Western Cape agriculture development depends on markets, water resources, and financing

At the Nampo Cape 2026 event in Bredasdorp, Jabu Mfanbo, head of the Land Bank executive committee, participated alongside government representatives and agricultural industry leaders. The main objective of the discussion was to create financial support and financing systems that would allow producers to build sustainable businesses, rather than just survive from season to season.

During a series of luncheon discussions organized by Food For Mzansi and Land Bank in Bredasdorp, a panel discussion took place. Participants included Dr. Mogale Sebopetsa, Head of Agriculture for the Western Cape government, Johann Kotze, CEO of AgriSA, and Dr. Keith Du Plessis, CEO of Casidra. The participants discussed issues such as the debt burden on farms, access to credit, coordination between the public and private sectors, and overall support systems necessary for producer success.

Mfanbo emphasized that producers expect partnership from financial institutions that understands the cyclical nature of agriculture. He stated that farmers are looking for a financial partner who understands the business and can offer structured, tailored solutions that meet the needs of their enterprises.

He noted the critical importance of accessibility and rapid response when funds are urgently needed on the ground. Mfanbo stressed: 'Sowing does not wait for anyone. If the season has come, the farmer needs to sow. They are looking for a partner who understands these realities and can respond in time.'

Despite the vital importance of prompt banking services, Sebopetsa shifted the focus, pointing out that mere access to finance is insufficient to solve agricultural problems if the surrounding infrastructure and biosecurity fail the producer. He explained that agriculture is a trade, but the farmer requires water security, as farming is impossible without water. Therefore, municipal government is required to prioritize water security for farmers.

Furthermore, a functioning road network is necessary so that produce can move from the farm to the final point of sale. Electricity supply and compliance with local regulations are also important. Sebopetsa warned that biosecurity risks and deteriorating infrastructure pose a direct threat to export opportunities, and that the broader economic contribution of agriculture is often underestimated by traditional metrics.

Supporting the call for comprehensive operational support, Kotze highlighted that providing capital without adequate technical assistance and mentorship makes developing producers extremely vulnerable. He stated that they are not doing good by placing people in situations where they are doomed to fail not through their own fault, but due to a lack of support, systems, and excessive risks.

Kotze specifically pointed out the serious operational pressure faced by farmers when unpredictable crises arise, emphasizing the need for structured support systems that provide financial investment from the outset. Du Plessis added that long-term sector success ultimately depends on interdepartmental cooperation and knowledge sharing. He concluded: 'Ultimately, we need to find an ecosystem that attracts the right people and helps that person secure funding and implement the project. I think we have a good plan for this in the Western Cape; if we can build upon and expand it.'

Unstable power supply on farms leads to serious problems: the shutdown of irrigation pumps, heating of cold storage rooms, exposure of poultry to cold or heat, and increased costs due to product downtime. For South African farmers, who are already facing rising resource costs, unreliable electricity, and climate change, the energy issue is critically important.

Consequently, more and more farmers are considering alternatives to the national grid, focusing on solar panels, battery storage, and even using agricultural waste as an energy source.

The transition to renewable energy sources is also part of agriculture's response to climate change. In addition to seeking more affordable and reliable energy, abandoning fossil fuels helps reduce greenhouse gas emissions in the sector.

Commercial poultry farmer Lerato Aliu, CEO of Roadgrass Investments in Katabooshfontein, is integrating renewable energy into her farm's plans for increasing sustainability and reducing costs. Although the farm has not yet fully transitioned to autonomous power supply, Aliu is in the process of approving a plan to implement solar energy.

Her approach is based on utilizing existing farm resources rather than building a system from scratch. Aliu noted that the goal of the transition is to reduce electricity costs by at least 20% in the coming months.

Besides savings, this step aims to increase resilience against power outages and sudden supply interruptions. For her, energy reliability has become as important as its cost. One of the main lessons learned was studying available resources, such as chicken manure, which can become an untapped energy source.

Aliu emphasized that selecting a suitable solar system requires a thorough plan that must consider initial costs, actual energy needs, and system compatibility with existing equipment. Her advice to other farmers is not to rush planning and to carefully examine waste or by-products that can be converted into energy.

An agricultural economist from Gauteng, Dr. Sifwe Zantsi, believes that energy already constitutes a significant portion of farmers' production costs, and rising fuel and electricity prices intensify pressure on already limited profits. For farmers who can cover the initial investment in solar and other renewable systems, long-term savings can significantly impact the financial outcome.

After the equipment pays for itself, most of the funds previously spent on energy remain in the business, although maintenance costs remain. This is particularly relevant for small farmers with narrower margins. However, the main problem is the upfront cost. Zantsi suggests that small landowners pool their efforts to jointly cover the costs of installing renewable systems.

He also warns that making energy cheaper for farmers does not necessarily lead to lower food prices, as farmers are largely price takers, and prices are determined by market forces. He added that a reduction in food prices could occur if renewables are used by processors and distributors.

An environmental activist from Cape Town and founder of Blackgirls Rising, Soli Fuyani, argues that renewable energy will help South Africa's agriculture respond to growing climate change pressures while simultaneously improving energy security on farms. Agriculture is at the intersection of the country's energy, water, and climate challenges, and farmers are already battling drought, unpredictable rainfall, floods, and rising temperatures.

For Fuyani, the value of renewable energy goes beyond simply lowering electricity bills. Solar energy can support irrigation, cooling, and processing, reducing farms' dependence on coal-fired electricity. She believes this should be part of a broader movement towards climate-smart agriculture, alongside improved water management, soil health, and biodiversity protection. She insists that 'renewable does not automatically mean no impact.'

Fuyani also points out the need to consider the location of solar infrastructure, its impact on productive land and ecosystems, as well as the fate of solar panels and batteries at the end of their service life. She believes the transition must reach small and emerging farmers through accessible financing, technical support, and shared infrastructure such as community solar, cooling, and irrigation systems.

Professor Samson Mampheveli, head of the Energy Secretariat at the Department of Science and Technology Innovation (DSTI) in the South African National Energy Development Institute (SANEDI), notes that the decision to move away from complete reliance on the national grid is largely driven by energy security concerns and the rising cost of electricity. For farmers, unreliable power supply can have consequences far beyond the electricity bill. Cable theft, outages, and scheduled shutdowns can disrupt irrigation, cooling, processing, and livestock farming, potentially leading to direct production losses.

Mampheveli states that solar and other renewable systems can offer farmers a cheaper and more reliable alternative with a relatively short payback period. He emphasizes that the size of the farm is not the decisive factor when designing a renewable energy system; what matters most is an assessment of the farm's specific energy demand, which must be conducted by a qualified engineer or electrician.

In addition to savings, stable power supply protects production. For example, a power outage on a poultry farm in winter can lead to bird deaths from cold, and a break at a dairy farm can jeopardize milk stored in cold rooms. Mampheveli concludes that correctly sizing the system is key to ensuring the expected return on investment, stressing: 'The system must be properly sized by a qualified engineer.'

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