The Western Cape’s economic and agricultural landscape is set for a significant boost following the tabling of Vote 11: Agriculture and Vote 12: Economic Development and Tourism in the Western Cape Provincial Legislature today by Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer.
Tabling budgets that collectively exceed R1.7 billion, Dr Meyer reaffirmed the Western Cape Government’s commitment to building a confident, competitive, and kind province, one that delivers real opportunities for residents, attracts investment, grows jobs, and strengthens resilience across key sectors.
Economy Growing, Jobs Strengthening – Despite Global Pressures
The Western Cape economy continues to outperform national trends, driven by strong provincial leadership and strategic interventions under the Growth for Jobs (G4J) Strategy.
- The Western Cape recorded 1.4% economic growth in 2025, double the national rate.
- Unemployment fell to 18.1%, the lowest in the country.
- Agriculture expanded by 16.2%, adding R3.7 billion.
- Tourism reached a record 1.12 million international arrivals.
- The province now hosts two-thirds of all national BPO jobs.
“This is what happens when government governs with clarity, partnership, and kindness,” said Dr. Meyer.
The Department of Economic Development and Tourism’s (DEDAT) 2026/27 Main Budget of R596.765 million is fully aligned with the Growth for Jobs Strategy.
Key Programme Allocations (2026/27):
- Administration – R64.439 million
- Integrated Economic Development Services – R33.364 million
- Trade & Sector Development – R359.456 million
- Business Regulation & Governance – R19.852 million
- Economic Planning – R35.729 million
- Skills Development & Innovation – R83.925 million
Catalytic Agency and Entity Support:
- Wesgro – R127.355 million
- Atlantis SEZ – R41.534 million
- Saldanha Bay Freeport – R33.275 million
- Cape Town International Convention Centre – R6.8 million
Earmarked Funding Priorities (2026/27) include:
- Tourism Safety Programme – R3 million
- Drone/UAV Regulatory Sandbox – R3 million
- Export Accelerator Programme – R6.5 million
- Port & Logistics Performance Support – R3 million
- Tourism Growth Initiatives – R4 million
- Tech Ecosystem Enablement – R3.5 million
- Western Cape Investment Summit Continuum – R2 million
- Green Hydrogen (3-Capes MOU) – R600 000
- Just Energy Transition Plan – R800 000
Skills for the Future:
- R39.243 million for BPO & tech-sector skills.
- R2.020 million (TETA) for transport-sector training.
The Agriculture Budget for 2026/27 increases to R1.149 billion,
The Western Cape’s agricultural sector remains one of the most competitive and resilient in South Africa, contributing 10% to the province’s GDP and supporting 267 804 jobs, including 190 077 in primary agriculture and 77 728 in agri-processing.
In the third quarter of 2025, the sector grew by an exceptional 27% year-on-year, reaffirming agriculture as the most competitive sector across all five rural districts.
Seven of the Western Cape’s ten largest export products are agricultural, and 66% of the province's agricultural production is exported, accounting for more than 54% of all South Africa’s agricultural exports.
Programme Allocations:
- Agricultural Producer Support & Development – R333.282 million
- Sustainable Resource Use & Management – R157.265 million
- Veterinary Services – R152.090 million
- Technology & Research Development – R177.108 million
- Agricultural Economic Services – R56.684 million
- Agricultural Education & Training – R79.357 million
- Rural Development – R23.910 million
Targeted Earmarked Funding: Water, Markets, Energy & Biosecurity
The Department will deploy R89.533 million in earmarked funding—a 36% increase—to strengthen resilience and competitiveness:
- River Protection Works – R21.862 million
- Ecological Infrastructure – R44.068 million
- Ecological Infrastructure (alien-clearing, G4J) – R2.75 million
- Africa Market Activation – R5.5 million
- Mobile Abattoirs – R5 million
- Export Certification Online System – R4 million
- Solar PV for agri-worker houses – R2 million
- Vineyard Replacement (CASP cut mitigation) – R2 million
These allocations directly support climate resilience, water security, export readiness, and energy relief for rural communities.
Food Security and Household Well-Being
Guided by its impact statement—
“Grow the number of Western Cape residents who can feed themselves and their families with dignity and sustainably”— the Department will continue to scale household food-production initiatives, rural socio-economic upliftment, and agri-worker development.
The Department will rehabilitate 20,000 hectares of agricultural land, enhancing long-term water resilience and climate adaptation.
Protecting Livestock and Export Markets
The province continues to prioritise its biosecurity defences against major threats such as Foot-and-Mouth Disease (FMD).
Through its 21-point FMD response plan, the Western Cape has established an FMD War Room, intensified surveillance, and mobilised private veterinarians to support province-wide vaccination and containment measures.
Climate Change and Market Volatility
Climate trends, declining winter rainfall, reduced chill units, and increasing heat-stress days pose significant risks to agricultural output.
The province’s climate-resilience strategy is supported by partnerships with the Mediterranean Climate Action Partnership (MCAP) and Stellenbosch University’s School for Climate Studies.
Global agricultural trade remains constrained by protectionism, weakened multilateral trade systems, and geopolitical disruptions—including the war in Iran, which is driving up input costs and unsettling supply chains.
Building a Rural Economy of Opportunity
The Commodity Approach, supported by R100 million annually, continues to strengthen land-reform success, market integration, and rural competitiveness.
Across the full value chain, agriculture accounts for 14% of provincial GDP, creating jobs far beyond the farm gate.
The department is also a national leader in evidence-based governance, with 45 external evaluations completed since 2014 across land reform, rural safety, climate resilience, youth development, and veterinary systems.
Enquiries:
Media Liaison Officer to Provincial Minister of Agriculture, Economic Development and Tourism, Ivan Meyer
Daniel Johnson
Cell: 079 990 4231
E-mail: daniel.johnson@westerncape.gov.za
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