Is The Agri Sector Focusing On The Wrong Kind Of Growth?

Dr Sifiso Ntombela, a trade economist at the National Agricultural Marketing Council, argues that, contrary to some of the suggestions in the National Development Plan, the grain and livestock industries have greater potential than the horticultural industry to create better-paying jobs and alleviate poverty.

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Poverty, unemployment and water scarcity are arguably the top developmental issues that threaten social and economic stability in South Africa. Between 2011 and 2018, the unemployment rate grew from 25% to 27% and the percentage of the population living under the poverty line increased from 36% to 40%. In 2018, the Department of Water and Sanitation (DWS) warned that the water deficit in the country could increase to 17% by 2030 due to poorly maintained water infrastructure and the effects of climate change. The DWS added that South Africa had lost 50% of its wetlands due to inadequate management of water resources.

Most developmental challenges were meant to be addressed through the National Development Plan (NDP), particularly Chapter 6, when it was adopted in 2012. This chapter envisaged an inclusive agriculture sector where substantial investment was channeled towards high-value, export-oriented and labour-intensive agricultural crops such as fruit, sugar and nuts. It also acknowledged the importance of investing in non-labour-intensive industries with significant value-chain linkages such as grains, oilseeds and livestock.

Horticultural crops (fruits, nuts, flowers and vegetables) have been praised for their potential to create jobs and generate foreign earnings for South Africa. The State of the Nation Address by President Cyril Ramaphosa in February also called for greater focus on high-value and export-oriented products to boost economic growth.

TARGETS

In the land seminar organised by the Mail & Guardian in March 2018, Prof Ferdi Meyer, director at the Bureau for Food and Agricultural Policy, presented his assessment on the progress made to attain NDP targets over the previous five years. He argued that the country had met its