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03 March 2025 | Story Andre Damons and Adele Louw | Photo Tania Allen
Agriculture Risk Financing research chair
Prof Johan van Niekerk, Vice-Dean for Agriculture for the Faculty of Natural and Agricultural Sciences; Prof Liezel Massyn, UFS Business School; Prof Nicolene Barkhuizen, Director of the UFS Business School; and Prof Cobus Oberholster, from the Agriculture Risk Financing research chair.

A newly established multi-stakeholder research chair at the University of the Free State (UFS) Business School will focus on holistic and interdisciplinary research that will create new knowledge, contribute to climate change adaptation and mitigation in the food and agricultural sector.

The Agriculture Risk Financing research chair, led by Prof Cobus Oberholster from the Business School, will also support sector specific policy development and implementation, and steer the societal discourse on climate financing and sustainable agriculture. The chair forms part of the UFS, Agricultural Research Council (ARC), and the Department of Agriculture, Land Reform and Rural Development (DALRRD) research chairs. Prof Oberholster joined the university on 1 February 2025 in this prestigious position which is a collaboration between the Business School and the UFS Department of Agricultural Economics.

Prof Oberholster, who spent a big portion of his corporate career in the banking environment, brings extensive expertise in climate finance, resource mobilisation, and sustainable economic practices. His appointment marks a significant milestone in advancing research at the intersection of finance, sustainability, and agriculture, ensuring that innovative financial solutions contribute to environmental resilience and responsible resource management. Prof Oberholster also gained extensive management experience over the past 15 years regarding the agribusiness environment (non-Bank) in South Africa with a specific focus on value-chain financing.

Focus of research chair

Says Prof Oberholster: “The research chair will strategically focus on the mainstreaming of climate-smart financing solutions within the food and agricultural sector. To achieve this, the research will focus on three strategic and interrelated pillars (Regulatory and policy, Entrepreneurial market exchanges and Digital financial innovations), which aim to provide a governance framework within which innovative financing and market mechanisms can be developed and commercialised.

“The chair will reside at the UFS Business School, but form part of a group of research chairs being hosted within the Faculty of Natural and Agricultural Science. These chairs cover the full food and agricultural value chain, which allow for leveraging the output of the chair within very specific components of the value agrifood value chain.”

The ARC-DALLRD-UFS research chairs were established last year in an effort to address the challenges and impact of climate change in Southern Africa and fall under the umbrella of climate change.

Prof Oberholster, who completed two doctoral degrees focusing on agriculture, agricultural development, and agricultural financing, says he is excited to be part of this joint initiative, and the opportunity to share his business and financing experience. “Climate change, and the corresponding need to find innovative financing solutions, is currently one of the biggest global challenges. It requires an accelerated and responsible approach to research and innovation which, together with the university’s trusted reputation, must be used to build social licence for disruptive technological solutions.”

Contributing to food security

According to Prof Oberholster, both the UFS Business School and the faculty, are ideally suited to find complementary commercial solutions for accessing and mobilising climate finance in South Africa and the wider African continent. The chair, through the UFS Business School, will also focus on capacity building which will be done through selected training and educational interventions, with the aim of addressing existing constraints in mobilising and accessing climate finance.

“The chair will focus on the integration of social, ethical and environmental parameters into climate-financing decisions. By focusing on these key sustainability aspects, access to climate finance will not only contribute to specific development objectives but also significantly contribute to food security,” Prof Oberholster says.

“Climate change, and the corresponding need to find innovative financing solutions, is currently one of the biggest global challenges. As such I’m looking forward to guide the creation of new knowledge in this specialised field, and especially to find complementary commercial solutions for accessing and mobilising climate finance in South Africa and the bigger African continent. What is standing out for me is the level of expertise available within the UFS, and the willingness of academics to work together on grand challenges such as climate finance. This is a winning recipe.”

News Archive

Research into veld fires in grassland can now help with scientifically-grounded evidence
2015-04-10

While cattle and game farmers are rejoicing in the recent rains which large areas of the country received in the past growing season, an expert from the University of the Free State’s Department of Animal, Wildlife, and Grassland Sciences, says that much of the highly inflammable material now available could lead to large-scale veld fires this coming winter.

Prof Hennie Snyman, professor and  researcher in the Department of Animal, Wildlife, and Grassland Sciences, warns that cattle and game farmers should be aware, in good time, of this problem which is about to rear its head. He proposes that farmers must burn firebreaks as a precaution.

At present, Prof Snyman focuses his research on the impact of fire and burning on the functioning of the grassland ecosystem, especially in the drier grassland regions.

He says the impact of fire on the functioning of ecosystems in the ‘sour’ grassland areas of Southern Africa (which includes Kwazulu-Natal, Limpopo, Mpumalanga, the Eastern Cape, and the Harrismith environs) is already well established, but less information  is available for ‘sweet’ semi-arid grassland areas. According to Prof Snyman, there is no reason to burn grassland in this semi-arid area. Grazing by animals can be effectively used because of the high quality material without having to burn it off. In the sourer pasturage, fire may well form part of the functioning of the grassland ecosystem in view of the fact that a quality problem might develop after which the grass must rejuvenate by letting it burn.

Prof Snyman, who has already been busy with the research for ten years, says quantified data on the impact of fire on the soil and plants were not available previously for the semi-arid grassland areas. Fires start frequently because of lightning, carelessness, freak accidents, or damaged power lines, and farmers must be recompensed for this damage.

The shortage of proper research on the impact of fires on soil and plants has led to burnt areas not being withdrawn from grazing for long enough. The lack of information has also led to farmers, who have lost grazing to fires, not being compensated fairly or even being over-compensated.

“When above-and below-ground plant production, together with efficient water usage, is taken into account, burnt grassland requires at least two full growing seasons to recover completely.”       

Prof Snyman says farmers frequently make the mistake of allowing animals to graze on burnt grassland as soon as it begins to sprout, causing considerable damage to the plants.

“Plant roots are more sensitive to fire than the above-ground plant material. This is the reason why seasonal above-ground production losses from fire in the first growing season after the fire can amount to half of the unburnt veld. The ecosystem must first recover completely in order to be productive and sustainable again for the long term. The faster burnt veld is grazed again, the longer the ecosystem takes to recover completely, lengthening the problem with fodder shortages further.  

Prof Snyman feels that fire as a management tool in semi-arid grassland is questionable if there is no specific purpose for it, as it can increase ecological and financial risk management in the short term.

Prof Snyman says more research is needed to quantify the impact of runaway fires on both grassland plant productivity and soil properties in terms of different seasonal climatic variations.

“The current information may already serve as valuable guidelines regarding claims arising from unforeseen fires, which often amount to thousands of rand, and are sometimes based on unscientific evidence.”

Prof Snyman’s research findings have been used successfully as guidelines for compensation aspects in several court cases.

 

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