Sona skims agriculture, but key issues loom large – Sihlobo

While President Cyril Ramaphosa’s State of the Nation Address (Sona) on Thursday only contained a brief agricultural statement, it addressed fundamental matters.

This is according to Wandile Sihlobo, chief economist from the Agricultural Business Chamber of South Africa (Agbiz).

According to Sihlobo, South African agriculture has shown tremendous growth over the past three decades (it has more than doubled), but it still faces some challenges.

“Some of the challenges confronting the sector include port inefficiencies, deteriorating roads, rural crime and stock theft, rising global protectionism, and inept municipalities,” he said.

“President Ramaphosa outlined the government’s plans to address many of these challenges: The need for professionalisation of civil servants, planned improvement of water infrastructure and simplification of regulations, ongoing reforms of Operation Vulindlela in the broader network industries, interventions on logistics, and improving safety and reducing crime.”

He captured the core of agricultural matters by stating, “By supporting our farmers, improving our logistics network and rural supply chains, and opening new export markets for products, we can significantly expand our agricultural sector.”

Sona misses key land reform issue, but growth in agriculture still promising

Sihlobo believes that South Africa’s agriculture sector’s total economic contribution (gross value added) is expected to grow by 30% in the coming years, creating more jobs.

However, he thinks that one fundamental area the president should have highlighted is the urgent release of 2.5 million hectares of state land for agriculture to appropriately selected beneficiaries with title deeds.

Sihlobo said making this land available, along with policy reforms from the Sona and expanding export opportunities, will help grow South Africa’s agriculture sector.

It will also help eliminate the divide between commercial and subsistence (small-scale) farming, often referred to as South Africa having “two agricultures.” The goal is to create a more inclusive and unified agricultural economy.

“This disparity limits the sector’s growth potential and must be addressed urgently,” Sishlobo said.

“A more inclusive sector would have a much stronger shared vision and possibly grow faster. The land currently in the government books is one area where the inclusive approach could be kicked off, including more young people and women and closing racial disparities.”

Green farming key to SA’s future

Another point that is silent in the Sona but broadly discussed in agriculture is sustainability, Sihlobo said.

“South Africa has already made inroads in improving farming methods. We must continue caring for our farming environment to ensure the land sustainably serves the next generation.

“Our efforts to improve farming will also provide continuous access to key markets such as the European Union (EU), where environmental issues in agriculture are becoming a big debate.”

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