Digital tools are transforming agricultural practices in South Africa

Agricultural producers are increasingly using digital platforms to improve their operations, according to Nedbank Commercial Banking. Desri Lesele, Senior Value Proposition Manager for Agri-business Clients at Nedbank Commercial Banking, noted that for decades, agriculture was based on tangible elements: land, machinery, storage systems, and long-standing relationships with suppliers and buyers.

Lesele emphasized that while these traditional aspects remain important, another layer—digital platforms—is being integrated into the process. These platforms allow farmers to procure resources, obtain financing, and make more effective daily decisions.

He pointed out that what is noteworthy is not just the existence of these tools, but the speed of their adoption in daily agricultural operations. According to Lesele, South Africa has all the necessary basic conditions for such a transition: mobile phone usage is almost ubiquitous, smartphones are widely prevalent, and a World Bank study indicates that nearly 80% of the population has internet access. In the agricultural sector, digital tools are already helping farmers find resources, compare them, receive consultations, and utilize financial services.

Lesele added that whereas previous studies showed only about 26% of smallholder farmers used digital technologies, this figure is rising as such tools become more useful and accessible. The Food and Agriculture Organization (FAO) points out that one of the main drivers of this shift is the growing pressure on farmers to increase productivity while managing increasing uncertainty. The agribusiness operates amid constant rising resource costs, shrinking margins, intensifying weather instability, and commodity price fluctuations.

Furthermore, clients and financial institutions are paying more attention to efficiency, traceability, and sustainable development. Lesele believes that these factors make timely, data-driven decision-making far more critical than even ten years ago. Digital platforms enable farmers to react by improving access to market information, increasing price transparency, and optimizing procurement and financial decisions.

He cites the collaboration between Nedbank Agribusiness and the online agricultural marketplace PrysWys. The partnership, launched last May, was created to address a significant gap in agriculture—the disconnect between purchasing resources and settling payments. Through the PrysWys platform, farmers can request commercial quotes, compare prices, place orders, and secure pre-approved financing for key resources such as fertilizers, seeds, livestock feed, and fuel.

Lesele explained that the platform simplifies the process of acquiring necessary goods by directly connecting farmers with vetted suppliers at competitive prices. This improves price discovery, enhances transparency, and makes resources more accessible, especially where supply issues exist. Initial results have been encouraging: since the launch, the Nedbank partnership has shown an 80% growth in users.

This indicates that digital activity is translating into real financial decisions, and farmers are becoming more confident in managing parts of their business online—not as a secondary activity, but as an integral part of their operational model. As adoption grows, digital platforms are capable of improving not only access to resources and finance but also the overall efficiency, transparency, and competitiveness of the entire agricultural value chain.

Lesele also added that the shift to digitalization does not mean the abandonment of existing agricultural relationships. Financial institutions are changing their role: instead of only intervening when financing is required, they are increasingly becoming part of the systems that farmers already use. This implies integrating financing directly into platforms like PrysWys so that funds are available at the time of purchase, rather than as a separate process.

As more agricultural transactions move into the digital space, they generate a more complete picture of farm enterprise operations. Over time, this allows financial institutions to better understand agribusiness, which in turn enables them to offer more tailored financial solutions, accelerate credit decision-making, and ensure more prompt risk management. Thus, digital agriculture is changing not only how farmers acquire resources but also how financial organizations assess and support agribusiness.