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34/2025

28 August 2025

From water to electricity: The rural-urban infrastructure gap in seven charts

Since 1960, the share of people living in rural areas has steadily declined. Until 2008, the majority of the world’s population still lived in rural regions, but rising urbanization has since shifted that balance. Today, rural dwellers make up less than half of the global population. Still, as of 2024, roughly 3.44 billion people — nearly 44% of the world’s population — continue to live in rural areas. The decline in the share of rural populations — and the corresponding rise in urbanization— is a global trend seen across all regions. However, in Sub-Saharan Africa and South Asia, rural areas still house the majority of the population. Sub-Saharan Africa is projected to become predominantly urban by 2036, while South Asia is expected to reach this milestone a decade later, by 2046. Rural populations remain disproportionately affected by poverty. Currently 80% of the poorest people who live on less than $2.15 per day live in rural areas. Click here to read full article.

Why economic inequality matters for development

Does economic inequality matter for development? That’s a question we discussed at a recent event with international experts and practitioners. Among them was our Chief Economist Indermit Gill, who responded: “How can it not? If you look at the aspects of inequality—you can talk about the inequality of opportunity, of income, of wealth, and of power—it matters a lot. It can really hurt development, if it’s too high or unmanageable. But then, the real question is, what do you do about it? And is the cure often worse than the disease?” High economic inequality in a country can limit people’s ability to move up the socioeconomic ladder, and thereby slow progress toward broad-based growth and poverty eradication. Decreasing high levels of inequality, on the other hand, can spur economic development, strengthen human capital, and speed up poverty reduction. We know that tackling economic inequality is essential for boosting shared prosperity and achieving key development goals. But when does inequality become too high? What policy solutions are most effective? Click here to read full article.

United States shooting itself in the foot with tariffs hitting unique South African sector

US tariffs on South African industries have harmed local businesses and jobs, but they might inadvertently affect a key industry back home in the US. South Africa’s ostrich leather is a major contributor to the USA’s cowboy boot industry, and the tariffs on the local product could cost US jobs. This is the warning from Arno Albertyn, Executive Director for Leather at Klein Karoo International, in Oudtshoorn. He said the US tariffs on South African ostrich leather exports are hitting not only South African producers but also American industries that rely heavily on this material. This 30% tariff on South African exports could hit the ostrich processing industry in the US hard. Only 20% of South Africa’s ostrich leather exports go to the United States, but for the US ostrich industry, 70% of their products come from South Africa. Albertyn stressed that ostrich farming is a significant sector locally. “It’s a R1.2 billion industry in this country. It’s the meat and it’s the leather industry,” he said. Click here to read full article.

Minister Steenhuisen commends AGRI SA and AGBIZ for support in fixing rural roads

The Minister of Agriculture, John Steenhuisen commended Agri SA and Agbiz for their collaborative efforts with government to address the critical state of South Africa’s rural road network. Agri SA and Agbiz has joined hands with the Departments of Public Works and Infrastructure and the Department of Transport to embark on a data-driven pilot project in the Free State to repair critical agricultural transport routes. A survey conducted by Agri SA to determine the impact of deteriorating road infrastructure on the agricultural sector, indicated that farmers relied on road transportation to move about 94% of their produce. Minister Steenhuisen says the poor condition of the country’s rural roads is a long-standing bottleneck, impacting food security, raising production costs, and hindering economic growth in rural communities. Poor rural road conditions increase the transaction costs for established farmers and agribusinesses and can result in the total collapse of emerging farming enterprises. Click here to read statement.

AGRIBUSINESS RESEARCH

Municipal failures national consequences

When municipalities underperform, agriculture pays the price. Failing infrastructure, poor service delivery, and corruption are hurting farmers, blocking rural growth, and weakening South Africa’s food system. This episode dives deep into the direct link between broken municipalities and broken agri-business. Fresh produce markets aren’t just “nice-to-haves” — they’re the beating heart of the Agri value chain. From price discovery to market access for small farmers, these markets are critical. But without reinvestment and maintenance, they’re falling apart. It’s time for cities like Tshwane — and others across SA — to priorities them. The National Development Plan laid out a bold vision — one million Agri jobs. But plans mean nothing without implementation. We need land reform, working infrastructure, and committed public-private partnerships. Watch now to understand what’s missing and what needs to happen next to unlock agriculture’s full potential in South Africa. Click here to watch.

