In a landmark speech delivered in Parliament this morning, agriculture, land reform and rural development minister Thoko Didiza outlined government’s commitment to address historical injustices and uplift the agricultural sector in South Africa.
The minister’s budget and policy speech highlighted key areas of focus, including land reform, climate change, and market access. With a strong emphasis on inclusive growth and sustainable practices, she unveiled a comprehensive plan to revitalise the agricultural sector and ensure equitable access to resources and opportunities.
Didiza began her speech by acknowledging the 110th anniversary of the Native Land Act, recognising the lasting impact it had on the indigenous people of the country. She emphasised the urgent need to redress these past injustices and restore land rights and dignity to affected communities.
“South Africa’s rich agricultural heritage has long been an integral component of the nation’s economy and cultural fabric,” she said. “The lingering effects of apartheid and colonialism have created disparities in resource allocation, infrastructure, and opportunities for growth in the agricultural sector.”
Boosting Mzansi’s GDP
The minister presented data from the spatial planning unit and the National Agricultural Marketing Council (NAMC), indicating that revitalising just 10% of the dormant land could contribute an additional R59 billion to the country’s GDP and create approximately 500 000 job opportunities in agriculture and related rural economic activities.
Highlighting successful projects such as the Greening Mpumalanga initiative, which transformed rural areas into economic districts, Didiza emphasised the importance of investment, skills development, infrastructure, and enterprise support in unlocking the economic potential of rural regions.
To facilitate targeted interventions, the minister furthermore announced the deployment of drone technology for mapping and geospatial analysis of rural communities. This cutting-edge approach will identify suitable areas for crop cultivation and grazing, enabling informed decision-making and resource allocation.
In terms of budget allocation, Didiza tabled a total amount of R17 254 348 billion for her department, including transfers to provincial agriculture departments and supporting entities. These resources will be instrumental in implementing programmes to address food security, land hunger, spatial planning, and rural development, thereby contributing to economic reconstruction and recovery.
“At the same time, these resources will be channelled towards ensuring that agriculture, land and rural sectors continue to play integral roles in the economic reconstruction and recovery,” she added.
The minister also highlighted the importance of land governance, not only in communal areas but across all land categories. Acknowledging the democratic decision to divest trusteeship of communal land, she stressed the need for continued collaboration with communities and their leaders to establish effective land governance and administration systems.
El Niño is coming
Addressing the imminent challenge of climate change, Didiza warned of a potential shift from favourable rains to drier and hotter conditions. With scientists predicting an El Niño phenomenon, the department, in collaboration with the South African Weather Service, will issue regular advisories to farmers to mitigate the impact of changing weather patterns.
The minister highlighted the impressive growth of the agricultural sector, with a cumulative 25% increase in real value-added and the creation of 50 000 new jobs between 2020 and 2022.
While progress toward inclusivity was evident, with 9% of agricultural output now coming from previously disadvantaged farmers, Didiza emphasised the need to further enhance competitiveness and promote transformation through clear policies, regulatory environments, and financing instruments.
The minister also outlined the department’s commitments and achievements over the past year, including support programmes for subsistence farmers, land development initiatives, blended finance facilities, market opportunities for small-scale farmers, and efforts to improve biosecurity and animal health systems.
She addressed specific acquisitions in the agricultural sector, such as PepsiCo’s commitment of R300 million toward upgrading black farmers’ businesses and integrating them into the value chain. She highlighted the positive impacts of various deals on supply development for black farmers and access to markets for small-scale farmers.
Didiza emphasised the significance of access to new markets and ongoing research and development efforts. She underscored the importance of retaining existing markets, and developing new ones.
Highlighting key initiatives and plans for the agricultural sector, she mentioned the expansion of the Private Members Bill to include the commercialisation of cannabis and hemp, stating, “The inter-ministerial committee has also been meeting to give direction to ensuring that interim measures on commercialisation of hemp are realised.”
Growing black farmers
She emphasised the importance of supporting black producers through the blended finance model and extending the scheme to commercial banks. “To broaden the scope of support even further, the department is in the process of concluding agreements to extend the blended finance scheme to commercial banks.”
The minister also mentioned financial support provided to subsistence and small-scale farmers through conditional grants and programs like MAFISA.
Addressing the revival of agriculture in communal areas, Didiza stated, “This year, we will focus on these areas including engagements with Amakhosi to facilitate the development of areas-based plans to revive agricultural production.”
Market access was highlighted as a key focus, with efforts to access new markets and retain existing ones. The minister emphasised the importance of surveillance of pests and diseases and the department’s partnership with ARC to investigate and curb contamination of meat products.
The minister also discussed efforts to strengthen the Onderstepoort Biological Products (OBP) and vaccine manufacturing in South Africa, stating, “I was part of engagements between the OBP and a world-renowned pharmaceutical role player to assist the OBP to produce vaccines.”
She further mentioned South Africa’s participation in international trade and market access, noting the signing of agreements with China and ongoing efforts to improve market access for Mzansi products. Lastly, the minister mentioned the establishment of the Agro-Energy Fund to address energy challenges in the sector, saying, “The focus for the Agro-Energy Fund will be on energy-intensive agricultural activities.”
