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Infrastructure investment gives Cape Winelands economy a boost

23 Aug 2021

Infrastructure investment, such as with the Ashton Arch Bridge in Ashton, is boosting the growing agriculture sector in the Cape Winelands, by improving the condition under which horticultural products are transported and connectivity between agritourism areas in the region.

This will also help create more jobs in this district.

Image source: Gallo/Getty

The agricultural value chain, which consists of agriculture and agri-processing combined, accounts for 16% of the value of goods and services produced in the Cape Winelands.

As the second largest employer, the agriculture sector accounts for 19% (51 689) of the labour force in the district, after Wholesale & Retail, which account for a significant share of 20% (54 279). Gross-farm income in 2017 was R23.3bn.

Export value increases

Agricultural exports from the Cape Winelands also show an increasing trend from 2005 to 2020.

In the past ten years, export values have increased at an average growth rate of 10%.

"In 2020, the seaports accounted for about 85% of the value of agricultural exports from the Cape Winelands. This was followed by 12% through inland and land borders and 3% from the airports. Road infrastructure is, therefore, a pivotal feeder to other modes of transport for agricultural exports from the Cape Winelands.

"Depending on the type of agricultural product exported, the choice of transport affects the speed of delivery, efficiency and costs. Therefore, good infrastructure is vital for the competitiveness of the sector.

"South Africa is known for its good quality fruit internationally, thanks to our roads' excellent quality. However, poor roads negatively affect the quality of products, especially fruit," says Ivan Meyer, Western Cape Minister of Agriculture.