Agricultural sector maintains a double-digit growth while rest of the economy is on its knees
Yesterday the Statistician General, Mr Risenga Maluleke, released the Gross Domestic Product (GDP) numbers for the second quarter of 2020. The GDP fell by 51% in the second quarter of 2020, which is a second successive decline after the 1.8% drop in Q1 of 2020. The heavy fall in Q2 is attributed to the impact of COVID-19 shutdown that restricted operations and trade in various economic activities, except agriculture, health and other essential services.
Like in the first quarter, agriculture came out as a strongest performer in Q2 of 2020, growing by 15.1%, which showed a continuation of sector’s positive run after an impressive 28.6% witnessed in Q1 of 2020. Agricultural growth is a direct result of adaptive farming systems and good harvest crop obtained in grains, fruits and animal products. Export oriented products such as fruits, fibre and processed products boosted sectoral growth in the second quarter of 2020. Between April and June 2020, agriculture and food exports were on average 21% above the corresponding period in 2020 which help the sector optimise its foreign earnings.
The double-digit growth in agriculture for two consecutive quarters affirms the critical role agriculture could play in spearheading the country’s economic recovery and growth journey post COVID-19 pandemic.
The positive sectoral growth also shows the fruits of strong collaboration between government and industries in formulating and implementing enabling policy frameworks. At the onset of COVID-19, the social partners in agricultural sector worked hand-in-hand in the development of agricultural related COVID-19 regulations that help cushion the industry. The social partners also build an end-to-end agro-food chain tracker system that helped us to identify blockages and provide instant support to farmers and agribusinesses during lockdown.
Taking into account the seasonality of various agricultural products, the sector could still obtain positive growth numbers in the upcoming quarters. This could be achieved by maintaining the close public-private collaboration in instituting reforms and support measures critical for farmers and agribusiness prosperity in the midst in COVID-19 interruptions and subdued global markets.
Enquiries:
Mr Reggie Ngcobo
Cell: 082 883 2458
E-mail: reggie.ngcobo@gmail.com
