The establishment of the Eastern Cape Rural Development Agency (ECRDA) is the beginning of an EXCITING YET CHALLENGING ASSIGNMENT for those of us

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5 The establishment of the Eastern Cape Rural Development Agency (ECRDA) is the beginning of an EXCITING YET CHALLENGING ASSIGNMENT for those of us getting their hands dirty in what is often an overwhelming rural development space. By its very nature, rural development is a HIGHLY CONTESTED TERRAIN with varying ideas on how best to address the challenges that confront rural communities and the hinterland.

6 ESTABLISHED IN MAY 2012 as a result of a merger between ECRFC & AsgiSA-EC WHOLLY-OWNED by the Department of Rural Development and Agrarian Reform (DRDAR) MANDATE IN FOUNDING LEGISLATION Eastern Cape Rural Finance Corporation Act No 1 of 2012 as amended

7 VISION A leading and vibrant organisation that improves livelihoods and develops sustainable rural communities in the Eastern Cape province.

8 MISSION ECRDA will accelerate implementation of identified high impact priority rural development programmes and unlock dormant potential of resources through partnerships, with the communities as the centre of operation.

9 HOLISTIC APPROACH to rural development in the Eastern Cape 12 MEMBER Board of Directors headed by Dr V Mkosana led by CHIEF EXECUTIVE OFFICER Thozi Gwanya Implementation of HIGH IMPACT PRIORITY PROGRAMMES

10 RURAL DEVELOPMENT A REWARDING EXPERIENCE THAT HAS THE POTENTIAL TO BRING ABOUT MEANINGFUL CHANGE

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12 IMPLEMENTING AGENT for all government RURAL DEVELOPMENT PROGRAMMES Championing coordination of INTEGRATED IMPLEMENTATION of rural development programmes Promote PUBLIC & PRIVATE SECTOR INVESTMENT in rural areas ECRDA ROLE

13 MOBILISE financial resources Be a leader in KNOWLEDGE MANAGEMENT in rural development Work closely with the PUBLIC SERVICE COMMISSION & PRESIDENCY on monitoring & evaluation ECRDA ROLE

14 EFFECTIVE AND CAPABLE ECRDA is determined to develop, institutionalise and sustain an effective, capable and fit-for-purpose organisation including best-in-class project management, targeted research and an innovation driven agency. ECRDA ROLE

15 STRATEGIC PILLARS

16 STRATEGIC PILLARS Effective coordination and implementation of agrarian-driven high impact priority programmes (HIPPs) Promote entrepreneurship through rural development finance AND SUPPORT PROGRAMMES Develop and sustain an effective, CAPABLE AND FIT-FOR-PURPOSE ORGANISATION Leverage strategic partnerships towards implementation and funding of RURAL DEVELOPMENT INITIATIVES 5 DEVELOP SUSTAINABLE, LOCALISED AND INSTITUTIONALISED FRAMEWORK STRATEGIC PILLARS

17 Effective coordination and implementation of agrarian-driven High Impact Priority Programmes (HIPPs) 80 90% of cropping related tons produced goes to market Remainder of crops produced earmarked for FOOD SECURITY HECTARES under production should increase feedstock supply LIVESTOCK UNITS that goes to market (cumulatively) HECTARES of forestry plantations 3 sustainable MEGA FARMS 2 INFRASTRUCTURE PROJECTS that support agro-processing per MEGA farm facilitated /coordinated 30% of RENEWABLE ENERGY plant feedstock produced by black emerging farmers STRATEGIC PILLARS: FIVE YEAR TARGET

18 Promote entrepreneurship through rural development finance and support programmes 85-90% recovery of ECRDA new loans excluding MAFISA funds 15% OF ECRDA GOVERNMENT FUNDING utilised for loans advanced (cumulative) 50 SUSTAINABLE legal entities (co-operatives, business enterprises, etc) 2 SUBSIDIARIES to be self-sustainable emerging farmers STRATEGIC PILLARS: FIVE YEAR TARGET

