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It’s been a cold winter but with the spring sunshine now luring everyone outdoors, it’s time to start planning some new adventures out in nature – but what to do? Ziplining across a gorge? Riding a horse on a beach? Diving with sharks? Hiking to waterfalls? The KZN South Coast has these – and more! …
By Marius Wessels, Manager: Professional Services for SYSPRO Africa By the year 2050, the global population is projected to surpass 9 billion, presenting a substantial challenge in ensuring an adequate food supply for everyone. Addressing this imperative, the agricultural sector must undergo a remarkable transformation, aiming to increase production by approximately 69% from 2010 to …
Blended finance fund to assist farmers alleviate energy challenges
The ongoing load shedding in South Africa has become a serious constraint on growth and profitability for various sectors, including agriculture.
In addressing the negative impact on the productivity and profitability of farm operations brought about by the load shedding crisis, the Land Bank and Department of Agriculture, Land Reform and Rural Development (DALRRD), have launched a blended finance fund, which is geared towards financing alternative energy solutions with a focus on energy intensive agricultural activities which include irrigation, intensive agricultural production systems and on-farm cold chain related activities.
The Agro Energy Fund aims to support all South African citizens, producers in the agricultural sector, including smallholder, medium scale, large scale and mega commercial producers.
The launch of the Agro Energy Fund follows the successful launch of the Blended Finance Scheme (BFS) in October 2022 through the partnership between Land Bank and DALRRD, where the bank, in collaboration with the department launched the R2 billion BFS.
Speaking at the launch held in Pretoria on Tuesday, DALRRD Minister Thoko Didiza emphasised that the purpose of the Agro Energy Fund is to incentivise farmers to invest in alternative energy sources, and will run parallel to other existing financial instruments that are designed to support farmers with production, farmer infrastructure and market, amongst others.
Didiza explained that the applications for the fund will be directed to the Land Bank and will be subjected to approval guidelines of the bank.
“The funding will be deployed through a blended finance structure which is a combination of a loan and grant. DALRRD will contribute a grant portion to a total value of R500 million which will be matched with a loan portion to a total value of R710 million from Land Bank.
“This will effectively create a R1.21 billion fund size. The fund will be available in the market until the allocated funds are completely drawn down,” Didiza explained.
The Minister added that the priority will be on supporting dairy farming, piggeries, poultry, all irrigated commodities and on-farm processing.
“In deploying funding to producers, the Bank will also rollout its Green Finance product offering with a focus on financing solar panels, biogas and biomass plants which will result in the installation and commissioning of energy efficiency projects across the country which will partially offset electricity usage from the grid.
“The fund will enable the bank to contribute to building resilience against energy shocks in the sector which have negatively impacted productivity and profitability in farm operations. The food security and rural development remain key priorities in the agricultural sector,” the Minister said.
Land Bank Board Chairperson, Thabi Nkosi, expressed the bank’s appreciation to be in partnership with the department for the implementation of the Agro Energy Fund, and also commended the department’s allocation of the R500 million grant.
“The fund aims to support all South African producers - from smallholder farmers to large commercial producers - in a manner that ensures a balanced allocation of funds across various farming cohorts, according to need,” Nkosi said.
Nkosi explained that the smallholder producers will be eligible for up to 70% total finance amount, with the grant portion capped at R500 000 per applicant, while medium scale producers will be eligible for up to 50% of the total financed amount, with the grant portion capped at R1 million per applicant.
“Large producers will be eligible for a grant of up to 30% of the total financed amount, with the grant portion capped at R1.5 million per applicant. On this basis, the fund is expected to support over 500 farmers across the country,” Nkosi said.
While acknowledging that the fund may not reach all of South Africa’s farmers, Nkosi said, this initiative, with specific focus on renewable energy solutions, will catalyse the agricultural sector’s adoption of more sustainable farming practice.
The applications to the Agro-Energy Fund are now open, and the details about the fund, product offering, and how clients can contact and apply for funding support from the Land Bank can be found on www.landbank.co.za or www.dalrrd.gov.za – SAnews.gov.za
GabiK
Wed, 08/30/2023 - 10:06
Worried about population growth and the pressures of feeding a hungry planet? Don’t have a cow, cultivate one rather says, Maxcine Kater, marine biologist and environmental officer at the Department of Forestry, Fisheries and the Environment Johannesburg – August 2023: The global human population is expected to top 9.8 billion by 2050 (from the current …
Truck drivers in southern Africa who have been recruited to traffic or smuggle people illegally are learning about the risks involved thanks to the UN drugs and crime agency, UNODC.
