Budgetary allocation to agriculture in South Africa: an empirical review from 1994 to 2014

Abstract

The agricultural sector is no doubt one of the most important sectors in sub-Saharan Africa, considering its prime place as a livelihood source and employer of the vast majority of residents, especially those in rural areas. In South Africa, for instance, agriculture plays a very significant role despite its declining contributions to the Gross Domestic Product (GDP) for some years now. This dwindling share of agriculture in the country’s GDP could be attributed to a number of factors ranging from changing government policies, declining budgetary allocation to the sector, and aging infrastructure and population growth. It is against this backdrop that a review of the effect of this downward slide in budgetary allocation on the development of the country is considered to be important