South Africa's agricultural sector requires strengthening partnerships between farmers, financial institutions, insurance companies, agribusiness, and the government to ensure sustainable growth and attract more black farmers to commercial production. This was the view of participants at the annual Stakeholder Engagement Conference held by the Agricultural Development Agency (Agda) in Boxburg, Gauteng.
The Chairman of Agda's Board of Directors, Dr. Matheus Fosa, noted that the sector achieved a record agricultural export volume of approximately US$15.1 billion in 2025; however, many emerging farmers still face difficulties in obtaining financing, insurance, and market access.
He emphasized that the best way to develop the sector is through collaboration, as no one can manage it alone. Fosa identified capital, risks, and market access as three interconnected obstacles to inclusive growth. He pointed out that standard lending requirements, such as title deeds, verified credit history, and audited financial statements, can exclude farmers operating on communal lands or under government lease agreements, as well as those in the early stages of their business development.
Dr. Fosa stated: 'Sometimes we hear that emerging farmers are not creditworthy. In our experience, many simply have not yet had the opportunity to access banking services.'
He called for partnerships that help farmers develop viable business plans, improve creditworthiness, and link production with buyers. Furthermore, Fosa highlighted the need for agricultural risk management, including diseases like foot-and-mouth disease, floods, and heat, through improved biosecurity and accessible insurance.
Agda CEO, Leona Archari, stated that the organization aims to connect established and emerging farmers with the necessary resources and networks for commercial growth. She described her role as a 'connector and partner, a trusted broker between established and new farmers.'
Archari reported that Agda's network covers over 1.2 million hectares and includes more than 45,000 farmers, over 50 agribusinesses, more than 26 financial institutions, seven commodity organizations, and six partnerships with traditional authorities. She also reported that Agda has attracted R32 million in corporate social investment and development, R6.4 million in consulting and strategic fees, and R33.6 million to assist in activating the financial mechanism involving the Land Bank, Small Enterprise Development Finance Agency (Sedfa), and Jobs Fund. The organization has also facilitated transactions worth R586 million.
Archari stressed that financing alone is insufficient to solve the problems of emerging farmers; partnerships must also address risks and market access, including mentorship, supply agreements, and joint opportunities between existing and new producers. She warned: 'By solving one problem while ignoring another, we are just shifting the problem down the chain.'
Vandile Sichlobo, Chief Economist at Agbiz and Presidential Envoy on Agriculture and Land Reform, predicted that South Africa's agricultural economy would grow by approximately 8–9% in 2026, although results vary by subsector, and challenges persist. Agricultural exports increased by 11% in the first half of 2026, which is a result of the sector's progress in expanding international markets.
Sichlobo noted that the sector has more than doubled, allowing South Africa to become the 32nd largest agricultural exporter globally and the only African country in the top 40. Nevertheless, rising fuel and fertilizer costs, infrastructure limitations, animal diseases, and geopolitical uncertainty continue to put pressure on producers. He indicated that fuel and fertilizers account for a significant portion of production costs, with prices having risen by approximately 20–30% compared to the previous year.
Sichlobo called for closer cooperation between the government and the private sector to improve infrastructure and expand trade opportunities, especially in Asian markets. He stated that South Africa must advance in concluding trade agreements to strengthen its competitiveness and long-term export prospects.
Climate conditions are also a concern. Dr. Fosa warned that El Niño-related heat is already affecting production in some areas, causing damage to macadamia flowers and potential crop losses. Sichlobo also highlighted the risk of drought and heat, which increases the strain on water resources and irrigation.
The conference focused on transforming agricultural growth into broader participation by strengthening links between finance, risk management, and markets. Participants noted that sustainable collaboration will be crucial to help more farmers establish viable commercial businesses while supporting the competitiveness of the entire sector.