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eastern capeA REVIEW OF 2008 OPERATIONS
vision,mission
VisionA vibrant and sustainable rural economy that improves livelihoods and unlocks the dormant potential of the land and the people of the Eastern Cape.
MandateFacilitate, coordinate and implement high impact priority projects (HIPPs), aligned with PGDPFocusing initially on the Mzimvubu Economic Development Zone.
MissionThrough 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,mission
Simpiwe SomdyalaCEO
Janine BaxterCFO
Thukela MashologuProject Manager: Agriculture and agro-processing
Chuma SangquStakeholder & investment
promotion manager
Stephen KeetForestry
consultant
Luvuyo ThomasLegal and secretariat
Athini NdabankuluPA to CEO
Zelna ZitskePA to CFO
Miriam KetseGeneral assistant
AsgiSA EC team of 9
20082008 - 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
development
development Rural development through SIX High Impact Priority Programmes (HIPPs)
HIPP 1 Agriculture and agro-processingHIPP 2 Forestry developmentHIPP 3 Water resource development - Mzimvubu Catchment
HIPP 4 Hydro and alternative energyHIPP 5 Tourism developmentHIPP 6 Human settlement and planning
agriculture
HIPP 1 Agriculture and agro-processing
Partnership criteria
1
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
Focus cropsInitially focusing on: maize, soya beans, canola (on trial), fruit as well as livestock.
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 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 4 380 8 12 16 1520& reinvestment
East London
King Williams Town
Queenstown
Cathcart
Alice
Stutterheim
Kidd’s BeachKiwane
Morgan’s BayHaga-Haga
Khamanga Bay
Mazeppa Bay
Coffee BayHole in the Wall
Port St Johns
Butterworth
Dutywa
Mthatha
Tsolo
Lady Frere
Elliot
Aliwal NorthLady Grey
Barkly East
Rhodes
Ugie
MaclearTabankulu
Nyandeni
Qumbu
Mount FrereMount Ayliff
Brooks NekMatatiele
Ongeluksnek
Lusikisiki
N2
N9
N2
N10
N9
MkambathiCutweni
Umngazana
Bhisho
Sterkspruit
Indwe
Dordrecht
Ngcobo
Seymore
Whittlesea Cofimvaba
Sakhisizwe
Cala
Tsomo
Komga
BerlinPeddie
Centane
Willowvale
Elliotdale
Flagstaff
Mbizana
OLIVER TAMBO DISTRCT
KWAZULU-NATALLESOTHO
ALFRED NZO DISTRICT
UKHAHLAMBA DISTRICT
AMATHOLE DISTRICT
CHRIS HANI DISTRICT
SidwaneniEASTERN CAPE
Tsitsa BridgeTsitsa Falls
Projects location map
Project implementation (2008/09)
Project implementation (fruit) (2008/09)
PROJECT MUNICIPALITY PROJECT 08/09 CROP SIZE (ha) PLANTING (ha) Theko Mnquma 1500 400 maizeZingqayi Mnquma 500 250 maizeBanjwaludaka Mnquma 500 250 maizeTsilitwa, Sulenkama, Mnquma 5000 2000 maizeEtwa, Gqwesa, Kamastone, Balasi, Nobamba (Wards 18 to 21)Caba Mhlonto 1500 50 maizeShunkunxa Mhlonto 400 150 maizeOngeluksnek Matatiele 10 000 1000 maizeAlfred Nzo District Mzimvubu & 2500 2500 maizeMunicipality partnership MatatieleHighbury (irrigation) KSD 150 20 vegetables, cash cropsNcome Umzimvubu 2000 -Canola Nqadu 800
PROJECT MUNICIPALITY PRODUCTION COMMODITYCitrus anchor project Port St Johns citrusHomestead fruit production Port St Johns citrus & bananaHota Mbewula fruit Sakhisizwe (Cala) peachesIntsika Yethu stone fruit Intsika Yethu peaches/plums/ (Cofimvaba) nectarines
Cala - irrigation and fruit production
Port St John’s targeted areasAreas identified in partnership with the municipality local farmers and Riverside/Sugarbeet
250 ha central production and 750 ha outgrowers
Livestock value chain developmentCurrent initiative includes purchasing 6 000 large stock.
