The outlook for South African agriculture in 2025 presents a blend of optimism and recovery. According to leading agricultural economists, the sector is positioned to leverage global opportunities, technological innovation, and favourable policy shifts to navigate lingering challenges.
According to Buhle Dube, an agricultural economist at the National Agricultural Marketing Council (NAMC), the G20 Summit to be hosted in Johannesburg in 2025, promises to be a pivotal moment for the country’s agricultural sector.
“The summit presents an opportunity to strengthen the continent’s agricultural voice. Collaborative efforts on climate resilience, trade, and innovation could create a ripple effect, benefiting farmers across Africa,” he said.
Dube noted that the summit’s theme of solidarity, equality, and sustainability arrives at a critical juncture for the sector.
“The G20 marks a crucial milestone, bringing new opportunities and solutions at a time when they are greatly needed.”
It offers a platform to leverage international partnerships, align domestic policies with global trends, and address the sector’s challenges with innovative solutions, he added.
“For farmers, policymakers, and stakeholders, the event is a beacon of hope for a sector poised to grow and adapt in an ever-changing world.”
Strengthening industry linkages
Dube highlighted the summit’s potential to bolster agriculture. “The G20 provides an optimistic platform amid dynamic international trade developments and climate-related concerns,” he noted.
In 2023, the nation’s agricultural exports, valued at over R244 billion, demonstrated the sector’s potential as a driver of economic growth.
Dube explained that the emphasis on inclusive growth could create jobs and strengthen linkages with other industries, while sustainability and innovation are expected to bring transformative solutions such as AI-driven pest and disease control, advanced drought-warning systems, and soil monitoring technologies.
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Boosting agricultural confidence
Wandile Sihlobo, chief economist at Agbiz, also shared a hopeful outlook for 2025.
“After a challenging 2024, marked by drought and animal diseases, the anticipated La Niña rains could support agriculture. Progress in controlling animal diseases and implementing the Agriculture and Agro-processing Master Plan will be key steps towards recovery.”
Sihlobo also highlighted the importance of policy actions, such as the release of state land with title deeds and the opening of new export markets. These measures could pave the way for new entrants into farming and bolster the sector’s contribution to the economy.
Meanwhile, Isaac Matshego, senior economist at Nedbank, points to broader economic trends supporting agriculture.
“The positive momentum from the 2024 general elections and the formation of a government of national unity has boosted business and consumer confidence.
“Improvements in load shedding and national port operations, combined with falling interest rates, set the stage for economic growth, particularly in exports,” Matshego said.
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