Farming in South Africa is being hobbled by power cuts and poor roads. Rural towns are being hit hardest
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Monday, June 5, 2023
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The sector’s gross value added grew by 14.9% in 2020, 8.8% in 2021 and modestly by 0.3% in 2022 .
Key Points:
- The sector’s gross value added grew by 14.9% in 2020, 8.8% in 2021 and modestly by 0.3% in 2022 .
- The current season is also likely to deliver solid growth for the sector, with variation across sub-sectors.
- Export performance is likely be robust, especially with a weaker rand exchange rate, which makes South African products more competitively priced in the global market.
- These challenges highlight the effects of weak governance across all spheres of government in South Africa.
- Farming and agribusiness play a crucial role in sustaining the economies of small towns and rural areas.
Roadblocks facing farmers
- The impact that poor roads have on farmers is well illustrated by a recent case in the Eastern Cape province.
- Dairy farmers in the Ncorha area struggled to receive farm supplements, feeds and diesel because of the poor state of roads.
- Water has often been flagged by various agribusinesses and farmers as another major problem.
- Harvest and livestock theft affect all farmers and are much harder for new entrant farmers without a strong financial position to invest in security and technical solutions.
Why strong agricultural sector matters
- Agriculture is one such sector, while agribusiness and agro-processing also present a range of employment opportunities.
- The recently launched Agriculture and Agro-processing Master Plan presents practical steps for implementing Chapter Six of the National Development Plan, which outlined a vision for developing the agricultural sector further.
- Public-private sector partnerships can also be considered to help tackle some of these challenges.