Like other mining labour contributing provinces, the Eastern Cape still deals with under-development, poverty and low rural economic activity. This affects job creation and hurts efforts to ensure sustainable livelihoods.
It is inherent in a situation in which communities are hard hit by poverty at home that people will flock into the big cities in search of jobs as domestic workers and gardeners just to provide for their families.
Noting this hardship, in the national development plan (NDP) we said a sustainable increase in employment will require a faster-growing economy and the removal of structural impediments that exclude the majority such as poor quality education or spatial settlement patterns.
Calling on business, labour, communities and government to work together to achieve faster economic growth, the NDP says unity is essential to overcoming these challenges and achieving higher rates of investment, competitiveness, expanding production and exports.
In this regard and pursuant to the ANC’s rural development policies and programme, we started three rural enterprise development (Red) hubs in our province.
Driven by the Eastern Cape Rural Development Agency (ECRDA), the Red hub programme is government’s key rural development approach. It supports local co-operatives through the provision of access to finance, inputs, technical support, mechanisation, storage for produce, processing, packaging and selling of commodities to retail markets for the benefit of all member co-operatives.
Ncorha, Mqanduli and Mbizana are the only three operational Red hubs at the moment, with Lady Frere set to start next year.
Although planting of maize has started in Mbizana, construction of the milling plants and fencing of all fields will start as soon as environmental impact assessments have been completed.
Through the ECRDA, government will invest 100% of the total costs of the production into the Red hub in its first year. In the second year, co-operatives will contribute 25% with government putting in the remaining 75% as a loan onwards for crop production.
In the third year government and the co-operative will put in 50% each.
The government will put in 25% in the fourth year while the co-operative contributes 75% – ahead of government’s disengagement in the fifth year.
Red hubs focus on primary grain (maize and soya beans) production on 1000ha. The focus will also be on the procurement of mechanisation units and establishment of workshops with tractors and implements, on the construction of silos for safe grain storage, facilities for the processing of grain through a milling plant and on capacity building and skills development for tractor operators and for other participating members. There will be branding and marketing of processed products to local and external markets, and construction of a feedlot for livestock.
After production, harvesting and the sale of maize, all co-operative members will profit from what they have produced and sold to the mill.
This is a significant contribution towards creating sustainable employment and economic development in rural areas.
Our premise is that rural communities must be organised into co-operatives and must make use of their land and livestock to contribute to the Red hubs for their own benefit and development.
The land is presently used to plant maize with government funding. It will later be harvested for processing in the mills.
There are already examples of productive success. In Mqanduli for instance, super maize meal, samp and mealie rice are being produced. These will soon be packaged and sold to the market.
Choimny, a livestock feed byproduct is also produced there to add more to the revenue of the secondary co-operative for the benefit of all members.
Ncorha, which is in its second year, sold its maize to Amadlelo as livestock feed and made millions in profit for each participating member.
Our support ensures capacity for all participating primary and secondary co-operatives to operate profitably.
Each member has the responsibility of safeguarding their assets including the mealie fields, milling plant, the implements that the government buys for the co-operatives and all other assets.
As drivers of this programme, the department plans to roll it out into at least 11 areas in the province with diversified production of other commodities like red meat, poultry, dairy and other products.
The department has resources to help and is appealing to each community that wants to join this programme to be united in achieving the success of the programmes and not to fight each other.
We must use our energy to fight poverty, create jobs, create sustainable business opportunities for local small businesses and not to fight each other.
The idea is for each Red hub to have a store that sells all the products processed from the hub to the local market.
Mainstream outlets can also be supplied with products as well as various brand producers with maize, super maize meal, samp, mealie rice for packaging.
This does not close the opportunity for entrepreneurs who might want to start their own brands using stock from Red hubs.
The hubs are not just another government funded project. They are government and co-operative funded commercial business ventures with communities having the major role in the value chain.
As government we do not just give funds to co-operatives, but will work with them for five years to ensure sustainability and that they become self-sustainable.
Given the province’s agricultural history, the hubs have enormous potential to create thriving rural industries, jobs and business opportunities in order to reduce poverty, under-development and hunger in the rural areas.
As government our desire is to work with all interested communities and groups. The real economic development of this country does not begin in the Johannesburg Stock Exchange or in international markets. It starts from mealie fields and Red hubs in rural areas.
These are as important as any other work place. We must all use the land, livestock and other resources we have to transform our society and develop our people.
