Global financial technology firm Verto says the South African agriculture export sector is experiencing a period of robust horticulture-driven growth, with exports projected to have exceeded $13.7-billion last year; however, systemic inefficiencies and rising costs threaten these gains.

The sector’s export growth has primarily been fuelled by strong demand for high-value commodities such as citrus, grapes and macadamia nuts, with exports of these commodities having grown by 92% year-on-year in the second quarter of 2025 alone.

Verto explains that the agriculture sector’s competitiveness is negatively impacted on by logistics, specifically persistent congestion and operational delays at ports, as well as the deterioration of rail infrastructure. These aspects directly influence the timelines and cost of perishable exports.

While there have been some short-term efficiency gains at the ports of Durban, Cape Town and Port Elizabeth, chronic issues persist countrywide.

Verto explains that ports are still plagued by inefficiency and equipment breakdowns, which lead to significant vessel delays, increased demurrage costs and, often, spoiled produce.

The dysfunction of ports and rail is estimated to cost farmers tens of thousands of rands per hectare in reduced returns and increased expenses.

Additionally, trade policy uncertainty – such as the status of the African Growth and Opportunity Act (Agoa) – and persistent biosecurity risks pose ongoing threats to South Africa’s market access and agriculture profitability. 

Verto states that, without Agoa, South African exports such as wine, citrus and nuts could face tariffs of between 3% and 15%, or higher, which would significantly erode the competitiveness of South African products in the US market.

South African exports are also facing rising tariff and trade barriers in other key markets, which require constant negotiation and diversification strategies. For example, increased self-reliance in China with macadamia production means that South Africa must innovate and focus on high-quality processed kernel exports rather than raw in-shell products.

Verto adds that many international markets are requiring higher levels of verification for food safety and origin, particularly for meat; therefore, South Africa’s lack of a fully implemented national traceability system is a non-tariff barrier.

Commenting on climate conditions, Verto says South Africa’s agriculture sector should benefit from the predicted La Niña rains in the 2025/26 season but the increasing trend of erratic weather patterns linked to climate change demands massive investment in water-smart farming technologies.

FINANCIAL RESILIENCE

Verto further suggests that agricultural exporters urgently optimise their cross-border payment systems to help safeguard profit margins amid these operational and market pressures.

The firm believes that by addressing the systemic issues in the logistics chain and strategically implementing modern, cost-effective cross-border financial technologies, South African agricultural exporters can lock in profit margins, streamline operations and enhance their standing as reliable global suppliers.

“To remain competitive, exporters must focus not only on efficiency gains on the farm and at the port but also on making their financial processes as frictionless and low-cost as possible, which is why optimising cross-border payments is a key strategic imperative,” Verto says.

The firm explains that the inherent nature of agriculture trade – high volume, time-sensitive and involving volatile prices and exchange rates – makes efficient cross-border payments essential.

With traditional banking channels, South African exporters face issues with high costs, slow settlement times and a lack of transparency.

Verto suggests that exporters opt for non-bank digital payment providers or modern bank solutions that use faster rails for quicker transfers. The firm also recommends that exporters hold foreign currency earnings in digital wallets to pay foreign suppliers or overseas costs to reduce the need for constant and costly rand conversions.

Exporters can also partner with institutions that allow for setting preferred foreign exchange rates for large-volume transactions instead of accepting standard bank rates.

In respect of forward contracts, Verto says exporters can lock in an exchange rate for a future payment date to protect profit margins against a sudden depreciation of the payment currency – or appreciation of the rand.

With option contracts, exporters can buy the right to buy or sell currency at a specific rate, which offers flexibility if exchange rates move favourably.

Verto emphasises that it is now more important than ever for exporters to use blockchain solutions for key export crops. Not only does blockchain help verify sustainability and origin, it also enhances payment security and transparency for linked transactions.

Moreover, Verto urges exporters to partner with payment providers whose systems offer seamless application programming interface integration with existing enterprise resource planning or accounting software. This automates reconciliation, reduces manual error and provides team-time cash flow visibility.