AGRICULTURE BY FIONA WAKELIN AND JESSIE TAYLOR
Agriculture in SA is flourishing and growing the economy
S
outh Africa’s agricultural sector has proven to be a robust industry, contributing significantly to the country’s economic performance and employment for a large number of South Africans.
But the sector’s value is more than just employment and GDP figures, as it supports a number of other sectors, such as manufacturing. This means that the success of the agricultural sector is far-reaching: it can increase productivity and employment in several neighbouring industries. SUPPORTING INDUSTRY THROUGH AGRICULTURE The agriculture, forestry and fishing industry increased by 4,2% in the second quarter of 2023, contributing 0,1 of a percentage point to GDP growth. This was primarily due to increased economic activities reported for field crops and horticulture products. The growth in this sector has far reaching impact as it relies on a number of complementary industries – purchasing machinery and raw materials and relying on the logistics and freight industry to transport its produce. In 2022, agriculture had contributed around 2.57 percent to the GDP of South Africa, however if one considers the related sectors (agribusinesses), such as manufacturers, suppliers, processors, distributors, and traders, the contribution could be closer to 7%, according to estimates.
38 | Public Sector Leaders | February 2024