Pilot projectTsomo Valley Farmers’ Co-operative Umthombo Farmers’ Co-operativeCicira Ntungela Farmers’ Co-operativeIthemba Farmers’ Co-operativeNyandeni Development Trust
Approach towards livestock commercial developmentMentorship or human skills developmentInfrastructure, fencing, dip tanks and handling facilitiesLogistics, transportation, auction pens, roads
AsgiSA EC& partners
Communalfarmers
Trollies
Weaners
Old mature animals
Auctions Processing TMI
AbattoirOfftake agreement Local tanneries
Feed lot development Retail marketsLRAD farms
STRATEGIC PARTNERS(business)
•Offtakeagreements(e.g. PnP,WoolworthsFoodetc)•Bulkinputsuppliers (e.g.fertilisercompanies, seedhouses)•Servicelevelagreements (e.g.transporters)
•Agriculturalprocessingand packaging•Stakeholdermobilisation•Exportorientated programmes(e.g.ISO certificationsandlicensing)
AsgiSA EC Value Additon Activities
•Agriculturalinput supportschemes•Businesssupport•Fieldandtechnical supportschemes
Agribusiness SPE
•Banks,FinanceHouses, developmentalfinancial institutions•BEEPartners
STRATEGIC PARTNERS(financing & investments)
EASTERN CAPE PROVINCE
AsgiSA EC (Pty) Ltd
Tourism SPE(illustrative
purposes only)
Central Production Unit (CPU)Outgrower 2Outgrower 1
Construction SPE(illustrative
purposes only)
Agribusiness model
forestry
HIPP 2 Forestry development
New forestry developmentand rehabilitation of existing plantations10 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
2
Forestry development model
water resources
HIPP 3 Water resource development - Mzimvubu Catchment
3
water resources
Mzimvubu catchment & proposed pumped storage
Private land
Communal land
Proposed pumped storage
Proposed dam sites
Queenstown
Cathcart
Coffee BayHole in the Wall
Butterworth
Dutywa
Lady Frere
Aliwal NorthLady Grey
Barkly East
N9
N9
Sterkspruit
Indwe
Dordrecht
Seymore
Whittlesea Cofimvaba
Cala
Tsomo
KomgaCentane
Willowvale
Elliotdale
LESOTHO
UKHAHLAMBA DISTRICT
KWAZULU-NATAL
N2
N2
Mthatha
Qumbu
Port St Johns
Tsolo
Mount Ayliff
Brooks Nek
Lusikisiki
MkambathiCutweni
Umngazana
Flagstaff
Mbizana
Sidwaneni
Elliot
Rhodes
Ugie
Maclear
Matatiele
Ongeluksnek
Tsitsa Falls
Nyandeni
Tsitsa Bridge
Mount Frere
Mount Fletcher
Tabankulu
EASTERN CAPE
Tsitsa Falls Scheme
The Tsitsa Falls Scheme still needs further investigation.
hydro power
HIPP 4 Hydro and alternative energy
Hydropower potentialRIVER DAM NAME MAR 0.5 x MAR 1 x MAR 1.5 x MAR
Upper Dam 2 240 0.53 1.05 1.37 Mzimvubu Siqingeni 709 3.92 6.54
Mzintlava Bokpoort 130 0.37 0.58 0.92 Luzi 198 0.63 1.14 1.67 Dam B 282 1.55 2.85 3.25
Kinira Thabeng 307 1.37 2.15 2.85 Somabadi 324 1.50 2.50 3.34 Ntlabeni 396 2.19 3.45 4.60
Tina Pitseng 55 0.11 0.22 0.30 Hlabakazi 248 0.87 1.64 2.21 Mpindweni 337 1.41 2.38 3.20 Mangwaneni 414 1.50 2.63 3.00 Ku-Mdyobe 424 2.65 4.25
Itsitsa Nomhala 206 0.50 1.02 1.38 Ntabelanga 403 1.70 2.71 3.40 Malepelepe 696 2.95 3.66 4.65 Laleni 755 3.70 4.70 Gongo 800 5.80
Lower Mbokazi 2520Mzimvubu 4
hydro power
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
5
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
human settlement
6
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
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
management
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 donorsStakeholders 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
GovernmentImportant 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/investorsPotential partners that may co- fund AsgiSA EC programmes .
GrainSA, Farmers Co-ops, Input and Chemical Manufactures, Cormack Trust
stakeholders
eastern capeMthatha: 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