433369666-The-Case-for-Investing-in-South-Africa

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SA GDP, 2018
WELL-ESTABLISHED, RESILIENT AGRICULTURE SECTOR
2.1%
SA SA GDP, 2018 2018
Sub-sectoral contributions to agriculture sector’s income, 2018
2.1%
97.9%
97.9%
1
Other sectors
Other sectors
1
Primary agriculture
Primary agriculture
Source: IDC analysis, compiled using Quantec data
Contribution to the
economy
Structure
The agriculture sector (i.e. primary agriculture only, excluding forestry and fishing) contributed
2.1% to South Africa’s GDP in 2018 and accounted for 5.6% of total merchandise export
earnings. The sector employs 842 000 people.
The sector has a well-developed commercial agriculture segment (some 40 000 commercial
farmers) operating alongside about 200 000 smallholder farmers.
Extensive sectoral
linkages
The agriculture sector has extensive backward and lateral linkages with the manufacturing and
services sectors through the purchase of inputs and services, as well as forward linkages to
manufacturing through the supply of raw materials into various processing industries.
SA GDP, 2018
HIGHLY DIVERSIFIED AND COMPETITIVE AGRO-PROCESSING SECTORS
3.4%
SA GDP, 2018
SA GDP, 2018
Sub-sectoral contributions to agro-processing sector’s GDP, 2018
3.4%
96.6%
96.6%
Other sectors
1
Agro-processing
Other sectors
1
Agro-processing
Source: IDC analysis, compiled using Quantec data
Contribution to the
economy
Structure
Extensive sectoral
linkages
The agro-processing sub-sectors (i.e. processed food and beverages) contributed 3.4% to South
Africa’s GDP and accounted for 5.7% of total merchandise export earnings in 2018. These
sectors employ approximately 250 000 people.
Over 7 000 businesses are involved in the processing of food in South Africa, but the sector is
dominated by large players.
The agro-processing sectors produce a wide range of products, from the basic but high-quality
commodity types to the more high-end market/niche products. These sectors have extensive
backward and lateral linkages with the agriculture, manufacturing and services sectors.