Across the globe, entrepreneurship is recognised as a vital driver of economic growth, innovation, and social progress, says PepsiCo South Africa, as the country marks National Entrepreneurship Month this November.
Pepsico South Africa corporate affairs senior director Zolile Ntukwana said this is particularly true within the food and agriculture sector, where entrepreneurs are playing an increasingly important role in addressing challenges and creating opportunities for a more sustainable and inclusive future.
“At its core, entrepreneurship is about identifying needs and developing innovative solutions. In the food and agriculture sector, this translates to entrepreneurs who are creating new ways to produce, distribute, and consume food, often with a focus on improving efficiency, accessibility, and sustainability. This drive to innovate can be seen in a wide range of initiatives, from developing new agricultural technologies to creating innovative food products and services,” Ntukwana said.
The multinational company said the agricultural landscape is constantly evolving, with farmers facing challenges such as climate change, resource scarcity, and changing consumer demands.
“Entrepreneurs are stepping up to address these challenges, developing and implementing innovative solutions that promote sustainable farming practices and enhance food security.”
Access to markets is crucial for the success of any farmer, but small-scale and emerging farmers often face barriers in reaching consumers and participating in larger supply chains.
Beefmaster Group supply chain executive Roelie van Reenen says that despite South Africa’s food being among the most affordable in the world, the country’s economic situation is placing immense financial strain on consumers.
“This makes it increasingly challenging for people to access the nutritious food their families need, which in turn impacts the ability of food producers across the supply chain to get their products to market,” van Reenen said.
Beefmaster Group said the South African consumer has faced significant hardship over recent years because of a struggling economy, which has undermined their ability to afford basic food.
This is creating a troubling chain reaction throughout the agricultural supply chain resulting in a depressed outlook, and has in part, led to alarming levels of food insecurity, according to recent data.
Van Reenen said that the decline in consumer demand is being driven by shrinking disposable income.
“Our food remains among the most affordable in the world. However, low economic growth, high unemployment, the rising cost of electricity, fuel expenses, and inflation are placing immense financial strain on consumers.” He said that data reveals South Africa’s population growth has outpaced economic expansion over the past decade, compounding pressure on resources and services.
The National Food and Nutrition Security Survey (NFNSS) reveals that 63.5% of South African households—or about 20 million people—are affected by food insecurity. The survey, conducted across nine provinces in South Africa between 2021 and 2022, revealed that at provincial level the North West (72.7%), followed by KwaZulu-Natal (70.4%) and Mpumalanga (70.1%) are at crisis levels when it comes to food insecurity.
The study indicates that more than 18% of households consume poor diets and survive on nutrient-poor food groups such as cereals, condiments, sugars, oils and fats. Interventions suggested by the study include encouragement of domestic food production as well as creation of jobs in the agriculture sector.
The South African Food Security Index 2024, a report commissioned by the Shoprite Group and written by two economists from University of Stellenbosch, finds that 2023 marks South Africa’s lowest food security level in over a decade.
The Index evaluates four dimensions of food security: availability, access, utilisation and overall stability, from 2012 to 2023. It finds that sufficient dietary diversity is required as an intervention to combat children being hungry. By 2023, 11.8% of households reported consuming a lower variety of food than usual given economic constraints.
This Entrepreneurship Month, PepsiCo SA emphasises the crucial role that entrepreneurs play in shaping the future of the food and agriculture sector. Their innovative spirit, unwavering determination, and commitment to sustainability are driving positive change across the entire food system, from farm to table.
BUSINESS REPORT
