Main Driver of Economic Development in South Africa: A Critical Comparison of the Off-farm and On-farm Economic Sectors

South Africa has a dualistic economic structure that includes the on-farm and off-farm economic sectors. This paper is concerned with whether it is the on-farm or off-farm economic sector that serves as the main driver of economic development in South Africa. Agriculture has been previously regarded as the main driver of economic development in South Africa. The Lewis model of economic development is used to gain perspective on the dualistic economic structure of South Africa. This study relied extensively on secondary data, using thematic analysis for qualitative data and Microsoft Excel for quantitative data presentation and analysis. The findings show that the off-farm economic sector holds a major contribution to South African economic development compared to the on-farm economic sector. For example, in 2019, the on-farm economic sector made a significant distribution of employment with about 4.2% but still, the main distribution of employment has been made by the off-farm economic sector through community and social services which recorded about 4.6% of employment. The main issue related to the on-farm economic sector is that it consists of informal economic activities that are struggling to contribute to economic growth. This is because the information generally and statistically on the trade, value and main input of these economic activities is not well recorded in South Africa. There is a need for the government to introduce policies that will guide the operation of the informal economic activities associated with the on-farm economic sector.