The two bankrupt tea estates, Magwa and Majola, are a legacy of the former Transkei homeland’s agricultural schemes.
These, like so many others of this era, have just not been able to become self-sustaining and rely on continuous heavy state subsidies.
It is clear that the Eastern Cape Rural Development Agency (ECRDA) that replaced ASGISA and its highly paid appointed board members have no idea, not only of how to grow and process tea, but how to manage these substantial enterprises either.
The provincial department of rural development and agrarian reform, the ECRDA, the national Department of Agriculture and the Department of Land Reform and Rural Development should all assess which agricultural projects are succeeding or failing and then adopt best practise principles to all failed projects.
There are not many successful projects but there are some. Their success is based on private public partnerships where the state provides the land and development capital with the private partners investing at risk and providing the necessary management and commodity production expertise.
There are two such impressive initiatives in this province that are showing all state led initiatives a clean pair of heels. The Ncera Macadamia nut project outside East London is not only producing top quality nuts, but has had a marked social impact on the beneficiaries and the community.
The other example of success is the partnership between the state and the Amadlelo Agri Pty, dairy producers. This partnership not only produces good quality milk efficiently, it too has had a positive social impact for participating communities.
The lesson here is partnership and the principle of “horses for courses”. The two mentioned private enterprises specialise in agricultural production/farming and the state should specialise in creating/facilitating an environment for this production and subsequent job creation to flourish. Where the state tries to do both, the result has almost without exception resulted in failure.
The other issue of concern is who the state selects as its partners in rural development and agrarian reform. A number of partners have identified the state and its assets as a lucrative cash cow that they can milk for their exclusive benefit. One such notorious partnership is the Kangela citrus estate “bought” for double its value by former MEC Max Mamase, from his friend, Norman Benjamin who “helped” him and his wife acquire their Bonnie Doon mansion.
Not only did this initiative cost the state more than it should have, it has presented absolutely no benefit to the beneficiaries who, like those of Magwa and Majola, remain labourers in an enterprise that periodically struggles to pay them and almost never pays them any dividends, despite exporting fruit.
Despite these partnerships being self-evidently one sided and prejudicial to beneficiaries and indirectly the state, they are allowed to continue exploiting the situation.
Until the ANC government makes a conscious and concerted effort to denounce one sided, self-serving partnerships and terminates ineffective and inefficient management models overseen by boardroom beneficiaries, the road to hell will continue to be paved by good intentions.
Athol Trollip is the Eastern Cape DA leader and shadow MEC for rural development and agrarian reform
Tea estates'R200m+ flaws
These, like so many others of this era, have just not been able to become self-sustaining and rely on continuous heavy state subsidies.
It is clear that the Eastern Cape Rural Development Agency (ECRDA) that replaced ASGISA and its highly paid appointed board members have no idea, not only of how to grow and process tea, but how to manage these substantial enterprises either.
The provincial department of rural development and agrarian reform, the ECRDA, the national Department of Agriculture and the Department of Land Reform and Rural Development should all assess which agricultural projects are succeeding or failing and then adopt best practise principles to all failed projects.
There are not many successful projects but there are some. Their success is based on private public partnerships where the state provides the land and development capital with the private partners investing at risk and providing the necessary management and commodity production expertise.
There are two such impressive initiatives in this province that are showing all state led initiatives a clean pair of heels. The Ncera Macadamia nut project outside East London is not only producing top quality nuts, but has had a marked social impact on the beneficiaries and the community.
The other example of success is the partnership between the state and the Amadlelo Agri Pty, dairy producers. This partnership not only produces good quality milk efficiently, it too has had a positive social impact for participating communities.
The lesson here is partnership and the principle of “horses for courses”. The two mentioned private enterprises specialise in agricultural production/farming and the state should specialise in creating/facilitating an environment for this production and subsequent job creation to flourish. Where the state tries to do both, the result has almost without exception resulted in failure.
The other issue of concern is who the state selects as its partners in rural development and agrarian reform. A number of partners have identified the state and its assets as a lucrative cash cow that they can milk for their exclusive benefit. One such notorious partnership is the Kangela citrus estate “bought” for double its value by former MEC Max Mamase, from his friend, Norman Benjamin who “helped” him and his wife acquire their Bonnie Doon mansion.
Not only did this initiative cost the state more than it should have, it has presented absolutely no benefit to the beneficiaries who, like those of Magwa and Majola, remain labourers in an enterprise that periodically struggles to pay them and almost never pays them any dividends, despite exporting fruit.
Despite these partnerships being self-evidently one sided and prejudicial to beneficiaries and indirectly the state, they are allowed to continue exploiting the situation.
Until the ANC government makes a conscious and concerted effort to denounce one sided, self-serving partnerships and terminates ineffective and inefficient management models overseen by boardroom beneficiaries, the road to hell will continue to be paved by good intentions.
Athol Trollip is the Eastern Cape DA leader and shadow MEC for rural development and agrarian reform
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