The Eastern Cape Rural Development Agency (ECRDA) disbursed a total of R15.7-million in loans to 159 clients in the 2016-17 financial year.
The bulk of the loan disbursements were agricultural loans which accounted for R14.4-million of the disbursements and the balance were non-agricultural loans.
Thozamile Gwanya, the chief executive of the ECRDA tabling the report in East London this week said that a total of R7.6-million was disbursed to businesses in the Alfred Nzo, R3.7-million to OR Tambo district, R1.98-million to Chris Hani district, R1.6-million to the Amathole region, R527000 to the Karoo region and R514000 to the Sarah Baartman District Municipality.
The bulk of the disbursements went to primary cooperatives located at ECRDA’s flagship Rural Enterprise Development (RED) Hubs as well as to secondary cooperatives to buy feedstock for milling.
ECRDA is improving its loan repayment efforts.
In 2016-17, loan collections were R13.6-million. The organisation continues to offer aftercare support to identify challenges early in the client businesses which may impact on loan repayments.
“This allows ECRDA to put measures in place to rectify rising challenges,” said Gwanya.
The ECRDA is also pleased with yet another clean audit opinion for 2016-17.
“This indicates ECRDA’s financial prudence and this also indicates that we are a trusted steward of public assets,” Gwanya said.
In terms of programme implementation, Gwanya says a total of R22.1-million was spent in the implementation of the agency’s agro-processing programmes.
At the Ncora and Mqanduli RED Hubs, which were initially implemented through a partnership with the Eastern Cape Development Corporation (ECDC) and the DBSA Jobs Fund, a total of 393.2 hectares of maize were sent to the silos for storage in 2016-17.
“In the Mqanduli RED Hub, 257.7 tons of white maize were sent to the silos from the 165ha planted in the 2015-16 season. The maize was planted at only two of 13 primary cooperatives because of severe drought conditions.
The harvest was processed into maize meal for local spaza shops. A total of R775834 was generated from the sale of maize to the Mqanduli RED Hub mill. In 2016-17, 899ha were planted with white maize by 10 primary cooperatives in Mqanduli. The Mqanduli mill which has a 0.9 ton per hour processing capacity was fully operational in 2016-17,” he said .
At the Ncora RED Hub 135.5 tons were sent to the silos generated from 149ha which germinated due to drought conditions from the 2015-16 planting season.
“Revenues generated from the sale of maize to the Ncora RED Hub milling plant was R436999. In 2016-17, 1849ha of maize were planted,” said Gwanya.
In 2016-17, 1164ha of white maize were planted at the Mbizana RED Hub. At the Emalahleni RED Hub 187ha of grain sorghum were planted because of persisting and severe drought conditions.
Gwanya said in the livestock development programme
ECRDA spent R350000 in the construction of three loading ramps and on livestock marketing.
These ramps helped in the marketing and sale of 1766 livestock units belonging to communal and emerging commercial farmers in the Peddie area. The sale of livestock generated R8.5-million in income for the farmers.
At the Ncora RED Hub
ECRDA spent R1.5-million building feeding kraals and supplying feedlot machinery such as a tractor, hammer mill and a feed mixer. By the end of 2016-17, there were 60 cattle from local farmers that were being fed at the feedlot.
R15m boost for rural projects
The bulk of the loan disbursements were agricultural loans which accounted for R14.4-million of the disbursements and the balance were non-agricultural loans.
Thozamile Gwanya, the chief executive of the ECRDA tabling the report in East London this week said that a total of R7.6-million was disbursed to businesses in the Alfred Nzo, R3.7-million to OR Tambo district, R1.98-million to Chris Hani district, R1.6-million to the Amathole region, R527000 to the Karoo region and R514000 to the Sarah Baartman District Municipality.
The bulk of the disbursements went to primary cooperatives located at ECRDA’s flagship Rural Enterprise Development (RED) Hubs as well as to secondary cooperatives to buy feedstock for milling.
ECRDA is improving its loan repayment efforts.
In 2016-17, loan collections were R13.6-million. The organisation continues to offer aftercare support to identify challenges early in the client businesses which may impact on loan repayments.
“This allows ECRDA to put measures in place to rectify rising challenges,” said Gwanya.
The ECRDA is also pleased with yet another clean audit opinion for 2016-17.
“This indicates ECRDA’s financial prudence and this also indicates that we are a trusted steward of public assets,” Gwanya said.
In terms of programme implementation, Gwanya says a total of R22.1-million was spent in the implementation of the agency’s agro-processing programmes.
At the Ncora and Mqanduli RED Hubs, which were initially implemented through a partnership with the Eastern Cape Development Corporation (ECDC) and the DBSA Jobs Fund, a total of 393.2 hectares of maize were sent to the silos for storage in 2016-17.
“In the Mqanduli RED Hub, 257.7 tons of white maize were sent to the silos from the 165ha planted in the 2015-16 season. The maize was planted at only two of 13 primary cooperatives because of severe drought conditions.
The harvest was processed into maize meal for local spaza shops. A total of R775834 was generated from the sale of maize to the Mqanduli RED Hub mill. In 2016-17, 899ha were planted with white maize by 10 primary cooperatives in Mqanduli. The Mqanduli mill which has a 0.9 ton per hour processing capacity was fully operational in 2016-17,” he said .
At the Ncora RED Hub 135.5 tons were sent to the silos generated from 149ha which germinated due to drought conditions from the 2015-16 planting season.
“Revenues generated from the sale of maize to the Ncora RED Hub milling plant was R436999. In 2016-17, 1849ha of maize were planted,” said Gwanya.
In 2016-17, 1164ha of white maize were planted at the Mbizana RED Hub. At the Emalahleni RED Hub 187ha of grain sorghum were planted because of persisting and severe drought conditions.
Gwanya said in the livestock development programme
ECRDA spent R350000 in the construction of three loading ramps and on livestock marketing.
These ramps helped in the marketing and sale of 1766 livestock units belonging to communal and emerging commercial farmers in the Peddie area. The sale of livestock generated R8.5-million in income for the farmers.
At the Ncora RED Hub
ECRDA spent R1.5-million building feeding kraals and supplying feedlot machinery such as a tractor, hammer mill and a feed mixer. By the end of 2016-17, there were 60 cattle from local farmers that were being fed at the feedlot.
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