SA’s record agricultural exports mask a growing currency and settlement challenge

South Africa’s record-breaking $15.1-billion agricultural export milestone is an extraordinary achievement, but beneath the headline figure lies a growing financial complexity that exporters cannot afford to ignore.

1. Record exports, record risk: The cost of rand sensitivity

“While a weaker rand can make South African citrus or grapes more attractive to foreign buyers, it’s a double-edged sword,” says James Booth, head of Revenue at Verto. “ZAR/USD volatility remains one of the biggest invisible risks facing the agricultural sector. Sudden currency swings, often driven by geopolitical headlines rather than farming fundamentals, can wipe out already thin margins while a shipment is still at sea.”

The reported slowdown in US-bound exports, partly due to trade friction, adds another layer of currency pressure. Political uncertainty tends to weaken the rand, which simultaneously increases the cost of imported inputs such as fertiliser, fuel and machinery.

“A record harvest doesn’t automatically translate into record profitability,” says Booth. “Exporters need to move from reactive currency conversion to proactive currency management. Tools like forward contracts and multi-currency wallets allow businesses to lock in rates when the rand is strong, protecting margins regardless of market volatility.”

2. Agriculture cannot afford three- to five-day settlement delays

Agriculture is uniquely time-sensitive. A delay in payment is not merely administrative – it can disrupt the entire logistics chain for perishable goods.

“Traditional cross-border banking rails often take three to five days to settle,” says Booth. “In an environment already strained by port congestion and rail inefficiencies, financial delays are simply unacceptable.”

As exporters pivot toward Southeast Asia and the Middle East, they are increasingly dealing with less common currency corridors, adding cost and friction.

“The goal for modern exporters should be near-instant settlement. With local collection accounts and real-time payment infrastructure, businesses can improve liquidity dramatically. Faster access to capital means farmers can reinvest in the next planting cycle or settle logistics costs immediately, keeping the supply chain moving.”

3. The US slump is not a decline, it’s a rewiring

Rather than viewing reduced US shipments purely as a setback, Booth believes this moment represents a structural shift in trade flows.

“Over-reliance on a single partner under frameworks like AGOA created concentration risk. The pivot toward the European Union, China and Middle Eastern markets shows that South African produce is globally competitive.”

The larger opportunity lies within Africa itself. “With AfCFTA gaining momentum, there’s significant potential for intra-African trade growth. Yet, many African countries still transact via the US dollar as an intermediary, adding unnecessary cost and complexity.”

Booth argues that South Africa is well-positioned as a continental gateway. “The future is greater USD-independence. Settling directly in African currency corridors – whether ZAR to NGN or ZAR to KES – reduces friction, lowers fees and supports a more integrated African trade ecosystem. This is how we build long-term resilience.”

Image credit: Freepik