Wandile Sihlobo, chief economist at Agbiz, emphasized the immense potential of agriculture to reduce poverty during a recent roundtable event focused on accelerating the implementation of the Agriculture and Agro-processing Master Plan. The event was organized by the National Planning Commission and the National Agricultural Marketing Council.
Sihlobo stated, “We should stop planning and focus on fixing what’s broken, with everyone pitching in.” He highlighted that agriculture’s primary advantage in poverty reduction is its direct impact on the poorest individuals, offering benefits like food security and the prevention of malnutrition.
According to Sihlobo, growth and innovation in agriculture lead to higher returns on investment for producers, increased job opportunities, and lower consumer prices. “Rising agricultural productivity not only alleviates poverty by freeing up labor for non-agricultural activities but also shifts surplus labor from less productive home-based production into commercial agriculture,” he explained. However, he noted that rural areas still face significant challenges and agriculture is not yet reaching its full potential.
Some of these challenges include high poverty levels, unemployment, limited economic activity, and ineffective municipal governance. Sihlobo pointed out the duplication of efforts and budgets across provinces, district municipalities, and local municipalities, with unclear responsibilities for improving service delivery, infrastructure, and basic services.
He also voiced concerns about the sense of despair in rural communities, exacerbated by rising crime rates. In addition, Sihlobo criticized the criminal destruction of South Africa’s rail network, the mismanagement and state capture of Transnet, and the collapse of the country’s ports, which have hindered the growth of export industries. Other issues include animal diseases and problems with veterinary services that are destabilizing progress in the livestock industry.
