An analysis of the impact of financial shocks on agriculture in South Africa

Solofelang MM Mosoang, Dr John-Baptiste Mabejane

This paper analysed the impact of financial shocks on the agricultural sector of South Africa. Using data collected from Statssa, the South African Weather Service and other sources an EGARCH model was adopted to conduct the analysis. The findings are that financial shocks do impact the agricultural sector of South Africa, with volatility spilling over during these shock periods into agricultural prices.