How exports can transform South Africa's agricultural landscape

Daily Maverick

7 hours ago

We do not emphasise enough the critical role of exports in driving South Africa's agricultural growth. If one looks at the past three decades, this sector has more than doubled in value and volume.
Indeed, the improvements in genetics and cultivars, among other interventions, are the primary catalysts that delivered this growth. But another critical catalyst is exports. I illustrated this point at length in my book, A Country of Two Agricultures.
We now export roughly half of what we produce in South Africa's agriculture, which was nearly $14-billion in 2024.
We are not even at capacity in terms of agricultural production, since we have roughly 2.5 million hectares of government-owned land that was previously commercially farmed but now suboptimally used. We also have capacity in the former homelands to increase agricultural output.
When this land in the underused government farms and the former homelands is finally released to deserving black farmers, with title deeds, paired with affordable finance and partnerships from commodity associations, we will be able to drive the agricultural output to new heights. But we won't be in a position to absorb that output in the domestic market.
We will need to look at export markets. These exports are also key in ensuring that the farming businesses remain financially viable and can sustain jobs and provide economic value to various communities. And yes, we don't just export without first taking care of the domestic food needs. The exports are primarily a surplus. (The poverty issues we all are aware of in South Africa are mainly an income poverty issue, not necessarily an agricultural question).
It is this reality I have explained above that has always compelled me to speak more about the need to expand our export diversification efforts.
I was encouraged yesterday (4 August 2025) when I heard the key policymakers in the trade and international relations space pushing this message strongly.
In a joint media briefing by South Africa's ministers of international relations and cooperation and trade, industry and competition, the intent to rigorously pursue export diversification was made clear, with the ministers stating:
'We have been strengthening trade and investment partnerships with various trade partners. These efforts are bearing fruit, targeting markets across Africa, as well as in Asia, Europe, the Middle East and the Americas.'
The ministers further stated:
'We are making significant inroads into new, high-growth markets across Asia and the Middle East, including the UAE, Qatar and Saudi Arabia. These efforts are not only opening doors to new opportunities but also reinforcing our commitment to retaining the vital markets we already have.'
With this clarity on the importance of export diversification, the South African agricultural community must rally behind this message. The first step must be to support the government with insights that further help them in engaging with the new markets and their prioritisation.
This may not be something that people have on their minds, especially in the fast-evolving world of global trade. Thus, supporting research efforts on trade to provide up-to-date key insights that guide us in decision-making is vital.
Another aspect we will have to assess is capacity readiness in the various government departments that are directly engaged in trade matters, specifically the departments of International Relations and Cooperation and Trade, Industry and Competition.
This also means that South Africa will have to adjust its approach on trade matters and be more open to free trade agreements, understanding that there are trade-offs they bring. You cannot win in all industries. There will be tough choices in trade-offs that policymakers will have to make.
The countries we want to diversify to may also want to sell something from South Africa. This is particularly true today, where all countries are under pressure to expand their export markets given the disruption caused by the US trade policy.
The senior officials in the trade department will also need to align with this new approach, which may be a slight shift in orientation from the established way of approaching trade policy matters.