Mlibo Qoboshiyane is the Eastern Cape Rural Development and Agrarian Reform MEC, a member of the ANC PEC and PWC, and ANC provincial spokesperson
Bhisho sees Red as rural upliftment plan gears up
It is inherent in a situation in which communities are hard hit by poverty at home that people will flock into the big cities in search of jobs as domestic workers and gardeners just to provide for their families.
Noting this hardship, in the national development plan (NDP) we said a sustainable increase in employment will require a faster-growing economy and the removal of structural impediments that exclude the majority such as poor quality education or spatial settlement patterns.
Calling on business, labour, communities and government to work together to achieve faster economic growth, the NDP says unity is essential to overcoming these challenges and achieving higher rates of investment, competitiveness, expanding production and exports.
In this regard and pursuant to the ANC’s rural development policies and programme, we started three rural enterprise development (Red) hubs in our province.
Driven by the Eastern Cape Rural Development Agency (ECRDA), the Red hub programme is government’s key rural development approach. It supports local co-operatives through the provision of access to finance, inputs, technical support, mechanisation, storage for produce, processing, packaging and selling of commodities to retail markets for the benefit of all member co-operatives.
Ncorha, Mqanduli and Mbizana are the only three operational Red hubs at the moment, with Lady Frere set to start next year.
Although planting of maize has started in Mbizana, construction of the milling plants and fencing of all fields will start as soon as environmental impact assessments have been completed.
Through the ECRDA, government will invest 100% of the total costs of the production into the Red hub in its first year. In the second year, co-operatives will contribute 25% with government putting in the remaining 75% as a loan onwards for crop production.
In the third year government and the co-operative will put in 50% each.
The government will put in 25% in the fourth year while the co-operative contributes 75% – ahead of government’s disengagement in the fifth year.
Red hubs focus on primary grain (maize and soya beans) production on 1000ha. The focus will also be on the procurement of mechanisation units and establishment of workshops with tractors and implements, on the construction of silos for safe grain storage, facilities for the processing of grain through a milling plant and on capacity building and skills development for tractor operators and for other participating members. There will be branding and marketing of processed products to local and external markets, and construction of a feedlot for livestock.
After production, harvesting and the sale of maize, all co-operative members will profit from what they have produced and sold to the mill.
This is a significant contribution towards creating sustainable employment and economic development in rural areas.
Our premise is that rural communities must be organised into co-operatives and must make use of their land and livestock to contribute to the Red hubs for their own benefit and development.
The land is presently used to plant maize with government funding. It will later be harvested for processing in the mills.
There are already examples of productive success. In Mqanduli for instance, super maize meal, samp and mealie rice are being produced. These will soon be packaged and sold to the market.
Choimny, a livestock feed byproduct is also produced there to add more to the revenue of the secondary co-operative for the benefit of all members.
Ncorha, which is in its second year, sold its maize to Amadlelo as livestock feed and made millions in profit for each participating member.
Our support ensures capacity for all participating primary and secondary co-operatives to operate profitably.
Each member has the responsibility of safeguarding their assets including the mealie fields, milling plant, the implements that the government buys for the co-operatives and all other assets.
As drivers of this programme, the department plans to roll it out into at least 11 areas in the province with diversified production of other commodities like red meat, poultry, dairy and other products.
The department has resources to help and is appealing to each community that wants to join this programme to be united in achieving the success of the programmes and not to fight each other.
We must use our energy to fight poverty, create jobs, create sustainable business opportunities for local small businesses and not to fight each other.
The idea is for each Red hub to have a store that sells all the products processed from the hub to the local market.
Mainstream outlets can also be supplied with products as well as various brand producers with maize, super maize meal, samp, mealie rice for packaging.
This does not close the opportunity for entrepreneurs who might want to start their own brands using stock from Red hubs.
The hubs are not just another government funded project. They are government and co-operative funded commercial business ventures with communities having the major role in the value chain.
As government we do not just give funds to co-operatives, but will work with them for five years to ensure sustainability and that they become self-sustainable.
Given the province’s agricultural history, the hubs have enormous potential to create thriving rural industries, jobs and business opportunities in order to reduce poverty, under-development and hunger in the rural areas.
As government our desire is to work with all interested communities and groups. The real economic development of this country does not begin in the Johannesburg Stock Exchange or in international markets. It starts from mealie fields and Red hubs in rural areas.
These are as important as any other work place. We must all use the land, livestock and other resources we have to transform our society and develop our people.
Mlibo Qoboshiyane is the Eastern Cape Rural Development and Agrarian Reform MEC, a member of the ANC PEC and PWC, and ANC provincial spokesperson
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