Agriculture is currently on the edge of a second green revolution which will entail shifts in how the agricultural sector utilises and implements technology to improve output in a sustainable manner.
These are some of the highlights of PwC’s latest Africa Agribusinesses Insights Survey 2016. “Currently, there is a second green revolution underway. There is a desperate need for food security and therefore higher agricultural output without compromising resources in the process,” says Frans Weilbach, Agribusiness Industry Leader for PwC Africa.
“Advances in technology and innovation are the key to the future of agriculture as agribusinesses strive to feed an increasing population against a background of climate change, scarcity of water and a host of environmental concerns.
“Innovative technology and advancements in productivity are becoming increasingly important as pressure mounts on food systems,” says Weilbach. “The global population is growing rapidly and the climate is ever-changing.
“Agribusinesses are making changes to go high-tech. From data-gathering drones to artificial intelligence farming, technology is making the agricultural sector more precise and efficient as agribusinesses push for increased profits.”
The agricultural sector is regarded as one of the most critical industries for the African continent due to economic potential and is projected to become a US$1trillion industry in sub-Saharan Africa (SSA) by 2030. More than half (58.8%) of survey respondents consider investment in Africa as an opportunity for their businesses to expand. The top four countries they are planning to invest in are Zambia, Botswana, Tanzania and South Africa.
PwC’s Agribusinesses Insights Survey 2016 was carried out among a group of African agribusinesses that are mainly focused on delivering agricultural and related services to primary producers. The survey focuses on the strategic challenges that agribusiness leaders face in their businesses, while on the other hand it highlights areas where technological innovation is already taking place and where it can make a difference in the future. In addition, the survey provides viewpoints on the agricultural sector in Nigeria and Kenya.
Survey respondents, however are less optimistic about revenue growth over the next 12 months compared with their expectations a year ago. The majority of agribusinesses (46.2%) are expecting revenue growth of between 0-5%, and 26.9% of businesses expect it to be between 6-10%.
The biggest challenges to business growth cited by business leaders were access to technology, the scarcity of natural resources and supply-side uncertainties. African agribusinesses also feel that there is a long way to go toward better support from government in the sector. For example, businesses are of the view that government does not offer sufficient tax incentives to ensure international competitiveness. Furthermore, they say government is not doing enough to develop skilled workers in the sector.
Edward Kerich, PwC Director in Kenya, says: “Kenya relies heavily on the agricultural sector as the mainstay of its economy, with agriculture contributing 29% of GDP. Kenya is SSA’s leading tea exporter and one of the world’s largest black tea producers. A significant development in the agricultural sector is growth in the number of privately owned tea factories outside of those owned by the KTDA and the large multinationals in the country. The contribution of the tea industry to the Kenyan economy is expected to continue growing, and the benefits realised will be enhanced as some factories move to cheaper renewable energy such as hydropower production.”
Rasheed Rahji, PwC Partner in Nigeria, says: “Agriculture contributed 24.18% to real GDP in Nigeria in Q4 2015. This is mainly due to mechanised farming and to other activities in the agribusiness value chain. It is being fuelled by the Government owing to its focus on agribusiness as a driver for poverty alleviation, and in part by continued investment by commercial farmers. Given the fall in the international price of crude oil over the past 18 months, the Government has encouraged agricultural exports as an alternative foreign exchange earner. A number of challenges in the agricultural sector remain to be addressed. These include inadequate infrastructure, access to credit, and the training and education of smallholder farmers in modern farming techniques. Adequate focus on these matters would certainly assist in improving Nigeria’s food security, grow its GDP and increase its foreign earnings.”
African agribusinesses also indicated they have maintained focus on risk management, with the majority of survey respondents (95.2%) periodically conducting a formal risk assessment. It is also positive to note that 53.8% of respondents prepare an integrated report.
Human resources (HR) models and processes are beginning to evolve, with more emphasis being placed on technology to improve networks and data. Agribusinesses are looking to their HR teams to provide not only basic services and transactional activities but also strategic insights and workforce intelligence. Businesses indicated internal HR capacity, labour unrest, employee turnover, and communication between employees and management as the most challenging human resources matters.
Although there is widespread consensus on the reality of global climate change, much uncertainty still exists when it comes to the exact measurable impact of changes in climatic conditions on agriculture and food security. The majority of agribusinesses are of the view that climate change will have a significant impact on SSA agriculture in the future – 41.2% indicated that there will be a significant impact in the short term and 35.3% that there will be an impact over the next 20 years. In addition, 35.3% of agribusiness leaders indicated that they are considering investment in renewable energy, while 29.4% have already done so. The main forms of renewable energy that agribusinesses have invested in are solar energy and biogas.
Increased pressure on the profitability of farming and agricultural business activities is forcing the agricultural sector to be an early adopter of new technologies in order that it may improve the productivity and profitability of the sector. Survey respondents noted the availability of real-time data as the biggest opportunity for technological innovation. In addition drones are fast becoming a real green-tech tool. Global research also shows that artificial intelligence (AI) farming will be the main enabling factor in increasing the world’s agricultural production capacity to meet the demands of the growing population. This goes hand in hand with precision farming and other technology trends. The majority of survey respondents (76.5%) agree that AI farming will make a major contribution to increasing capacity in Africa over the next ten years. Only 47% of businesses had already invested or plan to invest in the development of AI farming capabilities for primary production. This could be due to the cost of implementation, which was noted as the biggest restriction to the use of AI farming capabilities (64.7%).
All agribusinesses indicated that they felt a responsibility towards food security. Food quality and safety is the one pillar of food security that respondents indicated they can contribute towards the most followed by availability and affordability. It is also positive to note that all businesses indicated their agribusinesses contribute towards corporate social investment (CSI). The top three areas of investment are: healthcare, education and personal upliftment.
