Agriculture: The Hero of the South African Economy

Chief economist at AgriSA, Hamlet Hlomendlini said in an interview with Moneyweb’s Nastassia Arendse in September of 2017 that South African culture is reviving itself. He sounded optimistic about the future of South African agriculture as regions are recovering from drought. The Western Cape is experiencing somewhat of a dry spell but that is the only major concern for the agricultural future. In terms of enterprise, agriculture is on the rise and steady growth in the horticultural sector and grain production can be seen.

According to the Huffington Post, agriculture is responsible for pulling the South African economy out of the recession. While unemployment rates and poverty remain high, agriculture is the economy’s saving grace. The agricultural sector has increased its contribution by 33.6 per cent in the second quarter of 2017. That is significant to note as it confirms that farming in South Africa is an undeniable contributing factor to the economy. If the government makes the development of agriculture a national priority we are bound to see even more success.

What do these numbers actually mean?

The agricultural sector has reported a 33.6 per cent growth and this contributed 0.7 percent of the 2.5 per cent national GDP for the quarter. Financially this means that the contribution of the agriculture industry to the economy went up from R15 billion to R40 billion. This is mainly due to the exceedingly successful maize crop that is expected for the second and third quarters.

The 2017 and 2018 rainfall prediction is looking positive and it seems regions will not suffer from extreme drought conditions.

Investing in a future in agriculture

The future of South Africa’s economy is dependent on eliminating its stigmatic association with debt; areas of potential should be promoted going forward, and agriculture is one of these areas.  By increasing training, education, trade and the production and sale of agricultural products, the economy will soar.

People are investing in feeding the world given the potential food crisis that looms as a result of over-population but this may become a non-issue. Agriculture is the basis of all economies as South African farming suppliers are finding out. If the progress can continue to rise steadily, there is notelling where agriculture can take South Africa and what difficulties it can alleviate. Visit AGRIFOOD, the agricultural directory for all the latest news and finest agricultural products on offer.