From citrus and wine to nuts and livestock, SA agriculture has shown resilience in the face of climate shocks, rising costs and logistical challenges, having built globally competitive export markets over decades across the world.
Yet it neither creates jobs at the scale SA needs, nor draws most rural South Africans into its opportunities.
A tale of two agricultures
A small number of large, commercial farms dominate production, income and exports. These farms are well-capitalised and integrated into global value chains.
At the same time, a vast number of South Africans engage in agriculture in a very different way.
These are smallholder and subsistence farmers – often in former homeland areas – who produce mainly for household consumption, with limited access to markets, finance and technology.
The gap is stark. Commercial farmers achieve far higher yields and incomes, while smaller producers remain trapped in low productivity.
The result is a dual agricultural economy: one globally competitive, the other largely excluded.
Why growth hasn’t meant jobs
Only part of the explanation lies in the sector’s historical foundations; the other part lies in how agriculture has grown since apartheid ended.
Modern farming is increasingly driven by technology, mechanisation and efficiency. Farmers can now produce more with fewer workers.
This is a global trend – but in many countries, workers leaving agriculture can find jobs elsewhere.
SA has not followed that path. Manufacturing has struggled, and workers displaced from agriculture are not easily absorbed elsewhere.
The result is a sector that continues to grow, but without corresponding employment gains.
Golden opportunities
If the goal is to create jobs and reduce inequality, a new approach is needed.
A key shift is to broaden our definition of employment.
Agricultural employment is often measured by the number of workers on commercial farms.
But this misses a large part of the picture. Hundreds of thousands of SA households already engage in agriculture, even if only part-time.
The real opportunity lies in helping these households move from subsistence to viable economic activity.
This means improving productivity – better inputs, better livestock systems and better farming practices.
It means connecting farmers to markets. And it means reducing risk, so farmers can invest and grow.
At scale, this could transform agriculture into a significant source of self-employment and rural enterprise.
There are many missed opportunities that could make a meaningful difference.
Many irrigation schemes in former homeland areas are underperforming or in disrepair. Where they function well, they significantly increase production, incomes and employment. Where they fail, they represent lost potential.
Similarly, in livestock systems, basic improvements – better animal health, nutrition and breeding – can raise productivity and incomes for rural households.
These are practical interventions that could have a substantial impact if implemented effectively.
The missing ingredient — institutions
One of the clearest lessons from SA’s agricultural history is that markets alone are not enough.
The success of commercial agriculture was built on decades of investment in research, extension services, finance and infrastructure.
These institutions enabled farmers to become productive and competitive.
Today, many of these support systems no longer exist in quite the same form – and crucially, they were never fully replaced for new entrants.
If SA is serious about building a more inclusive agricultural sector, it will need to invest in modern versions of these institutions – ones that reduce risk, support farmers and connect them to markets.
This includes access to finance, reliable infrastructure, strong extension services and effective market linkages.
Unlocking what we already have
The challenge is not to abandon the current model, but to build on it.
SA does not need to choose between its global competitiveness and local justice and inclusion.
There is a growth path that delivers both.
It can maintain a strong commercial sector while deliberately expanding participation.
It can create opportunities not only on farms, but also in processing, logistics and agricultural services.
This will take recognising that employment means not only large farms hiring workers, but also people building livelihoods as farmers and entrepreneurs in the rural economy.
Why this matters
SA unemployment rate, long one of the highest in the world, lurched sharply worse in the lastest Stats Sa report, as the Dispatch reported on Wednesday — particularly among young people. Rural areas are especially affected.
Agriculture alone will not solve this crisis. But it can be a major part of the solution.
With the right policies, investments and institutions, agriculture could play a much larger role in creating jobs, generating income and supporting inclusive growth.
The question is whether we are willing to rethink the model – and act on it.
• Tinashe Kapuya is the research director of the Africa Network of Agricultural Policy Research Institutes
• Wandile Sihlobo is the chief economist of the Agricultural Business Chamber of SA
• This essay is a summary of the research paper the authors prepared for the Economic Research Southern Africa’s economic growth policy paper series.