Standard Bank Group has mobilised 3.45 billion rand (US$208.1 million) in funding for climate-smart agriculture as South Africa’s farming sector faces growing pressure from climate change, water shortages and rising production costs.
Standard Chartered BankThe funding, provided over the past year, is aimed at supporting agricultural investments that improve farmers’ resilience, increase productivity and strengthen food security, the bank said.
South Africa’s agriculture sector has been increasingly affected by unpredictable weather patterns, drought risks, water constraints and higher input costs, pushing farmers to adopt technologies and practices that improve efficiency and reduce exposure to climate shocks.
Louis Van Ravesteyn, head of agriculture at Standard Bank Group, said farmers were already adapting to changing climate conditions but needed greater access to appropriate financing to expand sustainable farming solutions.
“Farmers are already responding to the realities of climate change, but scaling these solutions requires access to the right kind of finance,” he said.
The bank’s financing supports a range of climate-smart initiatives, including water-efficient irrigation systems, renewable energy projects and regenerative farming practices.
It also highlights the growing use of precision agriculture, solar-powered technologies and data-based crop management systems to help farmers reduce costs, optimise resources and improve yields.
Standard Bank said climate-smart agriculture is increasingly becoming linked to stronger financial performance by helping producers manage expenses and improve long-term profitability.
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The lender said expanding access to finance for emerging and medium-sized farmers remains a key priority, with funding solutions designed around agricultural cycles and climate-related risks.
Boitumelo Sethlatswe, Standard Bank’s head of sustainability, said sustainable finance was focused on creating real economic benefits for farmers, communities and ecosystems.
“By directing capital towards climate-smart agriculture, we are supporting a transition that benefits producers, communities and ecosystems alike,” she said.
The bank said investments in climate-smart agriculture also contribute to reducing emissions, protecting natural resources, preserving biodiversity and strengthening rural economies and agricultural supply chains.
South Africa’s agricultural sector remains a major contributor to employment, exports and rural livelihoods, but experts warn that climate pressures could increasingly threaten food production unless farmers have access to technology, finance and resilient farming methods.
Standard Bank said supporting climate adaptation in agriculture forms part of a broader effort to promote a just transition that protects livelihoods while encouraging sustainable economic growth.
