“Data is the next gold,” declares Brian Mahumani from Standard Bank with absolute conviction. For black developing farmers across South Africa, this statement represents more than just industry jargon – it’s a key that unlocks everything from bank financing to premium markets.
By Maile Matsimela, Digital Editor at African Farming
A recent panel discussion themed “Investing in Growth Fields” took place at the 11th Agritec Africa International Exhibition and Conference on Agriculture Technology at the Gallagher Convention Centre in Midrand from 11 to 13 March. It was led by moderator Mmatsheko Mosito, who is a broadcaster and agricultural communicator, with panellists Brian Mahumani, manager: agribusiness insights at Standard Bank, and Thabo Banda, a professional accountant and independent reviewer. Mahumani joined Banda to explain how data transforms farming operations from subsistence struggles into commercial success stories.
Their message was clear: Farmers who embrace data-driven decision-making are positioning themselves for unprecedented opportunities.
From Bank Rejection to Multiple Financing Options
Banda’s transformation story illustrates the power of data perfectly. When he first approached financial institutions for funding, he was met with scepticism and outright rejection. “When you approach a bank without proper records, you’re essentially asking them to gamble on your business,” he explains, reflecting on those frustrating early experiences.
Everything changed when Banda began keeping meticulous records of every aspect of his operation. Within two growing seasons, he went from being rejected by banks to having multiple financing options, including access to blended finance programmes that combine grants with loans at reduced interest rates.
Also read: ‘We cannot transform alone’: Aligning finance, skills and animal health for SA’s agricultural future
The records that transformed Banda’s prospects include detailed planting and harvest data showing yields per hectare over multiple seasons, comprehensive input costs covering seeds, fertilisers, labour and equipment, monthly cash-flow tracking that demonstrates financial discipline, equipment maintenance logs proving asset management capabilities and market prices received for products showing revenue optimisation.
These records become your business credentials, proving to lenders that you understand your operation intimately and can predict future performance with accuracy.
Blended Finance: The Data-driven Opportunity
The data foundation that Banda built opened doors to blended finance, which became a game-changing approach that combines grants with traditional loans. This model typically provides 30% to 50% grant funding, with the remainder covered by loans at significantly reduced interest rates.
“The key insight I learnt was timing your approach to banks and presenting absolutely clear repayment projections,” advises Banda. “When you can demonstrate historical performance through solid data and present detailed cash-flow budgets, lenders begin to see you as a business owner rather than a risk.”
Standard Bank has embraced this model enthusiastically, offering specialised programmes that reward data-driven farmers. Mahumani says that farmers implementing climate-smart practices backed by proper documentation can access even more favourable terms through sustainability-linked loans.
Also read: Affordable, inclusive access to finance for township-based and cooperative agro-processors
Climate-smart Data Equals Creditworthiness
Perhaps the most surprising insight from the panel was how environmental data has become a financial advantage. “Financial institutions are increasingly offering specialised sustainability loans with preferential terms,” notes Mahumani. “Environmental responsibility backed by data is becoming financially rewarding.”
Practical climate-smart practices that generate valuable data include conservation tillage with documented improvements in soil health and water retention, precision irrigation systems showing reduced water usage and improved yields, cover cropping with measured enhancements to soil organic matter, crop diversification demonstrating risk reduction and extended harvest periods, and integrated pest management proving reduced chemical inputs while maintaining productivity.
The key is documenting everything. Banks want to see measurable improvements in sustainability metrics because this data proves you’re building a resilient operation that can weather climate challenges and remain profitable in the long term.
Strategic Technology that Generates Data
The panel emphasised that technology adoption should focus on tools that generate valuable data while providing immediate returns on investment. Priority technologies for developing farmers include basic GPS systems for precise field mapping and planning, soil testing kits to optimise fertiliser applications based on actual nutrient needs, weather monitoring equipment to improve timing decisions and document climate resilience, mobile apps for comprehensive record-keeping and real-time market price tracking, and simple irrigation timers that reduce water waste while generating usage data.
“Drones, IoT [internet of things] sensors, AI analytics – these aren’t just fancy gadgets,” notes Mahumani. “They’re data-generation tools that transform farmers from price takers into strategic business operators.” The crucial point is starting with technologies appropriate for your current scale and building a comprehensive data picture over time.
Also watch: Finance for Farmers workshop empowers farmers with key financial strategies
Digital Markets: Data-driven Access
Access to profitable markets increasingly depends on your ability to provide documented quality and consistency. Digital marketplaces are creating new opportunities by connecting farmers directly with buyers who value transparent, data-backed production practices.
These platforms provide transparent pricing information, enable collective bargaining through farmer groups, reduce post-harvest losses through better logistics coordination and facilitate access to premium markets that pay significantly better prices for documented quality and sustainability.
“Digital marketplaces enable smallholder farmers to aggregate their products effectively while maintaining individual data profiles that demonstrate their specific capabilities,” explains Mahumani.
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