As global energy volatility hits South Africa’s farms, Shell is making the case that energy and agriculture are two sides of the same food security coin.
The multinational energy and petrochemical company hosted a dialogue at Grain SA’s Nampo agricultural exhibition this week, bringing together key voices across both sectors to unpack energy’s role in supporting the farming community.
“Why we are here is because agriculture is at the core of life,” said Aluwani Museisi, country chair of Shell SA.
He noted that many South Africans have lost sight of where their food originates and can, in some cases, take it for granted, despite the sector being a key driver of both economic activity and food security. “It all starts on the farm. That’s the significance of the value chain. For us at Shell, the intersection between the two sectors — energy and agriculture — is really the core of what we do and what we support,“ Museisi said.
South Africa’s agricultural sector grew by 17.4% in 2025, making it a primary driver of the country’s 1.1% annual GDP growth, according to Stats SA, highlighting the sector’s growing importance to economic resilience.
Museisi said Shell aims to make farmers’ lives easier and more productive, introducing biodegradable lubricants, efficiency-enhancing fuels with lower emissions, and digital solutions that allow farmers to monitor and predict machinery performance before costly breakdowns occur.
Our view is that if resources were to be found, that would definitely contribute to a new sector of the economy in South Africa and could definitely change the game in terms of energy security and socio-economic development for the country
— Aluwani Museisi, country chair of Shell SA.
He acknowledged, however, that this intersection is under pressure, with the conflict in Iran driving cumulative fuel price increases of R6.29 per litre for petrol and R12.60 for diesel over the past two months. He noted that these costs fall squarely on farmers who depend on fuel to keep their operations running.
Museisi was candid about Shell’s limitations in absorbing these fuel hikes on behalf of its customers. As a net importer of petroleum products, he said the company is subject to the same import costs as any other market participant in South Africa and is, therefore, not positioned to cushion the impact.
Looking beyond the immediate constraints, Museisi said domestic energy production could be key to shielding the country from the kind of volatility currently squeezing farmers. “South Africa is in the early stages of exploring for offshore oil and gas,” he said, noting that Shell holds interests in three offshore blocks in the country.
He acknowledged that clear environmental guidelines are still needed to govern exploration responsibly, drawing comparisons to the well-established regulatory frameworks that exist for mining. “Our view is that if resources were to be found, that would definitely contribute to a new sector of the economy in South Africa and could definitely change the game in terms of energy security and socio-economic development for the country.”
Economic opportunities
For Museisi, the longer-term answer to these challenges sits within what Shell describes as its nation-building mandate: to create economic opportunities in a country marked by high inequality and youth unemployment.
In agriculture, specifically, this has taken the form of a partnership with Ukhanyo Farming Development (UFD) to develop young farmers. Sinelizwi Fakade, founder and chair of UFD, explained that the NPO commercialises farmers to unlock their business potential. It currently operates across the Eastern Cape and Mpumalanga, supporting more than 2,500 farms, and has created over 220 jobs while raising more than R12.7m in farmer input contributions.
Fakade said the challenges facing the farmers UFD works with are consistent across the board, with access to finance, markets, production inputs, and technical capacity being key issues.
Rather than overhauling South Africa’s financing model, UFD works within existing systems to make funding accessible to farmers who would not ordinarily qualify. This includes those farming communal land without title deeds, where UFD navigates access through relationships with traditional authorities.
He explained that UFD’s team of 20 employees, the majority of whom are agricultural graduates trained as mentors, attempt to transfer skills directly to farmers on the ground.
“We’re building agri-businesses, not just ticking boxes. We need developing agri-businesses filled with young, passionate individuals committed to the cause to take up space. If you know that you want to be a farmer and you want to start somewhere, regardless of size, we can assist,” he said.
Fakade was equally direct about the structural pressures on farmers, citing fuel costs and grain off-take pricing as significant hidden burdens that raise serious questions about viability. “To the farmer down on the ground, that becomes catalytic in terms of ensuring that they become viable and sustainable economically,” he said.
He pointed to agricultural support systems that have not been meaningfully updated in decades, suggesting that a reimagined subsidy model could help unlock the development market and strengthen the long-term viability of South Africa’s emerging farming sector.
Business Times
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.