The Eastern Cape Rural Development Agency (ECRDA) has approved R14.8-million in loans to rural entrepreneurs in the 2015-16 financial year.
Actual disbursements amounted to R12.5-million while R11.8-million of this was for agricultural loans which went to 265 clients.
In the same period, the agency collected R13-million in loan repayments. Announcing the agency’s annual results recently, ECRDA chief executive Thozamile Gwanya said: “The bulk of the disbursements relate to agricultural loans and specifically to crop production loans.”
Gwanya said although the loan facility was made for maize crop production at the Mqanduli and Ncora Rural Enterprise Development (RED) Hubs, he encouraged informal groups of subsistence farmers to apply as groups in order to qualify for production loans.
Gwanya also welcomed the clean audit report the agency received in the period under review. However, he said the agency’s 2015-16 funding allocation had decreased from R210.8-million in the previous year to R151.6-million signalling challenges within the current economic environment.
“Despite this challenge, there was a steady progress being made by the four RED Hubs in Mqanduli, Ncora, Mbizana and Emalahleni,” he said.
This included:
lThe Mqanduli RED Hub, which delivered 399.31 tons of white maize from the 936ha planted in the 2014-15 season to the silos. Income derived from the maize sold by the six primary cooperatives of the hub was R998275;
lAt the Ncora Red Hub, the 10 primary cooperatives organised under the Ncora Irrigation Scheme Producers Assembly Secondary Cooperative delivered 1935 tons to the silos from the 1003ha planted in 2014-15. The income generated from the sale of maize was R5-million;
lThe Mbizana Red Hub, which has 13 primary cooperatives, received 316.7 tons from the 983ha of white maize planted in 2014-15. Some 226.5 tons was sold and a total of R512216 was generated from the sales of maize; and
lAt the Emalahleni RED Hub 565 tons of grain sorghum was harvested from the 829ha planted. The hub, which has six primary cooperatives, sold 472.24 tons generating R1.22-million.
Gwanya was also pleased with the progress in the forestry development projects in villages around Mbizana.
“Sinawo Project is close to commercialisation. It is already selling timber to commercial forestry giant Sappi for paper milling. The project generated some R7-million from the sale of timber. Sixteen additional staff was employed bringing the total employee count to 208, excluding the 113 short-term employees.”
Gwanya said R3.5-million was spent in Izinini where 111ha of gumtrees were planted, bringing the total amount of land planted to 335ha. There are 60 full-time staff members working on the project.
In Sixhotyeni, a total of R4.4-million was spent while 214ha of gums were planted. A total of 39 people were permanently employed bringing to 86 the total number of full-time staff.
A sum of R8.5-million was spent in Gqukunqa where 384ha of gum trees were planted bringing the total number of hectares planted to 605ha.
“In Mkhambathi, R5-million was spent and a total of 78ha of gum trees were planted bringing the total area planted to 668ha. The project generated revenues of R803949 from the sale of timber,” added Gwanya. — lulamilef@dispatch.co.za
ECRDA cream of the crop
Actual disbursements amounted to R12.5-million while R11.8-million of this was for agricultural loans which went to 265 clients.
In the same period, the agency collected R13-million in loan repayments. Announcing the agency’s annual results recently, ECRDA chief executive Thozamile Gwanya said: “The bulk of the disbursements relate to agricultural loans and specifically to crop production loans.”
Gwanya said although the loan facility was made for maize crop production at the Mqanduli and Ncora Rural Enterprise Development (RED) Hubs, he encouraged informal groups of subsistence farmers to apply as groups in order to qualify for production loans.
Gwanya also welcomed the clean audit report the agency received in the period under review. However, he said the agency’s 2015-16 funding allocation had decreased from R210.8-million in the previous year to R151.6-million signalling challenges within the current economic environment.
“Despite this challenge, there was a steady progress being made by the four RED Hubs in Mqanduli, Ncora, Mbizana and Emalahleni,” he said.
This included:
lThe Mqanduli RED Hub, which delivered 399.31 tons of white maize from the 936ha planted in the 2014-15 season to the silos. Income derived from the maize sold by the six primary cooperatives of the hub was R998275;
lAt the Ncora Red Hub, the 10 primary cooperatives organised under the Ncora Irrigation Scheme Producers Assembly Secondary Cooperative delivered 1935 tons to the silos from the 1003ha planted in 2014-15. The income generated from the sale of maize was R5-million;
lThe Mbizana Red Hub, which has 13 primary cooperatives, received 316.7 tons from the 983ha of white maize planted in 2014-15. Some 226.5 tons was sold and a total of R512216 was generated from the sales of maize; and
lAt the Emalahleni RED Hub 565 tons of grain sorghum was harvested from the 829ha planted. The hub, which has six primary cooperatives, sold 472.24 tons generating R1.22-million.
Gwanya was also pleased with the progress in the forestry development projects in villages around Mbizana.
“Sinawo Project is close to commercialisation. It is already selling timber to commercial forestry giant Sappi for paper milling. The project generated some R7-million from the sale of timber. Sixteen additional staff was employed bringing the total employee count to 208, excluding the 113 short-term employees.”
Gwanya said R3.5-million was spent in Izinini where 111ha of gumtrees were planted, bringing the total amount of land planted to 335ha. There are 60 full-time staff members working on the project.
In Sixhotyeni, a total of R4.4-million was spent while 214ha of gums were planted. A total of 39 people were permanently employed bringing to 86 the total number of full-time staff.
A sum of R8.5-million was spent in Gqukunqa where 384ha of gum trees were planted bringing the total number of hectares planted to 605ha.
“In Mkhambathi, R5-million was spent and a total of 78ha of gum trees were planted bringing the total area planted to 668ha. The project generated revenues of R803949 from the sale of timber,” added Gwanya. — lulamilef@dispatch.co.za
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