Calls for more action after Ramaphosa delivers 2025 Sona.File Picture : Phando Jikelo/Independent Newspapers
President Cyril Ramaphosa’s State of the Nation Address (Sona), delivered last week, has provoked a blend of optimism and scepticism among South Africa’s agricultural and economic sectors.
While the emphasis on job creation and economic growth has been largely welcomed, significant reservations linger regarding the feasibility of the proposed measures.
Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said Ramaphosa provided some “nutritious nuggets” of policy to consider.
Sihlobo pointed out the ongoing challenges facing the agricultural sector, including port inefficiencies, the deterioration of infrastructure, rising rural crime, stock theft, and increasing global protectionism.
“The government’s plans to tackle these issues are commendable,” Sihlobo said.
He highlighted several key focus areas mentioned by Ramaphosa, such as enhancing water infrastructure, the ongoing reforms of Operation Vulindlela, and efforts to boost logistics and improve safety.
Significantly, Sihlobo underscored the importance of supporting farmers and streamlining supply chains as predictors of the agricultural industry’s potential growth.
“We believe South Africa’s agriculture will see its gross value added (fortunes) expand by 30% in the coming years, creating more jobs,” he said.
However, Sihlobo also called for the crucial release of 2.5 million hectares of State land for agricultural use, urging decisive action in this regard.
Theo Boshoff, the CEO of Agbiz, echoed similar sentiments, stressing that structural reforms and a clear framework for public-private partnerships were vital to bolster economic competitiveness.
“We are pleased to hear that the recommendation made by Operation Vulindlela continues to receive political support,” Boshoff said, adding that progress in freight rail should also extend to the improvement of port services.
However, Bennie van Zyl, general manager of TLU SA, expressed frustration at the repeated promises, arguing that South Africa’s leadership must act decisively to drive genuine growth.
“Year after year, we hear promises of economic growth while our infrastructure crumbles,” Van Zyl said, reflecting the views of many who are weary of unmet expectations.
Academic voices also weigh in on the address.
Professor Raymond Parsons from North West University contended that the Sona signalled a tangible commitment to job-focused growth.
Yet, Parsons cautioned that South Africa’s sluggish economic recovery indicated that accelerated structural reforms were urgently needed.
“If South Africa wants to achieve a 3% GDP growth by 2027, we need to make the right choices,” he said.
Amid these discussions, Jurgen Eckmann, Wealth Manager at Consult by Momentum, painted a concerning picture of youth unemployment.
Despite Ramaphosa’s job creation initiatives, Eckmann noted a stubbornly high unemployment rate among young individuals, emphasising that the country's economy contracted by 0.3% in the third quarter of 2024.
“In the first quarter of 2024, the unemployment rate among individuals aged 15 to 24 stood at 60.8%, with a slight decrease to 60.2% in the third quarter. GDP growth is expected to struggle to break 1% in 2024, yet a 3% target for this year has been set. The economy contracted by 0.3% in the third quarter of 2024, following a 0.4% growth in the second quarter. This does not look promising for the President’s target,” he said.
“With multiple government funds and capital-intensive projects announced, we must ask: can we afford this without overburdening taxpayers or accruing more debt? To get the necessary funding to deliver on all of the funds the President has spoken about, we’ll need to rely heavily on foreign investment, which means South Africa must position itself as an attractive and stable market for investors.”
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