At Nampo Cape, experts highlighted the intersection of environmental responsibility and financial viability in agriculture, advocating for green finance as a foundation for the sector's future. Albert Coetzee from the Citrus Growers' Association of Southern Africa underscored the necessity of financing sustainable practices, including advanced irrigation and renewable energy, through research and support. This conversation, hosted by Food For Mzansi, also featured insights from Liane Petzer of Absa, who detailed the bank's commitment to facilitating farmers' transition to carbon-friendly operations amidst legislative pressures like the Carbon Tax and the Carbon Border Adjustment Mechanism (CBAM).
Renewable energy projects, pivotal for reducing farms' carbon footprints, were identified as key investment areas. Absa's tailored financial products aim to support these initiatives, with Petzer emphasizing the importance of custom solutions that accommodate the unique financial landscapes of both small-scale and commercial farmers. The Energy Bounce Back scheme, highlighted for its beneficial interest rates due to a government-backed guarantee, exemplifies efforts to make green finance accessible, particularly to smaller operations.
However, the challenge of balancing environmental initiatives with financial sustainability was also addressed. Coetzee cautioned against adopting practices that could jeopardize financial health, stressing the need for a balanced approach to sustainable development. Teneal Marthinus from ForFarmers Group added that while farmers are keen on sustainability, practical and financial constraints often hinder implementation, pointing out the role of financial institutions in bridging this gap.
Integrated Pest Management (IPM) and efficient water and fertiliser use systems were discussed as examples of sustainable practices facing adoption barriers due to high costs or market resistance. Coetzee also touched on the challenge of meeting market quality standards while implementing environmentally friendly practices like netting to protect crops from wind damage. Both Coetzee and Petzer acknowledged the difficulty of prioritizing sustainability for farmers dealing with immediate financial pressures but remained optimistic about the role of green finance in achieving long-term sustainability goals.
The future of farming was envisioned as reliant on green finance, with ongoing research and innovation playing critical roles in developing sustainable and profitable agricultural practices. The conversation concluded with a consensus on the importance of financial support and innovation for the sector's sustainability and competitiveness in a climate-conscious market.
Source: Food For Mzansi