Boost South Africa’s Agricultural

President Cyril Ramaphosa says it is in the interest of all South Africans to have a diverse and inclusive agricultural sector that drives economic growth and ensures food security. In his weekly newsletter to the nation, he emphasised the need for a farming industry that reflects South Africa’s diversity while sustaining the country’s food supply. “The farming sector of South Africa is vital to our growth agenda. It has shown resilience in the past and will likely continue along this encouraging and promising path. It will therefore be critical that the sector embraces the onward march of transformation,” the President said. With agriculture playing a pivotal role in employment, exports, and rural development, Ramaphosa has called for a focused effort to empower black farmers, addressing historical inequities and boosting the sector’s potential as of 10 March 2025.

The Importance of Agriculture in South Africa

Agriculture stands as one of the cornerstones of South Africa’s economy, providing jobs, ensuring food security, and driving export growth. President Ramaphosa highlighted that the goods and services produced across the agricultural value chain are essential for the nation’s well-being, accounting for a significant portion of the country’s exports. According to data from Agbiz, South Africa’s agricultural exports soared to a record $13.7 billion last year, showcasing the sector’s global reach. These exports are diverse, with 44% heading to other African countries, 21% to Asia and the Middle East, 19% to the European Union, and 6% to the Americas.

Since the democratic transition in 1994, the value and volume of South Africa’s farming sector have more than doubled, a testament to the combined efforts of government and industry. This growth has been fuelled by expanded export markets and the adoption of scientific advancements, such as better seed cultivars and genetics, which have boosted productivity. “The agricultural sector remains ripe for investment because of its recognised growth prospects,” Ramaphosa noted, adding that the revenue generated helps the government fund services that improve citizens’ lives.

Employment and Rural Development

The agricultural sector is a major employer, supporting livelihoods across the country. By the end of 2024, approximately 924,000 people were working directly in agriculture, with over 200,000 more employed in the broader value chain. This labour-intensive industry plays a crucial role in keeping rural South Africa vibrant and supporting small towns. “The health and growth of our farming sector is vital to supporting small towns and keeping rural South Africa vibrant,” the President said, underscoring its importance to the nation’s social fabric.

As the sector expands, it promises to create more work opportunities, especially in vulnerable rural areas. This economic rejuvenation is a key focus for Ramaphosa, who sees agriculture as a tool to uplift communities historically marginalised by apartheid policies. The government’s collaboration with industry partners through initiatives like the Agriculture and Agro-processing Masterplan, signed in 2022, aims to enhance growth and sustainability, building on earlier efforts with the Poultry and Sugar Master Plans.

Challenges Facing the Sector

Despite its successes, the agricultural sector faces significant challenges. President Ramaphosa pointed to municipal service delivery issues and the poor state of key infrastructure—roads, rail, and ports—as major constraints on delivering goods to markets. These bottlenecks have long frustrated farmers and exporters, with delays at ports like Durban costing millions annually. However, progress is being made through structural reforms initiated during the sixth administration. Several road transport and bulk water infrastructure projects are underway, promising to alleviate these issues and boost agricultural growth.

Another critical challenge is the impact of climate change, which has brought unpredictable weather patterns, including droughts and floods, affecting crop yields. Reports from the Department of Agriculture, Land Reform and Rural Development indicate that the 2023/2024 season saw a 12% drop in maize production due to El Niño-induced dryness, highlighting the need for resilient farming practices. The government is investing in climate-smart agriculture, including drip irrigation and drought-resistant crops, to mitigate these risks.

The Push for Transformation and Black Farmer Empowerment

At the heart of Ramaphosa’s vision is the transformation of the agricultural sector to address historical inequities. He acknowledged that sustainable agriculture in South Africa cannot be achieved without tackling issues of equity, inclusion, and land ownership. In his newsletter, he referenced economist Wandile Sihlobo’s book, A Country of Two Agricultures, which notes that black farmers currently contribute only about 10% of the commercial output in South Africa’s agriculture. This stark disparity reflects the legacy of apartheid, where land ownership was concentrated among white farmers.

“Our growth agenda must therefore have a bias towards the empowerment of black farmers,” Ramaphosa declared. He stressed that including black farmers in commercial agriculture requires making land available through ongoing land reform processes and the release of government-owned land. The Land Bank, in collaboration with the Department of Agriculture, has launched a blended finance instrument to provide capital to emerging farmers, while organised agriculture is encouraged to offer training and support.

This multi-sectoral approach aims to bridge the gap between the country’s “two agricultures”—the well-resourced commercial sector dominated by white farmers and the underfunded, small-scale black farming community. According to posts found on X, there is growing sentiment among rural communities that such empowerment could revitalise local economies, though some express concerns about implementation challenges.

Government Initiatives and Partnerships

The government’s commitment to black farmer empowerment is evident in several initiatives. The Agriculture and Agro-processing Masterplan, a landmark agreement with organised agriculture and other stakeholders, outlines strategies to increase production, create jobs, and promote inclusivity. The Poultry and Sugar Master Plans, launched earlier, have already shown results, with poultry exports rising by 15% in 2024, as reported by the South African Poultry Association.

Additionally, the Land Bank’s blended finance tool combines grants and loans to support emerging farmers, addressing the capital constraints that often hinder their growth. This initiative has been praised by agricultural economists, with a Business Day article on 8 March 2025 noting that it could unlock R2 billion in investment over the next five years. Training programmes, supported by organisations like the Agricultural Business Chamber (Agbiz), are also equipping black farmers with skills in modern farming techniques and market access.

Land Reform and Global Context

Land reform remains a contentious yet critical issue. The release of state-owned land for black farmers aligns with the Expropriation Act of 2024, signed by Ramaphosa in January 2025, which allows land to be seized without compensation in the public interest. This law has sparked international debate, with some global leaders, including U.S. President Donald Trump, criticising it as discriminatory against white farmers. However, Ramaphosa has defended the policy, stating on 28 February 2025 that it is “a constitutionally mandated legal process that ensures public access to land in an equitable and just manner.”

Recent web reports indicate that South Africa is preparing a trade deal to ease tensions with the U.S., hoping to maintain access to markets like the African Growth and Opportunity Act (AGOA). This diplomatic effort reflects the broader goal of balancing domestic transformation with global trade relations, ensuring the agricultural sector’s growth is not derailed by external pressures.

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