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 4PM English South Africa Business News · Investing

Other recent episodes

SANEDI on Key AEF Takeaways critical for South Africa's Energy Future

Prof. Sampson Mamphweli, the Head of the Energy Secretariat at the South African National Energy Development Institute (SANEDI), joins us for his view on South Africa's future. He unpacks policy and project-based initiatives that came to the fore on the agenda at this week's Africa Energy Forum.
18 Jun 3PM 11 min

Africa’s Power Market Is Learning to Share: AEF 2026 Highlights

From Uganda’s first independent transmission project to South Africa’s R440bn grid expansion plan, AEF 2026 showcased a continent shifting toward private‑sector participation and distributed energy. Absa CIB's Nikhil Kasiram breaks down the biggest trends shaping Africa’s power future.
18 Jun 3PM 12 min

Pivot Point: BrightRock at 15 and CEO Stevens on Leading the Next Chapter

BrightRock celebrates 15 years of disrupting the life insurance industry with its needs‑matched model. CEO Suzanne Stevens reflects on her leadership journey, the company’s growth to over 12% market share, and the future of life insurance in a rapidly changing consumer landscape.
18 Jun 3PM 18 min