Over two million of these farmers help reduce poverty for local communities and establish food systems for South Africa and the wider southern African region.
However, they face challenges that prevent them from becoming commercially viable, efficient and sustainable.
Microsoft will identify and appoint established tech companies in the country and work with them to conceptualise, develop and roll-out various high-impact solutions.
“There is no doubt that South Africa’s smallholder farmers have significant potential to drive growth and employment opportunities, as well as enable other sectors within the country to ultimately drive food security. This makes it critical to invest in the sector to address the challenges they face,” says Lillian Barnard, Managing Director at Microsoft South Africa.
The key challenges they face are a lack of infrastructure, access to competitive formal markets, production and business skills, funding and financial support to re-invest in their farming activities, and compliance with food safety regulations and legislation.
The investment is geared towards using technology as an enabler to address these challenges. Broadly, this means harnessing the power of technology to help improve the economic participation and contribution, efficiencies, viability and sustainability of South Africa’s smallholder farmers.
It also aims to help meet broader South African National Development Plan goals. This includes creating job opportunities and facilitating skills development to attract more people into key sectors such as agriculture – particularly youth and women.
A report by Research ICT Africa on ‘Paving the way towards digitalising agriculture in South Africa’ shows advanced technologies like the Internet of Things, remote sensing technologies, and unmanned aerial vehicles can transform the agricultural sector.
It will also help to address South Africa’s food security challenges, create jobs, and address historical inequalities by reducing costs, conserving resources, optimising inputs and maximising outputs.
“Our investment is aimed at making a real difference in one of South Africa’s most vital sectors by harnessing the power of technology. High-impact technological solutions will improve efficiencies in smallholder farming, lower the cost of production, improve access to local and international markets, improve compliance with legislation, and drive access to information, among others.
“By investing in the agriculture sector and unlocking the potential of technology to act as an enabler for growth and skills development, we are showing our commitment to driving sustainability and creating opportunities in one of South Africa’s most critical, job-creating industries,” concludes Barnard.