Investment of $14 million strengthens livestock disease surveillance system in South Africa

An investment of $14 million provided by the Technology Innovation Agency (TIA), which is part of the Department of Science, Technology and Innovation (DSTI), is aimed at developing the Molecular Rapid Response and Biosurveillance Programme. This programme enhances South Africa's capacity to detect and combat livestock diseases such as foot-and-mouth disease and avian influenza, which negatively affect the country's agricultural sector and exports.

TokaBio addresses issues related to avian influenza affecting the ostrich industry and operates a mobile laboratory in Modimolle, Limpopo province. Additionally, it has a laboratory in KwaZulu-Natal specializing in foot-and-mouth disease.

The CEO of TIA, Dr. Titus Mathe, highlighted the reasons for the decline in South Africa's agricultural sector and the challenges associated with exporting to international markets. He stated that the South African economy cannot sustain continuous loss of foreign markets due to recurring outbreaks of livestock diseases. According to him, maintaining the country's agricultural sector, protecting jobs, and sustaining global competitiveness heavily depend on accelerating innovation.

Dr. Mathe noted that TIA's investment in TokaBio serves as an example of how public funding for technology can go beyond research and development to provide practical solutions for real-world conditions. Rapid and accurate detection of livestock diseases is critical for protecting farmers, strengthening biosecurity, and maintaining the competitiveness of South African agricultural products in global markets.

Agriculture plays a significant role in the South African economy, contributing to employment, food security, farming, and economic activity across the entire value chain. However, outbreaks of livestock diseases can disrupt production, restrict animal movement, and cause temporary or long-term restrictions on the export of livestock and animal products.

The Molecular Rapid Response and Biosurveillance Programme aims to address this issue by improving the country's ability to conduct rapid, accurate, and geographically targeted disease surveillance. The programme focuses on protecting beef trade by enhancing foot-and-mouth disease surveillance in affected areas, and it supports structures like compartmentalization so that trade can continue safely.

For the ostrich industry, TokaBio has already begun implementing an avian influenza biosurveillance programme, creating a potential model for broader livestock disease monitoring and rapid response services. Lois Tyra, Chairman of the TIA Board, reported that as an implementing agency supporting the DSTI Bioeconomy Strategy, TIA invests in technologies that utilize South Africa's biological resources to solve problems in food security, agriculture, health, and economic development.

He added that the investment in the Molecular Rapid Response and Biosurveillance Programme demonstrates how funding can help transition biotechnological innovations from the R&D stage to commercial implementation and practical impact in agriculture.

Meanwhile, Dr. Fiyani Leboe, Chief Scientist at TokaBio, emphasized that the sustainability of commercial farming, the rural economy, and the entire agricultural value chain is crucial, as it depends on the country's access to international export markets. He also explained what this programme will do and how it aims to control disease outbreaks, ensuring that involved industries do not lose market access.

According to him, the Molecular Rapid Response and Biosurveillance Programme seeks to prevent automatic loss of market access due to disease outbreaks by strengthening the country's ability to detect, contain, track, and demonstrate control over livestock diseases.

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PRASA invests 13 billion rand in modernization of railway signaling and the uMlazi corridor in Durban

The city of Durban will receive significant improvements to its railway network thanks to an investment of 11 billion rand in telecommunications infrastructure and signaling systems from the Passenger Rail Agency of South Africa (PRASA).

The signaling system is a technology used to manage and coordinate train movements across the entire rail network. The agency is implementing this program on various routes and is allocating an additional 2 billion rand to restore the uMlazi corridor, which carries the highest number of passengers in KwaZulu-Natal.

These projects are expected to increase safety, reliability, and train frequency, resulting in trains running at intervals of three to five minutes.

Improvement of Train Services in Durban

Mayor Ethekini, Cyril Shaba, noted that this investment could have a substantial impact on the city, especially by reducing road congestion and encouraging more people to use the railway as a reliable and accessible mode of transport.

Shaba stated that having reliable rail transport makes travel cheaper and safer, which could reduce the need to build informal settlements in the city. He also suggested that improved service would encourage people to stay home since they can now access amenities without moving to the city.

According to Shaba, the service improvement could potentially increase the annual number of railway passengers from the current 1.8 million to over 10 million.