SA must retain export markets amid shifting global trade landscape

The access to the various export markets that some SA industries enjoy now is the result of the efforts of the past two decades. What is critical for the sustained success of our export markets is the initiatives we take now in the changing global trading system to secure constant access, and to open more avenues. Regarding the agricultural sector, in the early 2000s we exported about $2bn worth of products. From the mid-2000s to the 2010s we managed to secure more export markets and SA’s agricultural exports gained momentum. In 2018 SA’s agricultural exports crossed the $10bn mark, and have remained robust since. With the steady export activity, farmers responded positively by continuously improving the productivity and quality of the produce. The export efforts came from the private sector, organised agriculture, academia and the government, among other key stakeholders. It is due to such effective collaboration that SA’s farming sector is now the 32nd largest exporter globally in value terms, and the only African country among the top 40 of global agricultural exporters. Click here to read full article.

SA's 2024-25 summer grains and oilseed harvest estimate lifted again

With South Africa's 2024-25 summer grains and oilseed production season nearing its end, and the new season set to start soon, we are encouraged to see further improvements in the harvest estimate. The data released this afternoon by the Crop Estimates Committee show that South Africa's 2024-25 summer grains and oilseed harvest is up by 4% from the July 2025 estimate to an expected 19.55 million tonnes (up 26% year-on-year). There is an annual uptick in all the crops, mainly supported by favourable summer rains and the decent area plantings. The base effects also help, as we struggled with a drought last year that weighed on the harvest. This ample crop will likely continue to put downward pressure on prices, which bodes well for a moderating path of consumer food price inflation. A closer look at the data reveals that the monthly upward revisions were primarily in maize (+5%), dry beans (+16%) and soybeans (+1%). Meanwhile, the rest of the other crops were roughly unchanged from the previous month. More specifically, South Africa's maize harvest is now forecast at 15.80 million tonnes, which is 23% higher than the crop for the 2023-24 season. Click here to read full article by Wandile Sihlobo.

Western Cape farming shows glimmers of light despite trade uncertainty

It always helps to assess how the farming conditions are going for our neighbouring province. In the Eastern Cape, the citrus harvest season is at its tail end, and we will soon start with the summer crop season. The Western Cape has a winter rainy season, and slightly different dynamics driving its agricultural economy. The agricultural discussions surrounding the Western Cape have primarily focused on the risks presented by the US trade policy shifts in recent months. This is understandable, as the province has greater exposure to the US market relative to other provinces, mainly through its exports of citrus, wine, table grapes, and ostrich products, among other produce. Securing better market access in the US with relatively low tariffs is key to maintaining the competitiveness of these industries in that market. Still, some encouraging agricultural developments in the province are worth highlighting, primarily in winter crop production. While it is still early to form a firm view, it seems likely SA will have a decent winter crop season, primarily boosted by the Western Cape’s harvest. Click here to read full article by Wandile Sihlobo.

Exciting young agri-tech organisations in South Africa

As someone who spends a bit of time thinking about agricultural development and efficiency gains among existing commercial farmers, it is always encouraging to encounter new organisations that are focused on this goal. Earlier today, I made a brief stop at Khula!, an agri-tech company based in Johannesburg. This was not my first engagement with Khula; I had engaged with the team deeply in the early stages of their work. But after some years, it was refreshing to listen to their team talk about the various offerings to support farmers and the improvements they make in the efficiencies in the different value chains of our sector. Khula’s work on farm inputs provision, commodities and fresh produce trading, and off-taking of the produce, amongst other things, is all essential to the agricultural industry. Importantly, they are not only assisting small-scale or exclusively large-scale farmers; their product offering is valuable for all types of farmers. They also cover most commodities, and do not only focus on one subsector. Click here to read full article.

There should be no room for hesitation on matters of our food security

It is easy to take for granted the gains we have achieved in South Africa’s agriculture, and for some, not to recognise that the very interventions from many organisations, especially those related to agrochemical use and advancement in breeding, have helped deliver this progress. Some of the aspects one often sees are calls for restrictions on certain agrochemicals or slow progress in registering new agrochemicals by regulators. The safety of agrochemical use is vital, and the optimal use while taking care of the environment is also key. This is what the discussion should be about, urging farmers to continue with safety practices and to avoid excessive use of any input. However, the outright calls for restrictions on some inputs are typically misguided, and some compare our practices with those in Europe or other regions without appreciating that any input use is partly dependent on the environment in which we operate and the diseases or deficiencies we face. Click here to read full article by Wandile Sihlobo.

Canola boom in South Africa?

