With the Eastern Cape now carrying the highest unemployment rate in the country and having lost about 43,000 jobs in the first quarter of 2026, provincial leaders and business stakeholders are looking to agriculture as a key driver of economic recovery and job creation.
The issue dominated discussions at the inaugural Africa Agricultural Indaba held at the International Convention Centre in KuGompo City this week, where government and industry leaders pushed for agriculture and agro-processing to play a far bigger role in reviving the struggling provincial economy.
The latest Quarterly Labour Force Survey showed the Eastern Cape’s unemployment rate climbed to 44.6%, the highest in SA.
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The Eastern Cape’s unemployment crisis has deepened sharply, with the province recording the highest jobless rate in the country as thousands more people lost work amid mounting pressure from rising food and fuel prices.
According to Stats SA’s latest Quarterly Labour Force Survey, the province’s official unemployment rate rose to 44.6% in the first quarter of the year from 42.5% in the previous quarter.
The figures mean nearly one in every two economically active people in the Eastern Cape is unemployed.
The province lost 43,000 jobs between October and December 2025 and the first three months of this year, reducing the number of employed people to about 1.33-million.
The broader picture is even bleaker when discouraged work-seekers are included.
Stats SA’s expanded unemployment measure, which includes people who have given up looking for work, rose from 49% a year ago to 54.4% in the first quarter — the highest year-on-year increase in SA.
The province’s labour absorption rate, which measures how many working-age adults are employed, stood at just 28.7%.
For many residents, the statistics reflect a daily struggle to survive.
Nandipha, 30, who hails from Centane, said she had spent the past three years searching unsuccessfully for work.
She moved to KuGompo City earlier this year, hoping better opportunities in the city would improve her chances, but she remains unemployed.
“I have been unemployed for three years, and it has been a struggle for me,” she said.
“I want a job for money, but also to feel less stressed. Not having a job has been emotionally taxing.”
Humanitarian organisation Gift of the Givers said worsening unemployment was becoming increasingly visible during its relief interventions across the province.
Joblessness strips you of dignity. It destroys your soul and your spirit
Founder Imtiaz Sooliman said hunger was often the first sign of joblessness and deepening poverty.
“When we assist during disasters, the first thing people ask for is food,” Sooliman said.
“And when you see the people getting food, especially the children, you realise that it’s endemic and their hunger has been there for a long time.
“There are children going for days without food, and their parents are making an even bigger sacrifice.”
He said unemployment had devastating social and emotional consequences.
“Joblessness strips you of dignity. It destroys your soul and your spirit.”
Sooliman said the organisation had significantly increased food deliveries and support for soup kitchens in affected communities.
“Many children go to school without shoes and food because their parents have no means.”
He said unemployment was also affecting access to healthcare, with many people unable to afford transport to clinics, adding that anger and frustration caused by unemployment also led to an increase in domestic violence.
Reacting to the statistics, Eastern Cape premier Oscar Mabuyane said in a statement that he believed several factors continued to drive the unemployment crisis in the province.
“These include slow national economic growth, persistent energy and logistics constraints, weak consumer demand and broader global economic uncertainty affecting investment and production.”
He warned that persistently high unemployment levels continued to pose serious social risks to communities.
“Rising unemployment and poverty contribute directly to deepening inequality, household instability, crime, substance abuse, mental distress among young people, gender-based violence and growing social frustration.
“Of particular concern is the increasing number of discouraged work-seekers and young people not in employment, education or training.”
Mabuyane said the latest figures reinforced the urgency of accelerating economic reforms and strengthening inclusive growth initiatives.
“Government remains focused on improving infrastructure delivery, expanding industrialisation, supporting small businesses, growing township and rural economies, and unlocking greater private-sector investment,” he said.
Black Business Forum president Luthando Bara said young people were bearing the brunt of the crisis.
“Every year, thousands of graduates leave universities and colleges with the hope of changing conditions at home … That hope is slowly becoming meaningless,” Bara said.
He warned that the province’s failure to adequately support small businesses was worsening the unemployment crisis.
“There has been little meaningful engagement with the SMME sector, despite clear evidence that small business and the services industry remain the biggest hope for job creation,” he said.
Nafcoc Eastern Cape chair Chwayita Zituta described the job losses as worrying.
“It’s a painful situation really because this is one of the [provinces with the] highest [poverty levels].
“For us to lose about 43,000 jobs, it’s a serious concern.”
She said business leaders were encouraging young people to become job creators instead of job-seekers.
“We need to sit around the table and come with strategies that can help improve job creation,” she said.
DA leader in the Eastern Cape legislature Vicky Knoetze described the crisis as catastrophic.
“It means empty cupboards, unpaid bills, young people trapped at home without opportunity and communities where work has become the exception rather than the norm.”
Freedom Front Plus Buffalo City councillor Debbie Theron said failing infrastructure and poor governance had damaged investor confidence in the province.
“Businesses are struggling with unreliable electricity, deteriorating roads, water disruptions, crime, bureaucracy and weak municipal management.
“Investors cannot create jobs in an environment where basic services are constantly failing,” Theron said.
