The Western Cape (WC) is a province that houses an important part of the agri-economy in South Africa. It has seen the worst of the drought on record, dam levels remain low and the province has gone as far as implementing restrictions on water usage throughout the region.
Dawie Maree, Head of Information and Marketing at FNB Agri-Business takes us through four reasons why the Western Cape Agricultural sector is important to the South African economy.
1. Why do we need it to rain in the WC? – The WC is probably SA’s most important export province in terms of agricultural products. The deciduous fruit industry, wine industry and increasingly the citrus industry is also setting base in the WC, these are all key export produce that contributes significantly to the overall agri-economy in South Africa. Should any of these industries suffer, it becomes detrimental to the agricultural industry as a whole in South Africa and by extension, the local economy.
2. What is the percentage impact on GDP contribution? – The WC contributes 24% to total GDP in South Africa. Agriculture has a total contribution to the GDP of the WC of roughly 4%. But what is significant to note is that agriculture and agro-processing are responsible for 18% of employment opportunities in the province.