Document

eastern capeA REVIEW OF 2008 OPERATIONS

vision,mission

VisionA vibrant and sustainable rural economy that improves livelihoods and unlocks the dormant potential of the land and the people of the Eastern Cape.

MandateFacilitate, coordinate and implement high impact priority projects (HIPPs), aligned with PGDPFocusing initially on the Mzimvubu Economic Development Zone.

MissionThrough partnerships, high level and focused integration and coordination, AsgiSA Eastern Cape (EC) plays a direct and catalytic role in building a sustainable and modern, rural-based economy, primarily through agrarian reform

Strategic goals• Establish a competent and effective organisation• Effective coordination and implementation of High Impact Priority Programmes (HIPPs)• Building image and reputation of the organisation• Strengthen institutions at local entity level• Establish a recognised stakeholder platform for rural economic development

vision,mission

Simpiwe SomdyalaCEO

Janine BaxterCFO

Thukela MashologuProject Manager: Agriculture and agro-processing

Chuma SangquStakeholder & investment

promotion manager

Stephen KeetForestry

consultant

Luvuyo ThomasLegal and secretariat

Athini NdabankuluPA to CEO

Zelna ZitskePA to CFO

Miriam KetseGeneral assistant

AsgiSA EC team of 9

20082008 - The first year of operation

Stakeholder consultation process, facilitated by the Office of the Premier, regarding AsgiSA EC

mandate completed

AsgiSA EC’s business plan 2009 to 2014 finalised

AsgiSA EC future, in terms of other rural development players underway

Board now includes MECs for Agriculture and Economic Development and Tourism

Branding, communication underway

Key high impact priority projects (HIPPs) – agriculture and forestry underway

development

development Rural development through SIX High Impact Priority Programmes (HIPPs)

HIPP 1 Agriculture and agro-processingHIPP 2 Forestry developmentHIPP 3 Water resource development - Mzimvubu Catchment

HIPP 4 Hydro and alternative energyHIPP 5 Tourism developmentHIPP 6 Human settlement and planning

agriculture

HIPP 1 Agriculture and agro-processing

Partnership criteria

1

Beneficiaries• Rural communities• Emerging farmers

Land• At least 300 ha• Accessibility• Site suitability determined

Management• Best practice applied• Management support in place as required• Local empowerment plans known and pragmatic• Disease and risk management in place• Environmental impact mitigated

Accountability• Clear lines of responsibility and accountability defined• Agreements by all parties/stakeholders formalised

Financial viability • AsgiSA EC capital to be recovered within planning time-frames • Focus on reinvestment and expansion

Buy-in and partnership• Proper consultations with relevant stakeholders• Funding and support partnerships in place• Social compact developed

Model for pilot projects - maize

Focus cropsInitially focusing on: maize, soya beans, canola (on trial), fruit as well as livestock.

5.5 PRICE 6 6.5 7 PRICE

Total in bags 110 10450 120 130 140 13300

Production costs 93 8835 96 98 100 9500

Rental / community 10 950 10 10 10 950

Profit 7 665 14 22 30 2850

Profit sharing 0 0

Community share 1 95 2 3 6 570

Admin 1 95 2 3 4 380

Contractor & Management 1 95 2 3 4 380

AsgiSA EC expansion 4 380 8 12 16 1520& reinvestment

East London

King Williams Town

Queenstown

Cathcart

Alice

Stutterheim

Kidd’s BeachKiwane

Morgan’s BayHaga-Haga

Khamanga Bay

Mazeppa Bay

Coffee BayHole in the Wall

Port St Johns

Butterworth

Dutywa

Mthatha

Tsolo

Lady Frere

Elliot

Aliwal NorthLady Grey

Barkly East

Rhodes

Ugie

MaclearTabankulu

Nyandeni

Qumbu

Mount FrereMount Ayliff

Brooks NekMatatiele

Ongeluksnek

Lusikisiki

N2

N9

N2

N10

N9

MkambathiCutweni

Umngazana

Bhisho

Sterkspruit

Indwe

Dordrecht

Ngcobo

Seymore

Whittlesea Cofimvaba

Sakhisizwe

Cala

Tsomo

Komga

BerlinPeddie

Centane

Willowvale

Elliotdale

Flagstaff

Mbizana

OLIVER TAMBO DISTRCT

KWAZULU-NATALLESOTHO

ALFRED NZO DISTRICT

UKHAHLAMBA DISTRICT

AMATHOLE DISTRICT

CHRIS HANI DISTRICT

SidwaneniEASTERN CAPE

Tsitsa BridgeTsitsa Falls

Projects location map

Project implementation (2008/09)

