Free State pilot targets key agricultural road corridors to cut logistics costs
AgriSA, the Agricultural Business Chamber of South Africa (Agbiz) and Infrastructure South Africa (ISA) formalised the agreement through a Memorandum of Cooperation signed at the Peritum Agricultural Institute in Bloemfontein on 21 February. The initiative is supported by the Department of Public Works and Infrastructure.
Data-driven approach to infrastructure planning
The partnership introduces a pilot project to identify provincial road corridors that are essential for transporting agricultural commodities between farms, storage facilities, processors and markets.
Deteriorating road infrastructure has increased transport costs, disrupted supply chains and reduced the competitiveness of agricultural production in some regions. The new initiative will analyse freight flows, production areas and logistics routes to determine where targeted investment could deliver the greatest economic benefit.
The Free State was selected as the pilot province due to its central role in grain and livestock production, as well as its position within national and export logistics networks.
Industry input into infrastructure reform
The agreement follows ongoing engagement between government, AgriSA and Agbiz to align infrastructure investment with the operational needs of the agricultural sector.
The initiative is reinforced by the appointment of AgriSA CEO Johann Kotzé and Agbiz CEO Theo Boshoff to the Ministerial Advisory Panel on Public Asset Management and Infrastructure Development, which provides industry input on infrastructure priorities.
“The Minister’s decision to engage directly with organised agriculture and listen to producers on the ground signals a clear recognition that infrastructure reform must be anchored in economic reality. Sustainable agricultural growth depends not only on policy intent, but on meaningful partnership with those who understand the daily logistics pressures of moving food from farm to market,” said Johann Kotzé, CEO of AgriSA.
Supporting agricultural growth and competitiveness
Reliable road infrastructure plays a key role in agricultural productivity by lowering transport costs, improving market access and reducing post-harvest losses. It also supports rural economic activity and strengthens the sector’s ability to compete in domestic and export markets.
Through the cooperation agreement, the partners will coordinate planning and prioritise infrastructure upgrades to improve the performance of agricultural logistics corridors.
The pilot is expected to inform future infrastructure planning in other provinces.