Connecting the Dots: Agriculture’s Path to Prosperity Defined by Collaborative Action
The Agricultural Business Chamber (Agbiz) Media Day, held in Pretoria on 5 December 2025, served as a crucial barometer for the state of South African agriculture, uniting industry experts and media under the theme: “Connecting the Dots: Collaborative Solutions Across Policy, Markets, Logistics & Trade for 2026”. Chaired by Agbiz Digital Communications Manager, Temba Msiza, the event delivered an assessment of the sector marked by profound optimism in production capabilities, countered by significant policy and infrastructure hurdles that necessitate collaborative private-public intervention.
Resilience and Uneven Growth: The 2025 Economic Picture
Chief Economist Wandile Sihlobo opened the day by releasing the Agbiz/IDC Agribusiness Confidence Index (ACI), which climbed slightly by 5 points to 67 in the fourth quarter (Q4) of 2025. This reading, comfortably above the 50-neutral mark, reflects a general optimism driven primarily by favourable weather conditions, sustained strong export volumes for field crops and horticulture, and better port efficiencies.
Sihlobo highlighted the robust capital investments pouring into the sector, noting that tractor sales have doubled since the start of the year, with combined harvester sales up 10% for the first 10 months of 2025 compared to the same period in 2024. Total agricultural exports have reached US $11.7 billion for the first three quarters, up 10%, showcasing the sector’s export strength.
However, this growth is distinctly uneven. While field crops and horticulture are performing well, the livestock industry remains under pressure due to Foot-and-Mouth Disease (FMD). The full recovery of this crucial sub-sector hinges on the speedy and effective rollout of the nationwide vaccination strategy to the approximately 12.1 million national cattle herd, of which 7.2 million are in commercial hands. The sector overall is projected to grow substantially in gross value added, potentially exceeding 8% expansion for the year.
Breakthroughs in Logistics: From Crisis to Collaborative Solutions
Addressing the complex operating environment, CEO Theo Boshoff detailed significant breakthroughs achieved through collaboration between the private sector and Transnet.
On ports, clarity was finally achieved after two years regarding the Public-Private Partnership (PSP) for Pier 2 in Durban. The court ruled that although there were procedural irregularities, they were not material enough to halt the joint venture (51% Transnet Port Terminals / 49% ICTSI), which is due to begin operations in January 2026. In Cape Town, where there is no PSP, Boshoff reported steady improvement and the commissioning of 18 new rubber-tired gantries (RTGs) with anti-swing technology.
Crucially, Boshoff highlighted the success of the miniature Public-Private Partnership known as the Genset project in Cape Town. This industry-funded initiative, which introduced 128 mobile plug points, achieved a 43% utilization rate and was responsible for handling 4,644 containers that otherwise would have been redirected or rerouted. The project cost R1.4 million but saved the industry at least R3 million in direct costs in the first season, demonstrating the high return on investment for agile, targeted private-sector interventions. The project is now being repeated for the 2025/2026 season.
In rail, institutional reforms gained critical momentum. The Network Statement was finalized, setting the terms for private access to public rail networks, and 11 private Train Operating Companies (TOCs) have been announced, which will hopefully commence operations next year. Dr Charl van der Merwe, General Manager: Agbiz Grain, noted that the grain sector, whose members represent approximately 98% of South Africa's silo storage capacity, is keenly awaiting the Request for Information (RFI) for the 94 B-network lines that connect silos and service rural, agricultural areas.
Policy Crossroads: Navigating Water Scarcity and Regulatory Uncertainty
Annelize Crosby, Head: Legal Intelligence, focused on regulatory changes posing long-term risks to the sector.
• Water Regulation: Amendments to the National Water Act, expected to be tabled in Parliament soon, contain consequential changes, including the prohibition of water trading or the transfer of water use entitlements. The bill also elevates the prioritization of addressing past racial and gender discrimination when issuing licenses. This is highly significant, given that irrigation supports between 25% and 50% of national production, including up to 90% of high-value crops like fruit and wine. Uncertainty over water access could negatively impact investment and farm values.
• Expropriation and Land: The contentious issue of land tenure remains on the agenda, specifically with an ongoing private member’s bill seeking to amend Section 25 of the Constitution, and a key test case regarding the Municipality of Ekurhuleni's expropriation without compensation set for February 2026.
• Agro-chemicals: Agbiz continues to engage against the international and domestic activist drive to ban highly hazardous pesticides, arguing that any transition to biological alternatives must be phased, managed, and realistic for local conditions, warning against unintended consequences for food security.
Trade and Transformation: Pivoting Towards New Markets
Wolfe Braude, Agbiz Fruit Manager, detailed the sector's proactive response to global trade disruption, specifically the introduction of US tariffs. Agriculture is now in a season of accelerated trade diversification, strengthening existing markets (Africa, EU, UK) while prioritizing “quick wins” in new markets. Agbiz advocates for prioritizing negotiations with the Gulf Cooperation Council (UAE, Saudi Arabia) and certain East Asian countries (Japan, South Korea). For complex partners like China and India, the suggestion is to pursue Partial Scope Trade agreements focused specifically on agricultural value chains.
On transformation, Agricultural Economist Thapelo Machaba launched the new Diversity, Equity, Inclusion, and Belonging (DEIB) Network. This neutral forum aims to help companies collaborate on transformation, confront bias, promote inclusive leadership, and address the necessity of integrating younger generations into an aging workforce. Machaba also confirmed Agbiz’s work with the Agri Council on proposed amendments to the AgriBEE Sector Code, requiring economic research to demonstrate how changes, particularly those relating to management levels, align with the Agricultural Master Plan.
Implications for 2026: A Focus on Implementation
The presentations collectively underscored that 2026 will be defined less by policy debates and more by implementation. Key priorities for the year include the FMD vaccine rollout, operationalizing private sector participation in the 94 B-network rail lines that service rural areas, managing the impact of the pending water regulation amendments, and advancing strategic trade negotiations in high-value Asian and Gulf markets.
The sector’s ability to turn the corner on competitiveness and transformation hinges on successfully translating policy reforms into tangible, on-the-ground reality, particularly in resolving the high cost and inefficiency imposed by infrastructure failure.
