MEC Nonceba Kontsiwe on commercialisation of Eastern Cape’s agriculture

MEC Kontsiwe on commercialisation of EC’s agriculture

The province has adopted the Eastern Cape Agriculture Investment Framework (ECAIF) to revitalize the Province’s agriculture sector, regarded as the sleeping giant of the country.

Despite having the highest livestock population, the province only contributes 8% to the country's livestock GDP. There are over 10,000 hectares of irrigable land with water rights in irrigation schemes that have the potential to produce dairy, vegetables, fruits, grains, and fodder. However, this land is not fully utilized, and optimizing its use could greatly enhance sector performance in terms of growth and employment.

The commercial farmers constitute 9% of the farming population, generate 71% of the income, and employ 60% of the agricultural labour force, significantly driving the agricultural sector's performance. On the other hand, smallholder producers, representing 91% of the farming population, generate 29% of the income and provide 40% of the jobs.

The growth of smallholder farmers is impeded by high barriers to entry, including high fixed costs (land, equipment, and operations), inadequate on and off-farm infrastructure, limited funding options tailored to their needs, rising input costs, and poor logistics. The challenge is how to effectively commercialize land owned by black farmers to enhance the economic performance of the agricultural sector to build industries for inclusive growth.

Putting Land Reform Farms into Production for Agro-Processing and Export
Our government has approved a progressive State Land Lease and Disposal Policy aimed at releasing land to land reform beneficiaries to attract investment, improve productivity, and enhance competitiveness on their farms. Out of all the farms distributed in the Eastern Cape, 100 were classified as commercially viable in various agricultural sectors such as citrus in Amathole and Sarah Baartman, deciduous in Sarah Baartman, wool and beef across the province, and grain in OR Tambo, Alfred Nzo, Joe Gqabi, Chris Hani, and Amathole.

Our strategy for commercializing the 100 farms involves repurposing the Eastern Cape Rural Development Agency (ECRDA) to serve as a trade and business aggregator for various commodities. The ECRDA will be empowered to enter into 10-year commercial agreements with all 100 farms to provide holistic support to them and also provide them with offtake contracts to supply their produce to ECRDA processors, which are planned to be located in RED Hubs and industrial parks such as Queens Industrial, Butterworth Industrial Park, Fort Jackson, and Dimbaza.

These processors will process primary produce into food and feed products for domestic markets. For export-oriented products, the ECRDA, supported by the ECDC, will aggregate produce from these farms and explore trade opportunities in African, Chinese, and Middle Eastern markets. The Department will partner with other sector departments to facilitate private sector investment by securing water rights for irrigation, obtaining environmental authorization, acquiring title deeds, or securing long-term land use rights.

Additionally, the department will work towards consolidating and coordinating government investments towards land reform farms. The targeted departments include Agriculture (DoA); Land Reform and Rural Development (DLRRD); Forestry, Fisheries and Environment (DFFE); Water and Sanitation (DWS; and Economic Development, Environment Affairs and Tourism (DEDEAT).
The department will collaborate with the Regional Land Claims Commission to secure Land Development Grants for 38 properties in land claims settlements. This will benefit communities in areas like Ncora, Magwa, Dwesa-Cwebe, Mkhambathi, and more. The department will develop an infrastructure business plan to access funding and unlock R220 million from the Land Development Grant.

For more information, please contact:
MEC’s Spokesperson: Atule Joka: 071 608 9041/071688 4231
DRDAR Communications: Thozi Manyisana: 082 494 36002