Agriculture Minister John Steenhuisen has sounded the alarm on the urgent need for policy reform and infrastructure upgrades to unleash the full investment potential of South Africa's farming sector. Speaking during an Investment Opportunity Commission on Agritech and Food System Innovation at the South Africa Investment Conference on Tuesday, the Minister cautioned that ongoing constraints are holding back an industry that has demonstrated remarkable recent growth.
Strong growth hampered by logistics and biosecurity failures
Steenhuisen pointed to impressive figures underpinning the sector's momentum, noting a 17% contribution to Gross Domestic Product and a 10% year-on-year surge in export earnings over the past four quarters. High-performing industries such as citrus, deciduous fruits, and nuts have driven much of this expansion, yet the Minister warned that port inefficiencies and crumbling rail networks are throttling the ability to get products to market.
"These sectors could grow by up to 5% in the medium term if ports and rail systems are able to move products efficiently to markets."
The Minister also flagged a deepening biosecurity crisis, with outbreaks of Foot-and-Mouth Disease severely restricting livestock producers' access to lucrative international markets. He stressed that the trend in livestock is moving in the wrong direction, with markets contracting rather than growing, and called for an urgent rebuilding of the country's biosecurity ecosystem.
Agro-processing was singled out as a major untapped opportunity. Steenhuisen argued that South Africa continues to ship raw agricultural commodities abroad when it could be adding value domestically, creating jobs and boosting export revenues in the process.
Investors seek clarity on land reform, water rights and biofuels
Thabi Nkosi, Director at the Public Investment Corporation, offered an investor's perspective, noting that agriculture remains poorly understood by the financial community, particularly its diversity beyond primary farming. She highlighted promising openings in climate-smart technologies and water innovation but said capital will remain on the sidelines without greater regulatory certainty.
"Investors need clarity on issues such as biofuels policy, land reform, and water rights. Without that certainty, capital will hesitate."
Global agribusiness leader Jai Shroff reinforced the call for action, describing climate change as one of the most pressing threats facing farmers worldwide. He emphasised the need to build resilience among producers, noting that developing nations cannot simply throw money at agricultural challenges the way wealthier countries can. Shroff argued that sustainable practices, including carbon sequestration and biofuel production, could open new revenue streams for farmers while contributing to global decarbonisation goals. He called for incentive structures that reward environmentally responsible farming methods.
Steenhuisen concluded by underlining the importance of expanding into new export markets, particularly across Asia and the Middle East, where appetite for South African agricultural products continues to rise. The session was moderated by the Presidential Envoy on Agriculture and Land, Wandile Sihlobo.
South Africa's agricultural sector stands at a crossroads where resolving port bottlenecks, restoring rail capacity, and strengthening biosecurity controls could unlock significant economic gains for farming communities and rural employment. The push toward domestic agro-processing rather than raw commodity exports offers a pathway to higher-value jobs, while regulatory clarity on land reform, water rights, and biofuels policy will determine whether investors commit capital. Expanding trade corridors into Asia and the Middle East could further diversify revenue streams for producers nationwide.
