Nedbank Brings Smart Contracts to Agriculture

South Africa’s Nedbank has announced plans to roll out smart contracts to agriculture within the next 6 to 12 months to simplify financial transactions in the sector. The bank’s upcoming launch highlights how blockchain technology can make farming and related business processes faster, cheaper, and more reliable.

According to Cobus de Bruyn, Nedbank’s Head of Client Value Propositions for Agriculture, smart contracts are already being used, and agriculture is leading the way in adopting this technology in South Africa. “We already have the tools we need, and our team is working hard to get this up and running soon,” he said.

What Are Smart Contracts?

Smart contracts are self-executing digital agreements. Once certain conditions are met, the contract carries out actions on its own; no need for a third party. This automation reduces errors and builds trust among everyone involved.

Nedbank sees massive potential in applying smart contracts to agriculture. Farmers and businesses can use them to manage everything from payments to crop insurance and international trade, all while saving time and money.

De Bruyn explained that importing and exporting farm products usually involves lots of paperwork and back-and-forth. Smart contracts will simplify those steps and make the process more secure. He also noted that the technology will speed up tasks like loan approvals, sending financial documents, and registering assets—tasks that normally take days.

How Nedbank Plans to Use the Smart Contract Technology

Nedbank plans to remove as many manual steps as possible. The bank believes this shift is part of the “next revolution of money.” With smart contracts, businesses can program instructions directly into the system, leading to quicker and more cost-effective results.

“Web3 technology, which includes blockchain, smart contracts, and the metaverse, will soon replace the older Web2 system,” said De Bruyn. “Our clients want faster, smoother, and more tech-friendly solutions—and we’re ready to deliver that.”

Adele Jones, Nedbank’s Lead Architect for Information Security and Blockchain, shared more details about how the system works. She explained that blockchain creates a secure network where each user has a unique identity. All actions are recorded, which helps improve security and trust.

There are two types of blockchain networks: public and permissioned. Public networks are open to everyone, while permissioned networks are limited to certain users. Nedbank plans to use the permissioned type to keep things secure and private.

Jones added that smart contracts are computer programs that run on this network. They automate how people and businesses interact, which makes processes more transparent and efficient.

About Nedbank

Nedbank is one of South Africa’s largest financial service providers, offering banking, insurance, and asset management. While its main market is South Africa, the bank also operates in Eswatini, Lesotho, Mozambique, Namibia, and Zimbabwe and has offices in Ghana, Kenya, the UK, UAE, and the Isle of Man.

In 2022, Nedbank became the first African bank to enter the metaverse. Partnering with Africarare, the bank bought virtual land in Ubuntuland to explore digital innovation.

With smart contracts, Nedbank is taking another bold step to shape the future of banking and agriculture in South Africa—and possibly beyond.