“I used to transport sugar from Malawi,” said an anonymous driver, who was arrested for migrant trafficking. “In 2016, I had to wait for several days at a border crossing in Tanzania for customs checks. I was approached by a man who offered me a lot of money to transport goats.”
His story is not unique.
Malawi is located at the crossroads of several significant flows of people fleeing conflict, instability, and poverty in Central Africa and the Horn of Africa.
Such movements provide lucrative opportunities for smugglers and traffickers and for Malawi's 5,000 registered international truck drivers.
The driver who shared his story said he was paid in advance, and the man who offered him the deal took photos of both him and his truck. The driver proceeded to spend some of the money and send more to his wife.
“On the day I was due to leave, the man told me the ‘goats' were actually 30 illegal migrants from Ethiopia,” he said. “They looked very sick, tired, and malnourished. He said I had to take them to a location in Malawi that's close to a large refugee camp.”
Smuggler threats
When the driver tried to protest, the smuggler demanded his money back and threatened to take the truck and share photos of him with the authorities.
“This is how it all started, and soon it became my main business,” he said. “The man would pay me a lot of money and escort me in a small car, so he could bribe corrupt police and immigration officers along the way.”
According to the driver, he was initially not aware that what he was doing was illegal.
Then, in 2019, he was arrested in Mozambique while transporting 72 migrants from Malawi and the Democratic Republic of the Congo (DRC).
“Now I'm sick, unemployed, and divorced,” the driver said.
Trafficking risks
Truck drivers based in Malawi are now learning about the risks of transporting migrants and trafficking victims, thanks to a programme supported by the UN Office on Drugs and Crime (UNODC). The courses, which began in February, are already proving to be a success.
Feckson Chimodzi, a truck driver who transports farming products from countries in Southern Africa into Malawi and also participated in the course, said drivers who work with smugglers and traffickers often do it “out of necessity” to supplement their low salaries.
“Our employers need to improve our working conditions and give us comprehensive training about the dangers of getting involved in these crimes,” Mr. Chimodzi said.
Strict penalties
Criminals who smuggle or traffic humans within countries or across borders use all possible routes and modes of transportation to transfer people for profit and exploitation.
If apprehended by authorities, the truck drivers are usually arrested and imprisoned, explained Maxwell Matewere, a UNODC National Project Officer on trafficking in persons.
“There's a lack of understanding of human trafficking and migrant smuggling in the region, and payment for illegally transporting people is much larger than the regular truck driver's salary,” said Mr. Matewere, who conducts the training.
“Most drivers know what they're doing is illegal, but are told that when they cross borders, corrupt officials will let them pass,” he said. “So, they take the money and the risk.”
Vehicle confiscations and arrests
Following a series of vehicle confiscations and arrests in neighbouring countries, the Professional Drivers Association of Malawi asked UNODC to train its members on the dangers of transporting smuggled migrants and victims of trafficking.
A total of four courses for around 400 drivers have been conducted, with further sessions scheduled in October. The participants are informed about the penalties they face if caught, including the loss of both their truck and employment, a criminal record, and potential imprisonment of up to 14 years in a foreign country.
Positive impact, new allies
Since the start of the UNODC courses, the Professional Drivers Association has reported a reduction in the number of arrests of Malawian drivers on charges of migrant smuggling and human trafficking.
Many drivers who attended the training are proving to be “very useful allies” in the prevention and detection of cases of migrant smuggling and human trafficking, said Mr. Matewere said.
“We explain that migrant smuggling and human trafficking are serious organized criminal activities punishable by laws in Malawi and the countries the drivers transit, such as Zimbabwe, Zambia, Tanzania, and Mozambique,” he said.
“Furthermore, the drivers are told that these crimes are linked to exploitation, abuse, and violence and can even result in death, and we tell them about the connections to other illicit activities such as drugs and firearms smuggling,” he added.
Last year, Malawi's Ministry for Homeland Security appointed a new group of law enforcement officers to counter the increasing cases of migrant smuggling and human trafficking.
