Smart energy strengthens the position of farms in Mpansi

For farmers in Mpansi, energy has ceased to be merely an operational expense; it is increasingly becoming a critically important element for maintaining farm productivity, competitiveness, and sustainability.

This is one of the key takeaways from the interaction between Huawei Digital Power South Africa and the Gauteng agricultural sector, according to David Dury, a specialist in agricultural partnerships. He noted that energy is transforming from a simple production cost item into a strategic component of agricultural productivity and sustainability.

Modern agricultural enterprises rely heavily on a stable electricity supply. Irrigation systems, refrigeration equipment, storage facilities, processing capacities, and water resource management infrastructure all require constant access to energy. When electricity becomes expensive or unreliable, the consequences can extend far beyond the monthly energy bill.

Dury believes that renewable energy combined with energy consumption management and battery storage can help farmers cope with these challenges as part of a broader sustainability enhancement strategy.

Solar photovoltaic (PV) panel systems allow for reduced dependence on the grid by generating energy directly on the farm premises. Furthermore, energy storage batteries enable the retention of surplus energy for use during periods of high demand or when there are power outages from the grid.

This approach was presented during the Huawei Farmer Energy Innovation Day event, held jointly with AgriCulture Gauteng in July of this year. Farmers were able to interact directly with Huawei's technologies at the Innovation Center and learn about the application of smart energy solutions in agriculture.

Dury added that the participants' reaction showed a growing interest among farmers in technologies capable of helping them solve energy supply problems. However, the possibilities go beyond simply installing solar panels.

An integrated energy solution combines solar PV panels, advanced inverters, battery storage, and energy management software. This allows businesses to make more informed decisions regarding the timing of energy generation, storage, and consumption.

During the day, solar energy can be used directly to run agricultural operations, thereby reducing the amount of electricity purchased from the grid. If there is surplus energy, it can be stored in batteries for later use. This is particularly valuable during periods of high electricity tariffs, and battery storage also provides backup power for critical loads during main grid outages.

Such flexibility can be significant for agribusiness. Dury explained that processes such as 'irrigation, cold storage, cooling, and processing' are those where a power interruption can have consequences extending far beyond direct energy costs.

Thus, the goal is not just to produce renewable energy, but to create what Dury calls a smarter and more sustainable energy ecosystem that helps farmers control costs and ensure business continuity.

Looking ahead, the convergence of renewable energy, battery storage, and digital technologies could fundamentally change resource management practices on farms. Solar PV panels and batteries will remain vital tools for enhancing energy resilience, but smart energy management adds another layer, helping farmers understand and optimize their energy consumption.

Beyond the energy system itself, Dury points to artificial intelligence, the Internet of Things, digital monitoring, and automation as technologies with the potential to increase productivity and resource efficiency across the entire agricultural value chain.

However, the transition will not happen solely through technology. Dury emphasized the importance of collaboration among farmers, agricultural organizations, financial institutions, technology companies, design, procurement, and construction partners, as well as the government.

Farmers need more than just access to technology; they require practical information, suitable financing models, and reliable partners who understand the realities of agricultural business. At the same time, technology companies must ensure that the solutions they develop address real operational problems, rather than just implementing technology for its own sake.

This is where partnerships, like the interaction between Huawei and the agricultural sector, become crucial. Demonstrations, knowledge sharing, and practical projects can help bridge the gap between technological innovation and the daily reality of farming.

For Dury, bringing together the agricultural and technological sectors ultimately aims to empower farmers to make informed investment decisions that strengthen their business. The South African agricultural sector faces increasing pressure to achieve more efficient production while managing rising resource costs, resource constraints, and energy uncertainty. Smart energy technologies cannot solve all problems, but they can give farmers greater control over one of the most critical factors underlying modern agriculture.

The bigger opportunity lies in combining renewable energy with smart management, storage, and digital technologies to create farms that are not only more sustainable but also more productive, resilient, and competitive. Ultimately, Dury stated that the goal is to help build a 'more productive, sustainable, environmentally friendly, and competitive agricultural sector.'

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foodformzansi.co.zaAugust 17, 15:00

eFama aims to help farmers produce goods according to demand, not hopes

For many small and emerging farmers, growing a good harvest is only half the battle. A more critical question often arises after the harvest: who will buy this produce? This gap in market access is what Shadrak Kubane, CEO and co-founder of the eFama application, seeks to eliminate.

