Introduction

South Africa has a well-developed agricultural sector, which is a key driver of economic growth. Good rains during the summer and winter seasons helped boost agricultural activity in 2021. Together with a rise in animal products, increased wheat production boosted the industry by 12.20% in the fourth quarter of 2021, contributing to 1.20% gross domestic product (GDP) growth in the final three months of the year. Economic growth of 4.90% was recorded for the full year, after contracting by 6.40% in 2020 (Stats SA, 2022). The agriculture industry provided employment to 829 000 people in the third quarter of 2021 (Stats SA 2021).

The agriculture sector ensures that South Africans not only have enough food, but it also has a vital role to play in foreign earnings and exports. In 2020, South Africa became the world’s second-biggest exporter of citrus after Spain.

While the industry delivered a stellar performance in 2021, industry association AgriSA has warned that there are many challenges that could derail its continued success, chief among them the country’s crumbling infrastructure.

The impact of deteriorating economic infrastructure was a key point of discussion during the Inclusive Society Institute’s (ISI’s) recent interaction with the agriculture sector as part of an economic research project. The industry’s concern about the state of the country’s roads, railways and port infrastructure echoes that of the mining industry, which is also heavily reliant on State-owned infrastructure for bulk exports.

This report is a summary of the themes that emerged from the engagement that the ISI held with the agriculture industry. The first part deals with the industry’s views on the factors hampering economic growth and development and the second part seeks to provide some answers about interventions that could place South Africa on a higher economic growth trajectory.

The ISI’s research project will culminate in a new economic blueprint for South Africa.