Neelam Rahim | neelam@radioislam.co.za
3-minute read
10 January 2025 | 18:15 CAT

South Africa’s agriculture rebounds: Improved conditions spark hope for a thriving 2025 harvest. (Photo by David Silverman/Getty Images)

After a challenging 2024, South Africa’s agriculture sector is poised for recovery in 2025, driven by improved weather, stable electricity, and reduced input costs. Chief Economist Wandile Sihlobo from the Agricultural Business Chamber highlighted these factors in an interview with Radio Islam International.

Wandile Sihlobo explained, “South African agriculture is categorized into three main subsectors: livestock and poultry, horticulture, and field crops. In 2024, two of these faced significant hurdles. Grain production dropped by 23% due to a midsummer drought, and the livestock industry grappled with foot-and-mouth disease.”

Despite these setbacks, Sihlobo expressed optimism. “2025 begins on a stronger footing. Weather conditions have improved, dam levels remain high, and stable electricity supply supports irrigation and food processing. These factors are vital for the sector’s resurgence.”

Farmers, especially in the Western Cape, Mpumalanga, and Limpopo, benefited from last year’s favorable dam levels, which enabled robust fruit production. “Stable electricity was a game-changer,” Sihlobo noted. “It supports irrigation, dairy production, and meat processing, all critical for maintaining high export volumes.”

Exports remained resilient in 2024, with agriculture contributing over $10.6 billion in the first three quarters, an 4% increase from 2023. “This showcases the sector’s potential even amidst adversity,” Sihlobo said.

However, challenges persist. Farmers in areas like Delmas and Limpopo received inconsistent rainfall, delaying planting. Sihlobo emphasized, “While the overall outlook is positive, some regions still face difficulties. Long-term resilience requires fixing infrastructure, improving municipal efficiency, and combating corruption.”

Looking ahead, Sihlobo highlighted the sector’s untapped potential: “If implemented effectively, the Agriculture and Agro-Processing Master Plan, inspired by Chapter 6 of the National Development Plan, could create one million jobs and increase agriculture’s contribution to the economy by 30%.”

In conclusion, 2025 offers a fresh start for South African agriculture. With continued strategic planning and infrastructure improvements, the sector can become a cornerstone of economic growth and job creation. “We must seize this opportunity,” Sihlobo urged.

Listen to the full interview on The Daily Round Up with Moulana Ibrahim Daya and Chief Economist Wandile Sihlobo here.