Absa Insights 2019, Agriculture
new-investmentjpg

The business of farming: Here's what you need to know about Africa

Absa Insights is a portal where the bank’s sector experts share essential learnings and new developments with its clients and other businesses. The world is changing; so in 2019 Absa has introduced a series of discussions featuring high-level thinking around Consumer Goods and Services, Agriculture, Telecommunications, Mining and Energy and Infrastructure. Bookmark Absa Insights, where the bank shares insights from discussions designed to help you navigate the ever-shifting trends that are shaping the economy.

Listen to the audio below (or scroll down for a summary of it).

Africa is the last continent on Earth that still has significant agricultural development opportunities and, with those opportunities, often come a lot of constraints.

One of the biggest constraints is infrastructure, which includes the road network.

For local farmers wanting to enter into African markets – the physical state of road infrastructure, which often is in a dangerous, poor condition in countries like Zambia, can shock South Africans who are accustomed to good South African road infrastructure.

Travelling distances between cities and ports can become a challenge. Farmers find themselves with approximately 2,000 kilometers between their farms and the nearest harbour. For this reason, farmers have now opted to move their products to be processed in Durban, incurring big cost on diesel.

Many farmers have also battled to get parts for equipment into the country. In some areas, it has become a standard requirement for farmers to own their own light aircraft to get in and out of the region.

South African farmers are comparatively fortunate with how well-established our secondary market is with regard to service delivery, storage and other services.

Ray Van Rooyen, Coverage Banker, Secondary Agriculture – Absa Corporate and Investment Banking

In rural areas with limited storage facilities for agricultural produce, farmers are still required to transport their products long distances. However, in the big centres, says Van Rooyen, there seems to be more concentration of service delivery and, as you move further away, infrastructure becomes less developed.

If the infrastructure is not there, farmers will have to solution for themselves.

Ray Van Rooyen, Coverage Banker, Secondary Agriculture – Absa Corporate and Investment Banking

Needless to say, the current situation in Africa promises potential opportunities for Absa's CIB Secondary Agri-Sector to fund, invest and get involved.

For more detail, watch the video below. Roux Wildenboer (Secondary Agriculture, Absa Corporate and Investment Banking) in discussion with Hendrik Van Der Linde and Ray Van Rooyen (Secondary Agriculture, Absa Corporate and Investment Banking) on the investment opportunities, infrastructure constraints and the potential that technology presents in the agricultural sector on the African continent.


This article first appeared on 702 : The business of farming: Here's what you need to know about Africa


Recommended

by NEWSROOM AI
Read More
SPONSORED CONTENT: KFC: How adding hope is changing millions of lives

SPONSORED CONTENT: KFC: How adding hope is changing millions of lives

Have you ever wondered where your R2 donation goes?

Enjoy splendid Cape Town offers with Tsogo Sun Hotels

Enjoy splendid Cape Town offers with Tsogo Sun Hotels

Dining out is one of life’s finest pleasures. Tsogo Sun Hotels prides itself on its exceptional food and beverage offers.

Crop-spraying drones are taking Africa into greener pastures

Crop-spraying drones are taking Africa into greener pastures

Maximizing yields and profits require agricultural investment – that's why South African farmers are opting for agri-tech.

Agricultural sector to power up with renewable energy to fight food insecurity

Agricultural sector to power up with renewable energy to fight food insecurity

The agricultural sector are taking back their power with the use of sustainable, renewable energy.

Are we preparing our children for jobs of the future?

Are we preparing our children for jobs of the future?

Be part of a discussion that seeks to answer the question that unlocks the doors to the futures of our children.

Don’t fall for spending disguised as saving

Don’t fall for spending disguised as saving

July is National Savings Month and Coronation is encouraging South Africans to save more by putting money aside every month.

Popular articles
Zondo Commission a 'victory' for South Africans,  says analyst

Zondo Commission a 'victory' for South Africans, says analyst

Ralph Mathekga unpacks the state capture inquiry since its commencement one year ago.

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

The inspiring South African choirU2's Beautiful Day at America's Got Talent quarter-finals.

Want to get rich? Got R100? You don’t need millions to start

Want to get rich? Got R100? You don’t need millions to start

Bruce Whitfield interviews Anthea Gardner, author of "Make Your Money Work for You: Think Big, Start Small".

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

The reason for the leakage has been revealed, explains Table Mountain Aerial Cableway MD Wahida Parker.

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape Traffic Chief Kenny Africa says private security working with the department is helping curb the stonings on the highway.

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Gift of the Givers fears two South African men who went missing in Vietnam may have fallen prey to an organ harvesting syndicate.