How South Africa’s farmers can grow profitability through sustainability

South Africa’s agricultural sector continues to outperform expectations.

But as Daneel Rossouw, Head of Sales for Nedbank Agriculture, points out, resilience alone isn’t enough to sustain that growth. “Farmers face a dual challenge, staying profitable while protecting the natural resources that underpin their success,” he says.

“It’s about understanding the finite capacity of natural resources and using them strategically to increase production. A balanced, long-term approach strengthens both the business and national food security.”

Beyond surface-level sustainability

Rossouw believes farmers need to go beyond isolated sustainability projects and adopt integrated, long-term strategies.

“Sustainability is often viewed through a narrow lens, such as simply installing solar panels or upgrading irrigation,” he explains. “Real sustainability integrates soil health, water management, renewable energy, and governance. At Nedbank, we finance those holistic strategies, not only equipment and infrastructure upgrades.”

Evidence supports this approach. A study by the World Wide Fund for Nature (WWF) on dairy farms found that integrating water, soil, and energy management delivered measurable economic returns and improved resilience.

The business case for sustainability According to the World Bank, agricultural growth is two to three times more effective at reducing poverty than the equivalent growth generated in other sectors, a reminder that farmer profitability drives national development.

Rossouw emphasises that sustainable practices must also make financial sense.

“Farmers need to look beyond the initial financing and focus on how sustainability investments affect their entire business model,” he says. “These gains take time, but with the right risk management and patience, they strengthen long-term profitability.”

Nedbank’s agricultural finance solutions aim to make sustainability attainable through cash-flow-friendly loans, preferential rates for green practices, and products that link financial performance to environmental impact.

The role of data and technology

As global markets tighten sustainability standards, South African farmers must align with new frameworks such as the EU’s Carbon Border Adjustment Mechanism (CBAM). Large agribusinesses are adapting, but smaller producers will need targeted financial and technical support to remain competitive.

Data and technology play a growing role in this transition. “Linking data to profitability, not only yield, helps farmers see the real value of sustainability,” Rossouw says.

Ultimately, sustainable agriculture requires collaboration between farmers, financiers, and policymakers.

“It comes back to shared responsibility,” says Rossouw. “Our role as a bank isn’t just to finance assets, but to ensure investments deliver tangible, lasting outcomes through education, assessment, and support.”

South Africa’s farmers have already proven their resilience. With a smarter, profitability-driven approach to sustainability, Rossouw believes they can continue to feed the nation, and strengthen its economy, for generations to come.

Through its emphasis on merging profitability with sustainability, Nedbank is demonstrating that supporting agribusiness is about more than just loans. By providing tailored financial solutions, strategic advice, and innovative tools, the bank is empowering farmers to adopt environmentally sound practices while safeguarding their bottom lines.