Staff Writer
South Africa’s wool industry continues to play a significant role in the country’s agricultural economy, despite its contribution having diminished from the dominant position it held more than a century ago, according to agricultural economist Wandile Sihlobo.
Speaking at the National Wool Growers Association (NWGA) Congress in Jeffreys Bay, Sihlobo reflected on the historical and current importance of wool production after attending a presentation by Stellenbosch University agricultural economist Professor Johann Kirsten.
Kirsten highlighted the industry’s historic significance, noting that wool production accounted for 71% of the gross domestic product (GDP) of the Cape Colony in 1866.
While South Africa’s economy has since diversified and industrialised, Sihlobo said the wool industry remains an important contributor to the agricultural sector.
“Wool has always been part of the agricultural economy of South Africa and the Cape Colony,” he said, adding that wool has consistently ranked among South Africa’s top 10 agricultural export products over the past century.
Sihlobo also pointed to the success of efforts by the NWGA, supported by government funding, to commercialise wool production in communal farming areas of the Eastern Cape.
He described the initiative as a significant but often overlooked achievement in integrating black farmers into the country’s export-oriented wool value chain.
According to figures shared at the congress, black farmers contributed just 0.5% of South Africa’s total wool production in 1989. By 2026, that share had increased to 16%.
Sihlobo suggested the actual contribution may be higher when accounting for production from black farmers operating on freehold land in other parts of the country.
The congress also examined opportunities to further expand the industry through improved sheep genetics, stronger biosecurity measures, better infrastructure and enhanced efforts to combat stock theft.
Sihlobo said improving the quality of sheep farming and wool production in key regions such as the Eastern Cape, Free State and Northern Cape could help increase exports, particularly given strong demand from China.
He noted that increased production volumes and improved wool quality could have a substantial impact on rural economies by boosting farmer incomes and generating greater economic activity in farming communities.
During a panel discussion on building an inclusive and sustainable sheep economy, farmers, government officials and industry advisors identified breeding programmes, biosecurity, stock theft and land governance as some of the key challenges facing the sector.
Sihlobo said continued collaboration between organised agriculture and government would be essential to unlocking the industry’s growth potential and ensuring that more rural communities benefit from the wool value chain.
