Agriculture's recovery phase shows promise for South Africa's GDP growth

THE Agriculture sector is breathing a sigh of relief as it reports a commendable performance in its contribution to South Africa's GDP, even as experts exercise caution over ongoing challenges.

- YOGASHEN PILLAY

According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), the figures from the second quarter of 2025 indicate a gradual recovery within the sector, albeit more cautiously than expected.

Sihlobo highlighted that the agricultural gross value grew by 2.5% quarter-on-quarter (seasonally adjusted) during the second quarter, following a robust 18.6% growth in the preceding quarter.

This follows an 18.6% quarter-on-quarter growth in the first quarter of the year, primarily due to the improved performance of certain field crops and the horticulture subsectors.

Sihlobo said as the close observers of the sector know, the quarterly data tend to be somewhat volatile, influenced by times of harvest and crop deliveries, amongst other factors.