As African agriculture enters a new phase of transformation of rising geopolitical tensions, market volatility and climate challenges, banks are under growing pressure to provide smarter, more flexible and technology-driven financing solutions capable of supporting both commercial and emerging farmers.
According to Ray Van Rooyen, Head: AgriBusiness, Absa Africa Regions, the future of agricultural finance in Africa will depend on how well institutions adapt to the realities shaping modern farming.
In an exclusive interview with Farmers Review Africa during the NAMPO Harvest Day 2026 in South Africa, Van Rooyen said the sector continues to demonstrate remarkable growth and regional integration across the continent.
“Every year, there are more exhibitors, more people coming through, and more businesses getting good exposure at NAMPO. This show is not only about agribusiness in South Africa, it is about agribusiness on the entire continent,” he said.
He noted that farmers, agribusinesses and financial institutions from countries including Kenya, Uganda, Zambia, Botswana and Mozambique are increasingly seeking cross-border partnerships and investment opportunities, arguing that traditional agricultural finance models are no longer sufficient because farming risks have evolved rapidly in recent years.
“Climatic and market risks seem to be key,” he said. “Too much or too little rain is one of the biggest challenges across Africa, while supply and demand and prices continue to fluctuate.”
He pointed to recent examples where extreme weather disrupted harvests in Mozambique while macadamia farmers across the region struggled after prices nearly halved following global market shifts.
Geopolitical tensions and fuel shortages
Beyond weather and prices, he said, geopolitical tensions and fuel shortages are creating additional uncertainty for farmers.
“In Zambia, there were empty petrol stations. In Mozambique, there were queues 30 or 40 cars long waiting for fuel,” Van Rooyen said. “If your tractor is empty, you cannot plough, you cannot harvest. That becomes a major business risk.”
According to him, these realities require banks to rethink financing structures and move towards more climate-smart and flexible solutions that support resilience rather than simply offering conventional loans.
He said advisory services, sector-specific expertise and tailored financing are becoming increasingly important as farmers navigate changing market conditions.
“We want to see how we can solve it,” he said. “We are not going to tell farmers what to do. We want them to tell us what they are looking to do with their business and then see how we can support them.”
Digital banking
Van Rooyen added that digital banking and value-chain finance are also becoming critical tools for unlocking growth, especially for emerging farmers seeking access to markets, equipment and working capital.
One of Absa’s strengths lies in its extensive footprint across African markets, enabling the bank to support cross-border agricultural investments and connect farmers with the right financial and business networks.
“If a South African farmer wants to go to Mozambique, we link them with our team there and provide information on how to do business, open accounts and start operating,” he said.
The bank currently has a strong agricultural presence in Botswana, Zambia, Mozambique and Kenya, while continuing to expand in Tanzania, Uganda and Ghana.
Relationship banking
Van Rooyen noted that relationship banking remains essential in agriculture, especially for smaller producers who often struggle to access decision-makers within large institutions.
“You come through here and engage with specialists,” he said. “Sometimes it is not easy to get to the right person, but these platforms allow farmers to speak directly to people who understand agriculture.”
He stressed that supporting smallholder and emerging farmers will be crucial to Africa’s agricultural growth story over the next decade.
“We cannot just look after the big farmers because you need a pipeline of smaller farmers becoming bigger farmers,” Van Rooyen said. “Every small-scale farmer has the potential to become a big farmer.”
He recalled visiting a poultry farmer who planned to double production within a year but required financial support to scale operations.
“They just needed support from a financier,” he said adding that there are a lot of small farmers across Africa looking for the opportunity to become larger.
Agriculture’s great economic opportunities for Africa
Despite the risks facing the sector, Van Rooyen believes agriculture remains one of Africa’s greatest economic opportunities heading into 2026 and beyond.
“Africa relies on agriculture. Agriculture is the backbone of Africa,” he said. “We see agriculture has massive growth potential.”
He added that continued investment in financing, infrastructure, digital banking and regional trade integration could help unlock the continent’s untapped agricultural capacity.
“Absa is here to stay,” Van Rooyen said. “We invest in agriculture and want to support agribusiness as far as we can. We are one of the key role players in the sector and we are not going anywhere.”
