Working towards sustainable growth
I was privileged to attend the 2024 Agbiz Congress last week, joined by my colleague Hein van der Merwe, Finance Manager at Netafim South Africa. The congress was themed ‘sustainable growth in a changing global landscape’.
The high-level discussions and networking we had the opportunity to engage in, once again reminded me of the critical value of Agbiz’s work. Given the impact Agbiz is positioned to make, I believe all South African agribusinesses should not only be members but also actively take part in the many opportunities for conversation and knowledge-sharing made possible by Agbiz. We cannot underestimate the value of Agbiz’s role as mouthpiece for the industry, making sure our inputs are heard and reach the right people.
Led by Agbiz, we as an industry can indeed acknowledge the changing global landscape but shift our focus towards sustaining growth in this uncertain environment, as embodied by the congress theme.
I cannot fail to mention the massive networking value of attending events such as this one, which creates opportunity for high-level networking where you get to connect directly with decision-makers in the industry. This creates important connections between different sectors in the industry and allows the industry to move forward as a unified body.
My Takeaways
One of the panel discussions that I found especially significant was the one led by Frans van Wyk of Agrifusion. This discussion focussed on ESG and looking beyond compliance to create value. ESG is a framework used to assess a company’s practice and performance regarding important environmental, social, and governance factors. The drive towards considering ESG compliance in investment and other business decisions has been coming for quite some years, and in recent years there has been an increased focus on ESG compliance, green initiatives, climate-smart agribusiness, and similar focuses, especially in terms of funding, development, and market access requirements.
I want to appeal to all South African agribusinesses and beyond to work hard to move past the point where taking responsibility for environmental, social and governance-related matters is a mere duty done to tick the necessary compliance boxes. Effective action in this regard must come from a place of conviction. You should care, rather than merely comply.
The increased focus on ESG compliance is driven by a host of factors, including consumer demand, requirements set by export markets and increased incidences of extreme weather. Whatever the drivers may be, it is significant that the large financial institutions, governments, and other important decision-makers are coming to the table. There is opportunity for stakeholders across sectors to work together and play their part in environmental, social and governance compliance. Click here to watch a video where Frans de Klerk shares highlights from the panel discussion.
During his presentation, Prof Mzukisi Qobo, South Africa's Ambassador to the World Trade Organisation, reminded delegates that industries must never stop with their work focussed on opening agricultural export markets. Risk must be managed, and diversification is crucial as the market potential in many traditional markets is diminishing. He called for ever-increasing collaboration between government and the private sector for sufficient actions around opening markets. I agree that it has taken many industries too long to open multiple markets. These industries are then caught off-guard when the markets they depend on lose capacity - we have seen this multiple times. There is no doubt that there is still a lot of potential to unlock and that the South African agricultural sector must continuously work towards opening new markets and unlock this potential.
During the BASA session on sustainable agricultural financing, led by Gilly Dlamini, I asked the banking representatives when the financing of water-efficient irrigation systems, such as drip irrigation, and other precision irrigation technologies will become a reality. Although a lot of progress has been made in the type of financing offered to farmers, I believe there is still some progress to be made in terms of supporting farmers in their efforts to embrace highly efficient and precise technologies that drive sustainability, efficiency, and profitability on the farm. I was encouraged by the representatives’ willingness to engage on this topic. Netafim South Africa wants the financial sector to take action in this regard, and we are open to discussions around bringing ideals of financing sustainable agriculture into reality. Click here to watch a video where Dlamini shares highlights from the discussion.
The panel discussion focusing on infrastructure as an enabler of competitiveness was crucial given the challenges faced in infrastructure and the massive impact this can have. It was encouraging to hear the speakers share about public private partnerships that are stronger than ever and that cooperation is prevalent. From their discussions it was clear that a lot of talk is now turning into action and that there are many role-players doing incredible work. Click here to watch a recap on this session by Rudi Dicks, Head of the Project Management Office in the Presidency.
I was especially impressed by the details shared by Dr. Andrew Shaw, Group Chief Officer: Strategy and Planning of Transnet, during his participation in this panel discussion. He shared about recent progress made at Transnet and further actions planned. I think there is a lot of work still to be done in this regard, and it may still take very long for all problems to be ironed out. It is however clear that these problems are actively being tackled, one by one.
A Vehicle of Growth
While listening to the various speaker presentations and panel discussions, I was struck by the maturity of the agribusiness sector. Many of the panel discussions saw panellists respectfully disagreeing on the topic at hand. It was encouraging to see how an informed and structured debate can take place about the many important matters the congress took on, and that there is room for industry members to disagree, but still work together towards one common goal. I believe much more progress can be made through positive friction, rather than through meaningless discussions where everyone sings the same song.
Positive statistics around growth in the agricultural sector amid a host of challenges recently shared in the media and at the 2024 Agbiz Congress, reminds us that agriculture truly is a cornerstone of the South African economy. Panellists at the congress agree that South Africa faces many problems and that its only option is to grow out of these problems. There was also agreement that the agricultural industry is the perfect engine to generate this growth. We have a world-class agricultural industry, with a rich history and a high level of expertise across the board. Listening to the words of DG Mooketsa Ramasodi, Director-General: Department of Agriculture Land Reform and Rural Development, it was reassuring to hear that the value of this industry is clear to government and that there is respect for the industry’s abilities. I believe that government is realising that this sector just needs its support and has the necessary tools to go forward and beyond on all levels. Click here to watch as DG Ramasodi shares thoughts during the congress.
I left the congress feeling very positive, and knowing that agriculture is a good industry to be in. Amid the many uncertainties it remains a resilient sector. I also believe that agriculture brings South Africans together. The industry still has many strides to make, but I believe it is in a good place. If the industry can keep moving forward and the many challenging macro-economic factors can normalise to some extent, I believe the agricultural industry will see an even higher level of strength.
Check on these links for feedback from the congress shared on agricultural media platforms:
Agbiz Congress: Agriculture needs infrastructure upgrade to thrive.
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