Agribusiness

Agriculture and agro-processing are critical components to GDPs across various African countries. View PwC’s insights and commitment to Agribusinesses across Africa.

Overview

Africa is a resource-rich continent with a rapidly-growing population. Some of the most important resources for many countries are agriculture-based. Agriculture isn’t just a resource to us, it’s life. It’s how we make a difference on this continent through solving the important problems in the industry.

Our specialists have a passion for agriculture. Our involvement with and commitment to agriculture spans over many years and our network includes PwC Agri specialists across the continent.

This extensive footprint means that we’re able to provide our clients across the agri value chain with a seamless and consistent service, wherever they do business in Africa.

PwC’s presence on the continent provides us with an in-depth knowledge and understanding of African operating environments. This enables us to reimagine what’s possible with tailored solutions that add value.

Our objective is simple – keep Africa’s resources competitive and sustainable for the future.

 

Drone flying over crops

How we can add value

Tax issue

Taxation is one of the biggest cost items in any business, yet it is one of the most manageable. Using state-of-the-art methodologies and technology, coupled with specialist skills, our national teams of advisers across the continent can assist agribusinesses to manage their tax risk and, where possible, minimise their tax burden by providing innovative, often proven, practical tax and business solutions.

Our advice covers all aspects of direct and indirect taxes, exchange control regulations and employee-related matters on the continent. Through our extensive network of offices we’re also able to provide advice on structuring international business operations and investments.

 

Sustainability issue

Scarcity of resources and climate change are of growing economic concern. Demand for energy is forecast to increase by up to 50% by 2030, and water withdrawals by 40%. Impacts may include increases in extreme weather and rising sea levels, which could make traditional methods of farming, hunting and fishing difficult or even impossible. Sustainability has never been more important to agribusiness.

‘Environmental sustainability’ is often used interchangeably with ‘agricultural sustainability’, meaning the demands placed on the environment through the exploitation of natural resources should be managed to reduce the impact on the environment. It’s about making responsible decisions.

Agribusiness and other role-players can make a difference with regard to fundamental sustainable development goals that have a significant positive impact on resilience in and beyond the sector’s value chain. We can assist with sustainable development, climate change resilience and integrated reporting.

 

Digitisation in Agriculture

Lessons learned on digitisation in agriculture:

  • The digital transformation of agriculture compares with past technological changes such as mechanisation, hybrid seeds, and biotechnology.
  • Digital agriculture builds on precision agriculture tools and systems developed and adopted over the last two decades.
  • Data stewardship, both in terms of privacy and security, is a major challenge.
  • Digital agriculture is at an early stage of adoption, with time to shape the technologies and the manner of adoption.
  • Agri-businesses face a vast array of new products and services with no common standards, creating a major systems engineering problem.
  • Agri-businesses can be slow to change; prevalent subsistence/family farm structures in many geographies.
  • Decision-making in the future will be a complex mix of human and computer factors.

Talk to us about sustainable business models that are fit for the future.

 

Agro-processing

The agro-processing industry is among the sectors identified for its potential to spur growth and create jobs in South Africa and the rest of the continent. Governments have over the past decade provided support to agro-processing industries through various incentive schemes.

In South Africa the government is endeavouring to substantially expand the agriculture and agro-processing sector by supporting key value chains and products, developing new markets, and reducing reliance on agricultural imports. 

PwC’s calculations place the agro-processing industry in the top five (out of nearly 50) industries for economic growth and job creation potential. Despite this potential, operating conditions have been challenging. Agro-processors are dealing with a long list of challenges.

The potential solutions are also numerous and we can offer PwC’s thoughts on future-proofing South Africa’s food producers. 

 

Investing in Africa

Africa has many challenges, including political instability, corruption, inadequate infrastructure, lack of access to technology and health issues like HIV Aids, to name a few.

Africa also holds many opportunities. 60% of the world’s uncultivated arable land lies in the water rich sub-Saharan Africa region. This fact alone makes it worthwhile to explore the numerous opportunities to do business here and contribute to global food security and trust.

The vast experience of our Deals teams has assisted many local and global investors to reach optimal investment decisions in the agricultural value chain across the continent.

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Contact us

Frans  Weilbach

Frans Weilbach

Agribusiness Leader, PwC South Africa

Tel: +27 (0) 21 815 3204

Andrew Teare

Andrew Teare

Senior Manager, PwC South Africa

Tel: +27 (0) 21 529 2739

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