eastern cape A REVIEW OF 2008 OPERATIONS
Vision
A vibrant and sustainable rural economy that improves livelihoods and unlocks the dormant potential of the land and the people of the Eastern Cape.
Mandate
Facilitate, coordinate and implement high impact priority projects (HIPPs), aligned with PGDP Focusing initially on the Mzimvubu Economic Development Zone.
Mission
Through partnerships, high level and focused integration and coordination, AsgiSA Eastern Cape (EC) plays a direct and catalytic role in building a sustainable and modern, rural-based economy, primarily through agrarian reform
Strategic goals • • • • •
Establish a competent and effective organisation Effective coordination and implementation of High Impact Priority Programmes (HIPPs) Building image and reputation of the organisation Strengthen institutions at local entity level Establish a recognised stakeholder platform for rural economic development
vision,mis
ssion
AsgiSA EC team of 9
Simpiwe Somdyala CEO
Janine Baxter CFO
Thukela Mashologu Project Manager: Agriculture and agro-processing
Chuma Sangqu Stakeholder & investment promotion manager
Stephen Keet Forestry consultant
Luvuyo Thomas Legal and secretariat
Athini Ndabankulu PA to CEO
Zelna Zitske PA to CFO
Miriam Ketse General assistant
2008
2008 - The first year of operation Stakeholder consultation process, facilitated by the Office of the Premier, regarding AsgiSA EC mandate completed AsgiSA EC’s business plan 2009 to 2014 finalised AsgiSA EC future, in terms of other rural development players underway Board now includes MECs for Agriculture and Economic Development and Tourism Branding, communication underway Key high impact priority projects (HIPPs) – agriculture and forestry underway
developm
ment
Rural development through SIX High Impact Priority Programmes (HIPPs) HIPP 1 Agriculture and agro-processing HIPP 2 Forestry development HIPP 3 Water resource development -
Mzimvubu Catchment
HIPP 4 Hydro and alternative energy HIPP 5 Tourism development HIPP 6 Human settlement and planning
agriculture
HIPP 1 Agriculture and agro-processing Partnership criteria Beneficiaries • Rural communities • Emerging farmers Land • At least 300 ha • Accessibility • Site suitability determined Management • Best practice applied • Management support in place as required • Local empowerment plans known and pragmatic • Disease and risk management in place • Environmental impact mitigated
Accountability • Clear lines of responsibility and accountability defined • Agreements by all parties/stakeholders formalised Financial viability • AsgiSA EC capital to be recovered within planning time-frames • Focus on reinvestment and expansion Buy-in and partnership • Proper consultations with relevant stakeholders • Funding and support partnerships in place • Social compact developed
Model for pilot projects - maize
5.5
PRICE
6
6.5
7
PRICE
Total in bags
110
10450
120
130
140 13300
Production costs
93
8835
96
98
100
9500
Rental / community
10
950
10
10
10
950
Profit
7
665
14
22
30
2850
Profit sharing
0
Community share
1
95
2
3
6
570
Admin
1
95
2
3
4
380
Contractor & Management 1
95
2
3
4
380
AsgiSA EC expansion & reinvestment
380
8
12
16
1520
4
0
Focus crops Initially focusing on: maize, soya beans, canola (on trial), fruit as well as livestock.
Projects location map ALFRED NZO DISTRICT
LESOTHO
KWAZULU-NATAL
Sterkspruit
Ongeluksnek
UKHAHLAMBA DISTRICT
Matatiele
Aliwal North
Rhodes Barkly East
Sakhisizwe
Dordrecht
Indwe
Queenstown
Cofimvaba N9
Stutterheim
Komga
Bhisho Alice King Williams Town Berlin Peddie
Mbizana
Flagstaff Tsitsa Bridge
Nyandeni
Sidwaneni
Lusikisiki
Mthatha
Mkambathi Cutweni
OLIVER TAMBO DISTRCT
N2
Dutywa
Butterworth
Seymore
Cathcart
Tsolo
CHRIS HANI DISTRICT
Tsomo
Whittlesea
Tsitsa Falls
Elliot
Ngcobo
Lady Frere
Tabankulu
Qumbu
Ugie
EASTERN CAPE
Cala
Mount Ayliff
N2
Mount Frere
Maclear
N9
N10
Brooks Nek
Lady Grey
Umngazana
Elliotdale Willowvale
Centane AMATHOLE DISTRICT
Mazeppa Bay
Morgan’s Bay Haga-Haga Khamanga Bay
East London Kidd’s Beach Kiwane
Port St Johns
Coffee Bay Hole in the Wall
Project implementation (2008/09) PROJECT MUNICIPALITY
PROJECT 08/09 SIZE (ha) PLANTING (ha)
Theko Mnquma 1500 400 Zingqayi Mnquma 500 250 Banjwaludaka Mnquma 500 250 Tsilitwa, Sulenkama, Mnquma 5000 2000 Etwa, Gqwesa, Kamastone, Balasi, Nobamba (Wards 18 to 21) Caba Mhlonto 1500 50 Shunkunxa Mhlonto 400 150 Ongeluksnek Matatiele 10 000 1000 Alfred Nzo District Mzimvubu & 2500 2500 Municipality partnership Matatiele Highbury (irrigation) KSD 150 20 Ncome Umzimvubu 2000 Canola Nqadu 800
CROP
maize maize maize maize
maize maize maize maize vegetables, cash crops
Project implementation (fruit) (2008/09) PROJECT
MUNICIPALITY
Citrus anchor project Port St Johns Homestead fruit production Port St Johns Hota Mbewula fruit Sakhisizwe (Cala) Intsika Yethu stone fruit Intsika Yethu (Cofimvaba)
PRODUCTION COMMODITY
citrus citrus & banana peaches peaches/plums/ nectarines
Cala - irrigation and fruit production Port St John’s targeted areas Areas identified in partnership with the municipality local farmers and Riverside/Sugarbeet 250 ha central production and 750 ha outgrowers
Livestock value chain development Current initiative includes purchasing 6 000 large stock.
