Directorate for Food, Agriculture, and Fisheries 1 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT ÉCONOMIQUES Review of Agricultural policies in South Africa Václav Vojtech Directorate for Food, Agriculture, and Fisheries Pretoria, 19 April 2006
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Directorate for Food, Agriculture, and Fisheries 1 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT.
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Directorate for Food, Agriculture, and Fisheries 1
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT ÉCONOMIQUES
Review of Agricultural policies in South Africa
Václav Vojtech
Directorate for Food, Agriculture, and Fisheries
Pretoria, 19 April 2006
Directorate for Food, Agriculture, and Fisheries2
Overall situation
• Largest African economy, highest GDP per capita
• Highly unequal income distribution• Dual economy, high contrasts in infrastructure
developments• High levels of unemployment and poverty• Large low skilled population and HIV/AIDS are
major constraints to growth
Directorate for Food, Agriculture, and Fisheries3
Important policy reforms
• Highly regulated economy …• … was partly liberalised in the 1980s and early
1990s• Economic reforms completed after 1994• Reforms also addressed social injustices,
inequity and poverty (Black empowerment, Land reform)
• Decentralisation of state administration
Directorate for Food, Agriculture, and Fisheries4
Macroeconomic reforms
• Price and market liberalisation• Tight monetary and fiscal policies provided
stability• Increase in real interest rates and floating
exchange rate• The economy is more open to world markets
but is still vulnerable to outside shocks• Reforms did not succeed to bring the high
level of unemployment down
Directorate for Food, Agriculture, and Fisheries5
Agricultural situation
• Primary agriculture is 4% of GDP and 10% of reported official employment
• Potentially arable land and water resources are limited and unevenly geographically distributed
• Highly dualistic nature of farming
Directorate for Food, Agriculture, and Fisheries6
Development of agricultural production(Index 1990=100)
60
80
100
120
140
160
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Agriculture Field crops Horticulture Livestock
Directorate for Food, Agriculture, and Fisheries7
South Africa agro-food trade
• 30% of production exported • … mainly wine, fruits and vegetables, sugar,
and maize• Europe main destination for exports, followed
by Africa and Asia• Imports distributed more evenly