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This policy brief highlights the adverse economic consequences of the current drought in the Western Cape on the agricultural sector in order to provide guidance to decision makers in dealing responsibly with this disaster.

As is well known by now, the Western Cape is currently experiencing the worst drought in recorded history. The impact of this catastrophe on the provincial economy is exacerbated by the fact that the agricultural and agri-processing sectors combined contribute more than 10% of the Province’s GDP and employ around 340 000 workers whose jobs have now become even more vulnerable. These sectors also produce more than half of the net agricultural exports of South Africa at a time when the Rand has been appreciating against almost all of the leading currencies in the world.