Since 2008, South Africa’s economy has stalled, slowing to annual average growth of 1.8 percent year on year.
An August McKinsey report identifies five key sectors that can accelerate an upturn in the country’s economic fortune. One of these key markets is agriculture.
According to McKinsey, raw and processed agricultural exports are vital to the economy, and South Africa could “triple its agricultural exports by 2030.”
This could be a key driver of rural growth, benefiting the nearly one in ten South Africans who depend on subsistence or smallholder farming. Capturing this potential will require a bold national agriculture plan to ramp up production, productivity, and agroprocessing.
Writing in the report, McKinsey’s strategists believe that agriculture and other key markets can overcome the economy’s “low-growth trap” and shift the “pessimism” that has set in.
Read the full report and see the graphs on the McKinsey website here: http://www.mckinsey.com/insights/africa/south_africas_bold_priorities_for_inclusive_growth?cid=other-eml-alt-mip-mgi-oth-1509LINK_NAME=title]