A recent study has revealed that South Africa may be significantly underestimating the contribution of agriculture to its economic growth. The findings, published by a team of economists and researchers, suggest that outdated measurement methods and insufficient data collection have led to an underrepresentation of the sector’s impact on the country’s GDP.
Source:- bbc news
Agriculture, a key pillar of South Africa’s economy, not only provides food security but also supports millions of livelihoods, particularly in rural areas. However, the study highlights discrepancies in official statistics, which often overlook the informal and subsistence farming sectors. This oversight could mean that agriculture’s actual contribution is far greater than the reported 2.5% of GDP.
Source:- news 18
The researchers pointed to factors such as the exclusion of small-scale farmers, limited tracking of value-added products, and outdated valuation methods as primary reasons for the undercount. They also stressed that accurate data is crucial for policy formulation, investment decisions, and resource allocation.
Dr. Thabo Mkhize, one of the lead authors, stated, “A more comprehensive evaluation of agriculture’s role could reveal its true potential as a driver of economic growth and employment.” The study calls for improved data collection methods, including advanced satellite imaging and farmer surveys, to better capture the sector’s full contribution.
Agriculture experts and policymakers have welcomed the findings, with many advocating for reforms to better reflect the sector’s importance. By addressing these gaps, South Africa could unlock new opportunities for growth, investment, and sustainability in agriculture, particularly as the country faces challenges like climate change and food security.
The study serves as a reminder of the importance of accurate data in understanding and leveraging the potential of critical economic sectors.
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