Datacentrix Agri Indaba highlights tech and collaboration as drivers of agricultural growth – Farmers Review Africa

South Africa’s agriculture sector can be a powerful engine for growth, jobs and exports, but unlocking that promise means confronting a tight web of productivity, infrastructure, market access, climate and profitability pressures. The sixth Datacentrix Agri Indaba brought together leaders from farming and technology to unpack these headwinds and showcase how purposeful digital adoption and collaboration across the value chain can lift resilience and competitiveness.

Mixed fortunes for South African agriculture

Speaking at the event, Wandile Sihlobo—South Africa’s Presidential Envoy on Agriculture and Land and Chief Economist at Agbiz—described the current operating environment as a tale of contrasts. Good summer rainfall has buoyed field crops, fruit and vegetables in the 2025/26 season, boosting sentiment in parts of the industry. Yet livestock producers remain under pressure from foot-and-mouth disease, while pork producers are still managing the after-effects of African swine fever.

Crops are also facing uneven conditions. Wheat margins are being squeezed by rising input costs and weak profitability, contributing to reduced plantings. Persistent port congestion continues to bite into farm returns, particularly for fruit exporters, and geopolitical tensions are translating into higher shipping costs.

Despite these challenges, Sihlobo maintained that agriculture retains room to step up its contribution to national growth at a time when South Africa’s broader economy is constrained. He projected that the sector could expand by about 8% in 2026, while cautioning that performance differs sharply by subsector.

Economic weight and export performance

The sector’s importance reaches well beyond on-farm production. Around 944,000 people were employed in primary agriculture in the second quarter of 2026, according to Sihlobo, while 1.3 million to 1.4 million people work across the wider agricultural ecosystem and related businesses.

Exports remain a strong pillar. In 2026, agricultural exports rose by roughly 10% year on year in the second quarter, pushing first-half shipments to about US$7.8 billion. Over the longer term, South African agricultural exports have climbed from just over US$2 billion in the early 2000s to a record US$15.1 billion in 2025. With about half of the sector’s output by value destined for foreign markets, reliable logistics and market access are make-or-break for continued expansion.

However, healthy export tallies don’t automatically translate into stronger farm profitability. Logistics bottlenecks inflate costs, while tariffs, regulatory requirements and limited trade agreements can erode competitiveness. The takeaway, Sihlobo argued, is that higher production only creates value if products can move efficiently through the chain and reach markets where they command sustainable prices.

Preparing for El Niño and volatility

While near-term indicators are encouraging, the sector must brace for tougher conditions in 2027. The 2026/27 season carries El Niño risks and a higher probability of drier weather. With only about 20% of food crops under irrigation, much of South African agriculture remains rain-dependent and therefore vulnerable to climate variability.

Sihlobo cautioned that, depending on the intensity of El Niño, agricultural output could contract by around 6% in 2027, following likely growth in 2026. Knock-on effects could include food inflation rising into the 5%–6% range and renewed pressure on employment as farms face drought and higher input costs. This outlook underscores the imperative to invest in resilience while conditions are still favourable—through better information flows, connectivity and data-driven decisions that help businesses adapt quickly.

Technology with a purpose—and collaboration at scale

Realising agriculture’s potential will require coordinated action and targeted technology adoption. Sihlobo emphasised that digital tools—data analytics, artificial intelligence, connectivity, automation and cybersecurity—must be deployed to solve defined business problems and measurably improve productivity, decision-making and risk management.

Datacentrix Group CEO Ahmed Mahomed echoed this “business-first” stance, noting that productivity, logistics, market access, weather and profitability are tightly intertwined in agriculture. Technology should therefore deliver practical benefits: clearer insight, faster and better decisions, stronger operational continuity and solutions to specific constraints. For some large enterprises, that may mean direct adoption of advanced systems. For smaller producers, cooperatives and industry bodies can act as multipliers—deploying shared platforms and services across multiple farms to drive efficiencies at scale.

Reflecting this approach, Datacentrix positions itself as technology-agnostic, working with customers to understand operational realities and strategic goals before shaping the right blend of solutions, skills and expertise. Discussions at the Indaba also highlighted the rising importance of data sovereignty, local infrastructure and contingency planning as organisations navigate geopolitical uncertainty and fast-evolving tech markets. As agri-businesses become more dependent on connected systems and digital services, questions about where critical data lives, how it is governed, what infrastructure supports it and whether the necessary local skills exist are now central to resilience strategies—extending beyond traditional IT boundaries.

From digital ambition to durable growth

The sixth Datacentrix Agri Indaba made one message clear: the sector’s future hinges on its ability to stay competitive internationally, manage infrastructure and logistics constraints, respond to climate and animal-health risks and create inclusive jobs. Collaboration—between producers, industry bodies, technology partners and the public sector—will be essential, as will disciplined technology choices that lift productivity and resilience rather than digitisation for its own sake.

The 2026 Agri Indaba was supported by technology partners including Cohesity, Comsol Networks, Fortinet (Exclusive Networks), HP Inc., HPE Networking, Inferrix, Kaspersky, ManageEngine (ITR Technology), Nutanix, Hikvision (Pinnacle) and Utimaco.