Revolutionising Agri-Finance: How Nedbank and SwiftVEE Are Changing the Game

Innovation and sustainability were the drivers behind the collaboration between Nedbank Agribusiness and SwiftVEE

Global food systems today are unsustainable for both people and the planet. Besides operating at a high environmental cost, one-third of produce is wasted, leaving billions of people malnourished and producers receiving insufficient compensation.

Transforming these systems requires a holistic approach, including the deployment of technological innovations, which are already playing an important role in enabling and accelerating this transformation.

One such innovation is online auctions. These online platforms offer a simplified approach to trading – directly linking buyers and sellers to streamline the agricultural value chain and reduce inefficiencies, resulting in higher income for producers, and reduced wastage and carbon emissions.

Desry Lesele, Senior Manager for Agribusiness Client Value Propositions at Nedbank Commercial Banking, says that the unique combination of technological innovation and environmental and social impact that SwiftVEE represents made it the logical choice for a meaningful collaboration with Nedbank.

“For us at Nedbank, it’s clear that innovation and sustainability are 2 of the major factors contributing towards transitioning the South African agricultural sector to a resilient future. With our SwiftVEE collaboration, we are effectively supporting both, while also making sustainable solutions more accessible and affordable for farmers across all demographics.”

Online auctions have reshaped buyer-seller transactions – and the data is revolutionising finance

SwiftVEE is South Africa’s largest independent livestock trading platform, representing about half of South Africa’s livestock agents and 150,000 farmers.

Using artificial intelligence and machine learning, SwiftVEE matches buyers and sellers of livestock from anywhere in the world at optimal times and locations, resulting in cost savings, increased market efficiency, and higher returns for farmers. The model also reduces the need for physical transportation, minimising the carbon footprint of each transaction.

However, SwiftVEE does not see itself as an auction house, as it has evolved into a software-as-a-service (SaaS) platform with an agritech and fintech focus.

“Leveraging the vast amount of data collected since its launch, the model is also creating finance solutions for small-scale livestock farmers. It enables these farmers to bypass intermediaries, which generates a transaction history for farmers. Using this data, SwiftVEE is working together with banks like Nedbank to compile alternative risk scores to offer new financial solutions to farmers, bridging the gap between traditional lending requirements and the need for smaller-scale farmers to access finance,” says Lesele.

Nedbank’s collaboration with SwiftVEE enables many touchpoints

SwiftVEE also owns PrysWys, an agricultural inputs platform that sells products like seeds, fertilisers, and chemicals directly to farmers via an online marketplace.

Through this platform, and in partnership with Nedbank Commercial Banking, PrysWys is running a programme to assist farmers with short-term financing to acquire agricultural inputs. The programme is part of a longer-term strategy to commercialise several fintech solutions for the agricultural industry.

Financial enablement is vital for platforms like SwiftVEE to excel, and this is where South Africa’s world-class banking system comes in.

“This is another area where Nedbank plays a key role – providing safe, trusted digital payment platforms and cross-border payments,” says Lesele. “At Nedbank, we are dedicated to developing cutting-edge digital payment gateways, and our cross-border payment solutions are designed to keep clients financially enabled and thriving. We are also committed to developing innovative and fit-for-purpose financing, as our collaborations with both SwiftVEE and PrysWys demonstrate.”

SwiftVEE’s market-leading position in innovation and sustainability is evidenced by its recognition from Google Launchpad as the most innovative company from developing markets, and a UN award for being the best global e-agri platform for sustainability and social impact, which highlights SwiftVEE’s solutions for drought, climate resilience, and food security.

“Collaborating with SwiftVEE to bring all of this and more to the market is a no-brainer for us at Nedbank,” concludes Lesele.
“Agricultural e-commerce, of which SwiftVEE is an important component, is at an emerging stage of development on the African continent, but there is no doubt about the enormous commercial opportunity and potential social impact it brings as it drives growth in the agricultural sector and improves the livelihoods and inclusion of all farmers.”

Let partnering with Nedbank Agribusiness be your next big move.
For more information, email us at agriculture@nedbank.co.za or visit nedbank.co.za/agriculture.

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