How minimum wage is strangling agricultural sector growth

Loading player...
GUEST – Johan Wege - Chair of Agri SA's Centre of Excellence: Labour

Agri SA said the rapid national minimum wage increase is throttling South Africa’s agricultural sector growth. The organisation said it would be making a submission to Parliament that demonstrates the negative impact of the national minimum wage on the growth and sustainability of the agricultural sector. “Unless the increases of the minimum wage in the agricultural sector are aligned with inflation, there is a real risk of the agricultural sector contracting with devastating effects for employment in the sector.”

The agricultural sector has proven remarkably resilient despite facing numerous crises – including the Covid-19 pandemic.

However, Agri SA warned that the pressure on the sector is beginning to show. The sector grew by 17.8% in 2020 but only 7.4% in 2021 and a marginal 0.9% in 2022. This slower pace of growth is reflected in the labour statistics recently released by Stats SA, which showed only a 0.8% quarter-on-quarter increase in employment in the agricultural secto
28 Aug 2023 1PM English South Africa Business News · Investing

Other recent episodes

One Year Into The Two-Pot System: How Much Have South African’s Withdrawn?

Guest - Nzwa Shoniwa, Managing Executive: Sanlam Umbrella Solutions From 1 September 2024 to 31 August 2025, Sanlam Corporate paid out approximately R4 billion across 223 000 emergency-pot claims with R1 billion in tax flowing to SARS. On average, we are paying out about R150 million a month, but when…
11 Sep 10AM 14 min

Discovery Group Delivers 30% Rise In Profits

Guest - Hylton Kallner, CEO of Discovery South Africa and Discovery Bank Discovery has delivered record results, posting a 30% surge in profit and entering a new phase of scaled growth with its two main composites, Discovery South Africa and Vitality. We’re joined by Hylton Kallner, CEO of Discovery South…
11 Sep 9AM 18 min

FirstRand Post 10% Rise In Earnings And An Impressive 20% Return On Equity

Guest – Mary Vilakazi – CEO of FirstRand South Africa’s largest banking group, FirstRand, has posted a 10% rise in earnings and an impressive 20% return on equity – well above peers – despite economic headwinds. In this episode, we speak to Mary Vilakazi, the Group CEO, about what drove…
11 Sep 9AM 16 min

What Tractor Sales Tell Us About The State Of Agriculture In South Africa?

Guest – Thabile Nkunjana, Agricultural Economist Agricultural Machinery Sales indicate that August tractor sales of 700 units were 22% more than the 572 units sold in August last year. There have been welcome reactions from agricultural associations about the increase in machinery sales.
10 Sep 10AM 20 min