South African agriculture faces intensifying water constraints, with the sector accounting for approximately 63% of national water withdrawals in a context where nearly all available water resources are already allocated. While national policy frameworks consistently recognize innovation as critical to sustainable water use, a persistent gap remains between policy intent and farm-level implementation. Using data from the Agricultural Business Innovation Survey (AgriBIS) 2019–2021, this policy brief shows that agricultural businesses operating under water stress can and do achieve significant water-saving outcomes through innovation. Firms that actively invested in new technologies, skills, and knowledge were far more likely to preserve water and to realize co-benefits such as increased revenue, reduced costs, improved soil health, biodiversity gains, and reduced green-house gas emissions. Advanced technologies, including precision agriculture, artificial intelligence, and IoT-based monitoring, were strongly associated with these outcomes. Despite these benefits of innovation, water-smart innovation remains unevenly supported. Awareness and uptake of government support mechanisms are low, even among successful innovators, which suggests misalignment between existing policy frameworks and implementation mechanisms on the ground.
Human Sciences Research Council (Fri,) studied this question.