South Africa’s agricultural sector was one of the strongest contributors to the country’s economic growth in 2025, according to Statistics South Africa.
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South Africa’s GDP increased by 0,4% in the fourth quarter (Q4) of 2025, following growth of 0,3% in the third quarter, according to Statistics South Africa’s latest GDP figures.
The agriculture, forestry, and fishing sector grew by 0,4% in Q4, mainly due to increased production of field crops and horticultural products. While the quarterly growth was modest, agriculture was one of the key drivers of economic growth over the full year.
Real GDP expanded by 1,1% in 2025, compared with growth of 0,5% in 2024. Agriculture, forestry and fishing grew by 17,4% over the year and contributed 0,4 of a percentage point to the country’s overall economic growth.
The sector was among the largest contributors to GDP growth, alongside finance, real estate, and business services, which increased by 1,9% and contributed 0,5 of a percentage point; and trade, catering, and accommodation, which increased by 2,3% and contributed 0,3 of a percentage point.
The manufacturing; electricity, gas, and water; and construction industries all recorded negative growth last year.
The Q4 2025 GDP figures also showed mixed trends in trade affecting agriculture. Exports of goods and services declined by 0,6%, partly due to a decrease in exports of vegetable products, prepared foodstuffs, beverages, and tobacco.
Imports increased by 0,5%, driven by increased trade in machinery and electrical equipment, vehicles and transport equipment, and live animals and products.
Household final consumption expenditure rose by 1,2% in Q4 and by 3,6% for the year, with spending on food and non-alcoholic beverages contributing to the increase.
Overall expenditure on GDP increased by 1,4% in 2025, following an increase of 0,4% in 2024.
Speaking to Farmer’s Weekly, Dawie Maree, head of agriculture information and marketing at FNB, said the strong annual growth in agriculture, forestry, and fishing reflected a positive year for the sector, particularly in maize and citrus production.
Looking ahead, however, he expects growth to moderate. “It is not doom and gloom. We are expecting another good maize harvest if climatic conditions remain favourable, but prices are not as promising as last year. In addition, foot-and-mouth disease is expected to have a greater impact on agricultural growth.”
Maree added that global geopolitical tensions are also creating uncertainty. The war on Iran has pushed oil prices higher, which could affect agricultural production costs.
“Prices spiked to about US$120/ barrel [around R1 960/barrel] and have since fallen back to around US$91/barrel [R1 490/barrel]. This will definitely have an impact on fuel prices, transport costs, and imported inputs.
“It seems that some of the risks have already been priced into the market, which might help buffer extreme price increases,” he said.
“We hope the conflict does not last long; otherwise, it could have a major impact on production costs, food prices, and, ultimately, the broader economy.”
