More than R2bn has been allocated to the department of rural development & agrarian reform for the 2022-2023 financial year to ensure sustainable rural livelihoods and food security in the province.
Finance MEC Mlungisi Mvoko said the agriculture sector, much like the automotive sector, had performed well over the years.
“Though we observed a decline in the agriculture sector in the third quarter of the 2021-2022 financial year, the recovery of both national and provincial economies is anticipated over the short to medium term, propelled mainly by higher commodity prices, higher domestic and global demand for agriculture produce, particularly citrus, pineapples and deciduous fruit.”
Mvoko said this year’s focus included the commercialisation of the agriculture value chain to industrialise and transform the sector.
“This is to enhance infrastructure development to enable economic growth and to address agri-entrepreneur skills development in line with the province’s job creation, economic transformation and education, skills and health priorities.”
From rural development’s total budget, the treasury has allocated R134.8m in the 2022-2023 year and R411.4m in the 2022 medium-term expenditure framework to improve agriculture infrastructure to support commercialisation of all commodities in the province.
Mvoko said: “We are also allocating an amount of R263.3m in 2022-2023 and R829.3m over the 2022 MTEF to improve productivity of crop production by providing inputs and mechanisation services.
“Additionally, support will be provided to 370 livestock enterprises to enhance herd productivity through distribution of improved genetic material to smallholders and communal farmers.”
Mvoko said the government was forging ahead with infrastructure development for the establishment of agri-processing sector development in the Wild Coast region towards regional economic development and agriculture sector development.
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