The Western Cape Government has unveiled a combined budget of more than R1.7 billion for economic development, tourism and agriculture, with a strong focus on job creation, export growth and climate resilience.
Tabling Vote 11 and Vote 12 in the provincial legislature on Tuesday, Ivan Meyer said the allocations reflect a commitment to building “a confident, competitive, and kind province” that delivers opportunities and attracts investment.
“This is what happens when government governs with clarity, partnership, and kindness,” Meyer said.
Economy outpaces national growth
The province continues to outperform the rest of the country despite global economic pressures, according to the statement.
The Western Cape economy grew by 1.4% in 2025, double the national rate, while unemployment dropped to 18.1%, the lowest in South Africa. Agriculture expanded by 16.2%, contributing R3.7 billion, while tourism recorded 1.12 million international arrivals.
The Department of Economic Development and Tourism (DEDAT) has been allocated R596.8 million for 2026/27, aligned with the province’s Growth for Jobs (G4J) strategy.
The bulk of the funding will go to trade and sector development (R359.5 million), alongside skills development and innovation (R83.9 million), with additional support for agencies such as Wesgro and strategic infrastructure zones.
Targeted interventions include funding for tourism safety, export acceleration, logistics performance and a drone regulatory sandbox, aimed at unlocking new sectors and improving competitiveness.
Agriculture budget rises to R1.15 billion
The agriculture budget will increase to R1.149 billion, reinforcing the sector’s role as a key economic driver.
Agriculture contributes 10% to provincial GDP and supports more than 267,000 jobs. In the third quarter of 2025, the sector grew by 27% year-on-year, making it the most competitive across all rural districts.
Programme allocations prioritise producer support (R333.3 million), research and technology (R177.1 million), and sustainable resource management (R157.3 million).
An additional R89.5 million in earmarked funding, a 36% increase, will be directed at water security, ecological infrastructure, export market access and energy support for rural communities.
Food security and rural development in focus
The department said it will continue scaling household food production and rural upliftment programmes, guided by its goal to ensure more residents can “feed themselves and their families with dignity and sustainably.”
Plans include rehabilitating 20,000 hectares of agricultural land to strengthen water resilience and climate adaptation.
Biosecurity and climate risks flagged
The province is also intensifying efforts to protect livestock and export markets from threats such as foot-and-mouth disease (FMD), with a 21-point response plan already in place.
Climate change remains a major concern, with declining rainfall, rising temperatures and shifting weather patterns posing risks to output. Global trade disruptions and geopolitical tensions are further adding pressure on the sector.
Driving long-term growth
Through initiatives such as the commodity approach, backed by R100 million annually, the government aims to strengthen land reform, boost market access and expand rural economic opportunities.
Meyer said the budget reflects a long-term strategy to build resilience while accelerating growth across key sectors.
“These allocations directly support climate resilience, water security, export readiness, and energy relief for rural communities,” he said.
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Wendy Dondolo
iol.co.za