Tomorrow, August 27, South Africa’s Crop Estimate Committee will release its first production estimate for the 2025-26 winter crop season. The season has generally been fair, with favourable rainfall in much of the Western Cape, a province that accounts for more than two-thirds of South Africa’s winter crops. In other provinces, the winter crops are mainly produced under irrigation, and the favourable summer rains helped to improve the dam levels, enabling irrigation. One of the crops I will be watching closely is canola. While for farmers in some regions of the Western Cape, canola may not be as profitable this year because of higher input costs, it could reach a new record level in terms of output. The big challenge for farmers in some areas of the Western Cape this year was the infestation of snails in the early stages of the season, forcing farmers to replant the crop, thus increasing the input costs. Currently, we know that farmers planted 164,900 hectares, down 0.5% from the previous season. This area may also be revised when we receive the new data tomorrow. Click here to read full article by Wandile Sihlobo.

Livestock theft in South Africa

The one issue I haven’t written about, but is increasingly a challenge in some areas, is stock theft and crop and fruit theft. The data on some of these issues is scant, but I was reminded of this this morning when Statistics South Africa released its Governance, Public Safety, and Justice Survey results. In the agricultural section, Statistics South Africa indicated that in 2024/25, there were over 61,000 goats stolen, followed by cattle (37,947), then poultry (36,486). Statistics South Africa also provided a valuable table below, which illustrates the locations where theft of livestock occurred and the type of livestock that was stolen in 2024/25. We can see here that nearly half of the incidences occurred in a kraal/outside the house, followed by when livestock is in the fields/grazing land (40,7%). In terms of what the thieves are after, we can see that the goats (39,8%) were the most common livestock that was stolen, followed by cattle (24,6%) in 2024/25. If we want to continue having a prosperous agricultural sector, we must put strong control on these issues. Click here to read full article by Wandile Sihlobo.

PODCAST: South African agricultural exports up 10% in the second quarter of 2025

After solid export activity in the first quarter of the year, South Africa's agricultural exports totalled US$3.71 billion in Q2, up 10% from the same period a year ago, according to data from Trade Map. This is again a function of both higher volumes of various product exports and better commodity prices. The products that dominated the exports list in the second quarter of the year were mainly citrus, apples and pears, maize, wine, nuts, fruit juices, dates, pineapples, avocados, grapes, and wool, amongst other products. While there remains a need for further improvement in the efficiency of the ports, there has been a material improvement compared to recent years. Agricultural export activity in the second quarter experienced less friction than in the recent past. Click here to listen to full podcast.

AGBIZ GRAIN

Seed rights overhaul: New law strengthens IP protection

The new Plant Breeders’ Rights Act, 2018 (Act 12 of 2018) marks a significant shift in how intellectual property is managed in South African agriculture. While it brings the country in line with international conventions and promises to drive innovation, its impact on commercial farming practices, especially where the saving of seed is concerned – will likely spark further debate. Ensuring that small-scale producers remain protected while also encouraging private-sector breeding will be key to the Act’s long-term success. After several years of deliberation, the National Department of Agriculture (NDA) announced in June that the new Act had officially commenced. President Cyril Ramaphosa signed the proclamation following the approval of the regulations by minister of agriculture, John Steenhuisen. The Act replaces the Plant Breeders’ Rights Act, 1976 (Act 15 of 1976). Click here to read full article by Susan Marais, Plaas Media for Agbiz Grain .

OTHER NEWS

Private capital for infrastructure: Resilience amid uncertainty, urgency amid gaps

As the global economy continues to adapt to macroeconomic shifts, infrastructure investment remains a critical driver of job creation, long-term development opportunities and resilience. While recent interest rate hikes and inflationary pressures have reshaped return expectations and complicated financing conditions, infrastructure has stood firm as a preferred asset class. With relatively stable revenues and strong government support, infrastructure investment continues to offer investors lower risk, more predictable returns, and stronger performance than other private investment opportunities. The World Bank's Infrastructure Monitor 2024 presents new data and insights on how global trends are shaping private investment in infrastructure. The World Bank's Infrastructure Monitor 2024 presents new data and insights on how global trends are shaping private investment in infrastructure. It shows that while investment has continued to grow, especially in primary markets (i.e. greenfield and brownfield infrastructure as well as privatizations), disparities between regions and income levels are deepening. Click here to read full article.

A foreign policy that always faces forward

Last week our country participated in the ninth Tokyo International Conference on African Development (TICAD) in Japan. This is an important forum for strengthening bilateral trade and investment between Japan and African countries. Japan is an important trading partner for South Africa in sectors such as construction, manufacturing, technology and agriculture. At the business forum held on the sidelines of TICAD9 business representatives from South Africa and Japan discussed potential areas of collaboration in clean and renewable energy, automotive components and hydrogen production. One of the promising discussions was around the continental expansion plans by the Japanese automaker Isuzu Motors. Isuzu’s South African plant has trialled the manufacture of commercial trucks and truck bodies locally, and is engaging with Isuzu Motors Japan on its plans to become a manufacturing hub for the African market. At a time of global trade disruptions and mounting tariff pressures, participating in forums like TICAD is key to our economic diplomacy efforts. Click here to read full statement.

