433369666-The-Case-for-Investing-in-South-Africa

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AGRICULTURE AND AGRO-PROCESSING SECTORS PRESENT
COMPELLING COMPARATIVE ADVANTAGES
Basis for comparative advantage
Excellent climate and soils, and strong capabilities in
the production of wine and citrus fruits.
Africa’s most modern, productive and diverse
agricultural sector.
Strong backward, forward and lateral linkages with
other sectors of the economy.
Competitive input costs, world-class infrastructure.
Counter-seasonality to northern hemisphere, vast
biodiversity and marine resources.
Processing capacity for a wide range of products, from
high-quality commodity types to more niche marketspecific
products.
Select investment trends in these sectors
• Various investment opportunities exist across a broad
spectrum of economic activities along entire value chains
(e.g. farms or fisheries through to intermediate inputs for
industrial applications, as well as final consumer products).
• Global companies are investing in land, production and
packing infrastructure in South Africa, including controlledenvironment
agriculture infrastructure, to diversify sources
of supply.
• Enterprises with scalable business models into fastgrowing
industries in sub-Saharan Africa have attracted
private equity investment focused on the grain, dried fruit
and livestock value chains.
Cabinet is considering the recommendations of the Presidential
Advisory Panel on Land Reform and Agriculture. A process is
under way in the National Assembly to initiate and introduce
the necessary legislation, taking into consideration the work
done and recommendations contained in the reports of the
Constitutional Review Committee and the Ad Hoc Committee
on Amendment of section 25 of the Constitution.
EMERGING GROWTH OPPORTUNITIES IN
SUSTAINABLE AGRICULTURE
• Global climate change and the need for enhanced resource efficiency, particularly relating to water usage, as
well as the need to improve production yields have led to the proliferation of controlled environment agriculture
practices in South Africa.
• This trend has led to investment and manufacturing opportunities related to the green farming technology value
chain, including advanced materials, specialised structures for use in greenhouse tunnels and precision farming
digital technology manufacturing (e.g. soil content probes for moisture and mineral content optimisation).
• The advancement of technological applications in agriculture for the automation and remote monitoring of
production processes has unlocked new market opportunities for drone and other mobile technologies, with
numerous opportunities for software development and its related services clusters.
• The need for enhanced energy efficiency has given rise to the deployment of renewable energy sources in the
agriculture sector, with the domestic agri-related solar photovoltaic market having grown substantially in recent
years (GreenCape). This has generated opportunities for manufacturers and related input suppliers, including
service providers.
• According to GreenCape, conservation agriculture is growing in South Africa and has unlocked opportunities for
no-till manufacturers and distributors.