Government’s latest medium-term budget has been welcomed by the agricultural sector for its strong emphasis on infrastructure rehabilitation, logistics reform, and municipal recovery; crucial elements to the long-term growth of South African farming and food production.
Finance Minister Enoch Godongwana outlined plans to restore the country’s logistics system, improve port and rail efficiency, and stabilise critical water infrastructure. He noted that 11 private train operators are now active across 41 routes, and port waiting times have dropped by 75%, with Durban’s Pier 2 opening to private investment expected to unlock R200 billion over five years.
These logistics improvements are particularly relevant for agriculture, where the efficient movement of feed, poultry and other goods remains vital to competitiveness.
Wandile Sihlobo, chief economist at Agbiz, said the budget’s focus on network industries (roads, rail, ports, water and municipalities) is key to unlocking growth in agriculture. He also welcomed the lower inflation target and Treasury’s commitment to structural reform.
Water security emerged as another major theme. The Water Services Amendment Bill and the establishment of a National Water Resource Infrastructure Agency by 2026 aim to clarify institutional roles and boost investment. With R12 billion pledged for 80 water projects, including 36 in South Africa, the sector could see much-needed relief for both crop and livestock producers.
Additional measures include a new infrastructure bond to raise R15 billion, R4.1 billion for flood-related repairs, and a reconfigured Budget Facility for Infrastructure with four annual bid windows. Municipal reforms are also being fast-tracked, with new partnerships involving the Development Bank of Southern Africa and the Municipal Infrastructure Support Agent to strengthen water and electricity delivery.
For the poultry and wider farming sector, the renewed infrastructure and logistics agenda signals progress toward a more stable, cost-efficient production environment — one that could ease transport bottlenecks, reduce input costs and strengthen food security in the medium term.
