Unlocking Africa’s agricultural potential: A studio interview with Terry Wiggill and Wandile Sihlobo

Sub-Saharan Africa is often described as a region with the potential to become the world’s breadbasket. Yet, despite abundant land and favourable rainfall, the continent remains a major importer of food. In a recent studio interview, economist, author, and agricultural policy expert Wandile Sihlobo joined Terry Wiggill, managing director of Chemuniqué, to discuss the region’s agricultural challenges and opportunities, with a particular focus on South Africa’s unique position within the continent.

The paradox of potential and import dependency of sub-Saharan Africa

Africa spends approximately US$80 billion annually on food imports, with sub-Saharan Africa alone accounting for about US$50 billion of that figure. This is despite the region’s vast agricultural capabilities. Sihlobo highlights that, ideally, Africa should be a net exporter of food, earning rather than spending billions on imports. However, recurring shocks – such as floods, droughts, and trade disruptions – expose the region’s vulnerability and prevent it from reaching its full potential.

South Africa: A case study in agricultural success

While sub-Saharan Africa as a whole is a net food importer, South Africa stands out as an exception, exporting close to $14 billion in agricultural products annually. Sihlobo attributes this success to two main factors:

1. Strong land tenure: Unlike much of Africa, where about 80% of rural land lacks secure tenure, South Africa has relatively robust property rights. This security encourages investment and productivity, particularly in the commercial sector.
2. Better infrastructure: Although South Africa faces its own challenges with ports, roads, and railways, its infrastructure is still more developed than many neighbouring countries, making it easier to move goods and attract agribusiness investment.

The duality of South African agriculture

Sihlobo’s recent book, A Country of Two Agricultures, explores the stark contrast within South Africa’s farming sector, namely:

1. Commercial farming: Large-scale, highly productive, and often benefiting from secure land tenure and better infrastructure.
2. Smallholder farming: Plagued by weak land rights, poor infrastructure, and limited access to capital, resulting in underperformance and poverty, especially in provinces like the Eastern Cape and Limpopo.

This dualism is not just economic but also carries a racial dimension, rooted in the country’s history. Sihlobo argues that closing this gap is essential for social and political stability, as well as for unlocking broader economic growth.

Land reform: Beyond redistribution

Land reform in South Africa is often viewed through the lens of redistribution – transferring land to black South Africans. However, Sihlobo emphasises that true reform has three pillars:

• Redistribution: Addressing inequities in land access.
• Restitution: Compensating those dispossessed of land.
• Tenure security: Strengthening property rights, especially in communal and former homeland areas.

Progress has been slow, particularly on the tenure front. Many farmers on redistributed land receive only short-term leases, which discourages investment and leads to underutilisation. Sihlobo notes that since 2006, the government has purchased about 2,5 million ha of land for redistribution – more than half the area used for all grains and oilseeds in the country – but much of this land remains unproductive due to insecure tenure and lack of capital investment.

The expropriation without compensation debate

The recent passage of the Expropriation Bill, officially the Expropriation Act 13 of 2024,  has sparked concerns about further weakening land security. Sihlobo argues that, in practice, this act does not introduce a fundamentally new law but rather formalises existing processes. The real issue remains the need to strengthen land rights and ensure that land reform leads to productive, sustainable agriculture.

Unlocking regional potential: The case of the Eastern Cape

The Eastern Cape exemplifies both the challenges and opportunities facing South African agriculture. With vast tracts of unproductive land adjacent to highly productive commercial farms, the province suffers from high unemployment and poverty. Sihlobo calls for targeted interventions – such as improved genetics, infrastructure, and agribusiness partnerships – to unlock the value of livestock and crop production, integrate smallholders into value chains, and spur economic development.

A call to action

Sihlobo’s core message is a call for collaboration. Agribusinesses, policymakers, and local communities must work together to:

• strengthen land tenure and property rights;
• invest in infrastructure and value chains;
• mobilise capital for smallholder farmers; and
• ensure that land reform delivers both equity and productivity.

By addressing these challenges, South Africa – and sub-Saharan Africa more broadly – can move closer to realising its potential as a global agricultural powerhouse.

Conclusion

Africa’s journey toward agricultural self-sufficiency and prosperity is complex but achievable. As Sihlobo’s insights reveal, success depends on a combination of secure land rights, supportive policies, infrastructure development, and inclusive growth strategies. The path forward requires both visionary leadership and practical, on-the-ground action.