Ramaphosa appoints new leadership to drive SA’s agricultural sector

South Africa's agricultural sector is set for a new chapter as the Ministry of Agriculture and the Ministry of Land Reform and Rural Development are now led by four political parties in the new government. This development marks a significant shift from the past when these ministries were solely under the ruling African National Congress Party. To shed light on the implications of this change, Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa, joined CNBC Africa for a discussion. Sihlobo emphasized the importance of understanding the impact on farmers and the quest for equitable land distribution in the country. The agricultural sector plays a vital role in the South African economy, contributing around 2.53% to the GDP. When considering the entire agricultural value chain, this contribution rises to around 8-9% of the GDP. Moreover, the sector provides employment to over 1.3 million people, highlighting its significance in the labor market. Sihlobo noted the sector's potential for further growth, projecting a 30% expansion in the gross value added over the next five to ten years, potentially creating close to a million jobs. One of the key issues discussed was land reform, a prominent agenda item in the manifestos of various political parties. While there are differences in approaches, such as the stance on expropriation without compensation, Sihlobo highlighted alignment on key principles like releasing state-owned land, strengthening land rights, and supporting farmers through financial resources and market access. The transition of proactive land acquisition programs and the need for continued support to beneficiaries were emphasized to drive commercialization and growth in agriculture. Looking ahead, Sihlobo expressed optimism in the ability of the new government to collaborate effectively and implement positive reforms. He highlighted the importance of programs like blended finance to support land reform beneficiaries, as well as addressing challenges like animal diseases and regulatory modernization. Collaboration across ministries, infrastructure development, and enhanced agricultural productivity were identified as essential priorities to unlock the sector's potential for job creation and economic growth. The interview with Sihlobo underscored the need for continuity in successful initiatives while addressing key challenges to propel South Africa's agricultural sector forward. The emphasis on cooperation, policy alignment, and targeted interventions reflects a shared commitment towards advancing the sector and realizing its growth prospects. As stakeholders await further developments, the focus remains on leveraging opportunities and overcoming obstacles to ensure a thriving and sustainable agricultural industry in the country.