In the heart of South Africa, a silent revolution is brewing in the fields and farms of Gauteng. Women-owned agribusinesses, long the backbone of rural communities, are grappling with the opportunities and challenges presented by Industry 4.0. A recent study, published in Sustainability Science and Resources, sheds light on how these businesses are navigating the digital age, and the findings are as complex as they are compelling.
Phindile Cebekhulu-Msomi, a researcher from Milpark Business School, led the study that surveyed 135 female farmers. The results paint a vivid picture of a sector struggling to leverage new technologies for sustainable growth. “The financial challenges are significant,” Cebekhulu-Msomi notes. “Nearly half of the women-owned agribusinesses reported losses or no profit in 2022 compared to 2018.”
The study found that only a small fraction, just 9.6%, of these businesses reported gross profits above R200,000. This stark reality underscores the urgent need for targeted interventions to boost the profitability and expansion of women-owned agribusinesses. The research identified three critical factors: funding, market accessibility, and agricultural skills. A resounding 73.3% of participants deemed funding as extremely important for business growth.
The impact of Industry 4.0 technologies, such as automation and smart technologies, is nuanced. The study revealed a weak positive correlation between technology adoption and gross profit margins. This suggests that while technology is important, it is not the primary driver of profitability. Instead, it serves as a tool that, when combined with adequate funding and market access, can significantly enhance business outcomes.
The energy sector, with its focus on sustainability and technological innovation, has much to learn from these findings. As the world moves towards smarter, more automated systems, understanding how to integrate these technologies in a way that supports growth and profitability is crucial. The experiences of women-owned agribusinesses in Gauteng offer a microcosm of the broader challenges and opportunities facing industries worldwide.
Cebekhulu-Msomi’s research, published in Sustainability Science and Resources, which translates to ‘Sustainability Science and Resources’ in English, provides a roadmap for future developments. It highlights the need for tailored interventions that consider demographic factors and leverage the potential of technology. By focusing on funding, market access, and skill development, stakeholders can help women-owned agribusinesses navigate the complexities of Industry 4.0 and achieve sustainable growth.
As we look to the future, the lessons from Gauteng’s fields could very well shape the way we think about technology adoption and economic empowerment. The journey is far from over, but with the right support and strategies, women-owned agribusinesses can thrive in the digital age, contributing to food security and economic empowerment. The narrative of these farmers is not just about survival; it’s about harnessing the power of technology to build a more sustainable and prosperous future.