeared in Business Day.
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by Wandile Sihlobo | Apr 5, 2025 | Agricultural Environment and Natural Resource
Yes, I know a lot is going on about Trump’s tariffs and the devastation they are causing to the world and industries (I have written about the issue here). But if one takes a step back and assesses the agricultural conditions in South Africa from a production perspective, we are on sound footing.
In addition to trade matters that will dominate the coming days as South Africa navigates the tariffs imposed by the U.S. authorities on our country, we should not ignore the task ahead of continuously building the sector and leaning on some optimism we saw before the Trump tariffs.
The path ahead for South Africa’s sector remains clear through the Agriculture and Agro-processing Master Plan (AAMP), which took the collaborative efforts of all stakeholders to draft. The AAMP’s core objective is to drive inclusive growth in the sector by addressing constraints across commodities and cross-cutting matters such as land reform.
In early February, the U.S. President cited misleading claims about South Africa’s land reform in his Executive Order against South Africa. Amid these headlines, we worried there would be a sense of pessimism about business conditions in the sector.
Positively, the Agbiz/IDC Agribusiness Confidence Index, a sentiment indicator in South Africa’s agriculture and agribusiness, registered a notable 11-point uptick from Q4 2024 to the 70-point mark in Q1 2025 (these results were out before the Trump tariffs).
This is the highest level since the end of 2021, a La Niña year that brought favourable rains across the country. Moreover, at the time, most subsectors of agriculture operated openly while the government placed restrictions on others to control the spread of COVID-19. The current optimism in agriculture emanates mainly from the La Niña rains, which have supported the crop, fruit and vegetable production conditions.
We also see a welcome improvement in the grazing veld, which benefits the livestock industry. Moreover, the decline in maize prices, while not always a welcome sight for a grain farmer, benefits the poultry industry and the broader livestock.
The recent moderation in prices is a welcome relief for poultry producers and livestock who have struggled with higher feed costs.
Poultry farmers’ needs
In such an environment, it is vital that South Africa builds on this optimism and implements the programmes that are within domestic control. For example, within the poultry industry, we continue to hear from our members about the need for South African authorities to accelerate the bird flu vaccine registration. The feedback from the regulators about this issue has not been encouraging so far.
Given what we are currently observing in the U.S., where the bird flu has worsened, South Africa must prepare itself for such possible challenges in future. In years where we have experienced the bird flu, the challenge goes far beyond the farms to jobs and higher food prices in the country.
Therefore, ensuring that we do whatever is possible, within the limits of regulation, to accelerate this registration process for vaccines is vital.
Horticulture and wine producers
An important issue for horticulture and wine producers is accelerating the opening up of key export markets. While this has been a long-running talking point in the sector, South Africa cannot keep moving at a pedestrian pace on trade matters during heightened geoeconomic tension. There is a need for renewed energy and urgency from the government officials’ side.
The BRICS region remains crucial in this endeavour, amongst other regions. Here, the South African government must have a sharper focus on lowering import tariffs and phytosanitary barriers in countries such as China, India, and Saudi Arabia, with the latter mainly for fruits.
Moreover, the continuous effort to retain access to markets South Africa already exports to is also vital.
South Africa must also rethink its agricultural marketing or promotion approach in this export effort. Presenting South African products as a pack under the “South Africa Inc” approach may be key.
Livestock
The livestock industry is also geared to promote its exports. Thus, there is a need to market and promote South African products as a pack. For this export effort to be a success for the livestock industry, the sector, collaboratively with the government, must continuously address animal diseases.
Notably, the provincial authorities should appreciate that they must apply regulations to control the spread of animal diseases like Foot and Mouth without choking the industry.
Also worth emphasizing is that serious engagements with domestic vaccine manufacturing is also crucial and requires government and private sector collaborative efforts.
Closing remains
For the export drive to succeed, the logistics must also improve. Therefore, the collaborative work with Transnet and other stakeholders to improve the efficiency of the ports remains vital and should continue. We are already seeing the gains of these collaborations through increasing exports.
Still, more work is required, and collaboration is key in the process. Road infrastructure is another matter this sector must continuously emphasize to provincial and local authorities as it remains at the heart of the sustainability of agriculture.
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by Wandile Sihlobo | Apr 4, 2025 | Agricultural Trade
South Africa was not spared of the “Liberation Day” tariffs announced by US President Trump against various countries. South Africa will face tariffs between 10% and 30% in the US for all products. The specificity of by-products is not yet clear.
