CEO Outlook 2022: Why South Africa is Amazing and Agriculture is the Space To Be
There is a skewed negative sentiment towards South Africa. Below is a discussion of the “negativity bias” and why South Africa is amazing and filled with opportunity, particularly in the Agri sector
Why is there so much negativity in the Press?
It has been widely accepted in folklore that “bad news sells” and modern psychology has produced hard data to corroborate this. Goldsmith & Dhar (2013) published in the American Psychological Association Journal the “negativity bias” which argues that human beings pay primary attention to negativity and the threat of loss in order to survive.¹ These instincts have become hard-wired impulses that incentivise the publication of negative news to capture our attention and maximise pay-per-click journalism.
Many good milestones achieved
Contrary to mainstream narratives, there are many reasons to be optimistic about the future of South Africa. We have exited the Zuma era of state capture and our current administration has successfully incarcerated Zuma for contempt of court.² Corruption is not unique to South Africa and will continue here as it does elsewhere. However, successfully incarcerating a corrupt President is a major achievement for the rule of law in any country. It sends a powerful message to the rest of the world that South Africa is pulling itself together – perhaps the world is taking notice?
The World Bank has approved a loan of over R11bn to South Africa at a historically low-interest rate signalling its faith in the progress that South Africa is making.³ SA Bonds were the best performers on the Sovereign Bonds Index, beating India and China in 2021.⁴ The JSE all-share Index is up 54% over the past 12 months which, although coming off a low base, shows that SA is financially recovering from the COVID Pandemic.⁵
Booming Agricultural Sector
Looking at the agricultural sector specifically, the industry has experienced a boom run in recent years and there is no indication of this changing short-term. In 2020, the agricultural sector had the highest growth rate of any economic sector with an impressive 13.1%. increase.⁶ Good rainfall coupled with robust short-term fiscal policy has caused leading economists to forecast the Agri sector to grow another 6% this year.⁷ On an anecdotal level, farmers are building their herds and the market has been buoyant with high meat prices. SwiftVEE sold R40m of livestock online in a single online auction demonstrating the power of digital channels to generate revenue.⁸ Technology oriented venture capital across the continent has increased with foreign investors hungry to penetrate previously unbanked markets.⁹ Our early-stage supporter, Google leads the way with its commitment to deploy over $1 Bn over the next 5 years to key start-ups across the continent.¹⁰ We thank them for their continued assistance.
SwiftVEE’ s Outlook 2022 – Reach New Customers Online
At SwiftVEE, we continue to digitise the agricultural value chain and fulfil our mission of reimagining agriculture through technology. As South Africa economically stabilizes and agricultural food production booms, we have launched three new innovations to connect our users to a wider pool of customers.
We have launched Webcast Advertising which allows stakeholders within the R200bn agricultural ecosystem to reach thousands of new customers via online trading channels. We have seen great up-take in this offering amongst individual and corporate partners.
SwiftVEE further offers Premium Auction Marketing Packages which boosts Livestock Auctions to increase their visibility and engagement online
Finally, we have hard-launched VeeSure, the first truly digital online livestock insurance product of its kind in the world. VeeSure enables online buyers to purchase transit or field risk cover with the click of a button. Our policies are a collaborative innovation with Old Mutual Insure at extremely competitive prices due to the cost-saving efficiencies of digital technology.
As always, our biggest asset is not our technology nor our vision – it’s our people! SwiftVEE has expanded from eighteen employees in 2021 to thirty employees this year. We are always on the lookout for exceptional talent and on a hard recruitment drive as 2022 unfolds. On a personal note, I’d like to thank the entire team for their hard work and rigorous standards of excellence – you inspire me every day.
Conclusion
Every narrative has its challenges and this applies to South Africa no different from anywhere else. Our country is making strides in the right direction and agriculture is a booming sector with strong fundamentals linked to rising populations spiking food demand. Join the SwiftVEE network and empower yourself through digital technology. Grow your customer base and connect with global markets. Let SwiftVEE remind you why South Africa is amazing and agriculture is the space to be!
