President Ramaphosa calls for transformation of agricultural sector

Through the Proactive Land Acquisition Strategy, government is releasing approximately 2.5 million hectares of State-owned land in various parts of the country to black farmers, as part of efforts to transform the agricultural sector and expand commercial farming.

In his weekly newsletter on Monday, President Cyril Ramaphosa said the initiative will provide black farmers with title deeds, helping to build a new generation of commercial farmers and expand South Africa’s productive agricultural base.

“We can bring more land under cultivation, create a new generation of black commercial farmers and ensure that we grow enough not only to feed all our people, but to sell to markets across the world,” he said.

The President said land access, combined with financing, skills development, mentorship and training, is essential to enabling aspiring farmers to operate successfully on a commercial scale.

He said South Africa’s agricultural sector had immense potential for further growth and job creation, but that the benefits of its expansion had not reached all communities.

“Although our farming sector has flourished, many communities have remained on the periphery,” he said.

President Ramaphosa highlighted the success of Redlands Farm, a commercial dairy farm in Stutterheim in the Eastern Cape, owned and operated by young black farmers.

READ | President Ramaphosa calls for more Redlands-style agricultural enterprises

The farm has expanded its operations with support from the Land Bank, demonstrating how partnerships and access to finance can help emerging farmers grow their businesses.

“Redlands’ success shows that with effective partnerships, a transformed agricultural and agribusiness sector can boost the rural economy and create jobs,” he said.

The farm is a beneficiary of the Land Bank’s Blended Finance Scheme, which combines government grant funding with loan finance to support farmers.

The President said the scheme is helping farmers in various parts of the country establish commercially successful businesses, while encouraging other agribusinesses and commercial banks to participate in the programme and develop additional funding instruments for the sector.

Expanding agricultural opportunities

President Ramaphosa said South Africa’s agricultural sector has more than doubled since the dawn of democracy in 1994, with the country ranking as the world’s 32nd-largest agricultural exporter.

Agricultural exports reached a record R270 billion in 2025, with products including table grapes, maize, beef, wine, citrus, sugar and wool.

The African continent accounts for nearly half of South Africa’s agricultural exports, while other markets include the European Union and countries in Asia, the Middle East and the Americas.

The sector employs approximately 944 000 people, with a further 200 000 employed across the broader agricultural value chain.

However, the President said the sector remained characterised by unequal participation, with predominantly white-owned commercial farms accounting for most commercial agricultural output, while black farmers contributed only around 10%.

“We still have what has been called ‘two agricultures’. Being reliant on the productive capacity of a relatively small segment of the population to meet our country’s food needs is unsustainable. Our population is growing and with it, the demand for food,” the President said.

He said transforming agriculture was necessary to address historical inequalities, strengthen food security and ensure the sector could meet the country’s future food needs.

Building a new generation of farmers

The President said access to affordable, patient capital was another important requirement for emerging commercial farmers, noting that the Land Bank and the Department of Agriculture had introduced the blended finance instrument to address funding challenges.

He also highlighted the importance of developing the skills and practical experience needed to run successful farming enterprises. 

“We have to build a pipeline of skilled and productive commercial farmers who can sustain the sector. We must equip aspiring farmers with the skills, mentorship, training, technologies and other resources to farm successfully on a commercial scale,” he said. 

President Ramaphosa welcomed programmes led by agricultural commodity associations, including the Citrus Growers’ Association, Grain South Africa, the National Wool Growers’ Association, Potatoes South Africa, Red Meat Industry Services, the Milk Producers’ Organisation and Fruit South Africa. 

He said these organisations play an important role in building a more inclusive farming economy by supporting the development of emerging farmers.

Government is also working to expand and diversify export markets for South African agricultural products, while engaging farmers and agribusinesses on new breeding techniques and advances in agricultural biotechnology.

The President said stronger partnerships between government, farmers, businesses, lenders, traditional leaders and communities would be critical to building on the sector’s progress. – SAnews.gov.za

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