WIC maps agripreneurship untapped potential
- Wits Innovation Centre
Wits Innovation Centre (WIC) studied how to better support and develop young agripreneurs in South Africa.
The Project for the Agripreneur Ecosystem Mapping South Africa was sponsored by the Enterprise Development Agency (RVO) of the Kingdom of the Netherlands, which is the largest importer of South African agri-produce in Europe. The RVO plans to soon introduce a training programme for the young agripreneurs in South Africa, which the study results will inform.
The study included people between the ages of 18 and 35 who work in the agricultural and agro-processing value chains in the nine provinces of South Africa. It was conducted over three months through desktop research, an online survey, in-person interviews, and follow-up activities.
The results identified regions where training would be most likely to make an impact. This included, in particular, the eastern side of Limpopo, the western part of Mpumalanga and Gauteng.
It also showed that Gauteng already had a number of existing agri-training entities. The study focused on the subsistence farming community, rather than the commercial agri-sector.
The majority of youth working in agriculture were situated in the provinces of Limpopo and KwaZulu-Natal, while the Western Cape and the Northern Cape had very low amounts. Across provinces, the vast majority of farming occurred in backyards, rather than designated farm land or communal land. The majority farmed crops rather than livestock.
Desktop research found that the high-demand gaps were in the production of sorghum, soy, subtropical fruits, berries, honey, coffee, and macadamia. There was also a gap in the sectors of timber processing, agri-logistics, packaging, and related digital services.
The study found that the main challenges for youth agripreneurs were securing land, accessing financing, overcoming perceptions, and the inaccessibility of tech and training. It was evident that most youth preferred fast-turnover sectors like poultry and vegetables.
Paul Bester, the Project Co-ordinator, says, “Some challenges are structural, such as security of tenure and a lack of rural infrastructure that needs governmental action to address.” However, there is also a significant opportunity for the sharing of product knowledge, advanced skills, technology applications, good seeds and input materials. Young agripreneurs would also significantly benefit from initial commercial support.
Moses Mogotlane, the Manager of the Innovation Systems Lab at the WIC, says, “Agriculture is viewed by youth as an inferior or unattractive career choice.” He identifies the main challenge as skills shortages and knowledge gaps in terms of technical expertise, business acumen and compliance knowledge. Mogotlane is concerned that these farmers focus on primary farming with little value, overlooking the importance of processing.
Overall, the study showed that young people can thrive in agriculture with targeted
interventions, systemic alignment, and niche-market Support. There were significant opportunities for the adoption of agri-tech and digital transformation, as well as business and compliance skills development.
The study also found that logistics and post-harvest processing systems could be improved and that public-private innovation support initiatives may be possible. While training programs exist, there are particular opportunities for projects that effectively target the youth.
Mogotlane says that a sustainable and innovation-driven agripreneurship ecosystem would mean the adoption of technology, such as through hydroponics systems or vertical farming methods. He explains that these strategies “do not require land and someone can start small and scale up over time when needed.”
The RVO’s Programme Advisor of Youth Employment & Entrepreneurship, Geerten Schurink, says it was important to consider local expertise, such as that of the WIC, in their planning of agripreneurship projects. The Dutch agency is currently doing this work in Ethiopia, Kenya, and South Africa.
“The collaboration with Wits and the study went well,” he says. “Their systematic and data-driven approach has helped us better understand the challenges, opportunities and leverage points in the ecosystem.”
The RVO is currently in the process of developing a pilot project that will most likely focus on agripreneurship and innovation in the Stellenbosch area.
Mogotlane explains that the next important step would be to establish the proposed youth agripreneurship development centre (YADC) as a coordinating body. On top of the work that the RVO is doing, the WIC is capable of helping establish the YADC, if funding is made available.