South Africa’s agricultural sector must strengthen partnerships between farmers, financiers, insurers, agribusinesses and government to sustain growth and bring more black farmers into commercial production. This was the view of speakers today at the Agricultural Development Agency’s (Agda) Annual Stakeholder and Member Engagement Conference in Boksburg, Gauteng.
Agda board chairperson Dr Mathews Phosa said the sector had achieved record agricultural exports of about US$15.1 billion in 2025, but many emerging farmers still struggled to access finance, insurance and markets.
“We build this sector best when we build it together. None of us can do it alone,” he said.
Phosa identified capital, risk and market access as three connected barriers to inclusive growth. He said conventional lending requirements, including title deeds, established credit histories and audited financial records, can exclude farmers operating on communal land or under state leases, as well as those in the early stages of building their businesses.
“We sometimes hear that emerging farmers are not bankable. In our experience, many have simply not yet had the opportunity to be banked.”
He called for partnerships that help farmers prepare viable business plans, build creditworthiness and connect production to buyers. Phosa also highlighted the need to manage agricultural risks, including foot-and-mouth disease (FMD), floods and heat, through improved biosecurity and accessible insurance.
Related stories
- Agda conference puts inclusive agricultural growth in focus
- Agda strives towards an inclusive agri sector
- Absa, Agda tackle fragmented funding for emerging farmers
- Agda conference to tackle finance, market access and agri growth
Building pathways to commercialisation
Agda chief executive Leona Archary said the organisation aims to connect established and emerging farmers with the resources and relationships needed to grow commercially.
“We see ourselves as a connector and partner. A trusted broker between established and new farmers,” she said.
Archary explained that Agda’s network covers more than 1.2 million hectares and includes over 45 000 farmers, more than 50 agribusinesses, over 26 financiers, seven commodity organisations and six traditional authority partnerships.
She reported that Agda had raised R32 million in corporate social investment and development funding, R6.4 million in advisory and strategy fees, and R33.6 million to help unlock a finance facility involving the Land Bank, Small Enterprise Development Finance Agency (Sedfa), and the Jobs Fund. The organisation had also facilitated transactions worth R586 million.
Archary stressed that finance alone would not resolve the barriers facing emerging farmers. Partnerships must also address risk and market access, including through mentorship, supply agreements and shared opportunities between established and new producers.
“Closing one while ignoring the other simply moves the problem along the chain,” she said.
Growth prospects tempered by rising costs
Wandile Sihlobo, chief economist at Agbiz and presidential envoy on agriculture and land reform, said South Africa’s agricultural economy was expected to grow by around 8% to 9% in 2026, although performance varied across subsectors and challenges remain.
Agricultural exports increased by 11% in the first half of 2026, building on the sector’s progress in expanding international markets.
“We’re actually in a sector that has more than doubled. It has put us to be the 32nd largest agricultural exporter in the world, the only African country in the top 40,” Sihlobo noted.
However, rising fuel and fertiliser costs, infrastructure constraints, animal diseases and geopolitical uncertainty continued to put pressure on producers. He noted that fuel and fertiliser accounted for a substantial share of production costs, with prices having risen by around 20% to 30% compared with a year earlier.
Sihlobo called for stronger cooperation between the government and the private sector to improve infrastructure and expand trade opportunities, particularly in Asian markets. He said South Africa needs to make progress on trade agreements to strengthen its competitiveness and long-term export prospects.
Climate conditions are another concern. Phosa warned that El Niño-related heat is already affecting production in some areas, including damage to macadamia flowers and potential harvest losses.
Sihlobo also highlighted the risk of dry conditions and heat increasing pressure on water resources and irrigation.
The conference focused on turning agricultural growth into broader participation through stronger links between finance, risk management and markets. Speakers said sustained collaboration would be essential to help more farmers build viable commercial businesses while supporting the competitiveness of the sector as a whole.
READ NEXT: Becoming bankable: How to get your farm ready for finance