“We've established contact between the truck drivers we trained and this specialised unit, so they now know who to inform when they've been approached by criminals to carry people in their vehicles,” Mr. Matewere said.
Since May, seven attempts of human trafficking and migrant smuggling have been stopped by authorities at border crossings due to information from truck drivers. A recent case involved 40 Malawians, including children, who were being taken in three trucks to South Africa and intercepted on the border with Zambia.
The awareness-raising courses are organized through UNODC's human trafficking and migrant smuggling section, with the cooperation of Malawi's Ministry of Homeland Security and financial support from the Government of Sweden.
Distributed by APO Group on behalf of United Nations Office at Geneva (UNOG).
In an industry where gender norms have long held sway, one exceptional woman has not only challenged conventions, but also sowed seeds that have yielded the fruits of success and prosperity. At the heart of the agricultural sector is the remarkable story of Gloria Ramahlodi, a visionary female entrepreneur who has thrived in the face …
Call to support farmers
BRICS countries have been challenged to take the lead and develop a system that can create a resilient farming community.
The call was made during panel discussions focusing on agriculture, held on Tuesday at the Sandton Convention Centre.
The discussions were held at the BRICS (Brazil, India, China, South Africa and Russia) Business Forum, which looked at sustainable development in agriculture across BRICS nations and the promotion of trade and investment in the sector across the bloc of nations.
Emphasising the need for the creation of a reward system, the Indian chapter of the BRICS Business Council chair, Jai Shroff, said food security is a big issue, while climate change has a huge impact on farmers.
“Soil is the biggest thing for government and we need to create a reward system for farmers to sustain agriculture.
“If BRICS can take a lead, we can see a massive change that will really help improve soil and also create a revenue system,” he noted.
He said leaders should also reward farmers for sustaining the environment.
Bruno Ferla, who chairs the Brazil chapter of the BRICS Business Council, said his home country, which is currently one of the powerhouses of agriculture, managed to achieve this with technology to produce food.
Meanwhile, Chief Economist of the Agricultural Business Chamber, Wandile Sihlobo, noted a current change in temperature of certain chemicals and seeds, which are so critical for agricultural productivity.
“BRICS countries have to take [a] particular view on how they think about that,” he said, adding that improving intra-trade is very important, especially for South Africa.
Agreement to export avocados to China
Meanwhile, Agriculture, Land Reform and Rural Development Minister, Thoko Didiza, today signed an agreement with Chinese Minister of Foreign Affairs Wang Yi for the export of agricultural products to China.
Didiza expressed excitement on the signing of the agreement with China.
“Gaining access to China is a vital step in driving an export led growth for the South African avocado, which is a commitment the government has made under the Agriculture and Agro-Processing Master Plan.
“In recent years, the avocado industry has expanded by 4 750 hectares increasing the total hectares to over 18 000,” Didiza said.
Didiza added that China is likely to become one of the world’s major consumers of avocados and thus offers an immense opportunity to expand avocado production in South Africa.
The agreement comes as Chinese President Xi Jinping is on a State Visit to South Africa. Xi is also attending the 15th BRICS Summit which is being held at the Sandton Convention Centre. – SAnews.gov.za
GabiK
Tue, 08/22/2023 - 15:55
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Ward councillor says only six water tankers are servicing all communities in Emfuleni municipality
Following the success of its 7-year long-standing partnership with the KwaZulu-Natal based non-profit, Thanda, Beiersdorf has further committed a funding donation to address the critical long-term aftershocks of the Covid-19 pandemic. With this commitment, Beiersdorf lives up to its sustainability agenda CARE BEYOND SKIN, which seeks to enhance inclusivity within society and achieve sustainable advancements …
With school tours back on the annual planner, South African schoolchildren can once again look forward to a fun, educational outings that reinforce what’s learnt in the classroom. With an abundance of nature-based, cultural, and animal-friendly establishments along the KZN South Coast, there is no shortage of outing options for KZN schools! “It is wonderful …
Mamahali Peete, a mother of three children, left her marketing career in the vibrant Johannesburg city in the neighboring South Africa and relocated to Lesotho when she got married. Three years in the country she ventured into farming in the rural area of Bela-Bela, and she has never looked back since. She rotates between growing beans and maize on her 30 acres of land.
