By Maile Matsimela
In an exclusive interview conducted on the sidelines of the two-day Gauteng Agro-Processing Convention and Expo, held at the Gallagher Convention Centre in Midrand, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), highlighted critical challenges facing South Africa’s agricultural sector, chief among them the stalled implementation of land reform.
Sihlobo pointed to the delayed release of land acquired by the government for redistribution as a major obstacle to agricultural development. “The government has acquired approximately 2,5 million hectares of land but hasn’t issued proper title deeds to beneficiaries,” he explained. “This is creating a significant bottleneck in our agricultural development.”
He emphasised that without title deeds, farmers cannot use their land as collateral to secure loans for inputs, equipment or expansion. Short-term leases and poor beneficiary selection processes further compound the problem. Without proper security of tenure, it’s extremely difficult for emerging farmers to become commercially viable.
Infrastructure Deficiencies and Crime
In addition to land reform, Sihlobo highlighted infrastructure constraints as a critical barrier to progress. Poor road conditions, unreliable electricity and inadequate municipal services – particularly in water provision and planning approvals – are hindering investment and growth in agro-processing and broader agricultural activity.
Infrastructure is a major concern for the sector, he said. “From farm access roads to stable electricity and functional municipal services, these are all vital for agribusinesses to thrive.
He also flagged crime as an ongoing challenge, contributing to increased risks and operational costs for both farmers and agribusinesses.
Outlook for 2025: A Recovery in Sight
Despite these challenges, Sihlobo expressed optimism about the agricultural sector’s prospects for 2025. Following a tough 2024 marked by drought and animal disease outbreaks, he projects a 6–8% expansion in the agricultural economy this year.
Certain subsectors, such as horticulture and field crops, have already shown strong performance, with double-digit growth in production.
Agriculture continues to play a vital role in employment, with about 930 000 people currently working in primary production and another 350 000 in agro-processing.
“We expect total employment in the sector to remain stable at around 1,2 million people,” he said.
Unlocking Potential Through Land and Policy Reform
According to Sihlobo, releasing the 2,5 million hectares of government-acquired land through the provision of title deeds would unlock significant opportunities for farmers, agribusineses, banks and entrepreneurs. “Providing farmers with title deeds would enable them to access finance and invest in their operations, leading to increased productivity and job creation.”
He also pointed to opportunities for growth in horticulture, field crops and agro-processing, particularly given the projected double-digit increases in production for certain subsectors.
On the policy front, Sihlobo stressed the need for alignment with national goals outlined in the Agriculture and Agro-Processing Master Plan and in Chapter 6 of the National Development Plan, which envisions a 30% increase in agricultural gross value added and the creation of 1 million jobs linked to land reform. “Progress towards these goals has been hampered by the challenges we’ve discussed.”
Sihlobo’s remarks painted a picture of a sector with immense potential, held back by significant structural challenges. His analysis suggests that addressing land reform as a top priority, followed by improving infrastructure and providing adequate support to farmers, could unlock growth in the agricultural economy, create much-needed jobs and boost food security.