She also highlighted the need for improved vocational training and skills development for young people.
ActionSA MP Alan Beesley said the unemployment figures reflected a growing national emergency.
“Behind these numbers are individuals whose lives are being decimated and hopes and dreams destroyed,” he said.
EFF Eastern Cape secretary Simthembile Madikizela said the province continued to experience a decline on many fronts.
“On several occasions, the EFF has expressed no confidence in the current leadership of the provincial government because of its failure to respond effectively to the growing economic crisis,” he said.
Madikizela said practical economic intervention and an industrial development plan were lacking in the province, while manufacturers were struggling to survive.
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Addressing the Indaba on Wednesday, premier Oscar Mabuyane said the province’s worsening economic situation required “bold and urgent action”.
“These are not merely statistics. They represent families under pressure, communities losing hope, and young people searching for opportunity,” Mabuyane said.
“This is precisely why we identified agriculture as a growth frontier for our economic recovery and growth.”
He said the province continued to underutilise its agricultural potential despite having fertile land, water resources and established farming communities.
“In agriculture, we see untapped potential, we see opportunities for production, jobs and exports,” he said.
The three-day indaba brought together government departments, organised business, emerging farmers and agricultural experts to discuss ways of strengthening the farming sector in the province.
Every year, thousands of young South Africans walk across graduation stages wearing gowns that symbolise sacrifice, hope and achievement. Families celebrate. Parents cry tears of pride.
Communities ululate for children who have become the first graduates in their households.
For many, a university degree or diploma represents the long-awaited bridge out of poverty.
Yet, for an increasing number of graduates, that celebration is followed by a painful reality: an economy that simply cannot absorb them.
SA is facing one of the deepest unemployment crises in the world, and young graduates are now trapped in a contradiction that threatens both social stability and economic growth.
According to the latest Quarterly Labour Force Survey released by Stats SA, the country’s official unemployment rate stood at 32.9% in the first quarter of 2025, with more than 8.2 million South Africans unemployed.
The expanded unemployment rate, which includes discouraged work seekers, climbed above 43%.
The youth remain the hardest hit. Young people between the ages of 15 and 24 continue to experience unemployment rates above 58%, while unemployment among those aged 25 to 34 remains alarmingly high.
Behind these statistics are real human stories.
What makes this crisis particularly painful is that many young people did exactly what society asked of them
There is the graduate with a teaching degree who spends three years submitting applications without a response.
The law graduate back at home in a rural village, carrying both student debt and family expectations.
What makes this crisis particularly painful is that many young people did exactly what society asked of them.
They studied. They persevered.
Yet the economy has not grown at a pace sufficient to create jobs that match the number of graduates entering the labour market each year.
Economic growth has remained below the levels required to meaningfully reduce unemployment, with structural challenges such as energy instability, logistics constraints, slow industrial expansion and declining investor confidence affecting job creation.
And the Eastern Cape presents a particularly complex picture, recording some of the highest unemployment levels in the country.
In late 2025, the province’s unemployment rate exceeded 41%, reflecting persistent structural economic challenges.
Yet this is not the full story.
Beneath the grim statistics lies a changing economic landscape that could create significant opportunities over the next three to five years, if government, industry and educational institutions align effectively.
The province is entering a period where several growth sectors are expected to expand simultaneously.
One of the strongest growth areas is renewable energy.
The province has become one of SA’s leading renewable energy hubs, particularly in wind and solar energy projects.
Areas such as the Sarah Baartman district and parts of the Amathole region continue to attract investment linked to the country’s energy transition agenda.
This growth is expected to increase demand for electrical engineers, environmental scientists, project managers, data analysts, technicians and supply-chain specialists.
Another important sector is automotive manufacturing.
The province remains home to major automotive production plants and supplier industries concentrated around Gqeberha and KuGompo City.
As the global industry shifts towards electric vehicles and greener manufacturing systems, there will be increasing demand for graduates in industrial engineering, robotics, software systems, logistics and advanced manufacturing technologies.
Agriculture and agro-processing also present major opportunities.
The province’s agricultural economy continues to expand beyond traditional farming into value-added processing, export logistics and agri-technology.
Young graduates with qualifications in agricultural science, biotechnology, food technology, water management and environmental sustainability could find increasing relevance in this evolving sector.
Tourism and cultural industries are another underused frontier.
The Eastern Cape possesses immense tourism potential rooted in heritage, eco-tourism and coastline development.
Graduates with skills in digital marketing, heritage management, creative arts, event management, film production and communications could increasingly find opportunities in destination branding and cultural economy initiatives.
Importantly, the province’s public infrastructure drive may also become a key employment catalyst.
Government investment into roads, schools, healthcare facilities, housing and water infrastructure has the potential to stimulate employment not only in construction but also in planning, architecture, engineering, quantity surveying and public administration.
Infrastructure development remains one of the few sectors capable of creating both skilled and semi-skilled jobs at scale.
Then there is the digital economy, as technology continues to disrupt traditional labour patterns.
Remote work, coding, digital services, AI support functions, online education and digital entrepreneurship are opening new avenues for work.
This means universities and technical and vocational education and training colleges must urgently rethink how they prepare graduates.
