Against the backdrop of this monumental gathering, discussions went deep into the dynamic trends poised to shape food and agribusiness economics across Africa in the coming decade. The forum emerged as a unique crucible for the exchange of insights, collaborative initiatives, and exploration of opportunities, holding the potential to shape the future of the agri-food sector on the continent. Steering the discourse toward sustainable agriculture and innovative investment strategies, the 6th Annual African Agri Investment Indaba played a pivotal role in making a lasting impact on the landscape of food and agriculture, acting as both a testament to the significance of collaboration and a catalyst for transformative developments in the pursuit of a resilient and growth across the entire agri-food value chain.

https://www.farmersweekly.co.za/agri-news/south-africa/unlocking-africas-agricultural-potential/

On Friday, 10 November 2023, ECRDA and sefa will be launching and signing a Partnership Agreement on a R75 million blended finance scheme to assist Eastern Cape farmers, agribusinesses, and rural enterprises. The plan is to disburse all this money before the end of the 2023–24 financial year to Eastern Cape farmers and other rural agribusinesses along the value chain. The funding will be in a blended finance structure, which is a combination of a loan and a grant.

This is to address and alleviate the funding challenges that confront agri-enterprises operating in the Eastern Cape region. This initiative acknowledges that the agricultural sector plays a pivotal role in the economic landscape of the Eastern Cape, but it also recognises the unique hurdles faced by emerging agribusinesses. One of the most significant impediments these enterprises encounter is their limited access to conventional commercial financial institutions, which often hesitate to extend credit due to perceived risks or a lack of collateral.

ECRDA, an agency of the Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR), pulled together resources in partnership with sefa, which has effectively resulted in the creation of a R75 million blkended finance fund for this financial year (2023/24).

This strategic partnership is critical to ensuring increased affordability, inclusion and reducing the risk of failure by new entrants.  It also aims to support the development of small and medium-scale producers to participate in the mainstream agricultural economy and along the agricultural value chain

We are thrilled to invite you to the Eastern Cape Rural Development Agency’s (ECRDA) Commodity Dialogues on Potatoes, which will take place on November 8, 2023.

The ECRDA Commodity Dialogues serve as a platform for industry professionals, experts, and enthusiasts to come together and engage in meaningful discussions about the challenges, opportunities, and innovations in the world of potatoes. This event promises to be a valuable gathering, offering insights, networking opportunities, and the chance to connect with like-minded individuals passionate about the potato industry.

Agenda:
Keynote Address by:

• Mr Vuyani Kama – Farmer Ugie
• Mr Thulani Magida – JUTA AgriTech
• Ms Rendani Murovhi – Potatoes SA
• Mr Thando Mpulu – EL Fresh Produce Market
• Ms Linda Sityoshwana – Wild Coast SEZ

Q&A and Open Forum

Please contact Ms NobaTembu Pako (pakon@ecrda.co.za) or MS Suzette Nienaber (nienabers@ecrda.co.za) for any further information.

A dynamic gathering of agricultural experts, industry leaders, and policymakers that delves into crucial themes such as market trends, sustainability, supply chain resilience, policy, and technological advancements. With a line-up of keynotes and panelists it’s an opportunity to network, learn, and shape the future of Agro-processing and agri-business in the Eastern Cape.

Seating for physical attendance is limited, to reserve your seat please RSVP to nienabers@ecrda.co.za .

In 2021/22 a Memorandum of Understanding (MoU) was concluded between the Eastern
Cape Rural Development Agency (ECRDA), the Elundini Local Municipality and Fulirex in
August 2021. In 2021/22, the ECRDA was also involved in assisting the first four emerging
mohair farmers in South Africa to receive their international on-farm greening Responsible
Mohair Standard Certificates. This enabled these farmers to achieve premium prices for their
product at the mohair auctions.

“The MoU concluded that the Elundini Local Municipality and the ECRDA would provide
professional assistance and technical support services for the wool and mohair industry to
“green” and improve production to meet emerging international sustainability standards. The
intended beneficiaries of the MoU are the members of the Mount Fletcher Farmers
Association and the communal farmers in the Elundini municipal area.

At the end of 2020/21, the ECRDA conducted a study for the planning and design of the
Elundini Wool Hub (warehouse and processing/manufacturing facility). An amount of R687,
010.00 was spent on the study. The final report was presented in April 2021. This report
provides valuable information for the future planning and costing of the complete wool and
mohair value chain,” says ECRDA chief executive officer Simon Qobo.

Qobo says the “on-farm greening” training included modules in Natural Resources
Management, Animal Production Systems, Household Practices and Socio- Economic
Factors.