We know now that a baseline tariff of 10% will apply to imports from all countries. It remains unclear if there are differences in the remaining 20% (that makes up the rest of the 30%) duties levied against South Africa.
Under this environment, it is prudent to assume that South Africa will be out of the AGOA (the African Growth and Opportunity Act), which afforded us duty-free access to the US for a range of products, including the auto industry and agriculture.
We suspect there may be some differences product by product, but that will be clear as soon as the US authorities release more information. We know that the reciprocal tariffs will generally range from 10% to 60% (and to 30% in the case of South Africa). The exact levy will be based on what the White House Council of Economic Advisers thinks is the sum of tariffs and non-tariff barriers on US goods to a specific country.
Indeed, some products face higher tariffs in the South African market, but there are rebates through the International Administration Commission of South Africa (ITAC) to assist any country that requires relief. South Africa is arguably amongst the countries with the lowest tariffs, which some local stakeholders have previously argued was a policy mistake at the onset of South Africa rejoining the global economy after 1994, following years of isolation.
The details of how the various domestic industries engage with this will also be precise in the coming days and weeks. But what I must stress regarding agriculture is that the US accounted for 4% of the total US$13,7 billion in exports in 2024. While this may seem small, it is significant for specific industries, particularly citrus, grapes, wine, and fruit juices. Since the inception of AGOA, South Africa’s share of agricultural exports to the US has remained at similar levels.
With a 30% tariff now, while South African agricultural competitors such as Brazil, Chile, and Australia will face only 10% of the tariff, we will surely face a competitiveness problem in the US market. And yes, the tariff is a tax on the US consumer, not South Africa. However, it affects South African products’ penetration rate in these markets.
It may not be easy, and diverting products to other friendly markets will take time. Still, this should be the main preoccupation of the Department of Agriculture, assisted by the Department of Trade, Industry and Competition. The Middle East and Asia should be the primary focus for South Africa to build access, mainly in China, India, and Saudi Arabia.
The Middle East promises more potential for expansion, as it is not as saturated as what we observe in the EU, and there are no domestic competing farmer interests in this region. While a significant share of South Africa’s agricultural products are already exported to the Middle East, the presence of South African agriculture in this region is arguably still peripheral. For example, according to Trade Map data, Saudi Arabia imports roughly US$25 billion of agricultural products annually. South Africa is one of the most minor exporters, accounting for a mere 1% of the Saudi Arabian imports, and ranks 31st in the agricultural imports list.
Moreover, the UAE is a large agricultural market that imports roughly US$22 billion of agricultural products annually. South Africa has a 2% share and is the 16th largest supplier. Qatar imports about US$4 billion of agricultural products a year. But here, South Africa also plays a minor role, ranking 10th in the list of suppliers to Qatar and having a 2% market share in Qatar’s agricultural imports.
The countries that occupied a larger market share in these Middle Eastern countries were India, Brazil, Australia, the United States, Canada, New Zealand, United Kingdom, Denmark, Netherlands, Italy, Spain, Argentina, Russia, France, and Turkey. Regarding the products, the Middle East primarily imports various meat products, grains, oilseeds, and fruits, amongst other products.
Given this peripheral participation and the possibility of increasing South Africa’s agricultural production in the coming years, there remains room for greater involvement in the Middle-East market. There is a need for targeted promotion and marketing of products, along with government support, to nudge the Middle Eastern countries to address any remaining phytosanitary barriers and tariffs for South African products in these countries.
The case for pushing more agricultural exports to China is clear in Asia. In 2023, China was a leading agricultural importer, accounting for 11% of global agricultural imports, which totalled over US$200 billion, as the chart above shows. The US, Germany, the Netherlands, the UK, France, and Japan trailed China.
The leading suppliers of agricultural products to China are Brazil, the US, Thailand, Australia, New Zealand, Indonesia, Canada, Vietnam, France, Russia, Argentina, Chile, Ukraine, the Netherlands, and Malaysia.
South Africa is the only African country in China’s top 30 agricultural suppliers, which ranked 28 in 2023. Still, South Africa remains a negligible player in the Chinese agricultural market, accounting for a mere 0.4% (US$979 million) of China’s agricultural imports of US$218 billion in 2023.
