By Maile Matsimela
As the country continues to navigate the complexities of agricultural development, AFGRI Farmer Development remains a beacon of support for farmers seeking to establish sustainable and profitable enterprises.
“Agriculture remains a significant contributor to South Africa’s GDP,” explains Sylvester Lubambo, development specialist at AFGRI Farmer Development (AFD). The sector, he says, faces numerous challenges, but also presents tremendous opportunities for growth and development, particularly for first-generation commercial farmers.
Lubambo was speaking to over 200 farmers gathered for the African Farming Financial and related Production Matters Workshop in Marble Hall on 5 June.
AFGRI, a comprehensive agricultural services company, has established its Farmer Development arm specifically to address the multifaceted needs of emerging farmers. The programme operates on a foundational model comprised of four essential pillars:
- Training
- Mentorship
- Access to finance
- Market access
“Training forms the cornerstone of our approach,” Lubambo emphasises. “We provide both theoretical knowledge in classroom settings and practical, hands-on experience in the field. This comprehensive training equips farmers with the technical expertise needed to navigate the complexities of modern agriculture.”
The mentorship component serves as a critical bridge between knowledge and application. “Many of our farmers are first-generation commercial farmers who benefit immensely from guidance to avoid costly mistakes,” notes Lubambo. “Our mentors bring years of industry experience, offering invaluable insights that can mean the difference between success and failure in this challenging sector.”
Access to finance
Financial barriers represent one of the most significant obstacles for emerging farmers. Weak balance sheets, inadequate record-keeping and improperly structured businesses often prevent farmers from accessing the capital needed to grow. AFGRI addresses these challenges through innovative financing solutions that focus on cash flow rather than traditional collateral requirements.
“We recognise that many emerging farmers lack the collateral typically required by financial institutions and by developing alternative lending models based on projected cash flow and comprehensive business plans, we’re creating pathways to financial inclusion for previously disadvantaged farmers,” Lubambo explains.
The fourth pillar – market access – completes the development framework. “Production alone isn’t enough as farmers need reliable channels to sell their produce at fair prices. We work to connect farmers with both local and broader markets, ensuring their hard work translates into sustainable revenue,” says Lubambo.
Be prepared to adjust
Climate change has emerged as a defining challenge for agricultural production in South Africa. Shifting weather patterns have altered traditional planting windows, requiring farmers to adapt their approaches to remain productive. “We emphasise the importance of sound agronomic planning and risk mitigation strategies,” Lubambo shares.
He adds that farmers must be prepared to adjust their operations in response to changing environmental conditions.
Disease outbreaks, such as foot-and-mouth disease, represent another significant risk factor. These events can devastate livestock producers and disrupt market access for extended periods. AFGRI’s development programmes incorporate biosecurity protocols and contingency planning to help farmers navigate these challenges when they arise.
The horticulture sector has shown particular promise in certain regions of South Africa, offering profitable opportunities for diversification. “We’re seeing encouraging growth in specialty crops that command premium prices on both domestic and export markets. With proper training and support, many farmers are successfully transitioning into these high-value enterprises,” notes Lubambo.
For those considering entry into commercial agriculture, Lubambo offers measured advice: “Farming is not a quick win – it requires patience, passion and persistence. The rewards are significant but come through sustained effort and a long-term vision.”
Record-keeping often overlooked
Record-keeping emerges as a crucial yet often overlooked aspect of successful farming operations.
“Detailed financial and production records not only inform better decision-making but also demonstrate credibility to potential lenders and investors. We cannot overstate the importance of meticulous documentation in building a sustainable agricultural business,” Lubambo emphasises.
Looking to the future, AFGRI Farmer Development remains committed to expanding its reach and impact across South Africa’s agricultural communities. “We envision a thriving agricultural sector where farmers from all backgrounds have the opportunity to build profitable, sustainable businesses,” Lubambo concludes. “Through continued innovation and partnership, we’re working to make that vision a reality for the next generation of South African farmers.”
