Western Cape Agriculture records strong growth in second quarter of 2025

Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, has welcomed the positive performance of the province’s agricultural sector as reflected in the Agricultural Economic Quarterly Report for the second quarter of 2025.

The report provides an overview of the economic performance in the Western Cape, with a focus on the agricultural sector, and is informed by the national and sub-national economic performance statistics for the second quarter of 2025 (Q2 2025) released by Statistics South Africa (Stats SA) last week.

According to the report, the Western Cape economy expanded by 0.7% quarter-on-quarter and 1.3% year-on-year, with agriculture making a significant contribution to this growth. The agricultural sector accounted for 4.7% of the provincial economy and recorded a robust 2.5% growth quarter-on-quarter and an impressive 14% year-on-year increase.

Minister Meyer stated, “Agriculture remains a cornerstone of the Western Cape’s economy. The sector’s resilience and growth are a testament to the hard work of our farmers, agri-workers, and agri-processors. This performance supports our Growth for Jobs Strategy, which aims to achieve 4–6% economic growth per annum and create 6,000 new jobs by 2035.”

The report highlights that the Western Cape consistently contributes 20% to South Africa’s national agricultural gross value added (GVA), driven primarily by the horticultural sector. In Q2 2025, horticulture generated R44 billion in gross farm income nationally, with citrus, vegetables, and deciduous fruits leading the way.

Employment figures also reflect the sector’s importance. Agriculture and agri-processing combined supported 302,604 jobs in the province, representing 11% of total employment. Of these, 202,120 jobs were in primary agriculture, with crop production accounting for 81% of agricultural employment. The agri-processing sector added 100,484 jobs, with food manufacturing and beverage production being the largest contributors.

Minister Meyer added, “The agricultural sector not only drives economic growth but also plays a vital role in job creation, especially in rural communities. We remain committed to supporting this sector through innovation, infrastructure investment, and market access initiatives.”

Western Cape Government places Knysna Municipality under administration

The Western Cape Government recently decided to place the Knysna Municipality under administration in terms of Section 139(1)(c) of the Constitution. At a special Cabinet meeting, it resolved to dissolve the Municipal Council and appoint an Administrator with full executive and legislative authority until fresh elections are held within 90 days.

Premier Alan Winde said the decision was taken as a last resort after repeated failures in governance and service delivery. He stressed it was necessary to protect residents, restore stability, and ensure reliable services.

Local Government MEC Anton Bredell said Knysna has faced escalating crises despite years of support, including a Section 154 Support Plan, technical assistance, and millions in provincial funding. Chronic infrastructure breakdowns have left residents exposed to sewage spills, water shortages, and irregular waste collection.

A recent provincial assessment found that of 67 sewage pump stations, only 11 were fully functional, while nearly half were non-operational or missing pumps altogether. These failures have resulted in raw sewage flowing into homes, streets, waterways, and the Knysna estuary, creating severe health and environmental risks.

Despite interventions such as emergency water tankers, backup generators, and refuse vehicles, the municipality has not fulfilled its obligations, and conditions have continued to deteriorate.

“The situation has become untenable,” Winde said. “We must act in the interests of Knysna’s residents.”
Bredell added that recovery will take time but assured residents the province will work with national government, the Garden Route District Municipality, and local civil society to stabilise the municipality and prepare for fresh elections.
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