China is already one of South Africa’s major agricultural markets for fruits, wine, red meat, nuts, maize, soybeans, and wool. However, there is room for more ambitious agricultural export efforts.
What the South African authorities should argue for in China is a need for lower import tariffs and the removal of phytosanitary constraints on various products. This would unlock the export potential into this market.
This diversification approach for South Africa’s agriculture is more urgent. Beyond the US tariffs, we will have a boom in harvesting various fruits in the coming years, which will require a market.
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by Wandile Sihlobo | Mar 31, 2025 | Agricultural Environment and Natural Resource
South Africa has the contradiction of being the leading agricultural exporter in Africa while the number of food-insecure households is rising.
Without proper policy engagement in this challenge, the sector risks more misconceptions about its export-driven growth drive while many South Africans are impoverished. Accurately diagnosing the problem and its underlying causes is critical to formulating a suitable policy response.
In February 2025, Statistics South Africa released the Food Security Report for 2019, 2022 and 2023 (COVID-19 affected the ability to collect data in 2020 and 2021 ). The report utilized data from the General Household Survey (GHS) for those years.
The report’s most striking observation was that ‘the proportion of households in South Africa that experienced moderate to severe food insecurity was estimated at 15,8% in 2019, 16,2% in 2022, and 19,7% in 2023. Over this period, the proportion of households that experienced severe food insecurity was estimated to be 6,4%, 7,5%, and 8,0%, respectively.
It is not the lack of nutritious, high-quality food and safe food products or prices that has caused the deteriorating food security. Access seems to be the fundamental challenge, especially for households with no regular income sources. Therefore, addressing income poverty at the household level must be at the center of any strategy to deal with food insecurity.
Clearly, this is not a challenge that can be resolved by the agricultural sector alone but through coordinated efforts to grow the South African economy, lift employment across various sectors and provide appropriate support to vulnerable households.
Despite the concerning trend in Stats SA’s survey, South Africa remains food secure and is a net exporter of agricultural products at the national level.
Exports are necessary for sustaining farming incomes, generating the resources necessary for investment and ultimately, the sector’s ability to create and sustain jobs.
Notably, South Africa does not export its food supplies without appropriately considering the domestic food needs at the national level.
Moreover, the country’s food prices remain relatively moderate. Despite this, food insecurity will remain a challenge if households have little to no income.
One of the measures some researchers use to evaluate the food security condition of each country relative to the world is The Economist’s Global Food Security Index.
While slightly dated, if we consider the 2022 results, South Africa ranked 59th out of 113 countries in the index and the most food secure in Sub-Saharan Africa. South Africa ranked the second most food-secure country in the African continent after Morocco.
When looking at the index scoring, it becomes clear why South Africa’s food security ranking has improved somewhat. South Africa’s scoring came in at 61,7, up from 61,4 in the previous year. The Global Food Security Index comprises four subindices, namely: (1) food affordability, (2) food availability, (3) food quality and safety, and (4) sustainability and adaptation.
Still, the national-level picture may be hard to celebrate in an environment where many households are food insecure. This means that ensuring the economy grows and creates employment is critical.
In agriculture, better support for boosting output, especially labour-intensive value chains, will be important to ensure that more job opportunities are available in South Africa’s small towns. There should also be a stronger focus on revitalizing other sectors of the economy, as South Africa’s household food insecurity problems will not be resolved only through agriculture.
Agriculture will play its role where possible, and the path for agricultural growth has been studied and included in the policy thinking. For example, at a technical level, the ideas of expanding agriculture and agro-processing capacity to boost growth and job creation were well established as far back as in the National Development Plan 2012.
They were again highlighted in the 2019 National Treasury paper, in the 2022 Agriculture and Agro-processing Master Plan, and, most recently, in my book A Country of Two Agricultures: The Disparities, The Challenges, The Solutions.
Ultimately, South Africa’s agriculture has a role in resolving the household poverty challenges. However, the responsibility does not lie solely in the sector. Other sectors of the economy can play an essential role in creating work and general fiscal space that would be used for different social causes to improve the quality of life in South Africa.
The growing exports of agriculture are not at the expense of the local supply and are essential to growing the South African agricultural sector and ensuring that the over 926k people working in farms across the country retain their jobs and that more jobs are created in the future. Through their income, those employed help improve food security conditions in their communities.
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