19 Develop and sustain an effective, capable and fit-for-purpose organisation 75-90% SUCCESS RATE in delivery of ECRDA -controlled projects (quality, budget & timing) 3 PROJECTS ESTABLISHED & sustainable as a result of innovative research linking to MEGA farms STRATEGIC PILLARS: FIVE YEAR TARGET

20 Leverage strategic partnerships towards implementation and funding of rural development initiatives 7-10 LARGE SUSTAINABLE off-take agreements Establish a RURAL DEVELOPMENT FUND STRATEGIC PILLARS: FIVE YEAR TARGET

21 Develop sustainable, localised and institutionalised framework 6 RURAL DEVELOPMENT CLUSTERS -1 per district STRATEGIC PILLARS: FIVE YEAR TARGET

22 COMMUNITY OWNERSHIP The unity of members creates a sense of ownership. People must feel like they are the government in their own communities and therefore are responsible for their own development. They must view themselves as a tier of government. STRATEGIC PILLARS: FIVE YEAR TARGET

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24 RED HUBs - RURAL ENTERPRISE DEVELOPMENT HUBs PRIORITISES VILLAGE AS CENTRE OF OPERATION Links THREE MARKET ELEMENTS of production, processing and marketing Production SUPPORTING LOCAL GROWERS in the production phase Processing ADDING VALUE to local produce through packaging and processing Markets PROVIDING ACCESS to fair market value for goods

25 Cash goes back to next season Ownership of the whole process by community - Beneficiation of community EXCESS PRODUCT exported out of the community, cash returns to the community

26 Money is KEPT ALIVE and circulates within a community as long as possible Production receives the MARKET SUPPORT it needs to flourish VALUE ADDITION is done by communities not by conglomerates

27 IN PRACTISE THIS MEANS Maize is grown by the community Milled in the community Processed and packaged in the community Sold back into the community Process being owned by community

28 VILLAGE -CENTRE OF OPERATION It seeks to pull together public and social resources that improve livelihoods while simultaneously developing sustainable rural economies and communities in the Eastern Cape. It seeks to leverage off strategic partnerships with the village being the centre of operation for a maximum and pronounced development impact.

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31 Plan to plant HECTARES in the next five years Implemented in the DISTRICT MUNICIPALITIES of Amathole, Alfred Nzo, Chris Hani, OR Tambo, Joe Gqabi Mainly involves GRAIN PRODUCTION under dry land as well as irrigation Cultivation of YELLOW MAIZE as well as smaller amounts of WHITE MAIZE AGRO-PROCESSING

32 Average yield of THREE TONS PER HECTARE for the 9 000ha planted in 2013/14 Expected to INCREASE TO HA over next three years Yield expected to INCREASE TO 4.5 TONS per hectare over next three years

33 JOBS FUND AGRO-PROCESSING INITIATIVE R91 MILLION initiative managed by ECRDA & Eastern Cape Development Corporation (ECDC) 10 PRIMARY CO-OPERATIVES in the Ncorha Irrigation Scheme First beneficiaries communities set aside 1 000HA FOR CULTIVATION of white maize 706 BENEFICIARIES WHO ARE LANDOWNERS NCORHA IRRIGATION SCHEME 5 000ha in extent, 3 000ha under irrigation, 2 000ha is dry land Primary co-operatives organised around a PRODUCERS ASSEMBLY AGRO-PROCESSING

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35 Focused on KEY LIVESTOCK SPECIES - BEEF CATTLE, MUTTON GOATS & SHEEP Encourage INCREASED PRIMARY PRODUCTION to feed value addition ECRDA intends to INVEST R25 MILLION over next five years on livestock Communities in MBASHE AND MNQUMA MUNICIPALITIES identified as beneficiaries Estimated FARMERS in these areas. Intention to REACH FARMERS in next five years LIVESTOCK DEVELOPMENT

