Agriculture was revealed as the standout economic performer, according to Stats SA Q4 2025 data released on 10 March. Meanwhile manufacturing and mining faced headwinds.
By Maile Matsimela, digital editor at African Farming
South African agriculture has emerged as the country’s economic champion, recording an exceptional 17.4% year-on-year growth in 2025 that far outstripped every other sector in the economy. This remarkable performance represents a stunning turnaround from the challenging period of 2023-2024, when the sector contracted by 4.6% and 8.7% respectively.
Also read: Agriculture GDP outperforms after surging by 15.8%
The agriculture, forestry and fishing sector contributed R134.8 billion to South Africa’s GDP in 2025, representing an impressive increase of approximately R20 billion from the previous year. In the fourth quarter alone, the sector grew by 0.4% quarter-on-quarter, contributing 0.4 percentage points to the country’s overall GDP growth.
Field Crops and Horticulture Drive the Surge
The sector’s outstanding performance was primarily driven by increased economic activity in field crops and horticulture products. This growth comes despite mixed trade dynamics, with agricultural exports declining, particularly in vegetable products and prepared foodstuffs, beverages and tobacco, while imports increased, driven by live animals and products and vegetable products.
“The 17.4% growth in agriculture demonstrates the sector’s resilience and its crucial role in South Africa’s economic recovery,” notes the Stats SA data. To put this achievement in perspective, while agriculture soared, the next best-performing sectors – trade, catering and accommodation (2.3%) and finance, real estate and business services (1.9%) – recorded growth rates that pale in comparison.
Manufacturing Sector Struggles with Production Challenges
In stark contrast to agriculture’s success story, South Africa’s manufacturing sector faced significant headwinds in 2025, contracting by 1.2% year-on-year and contributing R517 billion to GDP. The sector’s troubles deepened in Q4 2025, with production falling 0.6% quarter-on-quarter, making it the largest negative contributor to GDP growth with a 0.1 percentage point drag.
Also read: How do we ensure record agricultural exports translate to strong agricultural GDP?
Eight of the ten manufacturing divisions reported negative growth in the fourth quarter, with the motor vehicles, parts and accessories, and other transport equipment division leading the decline. The wood and wood products, paper, publishing and printing division also struggled, along with the crucial food and beverages sector.
Manufacturing’s challenges were compounded by significant inventory drawdowns, which further reduced its contribution to GDP. This represents a concerning trend for a sector that traditionally serves as a backbone of industrial employment and export earnings.
Mining Sector Shows Mixed Signals
The mining sector presented a more nuanced picture in 2025, contributing R205.5 billion to GDP with a modest 0.2% year-on-year growth. While this represented stable performance overall, the sector’s quarterly trajectory showed volatility, declining 0.6% in Q4 2025 after posting gains in Q2 and Q3.
Coal and platinum group metals (PGMs) were the primary drag on mining performance in the final quarter, reflecting ongoing challenges in these key commodity markets. Despite quarterly fluctuations, the mining sector’s nominal value increased by R34 billion to R477 billion in 2025, indicating resilience in price dynamics even as production faced headwinds.
The overall economy grew 1.1% in 2025, with agriculture’s 17.4% growth representing the standout sectoral performance in a challenging economic environment.
Also read: Global economic trends shaping local agriculture in 2026
