Investing into the South African agricultural sector provides not only crucial resources needed in farming to run sustainable operations, but it also provides the additional benefit and advantage of investing in local communities. This, in turn, has a positive impact on food security and, more importantly, the people working on the farms and living in the surrounding communities.
Armed with extensive experience in this sector and a full suite of financial licenses and capabilities, Fedgroup set out to develop a platform that provides people from all walks of life with the opportunity to directly invest in farming assets and become part of the solution for sustainable farming practices and food security.
Fedgroup offers innovative ways for South Africans to engage with the agricultural sector, providing opportunities for direct investment in farming assets through its Impact Farming platform. Additionally, it offers regulated financial products via financial advisors, enabling individuals to participate in and profit from the agricultural industry.
The benefits to all the participants in this ecosystem inevitably result in the creation of shared profit for everyone involved, allowing Fedgroup to give back to investors and farming partners. This innovative finance model allows anyone to invest in sustainable assets and become part of the solution for sustainable farming practices and food security.
So, how much of a difference does investing in this sector really make?
Warren Winchester, General Manager of Ventures at Fedgroup, combines his years of financial expertise and agricultural experience and says that Fedgroup is actively involved in the deployment of projects on the ground, providing more than just finance to its partners. This hands-on approach is particularly important when integrating sustainable agricultural solutions into their investment approach, ensuring improved agricultural productivity and efficiencies and helping to address food security.
Fedgroup operates specialist funds such as its Smart Agri Fund which focuses on investing in sustainable agriculture and prioritises agricultural development, enhanced profitability and empowerment of local farming communities.
He says that their holistic approach to agricultural investment extends beyond traditional farming practices and within their specialist funds, they integrate green energy solutions to complement agricultural operations. “Fedgroup has also developed and implemented innovative technology, enabling them to monitor the performance of the sites and ensure that performance guarantees are met on each site.”
“From providing advice from agronomists and in-house specialists and deploying our technology to monitor conditions on the farm to assisting with the installation of green energy solutions, the approach is to reduce costs and wastage and bring additional revenue sources onto the farms.”
Technological innovation in agriculture:
The broader approach to technological innovation means Fedgroup is not just a financial partner; they’re deeply ingrained in the agricultural ecosystem. Their extensive experience alongside partner farmers, and specialist capabilities allows them to integrate seamlessly into the full agricultural value chain, sharing knowledge and experience at every turn.
This includes aspects like managing scarce resources and driving efficiencies using technology, by employing a precision-based approach where plants receive precisely what they need when they need it. By changing irrigation systems to more precise drip irrigation reduces water consumption and using smart watering meters that only water when plants or trees need water is an example. By leveraging technologies, they drive down farm costs and improve efficiencies.
Loadshedding can very easily become food-shedding so ensuring the farmers have access to electricity when they need it and ensuring the profitability of the operations is critical to ensuring national food security.
By incorporating technological competencies such as the Internet of Things alongside their proven track record and financial expertise, and capitalising on the advancements made in the solar energy industry, Fedgroup provides investors with an unmatched, future-proof service that changes the way ventures/operations are managed.
Economic growth and job creation:
Investments in agriculture not only increase the demand for high-value produce that the country produces and exports but also contribute to the GDP of the sector. Because of Fedgroup’s involvement and facilitation of the expansion of projects, farmers can increase the number of people employed, further stimulating economic growth.
"Agriculture is typically a labour-intensive operation that results in the creation of numerous jobs. These jobs are generated in rural areas where employment opportunities are generally scarce."
The benefits extend beyond the macroeconomic scale, encompassing the entire value chain. "The infrastructure necessary to scale these operations also leads to increased demand for items such as netting, piping, and pumps.”
"We need farmers to produce the food we eat, and the aim is to fund them by understanding their sector needs. Not only can Fedgroup fund operations, but also commit socially to our communities. By creating jobs on the farms, we ensure that the communities surrounding these farms can afford to eat and cover their other needs,” he concluded.