Agricultural players are applauding the 2025 State of the Nation Address (Sona), which they say finally touched on significant issues they’ve been voicing for years. While the sector received only a brief mention, President Cyril Ramaphosa tackled a few of the fundamental issues impacting the sector’s future.
Industry leaders warn that South Africa cannot afford to isolate itself from the global economy. With rising global instability, the country must prioritise economic competitiveness.
According to Dr Siphe Zantsi, an agricultural economist at the Agricultural Research Council (ARC), the Sona touched on many key issues.
“Firstly, the revitalisation of harbours could surely benefit the agricultural sector. On many occasions, the issue of dilapidated infrastructure and our ports has been identified as a key challenge to the growth of our sector, which is export-oriented.”
Zantsi noted that half of the country’s agricultural output is exported and urged the maximisation of the African Continental Free Trade Agreement, along with expansion into Middle Eastern markets.
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Agbiz calls for structural reforms
Agbiz CEO Theo Boshoff highlighted the importance of structural reforms and a well-defined framework for public-private partnerships in driving economic competitiveness.
“We are pleased to hear that the recommendation made by Operation Vulindlela continues to receive political support. We have made great strides towards creating a competitive market for freight rail and require the same efforts in relation to our ports. We are already seeing the benefits of these efforts in the energy sector and need to stay the course for our logistics framework to be turned around,” said Boshoff.
Although Agbiz and its partners are engaged in public-private partnerships, uncertainty remains regarding contracting models and cost recovery mechanisms.
Agbiz chairperson Sean Walsh stated that the opening remarks in the president’s Sona clearly outlined the magnitude of the challenges South Africa faces, including increasing global conflict, political polarisation, trade protectionism, and climate change.
“We are a small, open economy that is very, very reliant on foreign investment and export-led growth. We fully support the initiatives to improve our own competitiveness. However, we also need the government to provide strong leadership and position South Africa as an independent leader with moral authority in a volatile international climate,” Walsh said.
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Infrastructure and energy reform
Zantsi also pointed out that the Infrastructure Fund and mobilisation of the private sector to reform the energy system could strengthen the agricultural sector.
“Further, the Just Energy Transition investment by the international community, which the president mentioned, is a beacon of hope in the global quest to mitigate climate change effects. Thirdly, revitalisation of railways and our roads is what our sector needs right now,” he added.
Wandile Sihlobo, chief economist at Agbiz, said that although the agricultural statement in the Sona was brief, the president addressed fundamental matters.
“Still, we think the one fundamental area that the president should have highlighted is the urgent release of the 2.5 million hectares of state land for agriculture to appropriately selected beneficiaries with title deeds.”
Sihlobo argued that this disparity limits the sector’s growth potential and needs urgent attention.
Another point that went unmentioned in the Sona but is widely discussed within agriculture is sustainability. “South Africa has already made inroads in improving farming methods. We must continue caring for our farming environment to ensure the land sustainably serves the next generation.
“Our efforts to improve farming will also provide continuous access to key markets such as the EU, where environmental issues in agriculture are becoming a significant debate,” Sihlobo added.
Hemp and cannabis production as a new opportunity
Ipeleng Kwadi-Siboni, livestock farmer and chairperson of Youth in Agriculture and Rural Development (Yard) in North West, said the president’s speech emphasised South Africa’s ambition to become a leader in the commercial production of hemp and cannabis.
“This focus aims to tap into the growing global demand for hemp and cannabis products, offering economic opportunities and diversification for local industries. To achieve this vision, several key areas require concentrated efforts,” Kwadi-Siboni noted.
According to Agbiz, for South Africa to succeed in becoming a global leader in the hemp and cannabis industries, a holistic approach is needed. This includes fostering sector growth through infrastructure development, manufacturing advancements, and strategic marketing efforts.
Zantsi agreed, stressing the need for local, adaptable seeds and capacitated agricultural extension services to provide advisory support.
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