A farmer supplying produce to an established retailer or institutional buyer can know before planting for whom they are producing, what volumes are required, what quality standards apply, when the product will be needed, and how the price will be determined.

Kubane notes: «This allows production to follow demand, rather than hoping that demand will appear after the harvest».

However, for many small farmers, the situation is the opposite. They plant first and then search for markets. When perishable goods are ready and no buyer is secured, every passing day increases the risk of losses, desperate sales, or accepting any available price.

He emphasizes: «We connect farmers directly with buyers, but we realized that access to a buyer is not enough».

Furthermore, farmers need information on demand and prices, an understanding of buyer requirements, readiness for inspections and compliance with regulations, as well as more advanced tools for planning production and its realization timelines.

The impact of this work can be significant. Kubane cites an eFama farmer whose production increased by approximately 300%, and whose staff doubled within six months due to more stable demand, which gave him confidence to expand his business.

«The goal is to shift the farmer from the question: 'My harvest is ready, who will buy it?' to the ability to make production decisions with a much clearer view of the market ahead».

Creating a more inclusive food system

Kubane believes that the most important lesson from eFama is that technology must solve problems that arise before, during, and after a transaction. «We grew up among farmers, so we founded eFama to solve a problem we knew firsthand: market access».

But buyers also need assurance that farmers have been verified and meet requirements, can supply what is needed, adhere to quality standards, and ensure supply consistency. This prompted eFama to go beyond simple matching of farmers and buyers, incorporating verification, compliance, product and contract management, market analytics, traceability, and logistics.

For Kubane, technology can help level the playing field without lowering the standards expected of food producers. He recalls a farmer's words: «A farmer once reminded us that small farmers compete in the same market as enterprises that may have decades of agricultural experience, sometimes passed down through generations».

«Since it is about food, standards cannot simply be lowered: the same expectations regarding quality, safety, and compliance still apply».

He argues that inequality is often related to access to the tools necessary to meet these standards.

«Inequality often lies in access to the tools, knowledge, best practices, data, and resources needed to meet these standards».

«Inclusivity should not mean lowering the bar; it should mean providing more farmers with the tools to reach that bar».

The technological generation of agriculture

Kubane believes that technology will also change the youth's perception of agriculture. Having grown up in a farming family, he admits that he initially associated agriculture mainly with hard labor, exploitation by middlemen, and financial uncertainty. This changed when he began to understand the entire value chain in the food sector.

The sector increasingly needs not only farmers but also drone pilots, engineers, biotechnology specialists, data experts, and software developers.

«There are careers and businesses in agriculture that many young people simply do not know about».

He believes that artificial intelligence will accelerate this transformation by improving forecasting, precision farming, automation, and smarter decision-making. He compares this opportunity to the democratization of GPS. Previously expensive and highly specialized satellite technology is now accessible to almost anyone with a smartphone.

«That is the magic of technological democratization».

«At eFama, we want to do exactly that with artificial intelligence. We want ordinary small farmers to truly feel, experience, and benefit from the impact of advanced AI just like everyone else».

The goal is to provide complex predictive analysis to farmers, helping them understand markets, make better production decisions, and build a more profitable business.

«The future of farming is not about working harder; it is about making the world's most advanced technological marvels work for the everyday farmer».

Nevertheless, Kubane does not see technology as a replacement for people. «My deeply rooted country spirit does not believe for a second that this means agriculture will become a people-less industry».

Instead, he believes that technology should enhance human productivity and foster new opportunities. «AI will not empty our fields. It will strengthen them».

He hopes that young South Africans will view agriculture not as an industry to flee from, but as a place to build a business and a career, whether it is growing crops, piloting drones, writing code, analyzing data, or creating the next technology this sector has yet to present.

foodformzansi.co.zaAugust 11, 10:00

Rising Electricity Tariffs Threaten Competitiveness of South African Agricultural Exports

South Africa's agricultural exports face a serious obstacle—a sharp increase in electricity tariffs. Economist NAMC Bublebemvelo Dubbe analyzes how rising energy costs jeopardize global competitiveness, the profitability of farms, and long-term food security.