Pilot project Tsomo Valley Farmers’ Co-operative Umthombo Farmers’ Co-operative Cicira Ntungela Farmers’ Co-operative Ithemba Farmers’ Co-operative Nyandeni Development Trust
Approach towards livestock commercial development Mentorship or human skills development Infrastructure, fencing, dip tanks and handling facilities Logistics, transportation, auction pens, roads
AsgiSA EC & partners
Communal farmers
Trollies
Auctions
Weaners
Offtake agreement
Old mature LRAD farms animals
Feed lot development
Processing TMI Abattoir
Local tanneries Retail markets
Agribusiness model EASTERN CAPE PROVINCE
STRATEGIC PARTNERS
STRATEGIC PARTNERS
(business)
(financing & investments)
• Off take agreements (e.g. PnP, Woolworths Food etc) • Bulk input suppliers (e.g. fertiliser companies, seed houses) • Service level agreements (e.g. transporters)
AsgiSA EC (Pty) Ltd
• Banks, Finance Houses, developmental financial institutions • BEE Partners
AsgiSA EC Value Additon Activities • Agricultural processing and packaging • Stakeholder mobilisation • Export orientated programmes (e.g. ISO certifications and licensing)
Agribusiness SPE
Outgrower 1
Outgrower 2
Tourism SPE
Construction SPE
(illustrative purposes only)
(illustrative purposes only)
• Agricultural input support schemes • Business support • Field and technical support schemes
Central Production Unit (CPU)
forestry
HIPP 2 Forestry development New forestry developmentand rehabilitation of existing plantations 10 000 ha have been identified Permits are a major cause for delays Land tenure and land use options require extensive community consultation Interest by communities and private sector has been demonstrated
Forestry development model
water resources
HIPP 3 Water resource development - Mzimvubu Catchment
Mzimvubu catchment & proposed pumped storage Private land Communal land
LESOTHO
Proposed pumped storage
Ongeluksnek
Sterkspruit
Matatiele
UKHAHLAMBA DISTRICT
Aliwal North
Rhodes Barkly East
Ugie
Elliot
Indwe
Qumbu Tsitsa Falls
Tsolo
EASTERN CAPE
Lady Frere
Queenstown
Flagstaff
Nyandeni
Cofimvaba
Seymore
Dutywa
Butterworth N9
Elliotdale Willowvale
Lusikisiki Mkambathi Cutweni
Mthatha
N2 Tsomo
Mbizana
Tsitsa Bridge
Sidwaneni
Cala
Cathcart
Mount Ayliff Tabankulu
Dordrecht
N2
Mount Frere
Maclear
N9
Whittlesea
Brooks Nek
Mount Fletcher
Lady Grey
Proposed dam sites
KWAZULU-NATAL
Umngazana
Port St Johns
Coffee Bay Hole in the Wall
Tsitsa Falls Scheme The Tsitsa Falls Scheme still needs further investigation.
