By Maile Matsimela
In the rapidly evolving landscape of African agriculture, cross-border trade represents both significant challenges and unprecedented opportunities for farmers across the continent. At a networking breakfast held on the outskirts of Nampo 2025, Standard Bank brought together industry leaders to discuss how agricultural businesses can navigate these complexities and position themselves for growth.
The Beyond Borders Networking Breakfast, hosted at the Adat Venue in Tevrede, Bothaville on Thursday, 15 May, featured insights from senior banking executives and agricultural entrepreneurs who shared practical advice for farmers looking to expand their operations beyond national boundaries.
In an environment where factors like weather patterns and international market prices remain unpredictable, the panel emphasised the importance of farmers concentrating on elements within their control. Brendan Jacobs, Head of Agribusiness at Standard Bank South Africa, highlighted the critical role of data-driven decision-making in this context.
“I think a big part of focusing on what’s in your control is looking at how you can make better decisions. And one of the ways to make better decisions is typically to base your decisions on data. We have a team of agricultural economists and agricultural specialists who are generating information for our clients to help them make better decisions,” said Jacobs.
Jacobs further said operational efficiency remains squarely within farmers’ control: “Another aspect that’s within farmers’ control is what they can do to be more productive in their operations. So, focusing on the operational efficiency and productivity of the business. And those need to be the factors to really concentrate on in the year ahead.”
Louis van Ravesteyn, Head of Agribusiness at the Standard Bank Group, spoke candidly about the challenges that make cross-border trade in Africa particularly difficult.
“I think what makes the trade in Africa quite challenging is the fact that it’s quite unpredictable. Some governments can change overnight in terms of policies on the importation or exportation of products,” Van Ravesteyn explained, adding that the supply chain is quite complicated.
“We’ve seen the logistical issues we had in South Africa over the recent past in terms of the railway network being underdeveloped, etc.”
Yet these challenges also create opportunities for institutions that can navigate the complexity. “I think what makes Africa interesting, but also challenging at the same time, is the unpredictability. I think that’s where banks like Standard Bank come in with our knowledge across the continent to be able to actually help our clients navigate that uncertainty,” he added.
Jayde Clack, Managing Director of GrainCo, Zimbabwe, offered frontline insights into the evolving trade patterns that are creating new market opportunities for African farmers.
“We’ve started seeing a lot more agricultural produce flowing through Zambia into markets such as Rwanda, Uganda and Kenya, and I believe our Zambian operation is now even extending as far north as India, which is unprecedented. We’ve never seen that before,” Clack revealed.
These emerging trade routes come with their own set of challenges, particularly in logistics. “The human capital in Africa is always going to be a challenge. So, as a trade business, we’ve got a strong reliance on rail and road logistics. We really are competing, especially in the SADC region. We’re competing against the mining sector for the same logistical resources, which drives up costs,” he noted.
For companies operating in markets like Zimbabwe, additional complexities arise. “I’m working in Zimbabwe where we are importers of South African products, and it’s a very competitive environment there. We face challenges of exchange rate movement, shortage of foreign currency, and a policy may suddenly be implemented to protect the local market or to allow more product in. So, it really is about being able to predict and position yourself for what might come next,” Clack explained.
Despite the challenges, the panel was optimistic about the potential for regional collaboration in building Africa’s agricultural capacity. Jacobs emphasised the existing trade flows that farmers can leverage.
“There’s a big trade opportunity for South African farmers as you start going north into Africa. Roughly 25% of our agricultural exports are going into Africa. So, there’s already a big trade flow taking place,” Jacobs pointed out.
“What we’ve seen in the last couple of years is that those trade flows have tended to shift. In the past, Zambia was typically an exporter of maize into Zimbabwe. However, recently, we’ve seen South African maize going into Zimbabwe. So, there’s been a bit of a shift in those trade flows.”
Van Ravesteyn expanded on the regional collaboration theme saying, “There’s tremendous opportunity for our commercial farmers to partner with countries like Angola to develop their agriculture sectors. The breadbasket of Africa can definitely happen, but it needs to be a regional approach.”
He also highlighted how countries are adapting to changing climate conditions: “One of the standout stories from Nampo this week has been Zambia. Zambia had a very dry season with respect to maize production, but their wheat production is doing very well. So, the wheat is going to get exported, which will then earn the foreign exchange to import maize. There’s this real symbiotic relationship within the SADC region.”
Thembi Dlamini, who specialises in international trade between Africa and China at Standard Bank, emphasised the institution’s continental reach. “Standard Bank is very much present across the continent. So, we leverage our partnerships to give you that insight. And not only are we present across the continent, but we are also the only African bank with a Chinese partner. So, we can help you in your trade, in your sourcing and selling into the Chinese market.”
Van Ravesteyn elaborated on the practical financial services that support cross-border trade. He said Standard Bank is providing the currency requirement for a lot of the commodity trading businesses. “That’s something quite unique to our offering. We’re present in 20 markets across the continent, which means we understand the regulatory environments and the trade flows.”
Van Ravesteyn highlighted the bank’s partnership with ICBC in China as a particular advantage. “We have signature events in the Chinese market where we take our clients to trade events, we connect them with buyers, and we have a specialist team in Beijing that helps us understand regulation, logistics, facilitation and everything that goes with trading with China,” van Ravesteyn noted.
The panellists emphasised successful cross-border trade requires more than traditional banking services.
Explaining Standard Bank’s comprehensive approach, Van Ravenstyn said they’ve got a team that’s structured in South Africa. “We’ve got specialists on the transactional banking side and specialists on the global markets side. So, bringing in that ability to understand, for instance, the exchange rate volatility that Jayde referenced,” he said.
This approach extends to understanding the agricultural business cycle. Van Ravesteyn further explained that as a business, they’ve also upskilled people to understand agriculture. “We understand your business cycle, when the cash inflows are going to happen, when the expenses come in. And our partnership model means we’re not just a banking provider; we are your business partner providing advice across a range of issues.”
Clack shared his experience working with the bank to expand operations, saying they’ve worked with Standard Bank through their journey of expanding out of Zimbabwe. “They’re able to give us access to specialist teams in each region to understand the nuances of each market. The banking partner you choose really needs to be a partner that can give you the insights, whether it’s commodity markets or foreign exchange markets.”
Clack also offered a word of caution about entering new markets, particularly China. “I will say when we look at where agricultural sales are happening and where they’re going, China is very much the market of the future. But you cannot blindly go into China. Nobody should ever do that. And having access to Standard Bank who can connect you with the right people in that market is essential.”
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