The rise in electricity tariffs is becoming an increasingly significant threat to the competitiveness of South Africa's agriculture. The export of irrigated horticultural crops critically depends on affordable and reliable electricity. However, tariff increases, including an average rise of 12.74% approved by the National Energy Regulator of South Africa (NERSA), are increasing production costs at a time when agricultural exports are already under pressure from higher tariffs, non-tariff measures, and changing geopolitical and trade conditions.

As energy-intensive production systems become more prevalent, energy policy is increasingly turning into a matter of agricultural trade.

South Africa consumes between 180 and 205 billion kilowatt-hours (kWh) of electricity annually. According to Stats SA data, the total electricity generation in 2024 was 214,562 gigawatt-hours (GWh), which is 1.7% less than in 2021 (225,833 GWh).

Coal remains the primary source of generation, accounting for 82.7% (177,334 GWh) of the total. This indicates a strong dependence of South Africa's energy supply on fossil fuels. Coal-based electricity generation has decreased from 212,761 GWh in 2016 to 177,334 GWh in 2024, reflecting a gradual shift in the energy balance, although coal continues to dominate. Renewable sources contributed 9.0% (19,408 GWh), and nuclear energy contributed 3.8% (8,226 GWh).

Between 2016 and 2024, the share of coal generation decreased the most (-7.1 percentage points), falling from 89.8% to 82.7%, while renewable energy showed the largest growth (+6.9 percentage points), increasing from 2.1% to 9.0%. In 2024, no less than 368 billion rand in electricity was distributed.

Graph 1 shows South Africa's continued reliance on coal-based electricity amid steady demand growth from the agricultural sector. Among the main electricity consumers, agriculture is one of the few sectors that has shown consistent growth in electricity consumption over time. This trend is likely to continue as irrigation systems, mechanization, and cold chain infrastructure expand.

Consequently, recent NERSA tariff hikes, as noted by most economists, could have significant consequences for agricultural exports, especially because South Africa's export portfolio is increasingly concentrating on electricity-intensive horticultural products. These consequences become evident when examining South Africa's export profile. Graph 2 demonstrates that the top agricultural exports are oranges ($1.16 billion), fresh grapes ($927.7 million), mandarins ($808.5 million), maize ($721.8 million), and fresh apples ($648.6 million).

With the exception of maize, these high-value sectors heavily rely on irrigation, cooling, and cold chain logistics, making reliable and affordable electricity central to maintaining export competitiveness. Thus, higher electricity tariffs affect not only farm production costs but also the competitiveness of South Africa's exports in global markets.

The competitiveness of South Africa's agriculture has been supported by significant investments in irrigation systems, packing houses, cold storage facilities, and other capital-intensive infrastructure that requires a stable power supply. This explains why agriculture accounts for a growing share of electricity consumption, as shown in Graph 3. Although agriculture accounts for about 4% of distributed electricity, the sector has demonstrated an average annual growth rate of 10.2%, highlighting the rapidly growing demand for electricity as agricultural production becomes more technologically advanced and export-oriented.

These investments have contributed to strong growth in South Africa's agricultural exports over the last decade. However, they have also increased the sector's vulnerability to rising electricity costs. Further increases in electricity prices, combined with ongoing volatility in domestic and global energy markets, pose a growing challenge to farm profitability, export competitiveness, and ultimately, food security.

Since electricity is becoming one of the main production costs after labor for many commercial farming enterprises, especially in irrigated agriculture, future tariff decisions are likely to impact the competitiveness of South Africa's agricultural exports. South Africa's energy sector is undergoing transformation. While recent operational improvements by Eskom are welcomed, electricity prices continue to pose significant difficulties for electricity-intensive agricultural industries.

Therefore, current governance reforms, including changes in tariff structure, must be implemented in a way that considers the strategic importance of export agriculture. Specifically, the division and redistribution of levies within the new tariff structure require careful consideration to ensure that future tariff increases do not disproportionately affect productive sectors dependent on electricity for irrigation, storage, and processing.

Attention should also be paid to developing demand charges so that the cost of electricity more accurately reflects actual consumption. Achieving a competitive, transparent, and predictable electricity pricing system will remain a crucial condition for sustaining agricultural exports, investment, and long-term food security.