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37 Plans to plant 65,000HA of forestry plantations in the next five years Opportunity to INTEGRATE EXISTING PLANTATIONS into new afforestation projects ECRDA and ECDC in R113 MILLION Jobs Fund agreement for forestry development Encourage COMMUNITY PARTICIPATION in forestry development and agro-processing FORESTRY DEVELOPMENT

38 Facilitate establishment of HA OF NEW PLANTATIONS over next 25 years REHABILITATION OF HA of existing plantations over the next 25 years Facilitation of COMMUNITY-OWNED and managed forestry enterprises FORESTRY DEVELOPMENT

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40 Eastern Cape has potential to generate about MEGAWATTS of energy from these sources ECRDA investigating PUBLIC-PRIVATE PARTNERSHIPS to exploit this sector Partnerships at the epicentre of ECRDA s interventions in this sector RENEWABLE ENERGY

41 INCREASING DEMAND for energy to feed a growing economy, industrial sector Pressure on national grid PROVIDES OPPORTUNITY to exploit renewable energy sources Boost national power generation OUTPUT CAPABILITIES Eastern Cape RENEWABLE ENERGY SOURCES - solar, wind, hydro power, biofuels

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43 ECRDA provides loans and technical assistance to rural entrepreneurs Finances agricultural infrastructure such as land, farm machinery Supported by a credit policy aligned to responsible lending practices

44 REVIVING DREAMS We hope projects such as jobs fund crop production programme will revive farming in the area and for our children to earn a livelihood through the land. When we are no longer here, our children must work the land.

45 EMPOWERING SUBSIDIARIES

46 SUBSIDIARY SUPPORT ECRDA OVERSEES FOUR SUBSIDIARIES Crucial support role to ECRDA activities in citrus farming biofuels forestry etc

47 Kangela Citrus Farm Situated in Sundays River Valley near Port Elizabeth 51% owned by ECRDA & by Kangela Empowerment Trust (30 land reform beneficiaries) Trust owns 454 hectare Oranjezicht and Oudewesthof farms 150ha covered by citrus, 60ha by processing factory, 244ha for further development

48 AGRARIAN RESEARCH AND DEVELOPMENT AGENCY (ARDA) ARDA, 100% owned by ECRDA, started Cradock biofuels project Appointed by DRDAR to support black farmers in land redistribution programme Exists for facilitation and implementation of a biofuels industry ARDA estate made up of ha of which 2.359ha is under irrigation

49 SUPPORTED ENTERPRISES Magwa and Majola Tea estates Ncera Macadamia

50 INCOME GENERATION Part of ECRDA s focus is the optimal use of available land for milling, meat production and agro-processing. These programmes encourage individual rural land owners to produce food not only for sustenance but for commercialisation as well as income generation. This approach not only addresses food security,it also contributes to local economic development and reduces the excessive dependency on social grants.

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52 KEY STAKEHOLDERS Communities, farmers, entrepreneurs Department of Agriculture, Forestry and Fisheries (National) Department of Economic Development, Environmental Affairs and Tourism (EC) Department of Education (EC) Department of Local Government and Traditional Affairs (EC) Department of Roads and Public Works (EC) Department of Rural Development and Agrarian Reform (EC) Department of Rural Development and Land Reform (National) Department of Social Development (EC) Department of Trade and Industry (National) Development finance institutions, private investors/bank, financiers Eastern Cape Development Corporation Eastern Cape Socio-Economic Consultative Council Further Education and Training (FET) colleges and institutions of higher learning House of Traditional Leaders (EC) Land Bank Municipalities and their development agencies Office of the Premier Small Enterprise Development Agency

53 Umhlaba wethu utyebile apha Xa silandulele elilizwe izizukulwane zethu MAZIWUSEBENZE UMHLABA Ubutyebi bethu bulele apha. Our land is very fertile. Once we have passed, subsequent generations must work the land. Our wealth lies in the land.

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56 Office address: Unit 12D Beacon Bay Crossing Cnr N2 Bonza Bay Road Beacon Bay East London 5201 Postal address: Postnet Suite 385 Private Bag x9063 East London 5200 Telephone Number: +27(0) Fax number: +27(0) Website:

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