SA cannot sustainably rely only on government jobs and large corporations to absorb graduates.
Entrepreneurship, co-operatives, township economies, creative industries and small business development must become central pillars of youth economic participation.
There also needs to be greater honesty with young people about labour market realities.
The mismatch between education outputs and labour market demand is one of the country’s most urgent policy failures.
Yet, there remains reason for cautious optimism.
SA still possesses one of the youngest populations on the continent.
If economic reforms accelerate, infrastructure projects gain momentum, renewable energy investment expands and digital opportunities are properly harnessed, the next five years could begin shifting the trajectory for many young people.
This will require partnerships between universities and industries, municipalities that function effectively, and aggressive investment in innovation, technical skills and entrepreneurship support.
Above all, it will require an economy that prioritises inclusive growth rather than survivalist stagnation.
A nation cannot afford to continuously produce graduates who feel forgotten by the economy they prepared themselves to serve.
Andile Nduna works for the department of sport, recreation, arts & culture, writing in his personal capacity
Border-Kei Business Chamber executive director and indaba convener Lizelle Maurice said the event was intended to move beyond discussions and focus on practical solutions to unemployment.
“We were recently announced as the province with the highest unemployment rate,” Maurice said.
“In the state of the nation address, our president mentioned that agriculture and agro-processing present huge opportunities for job creation.
“So, on that backdrop, we decided that since we have the land here in the Eastern Cape, let us discuss this opportunity that this land presents.
“We want resolutions out of this.”
Maurice said KuGompo City had been selected as the annual host city because of its recognition as an agricultural port.
“The Eastern Cape province is of such a nature that even Transnet in their national planning declared the Port of East London as an agricultural port,” she said.
“We are also the only port licensed for live exports.”
Mabuyane said the province had the capacity to increase agricultural production and reduce reliance on imported food.
“Our province has the capacity to significantly increase primary production, reduce dependence on external supply chains, and become a net contributor to food security in SA and beyond,” he said.
Agriculture minister John Steenhuisen has welcomed the drop in food inflation to a 14-month low but warned that record-high fuel prices are threatening the agricultural sector.
Consumer Price Index (CPI) data released by Statistics SA on Wednesday showed a decline in annual food and non-alcoholic beverages inflation to 2.9% in April 2026, down from 3.6% in March.
This is the lowest food inflation rate in 14 months and the third consecutive month of decline.
Steenhuisen said while consumers saw relief at the grocery stores, the farming community was absorbing a significant financial shock.
“Lower food prices today cannot hide the heavy operational burdens our producers face due to escalating energy costs. We need to find ways to ease input costs for farmers,” Steenhuisen said.
The ministry said the decline in food inflation occurred alongside a major inflation surge in the energy sector.
In April, the national fuel index rose by 18.2% from March, representing the steepest single-month increase recorded since the current CPI series began in 2008.
Steenhuisen said fuel, primarily diesel, is a crucial input for South African farmers, typically accounting for 11% to 18% of total production and logistics costs.
With farmers having no control over the price of goods they sell, they struggle to pass these high energy costs on to consumers, putting pressure on profit margins across grain, fruit and livestock sectors.
Steenhuisen said the global oil markets might remain volatile for some time, caused by ongoing conflicts in the Middle East. If these tensions triggered further fuel price increases later in the year, production and logistical costs will rise, he said.
Despite energy pressures, specific agricultural interventions and market cycles reduced key food prices in April.
Meat inflation slowed from 11.6% in March to 9.4% in April, driven by the ongoing slaughter of cattle connected to national foot-and-mouth disease management strategies. Stewing beef decreased from 22.6% to 8.7%.
The grains and cereal category recorded its third consecutive month of deflation. Maize meal, white rice, basmati rice, porridge and bread flour are cheaper than they were a year ago.
Milk, dairy and eggs recorded an annual shift to 0.1% from March’s –0.5%, marking their first annual increase since May 2025. Powdered milk (-3.4%) and eggs (-5.8%) remain in deflation.
Steenhuisen said the agriculture department remained committed to working with agricultural bodies, logistics networks and state resources to identify mechanisms to ease input costs for farmers.
“Protecting producers from global energy shocks is necessary for long-term national food security,” Steenhuisen said.
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He highlighted ongoing irrigation revitalisation projects in Zanyokwe, Qamata, Tyhefu and Keiskammahoek, as well as grain production initiatives in the OR Tambo, Alfred Nzo, Joe Gqabi and Amathole districts.
The premier also pointed to growth opportunities in wool, mohair, dairy, grain, poultry, aquaculture, cannabis and horticulture.
Agriculture MEC Nonceba Kontsiwe said her department was focusing on helping communal and smallholder farmers transition into commercial farming through improved support and infrastructure.
“Agriculture remains central to addressing both poverty and food insecurity, particularly in rural communities where livelihoods are directly linked to production,” Kontsiwe said.
She said improving market access and strengthening infrastructure would be key to unlocking growth in the sector.
The Eastern Cape remains SA’s leading citrus-producing province, with Addo, Patensie and Nqweba (Kirkwood) among its major production areas.
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