South Africa is one of the 30 driest countries in the world, with an average annual rainfall of less than 500mm, far below the global average of 850mm. Recent events, including the Cape Town drought of 2015–2018 and the multi-year Eastern Cape drought, highlight the volatility of water availability.
Rising temperatures and erratic rainfall patterns threaten to reduce freshwater supply by up to 20% by 2080, forcing farmers to adapt quickly or risk curtailments to irrigation and production. Analysis from the newly released Absa AgriTrends report underscores that climate variability remains the most urgent driver of water risk in South African agriculture.
Rising costs and compliance pressures
With agriculture accounting for more than 60% of South Africa’s water use, the sector is particularly vulnerable. New policies, such as the upcoming Raw Water Pricing Strategy, coupled with pollution charges, will increase costs and demand stricter effluent and fertiliser management.
Producers and processors must also comply with ESG requirements from buyers and financiers, as proof of sustainable water use is becoming a prerequisite for market access and funding. The Absa AgriTrends report notes that these rising costs and compliance burdens are expected to reshape operational priorities for both large and emerging producers.
Harnessing alternative water solutions
To navigate these pressures, Absa encourages farmers to invest in precision irrigation, rainwater harvesting, greywater recycling and groundwater extraction, supported by accurate monitoring systems.
These measures not only reduce dependency on municipal supply but also enhance operational resilience during supply interruptions. Rainwater dams, boreholes and smart metering systems are increasingly viewed as essential infrastructure rather than optional investments.
The Absa AgriTrends analysis highlights that farms that adopt these alternative water solutions are likely to gain a competitive edge in both domestic and export markets.
Water as a strategic asset
Water is no longer just a production input. It is a strategic asset underpinning food security, yield stability and export potential. Farms that track usage, reuse responsibly and discharge safely can safeguard access to finance and maintain buyer confidence.
In the ESG context, stewardship of water resources defines both competitiveness and sustainability, with success measured by efficiency, compliance and contribution to the broader water system.
As climate change and infrastructure challenges persist, farms and processors that prioritise water efficiency and alternative sourcing will stand out in domestic and global markets.
Absa’s approach supports these transitions, and helps clients reduce demand, secure backup supplies and implement innovative solutions that future-proof operations. According to the Absa AgriTrends report, in the years ahead, resilience, profitability and responsible water management will be inseparable for South African agriculture.