Signaling System Will Increase Train Capacity

PRASA's Regional Manager for KwaZulu-Natal, Thami Sithole, reported that the new signaling system will allow the agency to increase the number of trains operating on the network while simultaneously enhancing safety levels.

Sithole emphasized that the project perfects the methods of managing the trains themselves. He added that the automated signaling system theoretically gives PRASA the ability to double the number of operational trains on the network; for example, if about 10 trains currently run, their number can be doubled.

foodformzansi.co.zaSeptember 23, 12:00

How South African farmers can protect profits amid rising resource costs

While farm success was previously determined by weather and yield, in 2026, rising production resource costs are becoming a priority. Daniel Rossouw, Head of Agricultural Sales at Nedbank, analyzes the economic factors shaping South Africa's agricultural sector and offers producers strategic ways to protect their profits.

Successful farming operations rely on a careful balance of energy, labor, and raw material expenses, which is critical for business survival. Rossouw, with nearly 35 years of experience in agricultural finance, notes that the 2025–2026 period represents one of the most challenging economic landscapes for this sector.

Agricultural enterprises face not a single isolated factor, but cumulative cost pressure across several key areas. Rossouw explains that in 2026, the greatest pressure comes from combined resource prices, including energy, labor, logistics, and finance, rather than any single type of expense. He emphasizes that the severity of these issues varies greatly depending on the specific commodity.

Among the main resources, fertilizers stand out as a significant source of pressure, especially for grains, oilseeds, sugar, and horticulture. In standard grain systems, fertilizers account for 20% to 35% of resource costs, and significantly more in high-intensity operations. According to the latest estimates, fertilizer prices have risen by up to 50% compared to the same period last year.

Since South Africa imports over 80% of its fertilizer needs, local prices are closely linked to global trends in crude oil prices and exchange rate fluctuations.

Fuel presents similar difficulties. Diesel accounts for up to 15% of resource costs in grain production, and because about 70% of diesel fuel in the country is imported, farm expenses are directly dependent on global oil markets.

In addition to energy and fertilizers, other necessary operating costs are steadily increasing:

Electricity and utilities: Although power outages have ended for an extended period, electricity tariffs continue to rise. This heavily impacts irrigated agriculture and high-value crops. While more farmers are investing in solar and alternative energy sources, such solutions require significant initial capital investment.
Labor dynamics: This is particularly important in labor-intensive, high value-added sectors such as horticulture, viticulture, and sugarcane. Labor costs include not only rising base wages. Increases in the minimum wage, persistent shortage of skilled personnel, and variable productivity make these sectors especially vulnerable to margin compression.
Crop protection: Active chemical ingredients are strongly tied to international commodity prices and the US dollar. Unlike optional farm expenses, reducing chemical use directly increases production risks, leaving little room for cost adjustments.

To cope with this pressure, Rossouw insists that producers must expand their financial monitoring beyond traditional metrics such as current commodity prices and local rainfall. Over the next twelve months, farm profitability will be determined by the dynamic interaction of macroeconomic forces.

He points to several critically important variables requiring close attention:

Interest rates and inflation: Although potential rate easing offers hope for relief, persistent inflationary spikes could delay further rate cuts, sustaining high financing costs.
Exchange rate stability: The Rand has recently shown strong resilience, but currency markets remain inherently volatile and require constant risk management.
Geopolitical turmoil: Fuel, oil, and fertilizer markets remain highly sensitive to international conflicts and global supply disruptions.
Climate change: Early signs and warnings of the El Niño cycle indicate increased production risks in the 2026 and 2027 seasons.
Municipal and infrastructure overheads: Rising municipal tariffs, water costs, and localized power restrictions continue to limit expansion in high-growth and export-oriented regions.

Essentially, managing modern agricultural risks requires looking at the big picture and preparing for economic instability even before purchasing resources or sowing seeds. As market conditions change, it is crucial to collaborate with a financial partner who understands these macroeconomic shifts to maintain liquidity and structural stability.

To learn how Nedbank can become a partner to your agricultural business and support your strategic planning for the 2026–2027 seasons, contact business@nedbank.co.za or reach out directly to your regional Nedbank business manager.