The Elundini farmers visited the Blue Crane Mohair and Wool Warehouse in April 2021 in
Somerset East. Twelve people, which included eight farmers and four officials, formed part
of the delegation from the Elundini municipality as well as five officers from the ECRDA.
The Blue Crane Wool and Mohair Warehouse runs a very successful warehouse where
farmers deliver and sell their wool and mohair. The objective of the visit was to evaluate if a
similar warehouse setup is feasible in the Mount Fletcher region.
Fulirex was also appointed to do “on farm greening” at the Elundini region. Training was
conducted with farmers on Management Practises, Infrastructure Requirements and
Environmental Requirements.

The enterprises are located in Sinawo and Izinini (Joe Gqabi) and in Mkambathi (OR
Tambo). The ECRDA also supports forestry projects in Sixhotyeni (OR Tambo) and in
Gqukunqa (Alfred Nzo). A total of 4,360 hectares (ha) of timber is planted at these five
projects.

“The forestry development programme received a R1,9 million budget in the 2021/22
financial year. An additional amount of R2 million was secured much later in the year. This
took the total budget for the year to R3,9 million.

The additional budget was used in the recruitment of a further 200 temporary jobs for a
period of three months during the last part of the financial year. The remainder of the budget
was used to buy two tractors and two laptops,” says ECRDA chief executive Simon Qobo.
In addition, in the forestry value chain, transporting timber to markets remains the key cost-
driver. In some instances, transportation costs account for more than 50% of total harvesting
costs. In addressing this challenge, the Mkambathi forestry enterprise took a resolution to
buy a horse and-trailer truck valued at R2.3 million to provide long-haul services as an
additional revenue stream for the enterprise.

This should reduce the exorbitant costs of transporting timber up to R200 000 per month.
Qobo says a total of R2,54 million was used for employee costs at the enterprises, including
the ECRDA forestry unit resources. There was no new planting in 2021/22. This was mainly
attributed to the absence of an operational grant during the review period. It should be noted
that coppice management is applied to all the clear felled areas in order to produce a second
rotation of trees without having to replant such harvested areas.

A total of 220, 187 person hours were recorded for the forestry enterprises. This amounts to
an equivalent of 106 permanent jobs for the year.

The hubs are located in Mbizana (Winnie-Madikizela Mandela Local Municipality), Mqanduli (King Sabata Dalindyebo Local Municipality), Ncora (Intsika Yethu Local Municipality) and at Emalahleni (Emalahleni Local Municipality). Two RED Hubs harvested 280,3 tons of white maize in 2021/22. A total of 252,7 tons were harvested in Mbizana and 27,6 tons in Mqanduli from maize planted in the 2020/21 cropping season.

“The R11,2 million was used to build potato-sorting infrastructure at Mbizana and to support other operational expenses. In addition, training was provided for tractor drivers at the mechanisation centres. The training was conducted with funding from the Department of Agriculture, Land Reform and Rural Development (DALRRD).

The budget for agricultural inputs was only made available at the end of October 2021 which turned out to be too late to utilise the funds for primary production. The process to procure agricultural inputs was thus cancelled and only Mbizana and Ncora managed to secure the delivery of inputs,” says ECRDA chief executive officer Simon Qobo.

A total of R3,5 million was allocated to the flora-producing Tshabo RED Hub in Berlin outside East London. With 12 primary co-operatives, the Tshabo RED Hub plants Protea flowers and vegetables. It has drip irrigation pipelines installed and a further installation of 36×36 hydroponic tunnels for vegetable production.

“The Tshabo budget was used for the procurement of implements, servicing and maintenance of tractors and for preparing the site for the vegetable tunnels. No additional planting of flowers took place at Tshabo since the budget was allocated after the flora planting season. Despite the number of challenges encountered at Tshabo, the ECRDA has continued engaging the communities on many issues such as the payment of salaries for 41 workers, providing technical advice on flora production and in resolving social
issues. This was done through a partnership with the team from the Dohne Research Institute,” says Qobo.

In addition, the ECRDA utilised the funds to service the machinery, procure spare parts for tractors, protective clothing, diesel and two bowsers, ridger and chipper for operations. The ECRDA also worked on assessing the existing borehole at the site, clearing and levelling the site for vegetable tunnels.

In 2021/22, the ECRDA also procured and delivered equipment in the form of tractors, trailers and other farm machinery to mechanisation centres located in the Amathole, Sarah Baartman and OR Tambo regions. This is in addition to the already operational Elundini Farmers’ Mechanisation Centre based in Maclear.

The mechanisation centres play an important role in ensuring that small-scale farmers have access to farming equipment and machinery that enhances primary production.

Access to mechanisation services ensures that small-scale farmers are able to plant their crops within the optimum
planting season and that they can increase their hectarage. Mechanisation enhances agricultural productivity by improving the quality and volume of produce as well as preventing post-harvest losses which is common among subsistence farmers who use hand tools.

Mechanisation centres will play a significant role in transforming the current RED Hubs into aggregation centres. At these mechanisation centres, services are offered in the form of ploughing, discing, fertilising, and harvesting. Farmers can also transport their produce and inputs using the equipment and machinery in the mechanisation centres.