“It is predicted that technological innovation will act as a catalyst in lifting agribusiness to the next level in Africa. The winners will be those agribusinesses that seize the opportunity to create new opportunities through technology – they will be able to reach their strategic goals faster and more efficiently,” says Weilbach.
Android Go puts reliable smartphones in budget pockets
Nokia, Vodacom and Huawei have all launched entry-level smartphones running the Android Go edition, and all deliver a smooth experience, writes BRYAN TURNER.
Three new and notable Android Go smartphones have recently hit the market, namely the Nokia 1, the Vodafone Smart Kicka 4 and the Huawei Y3 (2018). These phones run one of the most basic versions of Android while still delivering a fairly smooth user experience.
Historically, consumers purchasing smartphones in the budget bracket would have a hit-and-miss experience with processing speed, smoothness of user interface, and app stability. The Google-supported Android Go edition operating system optimises the user experience by stripping out non-important visual effects to speed up the phone. Thish allows for more memory to be used by apps.
Google also ensures that all smartphones running Android Go will receive feature and security updates as they are released by Google. This is a major selling point for these smartphones, as users of this smartphone will always be running the latest software, with virtually no manufacturer bloatware.
Vodafone Smart Kicka 4
At the lowest entry-level, the Vodafone Smart Kicka 4 performs well as a communicator for emails and WhatsApp messages. The 4” screen represents a step up for entry-level Android phones, which were previously standardised at 3.5”.
The display is bright and very responsive, while the limited screen real estate leaves the navigation keys off the screen as touch buttons. It uses 3G connectivity, which might seem like an outdated technology, but is good enough to stream SD videos and music. Vodacom has also thrown in some data gifts if the smartphone is activated before the end of September 2018.
Its camera functionalities might be a slight let down for the aspirant Instagrammer, with a 2MP rear flash camera and a 0.3MP selfie snapper. Speed wise, the keyboard pops up quickly, which is a huge improvement from the Smart Kicka 3. However, this phone will not play well with graphics-intensive games.
Next up is the Nokia 1, which adds a much better 5MP camera, improved battery life and a bigger 4.5” screen. It supports LTE, which allows this smartphone to download and upload at the speed of flagships. It also sports the Nokia brand name, which many consumers trust.
Although the front camera is 2MP, the quality is extremely grainy, even with good lighting. This disqualifies this smartphone for the social media selfie snapper, but the 5MP rear camera will work for the landscape and portrait photographer.
The screen also redeems this smartphone, providing a display which represents colours truly and has great viewing angles. Xpress-on back covers allows the use of interchangeable, multi-coloured back covers, which has proven to be a successful sales point for mid-range smartphones in the past.
Huawei Y3 (2018)
The most capable of the Android Go edition competitors, the Huawei Y3 (2018) packs an even bigger screen at 5”, as well as an improved 8MP rear camera and HD video recording. The screen is the brightest and most vibrant of the three smartphones, but seems to be calibrated to show colours a little more saturated than they actually are.
Nevertheless, the camera outperforms the other smartphones with good colour replication and great selfie capabilities via the 2MP front camera – far superior to the Nokia 1 despite the same spec. LTE also comes standard with this smartphone and Vodacom throws in 4G/LTE data goodies until the end of September 2018. The battery, however, is not removable and may only be replaced by a warranty technician.
Comparing the 3
All three smartphones have removable back covers, which provide access to the battery, SIM card and SD card slots. The smartphones have Micro USB ports on the bottom with headphone jacks on the top. The built-in speakers all performed well, with the Y3 (2018) housing an exceptionally loud built-in speaker.
Although all at different price points, all three phones remain similar in performance and speed. The differentiators are apparent in the components, like camera quality and screen quality. It would be fair to rank the quality of the camera and battery life by respective market prices. The Vodafone Smart Kicka 4 performed well, for its R399 retail price. The Nokia 1, on the other hand, lags quite a bit in features when compared to the Huawei Y3 (2018), bwith oth retailing at R999.
SA gets digital archive
As the world entered the centenary of Nelson Mandela’s birth on Mandela Day, 18 July 2018, South Africa celebrated the launch of a digital living archive.
The southafrica.co.za site carries content about the country’s collective heritage in South Africa’s eleven official languages.
Designed as a nation building, educational and brand promotion web based tool, the free-to-view platform features award-winning photographic and written content by leading South African photographers, authors, academics and photojournalists.
The emphasis is on quality, credible, factual content that celebrates a collective heritage in terms of the following: Cultural Heritage; Natural Heritage; Education; History; Agriculture; Industry; Mining; and Travel.
At the same time as reflecting on the nation’s history, southafrica.co.za celebrates South Africa’s natural, cultural and economic assets so that the youth can learn about their nation in their home language.
Southafrica.co.za Founder and CEO Hans Gerrizen conceptualised southafrica.co.za as a means for youth and communities from outlying areas to benefit from the digital age in terms of the web tool’s empowering educational component.
“We can only stand to deepen our collective experience of democracy and become a more forward planning nation if we know facts about our nation’s past and present in everyone’s home language,” he says.
Southafrica.co.za, with sister company Siyabona Africa, is the organiser and sponsor of the Mandela: 100 Moments photographic exhibition that runs until 30 September at Cape Town’s V&A Waterfront-based Nelson Mandela Gateway to Robben Island. The 3-month exhibition, which runs daily from 08h00 until 15h00, is showcasing one hundred iconic Nelson Mandela images taken by veteran South African photojournalist and self-taught lensman Peter Magubane.