“Agriculture was not my first choice of business. But realizing the local demand for food I decided to give it a shot. Living in Africa, I now see a lot of potential in agriculture. There will never be a time when people don't need food. The demand for food is even higher in Lesotho,” said Mamahali.
Lesotho is a net importer of agricultural products, with 30 percent of its total food requirements produced locally and the remaining 70 percent imported.
Building mutually beneficial partnerships
Mamahali is one of the first ever bunch of farmers who signed up for Contract farming – a kind of trading arrangement that is not common in Lesotho. The Contract Farming initiative was pioneered by the Food and Agriculture Organization of the United Nations (FAO) in the country as an innovative business model establishing meaningful market linkages between farmers and the market.
Mamahali and 29 other farmers signed the contract with ‘Tasty Food Packers', a leading Pulses supplier in the country. At the end of this season, Mamahali made her first delivery to the company.
“Contract farming brings security and gives us farmers bargaining power. It also motivates us to work hard to honor our portion of the deal. For example, this season we received agricultural inputs late in the season, but I tried everything possible to grow so that I can make delivery,” says Mamahali with a smile of triumph.
Promoting innovations, markets access
Under the agreement, ‘Tasty Food Packers' buys the beans from all the farmers it has contract with at an agreed price for the produce delivered. However, if there are fluctuations in prices during the harvest season, the two parties can revise the prices, and the same can be for the quantities.
“I didn't have a guaranteed market for my beans. Every season we have to look for potential markets. Sometimes we are not sure if our last buyer will be willing to buy from us the next season's harvest. I made my first supply of beans to the buyer. It inspires me to work hard and honor the agreement,” says Tlalane Sebeko, block farmer from Berea.
The farmers and the buyer who signed the contract were trained to increase their understanding and knowledge of Contract farming, and their fields were monitored right from planting to ensure good production and productivity, thanks to the support from the Ministry of Agriculture Food Security and Nutrition of Lesotho in collaboration with FAO.
Collateral to access finance
Most financial institutions in Lesotho just like elsewhere in Africa, have provided limited or no credit and insurance to farmers, although farmers represent the biggest opportunity for scale and impact in financial inclusion today. This is largely due to the fact that agriculture is considered a highly risky business undertaken with limited risk mitigation or sharing measures. About 80 percent of Lesotho's rural population depends on the agricultural sector for their livelihoods. With proper investment and improved access to market agriculture has a huge potential to contribute to economic growth and uplift the livelihoods of the rural populations.
Contract farming assists with credit because most of the time financial institutions accept contracts as collateral for a loan directly to the farmer.
“Access to finance has been a challenge to farmers in Lesotho. Banks and Insurance companies here fear to give us loans, yet our saving capacity is low. However, when Banks learnt about this Contract farming, they told us that they were going to tailor-make a product for farmers. I will be applying for a loan soon using this contract,” says Tlalane Sebeko with excitement.
Integrating actors in the agricultural value chain
Nizam Abubaker, owner of ‘Tasty Food Packers' said the contracts will enable his company to get steady supply as he is currently importing most of the beans from the neighbouring south Africa to meet the demand in Lesotho.
“Communication is important during the season so that if the farmer encounters difficulties let's say unfavourable weather conditions or poor harvest, we are aware and can trigger the ‘force majeure' clause in the contract that protects farmers from uncertainties,” says Nizam Abubaker.
Nizam acknowledges that Contract farming is a win-win arrangement for both the farmer and the buyer, however noting that the government should work to establish laws regulating contract farming to protect and efficiently integrate producers and actors down the value chain, such as agribusiness, processors, exporters, or retailers.
FAO would like to see the Ministry of Agriculture, Food Security and Nutrition Expanding Contract farming to other commodities such as vegetables, maize, and others in Lesotho, which would eventually give farmers the opportunity to diversify into new crops, which would not be possible without available and stable market.
Distributed by APO Group on behalf of FAO Regional Office for Africa.
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South Africa’s largest agricultural lender, ABSA, says new technology has huge potential to unlock capital for smallholder farmers and SMEs who have previously had limited access to finance Pioneering ag-tech company Origin Digital is poised to help lenders revolutionise the agricultural credit landscape in Sub-Saharan Africa and drive growth in the sector. Providing credit to …