Why ESG Matters to Exporters
International buyers increasingly demand proof of ethical and legal labour practices. Standards such as SMETA, ETI, and Fairtrade are often required. The EU, UK and North America enforce new rules that hold companies accountable for how suppliers treat workers.
South Africa’s fruit industry is a significant part of the economy. In late 2023, it directly employed around 920,000 people. Horticulture alone makes up about 30% of total agricultural output and jobs. These numbers show why social responsibility is more than a regulatory checkbox — it affects national development and rural stability.
What’s Working—and What’s Not
Employment Conditions
The law sets minimum wages (R28.79/hour in 2025), work hours, leave, and the right to a payslip and contract. But many farms ignore these rules. Casual workers, often women, are denied contracts and benefits. Migrant workers face greater risks due to their legal status. While some farms follow the law, poor enforcement means many do not
Housing
Some farms have upgraded on-site housing and added water, electricity, early childhood education and transport services. But many workers still live in poor conditions or face eviction. Municipalities cannot meet growing housing needs, and tenure security laws are weakly enforced.
Education and Skills Training
Farms offer training in areas like pruning, irrigation and literacy. Programmes through AgriSETA and others help workers build skills and move into better roles. These efforts benefit both workers and employers but are not widespread.
Health and Wellness
Some farms offer health screenings, clinics, mental health services, and talks on issues like substance abuse. These services help fill public healthcare gaps and improve worker well-being. Health laws exist but, again, enforcement is limited.
Gender Equity and Safety
Women are over-represented in insecure jobs. Farms are starting to implement anti-harassment policies and provide ways to report abuse, but power dynamics and economic dependence limit their effectiveness. Women often fear retaliation for speaking out. Certifications like Fairtrade help address these issues, but they cannot replace strong local accountability.
Certifications and Regulations
Exporters rely on systems like SIZA, GLOBALG.A.P., GRASP, SMETA and Fairtrade to meet buyer demands. These certifications help build buyer trust, but do not guarantee widespread compliance. New EU regulations, such as the Corporate Sustainability Due Diligence Directive (CSDDD), now make ethical sourcing a legal obligation, not just a market preference.
Small and medium-sized suppliers must also comply, even if indirectly. This forces wider adoption of basic labour and social standards across the sector.
Why Social Investment Makes Business Sense
Farms that meet ESG expectations are more likely to secure contracts with buyers, attract investment and retain skilled workers. These practices reduce operational risk, improve productivity and lower turnover costs. Social investment is no longer just ethical—it is good business.
What Still Needs Fixing
Despite positive examples, significant issues remain:
- Widespread violations of labour law
- Poor housing and insecure tenure
- Inadequate municipal support
- Weak worker representation
- Gender inequality
- Inconsistent certification enforcement
Climate change exacerbates existing vulnerabilities, particularly for small-scale farmers and at-risk workers. Long-term solutions must include climate adaptation that considers social impacts.
What Needs to Change
Legal protections exist, but enforcement is weak. Real change needs:
- Stronger government oversight
- Support for local municipalities
- Better worker representation
- Fair collective bargaining
- Multi-stakeholder action, not just voluntary industry efforts
Collaboration between the government, NGOs and businesses is essential. ESG cannot be left to companies alone.
Conclusion
Social ESG is a business issue, not just a moral one. Farms that invest in workers and communities are better positioned for the future. But systemic problems like job insecurity, low wages, and land issues, require more than good intentions. They need enforcement, resources and cooperation across sectors.