What is the role of financial institutions in sustainable agriculture?

Given the complexities facing the agriculture sector, it seems that the road ahead will be impossible to navigate without both the financial support and expertise of banking institutions and financiers

- Zhann Meyer

South Africa's farmers have had to contend with extreme weather conditions and increased electricity, fuel and labour costs. The Russia-Ukraine war has also put further significant pressure on production inputs, export markets and commodity prices. Russia is a noteworthy market for South Africa's citrus exports as well as apples and pears, and is the world's leading exporter of fertiliser materials in value terms. This has resulted in a [further] spike in the cost of fertiliser, which is critical to crop performance and, ultimately, yield.

What's more, over the past: five years, South Africa has imported around 30% of its wheat from Ukraine and Russia. And while we still have other trade partners, we need to boost local production as much as possible to help offset rising food prices.

Against the backdrop of these complex challenges and sometimes conflicting priorities (maximising yields, bolstering food security and creating jobs), farmers are also expected to minimise their environmental impact.

Essentially, this means trying to introduce sustainable agribusiness practices that are aligned with acceptable environmental, social and governance (ESG) frameworks without compromising yields and profitability.

ALIGNED WITH DEVELOPMENT GOALS