Transport minister announces 11 rail slot allocations

Transnet Rail Infrastructure Manager (Trim) has completed the adjudication process to select new Train Operating Companies (Tocs), Minister of Transport Barbara Creecy announced on Friday. This development paves the way for third-party access to the state-owned rail network, a move aimed at enhancing efficiency, reducing costs, and promoting sustainable freight transport. “This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country,” Creecy said during the announcement in Pretoria. “It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation.” The foundation for this reform was laid in March 2022 when Cabinet approved the National Rail Policy, which enables private sector participation while keeping infrastructure under state ownership. The policy aims to optimise network utilisation, attract private investment, and ensure equitable access through effective economic regulation. Click here to read full article.

SAMPRO Producers Price Index up to June 2025

Of the 5 groups of primary agricultural products covered by this report (See Tables 1, 2 and 3), the change in the producer price index of milk (which measures the change in the prices of unprocessed milk achieved by unprocessed milk producers), shows: That the price index for unprocessed milk is one of two agricultural products of which the price index increased from May to June 2025 and the increase is the second highest; The second highest decrease in the 12 months up to June 2025; and The highest increase in the 161 months from January 2012 to June 2025. Of the 9 groups of manufactured food products covered by this report (See Tables 4, 5 and 6), the change in the producer price index of dairy products, which measures the change in the prices of a specific group of dairy products (not all dairy products) achieved by producers of processed milk and manufacturers of the other relevant dairy products, shows: That the dairy products group is one of four manufactured food groups of which the price index increased from May to June 2025, and the increase is the fourth highest. Click here to read full article.

BUSA cargo movement report

This update provides a consolidated overview of the South African logistics network and the current state of international trade. At our container terminals, an average of 13 121 TEUs was handled daily, a notable increase from 11 438 TEUs the previous week. Despite another good week for throughput, some delays were apparent and could be attributed to the fact that inclement weather, vacant berths, and equipment challenges once again characterised port operations. Vessel ranging, high swells, and adverse weather ensured operational delays in Cape Town, while equipment breakdowns and inclement weather proved to be the main operational constraints in Durban. Vacant berths and strong winds disrupted operational performance at our Eastern Cape Ports, while minimal delays were reported at the Port of Richards Bay. The latest reports from TPT suggest that NCT will be facilitating a shift engagement on 13, 15, 18, and 19 August for all four shifts. The latest reports from TFR indicate that the line between Johannesburg and Durban was recommissioned this week, after the latest derailment, which occurred near Thornwood, on the Durban side of the line. Click here to read full report.

DP World partners with Japanese trading giant Itochu to boost African supply chain capabilities

Agreement signed at TICAD9 in Japan will focus on fleet operations, supply chain optimisation, and distribution of commodities and food products across the continent. DP World has signed a memorandum of understanding (MOU) with Itochu Corporation, one of Japan’s largest trading companies, to expand logistics, supply chain infrastructure, and distribution capabilities in sub-Saharan Africa. The agreement was signed during the Tokyo International Conference on African Development (TICAD9) held in Yokohama, Japan, by Beat Simon, group chief operating officer, Logistics at DP World and senior executives from Itochu Corporation. Under the MOU, both companies will explore opportunities to enhance connectivity and market access across Africa, supporting Japanese businesses seeking to establish or grow their presence on the continent. Initial discussions are focused on fleet and logistics operations, supply chain optimisation, and the distribution of commodities and food products. Click here to read full article.

MEMBERS' NEWS

SAPPO Domestic Carcass Price Statistics (2025_Week 33)

Increased producer prices and decreased yellow maize prices during week 33. During week 33 of 2025, the pork producer price averaged R34,63/kg, 1,4% higher than the previous week. The yellow maize price averaged R3 861/t, 3,1% lower than the previous week. Producer prices in relation to yellow maize prices averaged 9, 4,6% higher than the previous week. Click here to read full report.

UPCOMING EVENTS

International Blueberry Organisation Summit

25 – 27 September 2025 | CTICC, Cape Town

Learn more

AGBIZ MEMBERSHIP
Why join Agbiz?
  • Agbiz is the only organisation that serves the broader and common over-arching business interests of agribusinesses in South Africa.
  • Agbiz addresses the legislative and policy environment on the many fronts that it impacts on the agribusiness environment.
  • Agbiz facilitates considerable top-level networking opportunities so that South African agribusinesses can play an active and creative role within the local and international organised business environment.
  • Agbiz research provides sector-specific information for informed decision-making.
  • Agbiz newsletter publishes members' press releases and member product announcements.

Please visit the Agbiz website for more information

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