hydro power
HIPP 4 Hydro and alternative energy Hydropower potential RIVER
DAM NAME
MAR
0.5 x MAR
1 x MAR
1.5 x MAR
Upper Mzimvubu
Dam 2 Siqingeni
240 709
0.53 3.92
1.05 6.54
1.37
Mzintlava
Bokpoort Luzi Dam B
130 198 282
0.37 0.63 1.55
0.58 1.14 2.85
0.92 1.67 3.25
Kinira
Thabeng Somabadi Ntlabeni
307 324 396
1.37 1.50 2.19
2.15 2.50 3.45
2.85 3.34 4.60
Tina
Pitseng Hlabakazi Mpindweni Mangwaneni Ku-Mdyobe
55 248 337 414 424
0.11 0.87 1.41 1.50 2.65
0.22 1.64 2.38 2.63 4.25
0.30 2.21 3.20 3.00
Itsitsa
Nomhala Ntabelanga Malepelepe Laleni Gongo
206 403 696 755 800
0.50 1.70 2.95 3.70 5.80
1.02 2.71 3.66 4.70
1.38 3.40 4.65
Lower Mzimvubu
Mbokazi
2520
Hydro and alternative energy • Complete pre-feasibility on renewable energy strategy • Implement short-to-medium renewable energy strategies • Help implement identified hydro and alternative energy projects
tourism
HIPP 5 Tourism development Nelson Mandela (Mthatha) Cultural Precinct PSP appointed on the feasibility and conceptual design of the precinct Key themes • Mthatha as a colonial town • Mthatha as political home of legends – Nelson Mandela, King Dalindyebo and
others
• Mthatha as a homeland capital • Mthatha as a university town • Mthatha – The unexploited historic and cultural treasure
The Ntlango Conservancy Master Plan • Nature based tourism • Environmental management • Agriculture and agro-processing
human settlement
HIPP 6 Human settlement and planning Projects • OR Tambo District Municipality SDF Review • Agribusiness model implementation • Ingquza Hill (Qaukeni Infrastructure Master Plan development) • Development charter and social compact • Mholontlo and EluadiniTsitsa River Basin Land Use and Environmental
Management Study
• Mhlontlo Infrastructure Atlas Study • Water resource technical support • Resource mapping • Wild Coast tourism initiative - Wild Coast Resort Club • Feasibility studies and business planning
Investment management • Prioritising dormant and under utilised rural lands • Increase economic opportunities for previously disadvantaged communities/individuals
through resources, assets land, people
• Establish direct linkages between project beneficiaries, external service providers
and markets
- External organisations to be introduced to various community groups
- Suppliers of goods, investors, government and parastatal service providers, credit
organisations, other support groups, NGOs
• Provide ongoing monitoring, support to projects; continuously look for new investment
opportunities
• Realising sustainable partnerships for specific programmes/projects - productive networks
of enterprises for economic growth
• Engage with the private sector for job creation, poverty, enterprise development, improved
income levels
management Stakeholder management • Effective engagement, mobilisation vital • Key to overall sustainability strategy • Stakeholder engagement
-
our full range of our endeavours to understand, involve stakeholders in our activities and decisions
• Engagement
-
helps us to meet our tactical, strategic needs
-
help us build strong partnerships with communities, land owners, municipalities and
traditional leaders
-
includes gathering information, spotting trends that may improve effectiveness,
-
improves transparency, builds trust of the individuals/groups whose support is critical
Stakeholders important to AsgiSA EC Community stakeholders Primary stakeholders who are very critical to the success of AsgiSA EC’s success - must be consulted, informed, involved in the planning , execution of the projects – targeted for social compact/development charter process. Traditional Leaders, Project Beneficiaries , Ward Committees, Women in Agriculture, Youth in Agriculture, Existing Cooperatives, Local Nafcoc, Nafu, Commodity interest groups
Funders and donors Stakeholders targeted for partnership development programme and co- funding of AsgiSA EC programmes. DBSA, IDC, NEF, PIC, Land Bank,Teba Bank, Commercial Banks, Kellog Foundation, Eskom Development Foundation, Nerpo, Old Mutual Development Foundation, Transnet Foundation, Sappi, Hans Merensky Holding, Natal Cooperative Timber
stakeholders Government
Important stakeholders who will be part of the District Forum envisaged for each District they should form part of sector specific forums planned, e.g. Forestry Forum or Agriculture development forum. National Departments: Agriculture, Land Affairs, Water Affairs and Forestry and Treasury Provincial Departments: Agriculture, Economic Affairs and Environment, Premiers’ Office, Roads and Transport Local Government: District and Local Municipalities, Municipal Development Agencies South African Local Government Association Parastatals: ECDC, ECRFs, RULIV, ECATU, IDT, NDA
Equity/investors Potential partners that may co- fund AsgiSA EC programmes . GrainSA, Farmers Co-ops, Input and Chemical Manufactures, Cormack Trust
eastern cape Mthatha: ECDC House, 7 Sissons St, Fort Gale, Mthatha, 5100, t 047 501 5100 | f 047 501 5110 East London: 12 Kennington Road, Nahoon, East London, 5217, t 047 501 5100 | f 043 735 2679 Postnet Suite 385, Private Bag X 9063, East London 5200 | www.asgisa-ec.co.za