There are a few critical policy areas that could have significant positive spin-offs on South Africa’s agricultural growth if implemented effectively.
We have spent the recent past enjoying growth delivered by technological adoption, farmers’ and agribusinesses’ effectiveness and efficiency, and favourable climatic conditions, rather than a strong policy-driven growth agenda.
And by this, I am not minimising the government’s efforts in various programmes and the stability they provide for the sector. But I am framing it this way to make a point that we can do better.
We are now at the start of the year, with an opportunity to redefine the path ahead in a manner that supports agribusinesses, farmers, and new entrant participants in the sector. This would be aimed at achieving the prime objective of delivering inclusive growth in the agricultural sector.
The starting point should be:
Land reform
The Department of Land Reform and Rural Development was, quite frankly, dismal last year. We did not see any meaningful progress on land reform beyond a few high-level policy statements that sought to spark more conversation rather than implementation.
Under the Pro-Active Land Acquisition Strategy, the South African government has roughly 2.5 million hectares of land.
The former minister of agriculture, land reform and rural development, Thoko Didiza, had an elegant approach to releasing this land through a Land Reform Agency, which was supported by organised agriculture and the Land Bank, amongst others. The department must refocus on this approach.
Export diversification
South Africa’s agriculture is export-orientated, with exports accounting for roughly half of output in value terms. We export to a range of markets across Africa, Asia, the Middle East, the EU, the UK and the Americas. Still, there remains a considerable need to expand export markets into new areas.
Review Sacu
Some countries may be reluctant to engage deeply with South Africa on trade due to the Southern African Customs Union (Sacu). To potential partners, the customs union often appears opaque and unpredictable. Many are interested in South Africa itself, not the wider region.
Pretoria should therefore press for Sacu reform while preserving the development programmes that provide social support to neighbouring states. South Africa is on a path of export expansion, and when other countries see their interests aligned with ours, the government must be able to sign trade agreements.
But this is not always the reality. South Africa has to consult with Botswana, Eswatini, Lesotho and Namibia, which are part of Sacu. But the world has changed, and each country must put its interests first.
This is not an exhaustive list, but starting from these points, we could see serious momentum.
