The Women on Farms Project (WFP) has expressed grave concern over Minister Enoch Godongwana’s 2025/26 Budget, labeling it as “anti-poor” due to planned increases in Value Added Tax (VAT) and minimal adjustments to social grants. Women on Farms Project (WFP), a civil society organization dedicated to improving the lives of women farm workers in South Africa, states that the budget falls short of supporting the most vulnerable – particularly seasonal female farm workers who struggle to make ends meet.
WFP representative, Kara McKay states that the proposed VAT increase of 0.5% this year and next year is a significant blow to farm workers who already face financial hardships.
“Many women seasonal workers are employed only for a few months each year, leaving them reliant on social grants during the off-season. The increase in VAT will exacerbate their economic struggles”, said McKay.
A research study done by the Sustainability Initiative of South Africa (SIZA) revealed that 20% of farm owners were women, with 66% of full-time employees being men and 52% of part-time or seasonal employees being women. The Food and Agriculture Organization (FAO) has reported that women make up well over 50 percent of the agricultural labor force in many sub-Saharan African countries. While women constitute a significant portion of the agricultural workforce (43.4%) in South Africa, they are underrepresented in managerial roles (33.1%).
In 2024, the national minimum wage in South Africa for farmworkers was R27.58 per hour, which came into effect from March 1, 2024, the current minimum wage for all workers, including farm workers, has been adjusted to R28.79 per hour, effective from March 1, 2025.
However, in a recent WFP workshop, farmwomen revealed that they often resort to borrowing money at high interest rates to meet basic needs, pushing them deeper into a cycle of debt.
Nicolene Mcgee, a seasonal farm worker from Paarl, articulated the dire situation: “An increase of R30 per child means that I will get R1620 for three children. I have to pay R1450 per month for school transport, which leaves me with R230 to buy food, clothes, stationery, and toiletries – everything!”
“With this money, there is no hope of ever getting out of poverty. We, on the ground, remain the losers of South African society”, said Mcgee.
While WFP welcomes the extension of the Social Relief of Distress (SRD) grant to March 2026, and the proposal for a Basic Income Grant, the organization argues that the current budget does not adequately address the needs of the poor.
The WFP and other civil society organizations are advocating for a Basic Income Grant of at least R1,654 for adults to combat seasonal food insecurity faced by farm workers.
WFP also criticized the Minister’s framing of the SRD as an expenditure with high opportunity costs, emphasizing that taxing the wealthiest South Africans could provide the necessary funding for social programs.
According to the World Inequality Lab, a Wealth Tax on the richest 1% could generate between R70 and R160 billion annually, which could greatly alleviate South Africa’s budget deficit and address deep-rooted poverty and inequality.
McKay states that there is a stark contrast between the wealth of billionaires and the struggles of farm workers, and that this is morally indefensible.
“The budget fails to reflect a commitment to tackling poverty and inequality head-on, leaving vulnerable communities without hope”, said McKay.
Vice President of Hibarri, Cherrylee Samson states that the ICS2025 will use its platform to highlight the crucial role of women in agriculture and advocate for systemic changes that empower them.
The International Commodity Summit 2025 aims to position itself as a catalyst of change for women on farms by addressing systemic challenges and promoting gender-responsive strategies in agriculture.
The panel discussions at the summit will address structural barriers, and promote financial inclusion by increasing women’s access to credit, agricultural inputs, and technology, enabling them to enhance productivity and profitability.
As well as capacity building and education, which includes training and extension services by providing targeted agricultural training programs that equip women with modern farming techniques and sustainable practices.
“As South Africa continues to face significant challenges related to poverty and inequality, WFP urges the government to reconsider its budget priorities and implement a fair taxation system that uplifts the most disadvantaged, ensuring that all South Africans can thrive”, said McKay. For further information on The International Commodity Summit 2025, including registration details, sponsorship opportunities, and the full agenda, please visit [https://internationalcommoditysummit.com/].
