President Cyril Ramaphosa has reaffirmed the crucial role of agriculture in South Africa’s economic growth and job creation, highlighting its resilience and potential for expansion. 

He emphasized that investing in the sector not only strengthens food security but also boosts exports and provides employment, particularly in rural areas.

In his weekly newsletter, the President pointed out that agriculture contributes significantly to the country’s economy, with exports reaching a record $13.7 billion in 2024. 

The sector has doubled in value and volume since 1994, thanks to advancements in agricultural science, improved seed cultivars, and increased access to global markets.

“The agricultural sector remains ripe for investment because of its recognised growth prospects. In addition, the revenue the state collects from agricultural enables government to provide services that improve the lives of our citizens,” Ramaphosa said.

By the end of 2024, the agricultural sector directly employed approximately 924,000 people, with an additional 200,000 working in the broader value chain. 

The President noted that expanding the sector will lead to more employment opportunities, particularly in vulnerable rural areas, helping to revitalize local economies.

However, Ramaphosa acknowledged challenges, including poor infrastructure, service delivery issues at the municipal level, and constraints in the rail and port systems, which affect the movement of agricultural goods. 

He assured that government-led structural reforms, including road, rail, and bulk water infrastructure projects, are addressing these concerns.

To support emerging farmers, the government has introduced blended finance initiatives with the Land Bank and continues its land reform efforts. Ramaphosa stressed the need for equity and inclusion in commercial agriculture, citing that black farmers currently contribute only 10% of total commercial output.

Our growth agenda must therefore have a bias towards the empowerment of black farmers. The inclusion of black farmers in commercial agriculture necessitates that land is made available to them. 

“The ongoing land reform process and release of government land will continue to benefit emerging farmers and ensure that they too add to the growth of South Africa's farming economy.” He said. 

Through multi-sectoral collaboration, including government, financial institutions, and organized agriculture, Ramaphosa believes the country can build a more inclusive and sustainable farming industry, ensuring long-term economic growth and stability.