Eastern Cape Business 2022-23

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OVERVIEW Agriculture and agro-processing Managing water supplies is crucial for citrus growers. Citrus fruits have been cultivated in the Sundays River Valley for decades. Credit: Sundays River Citrus Company Looking for fruits and new cultivars that can stand up to periods of dry weather is one of the ways that the Eastern Cape’s citrus farmers are tackling climate change. The Riverside Kat River Farm was purchased by the Lona Group in 2012 and has recently started expanding production of Orri mandarins, a fruit that was developed in Israel. The late-ripening tree is hardy and resistant to several diseases. The Lona Group has a national footprint and produces approximately 14 000 tons of citrus annually. The Kat River is a tributary of the Great Fish River. The Sundays River Valley is South Africa’s biggest citrus producer from a defined area. The valley’s harvest in 2021 was 30.5-million cartons and this is anticipated to increase to 40-million by 2026. The province as a whole is the country’s second-largest cultivator of citrus. The Sundays River Valley irrigation scheme was started in 1920s. Darlington Dam (also known as Lake Mentz) was built on the river and a series of canals were constructed to supply water to farms from Kirkwood at the upper end of the valley to Addo. More than 4 000 people are employed in citrus in the Sundays River area, with that figure more than doubling in the picking and packing season. Further west, there is about 6 600ha of land under citrus in the Gamtoos Valley, which exports about nine-million cartons every year. More than 100 farmers are dependent on the Kouga Dam for water in this region, but the dam has recorded consistently low levels in recent years and has to supply the towns of Hankey and Patensie and the Nelson Mandela Bay metro. SECTOR INSIGHT African Port Logistics and Infrastructure is investing R300-million at the Coega SEZ. The provincial government put in place various relief measures for farmers during the Covid-19 outbreak. A sum of R417-million was invested in 107 agricultural initiatives in various value chains, including production in grain, red meat, citrus fruit, macadamia, poultry and cannabis. Small-scale farmers received infrastructure support to the value of R160.5-million. Getting small-scale farmers connected to agro-processing value chains is a major goal for agricultural policy-makers. This lies behind the creation of the Wild Coast Special Economic Zone (SEZ) near Mthatha. The 5 000ha Ncora Irrigation Scheme is seen as a model for the SEZ, which has attracted interest from AngloGold Ashanti and Exxaro. The Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) has several programmes to support smallscale farmers. The Eastern Cape Development Corporation (ECDC) supports agro-processing through loans and equity arrangements: projects that have received financial support include aquaculture, the production of dietary fibre from pineapples and bamboo products. The rich natural grasslands of the Eastern Cape have the EASTERN CAPE BUSINESS 2022/23 26
Coega Dairy is one of the Eastern Cape’s largest agro-processing facilities. Credit: Coega Development Corporation potential to produce high-value organic meat, a product that is increasingly popular in health-conscious international markets. There are about 70 000 people employed on commercial farms across the Eastern Cape, with a further 436 000 people dependent on smaller farms, mostly in the east. The Magwa-Majola Tea Estate is making some progress towards rehabilitation, with the support of the provincial government. Bulk sales for 2021 generated R18.5-million and plans are underway to commercialise and diversify production at the estate to improve sustainability. The National Woolgrowers’ Association of SA (NWGA), with a membership base of 4 500 commercial and 20 000 communal members, is based in Gqeberha, as is Cape Wool SA. The Eastern Cape provides approximately a quarter of South Africa’s milk and the industry is further expanding as producers are favouring high-rainfall coastal areas such as the Tsitsikamma region. South Africa produces about 54% of the world’s mohair and Gqeberha is the mohair capital of the world. Farms around the small towns that dot the open plains south of Graaff-Reinet, Aberdeen, Somerset East, Jansenville and Willowmore, routinely produce nearly half of South Africa’s production. The office of the South African Mohair Growers Association (SAMGA) is in Jansenville. Grootfontein College of Agriculture, the only tertiary educational institute in the country to offer a programme aimed at Angora goat farming and mohair production, is in Middelburg. Processing of mohair takes place in Kariega, Gqeberha and Ntabozuko (Berlin) outside East London. The mohair value chain includes brokers, buyers, processors, spinners, manufacturers and retailers. The SAMIL company has divisions all along the value chain. The Stucken group controls Mohair Spinners South Africa, Hinterveld (a mill) and the processing company Gubb & Inggs in Kariega. Ouma Rusks are still made in Molteno where they were invented. Cabdbury Chocolates operates a big site across the lake from the Nelson Mandela Stadium in Gqeberha and Nestlé makes 11 kinds of chocolate at its factory in East London. The Sasko mill in Gqeberha is the province’s only big milling plant. Deciduous fruits such as apples, pears and apricots are grown primarily in the Langkloof Valley. Another crop in which the Eastern Cape leads national production is chicory. The province’s pineapple crop is grown in the same part of the Sunshine Coast that produces chicory. The Eastern Cape holds 21% of the country’s cattle (about 3.2-million), 28% of its sheep (seven-million) and 46% of its goats, making it the largest livestock province by a large margin. Coca-Cola Sabco and SAB’s Ibhayi brewery are the major beverage manufacturers in Gqeberha and Distell has a bottling plant in the city. Sovereign Foods in Kariega is the country’s fourth-biggest producer of poultry. ■ ONLINE RESOURCES Citrus Growers’ Association of Southern Africa: www.cga.co.za Eastern Cape Rural Development Agency (ECRDA): www.ecrda.co.za Milk Producers Organisation: www.mpo.co.za South African Mohair Growers Association (SAMGA): www.angoras.co.za 27 EASTERN CAPE BUSINESS 2022/23
Page 1: Fly Airlink, a proudly South Fly Af
Page 5 and 6: Next-level connectivity. Groundbrea
Page 7 and 8: Eastern Cape Business A unique guid
Page 9 and 10: MESSAGE Development Corporation (EC
Page 11 and 12: Fast-tracking projects and lowering
Page 13 and 14: SPECIAL FEATURE Credit: Angus Burns
Page 15 and 16: SPECIAL FEATURE and Nelson Mandela
Page 17 and 18: 10 REASONS WHY YOU SHOULD INVEST IN
Page 19 and 20: FOCUS Investors are investing and e
Page 21: FOCUS Property and infrastructure p
Page 24 and 25: PROFILE PROFILE PROFILE The Nelson
Page 26 and 27: KEY SECTORS Overviews of the main e
Page 30 and 31: FOCUS The Responsible Mohair Standa
Page 32 and 33: OVERVIEW Renewable energy Investmen
Page 34 and 35: OVERVIEW Oceans economy The Eastern
Page 36 and 37: OVERVIEW Manufacturing general Aspe
Page 38 and 39: OVERVIEW Education and training Nel
Page 40 and 41: OVERVIEW Development finance and SM
Page 42 and 43: LISTING Eastern Cape Provincial Gov
Page 44: LISTING Inxuba Yethemba Local Munic

Eastern Cape Business 2022-23

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