Project implementation (fruit) (2008/09)

PROJECT MUNICIPALITY PROJECT 08/09 CROP SIZE (ha) PLANTING (ha) Theko Mnquma 1500 400 maizeZingqayi Mnquma 500 250 maizeBanjwaludaka Mnquma 500 250 maizeTsilitwa, Sulenkama, Mnquma 5000 2000 maizeEtwa, Gqwesa, Kamastone, Balasi, Nobamba (Wards 18 to 21)Caba Mhlonto 1500 50 maizeShunkunxa Mhlonto 400 150 maizeOngeluksnek Matatiele 10 000 1000 maizeAlfred Nzo District Mzimvubu & 2500 2500 maizeMunicipality partnership MatatieleHighbury (irrigation) KSD 150 20 vegetables, cash cropsNcome Umzimvubu 2000 -Canola Nqadu 800

PROJECT MUNICIPALITY PRODUCTION COMMODITYCitrus anchor project Port St Johns citrusHomestead fruit production Port St Johns citrus & bananaHota Mbewula fruit Sakhisizwe (Cala) peachesIntsika Yethu stone fruit Intsika Yethu peaches/plums/ (Cofimvaba) nectarines

Cala - irrigation and fruit production

Port St John’s targeted areasAreas identified in partnership with the municipality local farmers and Riverside/Sugarbeet

250 ha central production and 750 ha outgrowers

Livestock value chain developmentCurrent initiative includes purchasing 6 000 large stock.

Pilot projectTsomo Valley Farmers’ Co-operative Umthombo Farmers’ Co-operativeCicira Ntungela Farmers’ Co-operativeIthemba Farmers’ Co-operativeNyandeni Development Trust

Approach towards livestock commercial developmentMentorship or human skills developmentInfrastructure, fencing, dip tanks and handling facilitiesLogistics, transportation, auction pens, roads

AsgiSA EC& partners

Communalfarmers

Trollies

Weaners

Old mature animals

Auctions Processing TMI

AbattoirOfftake agreement Local tanneries

Feed lot development Retail marketsLRAD farms

STRATEGIC PARTNERS(business)

•Offtakeagreements(e.g. PnP,WoolworthsFoodetc)•Bulkinputsuppliers (e.g.fertilisercompanies, seedhouses)•Servicelevelagreements (e.g.transporters)

•Agriculturalprocessingand packaging•Stakeholdermobilisation•Exportorientated programmes(e.g.ISO certificationsandlicensing)

AsgiSA EC Value Additon Activities

•Agriculturalinput supportschemes•Businesssupport•Fieldandtechnical supportschemes

Agribusiness SPE

•Banks,FinanceHouses, developmentalfinancial institutions•BEEPartners

STRATEGIC PARTNERS(financing & investments)

EASTERN CAPE PROVINCE

AsgiSA EC (Pty) Ltd

Tourism SPE(illustrative

purposes only)

Central Production Unit (CPU)Outgrower 2Outgrower 1

Construction SPE(illustrative

purposes only)

Agribusiness model

forestry

HIPP 2 Forestry development

New forestry developmentand rehabilitation of existing plantations10 000 ha have been identified

Permits are a major cause for delays

Land tenure and land use options require extensive community consultation

Interest by communities and private sector has been demonstrated

2

Forestry development model

water resources

HIPP 3 Water resource development - Mzimvubu Catchment

3

water resources

Mzimvubu catchment & proposed pumped storage

Private land

Communal land

Proposed pumped storage

Proposed dam sites

Queenstown

Cathcart

Coffee BayHole in the Wall

Butterworth

Dutywa

Lady Frere

Aliwal NorthLady Grey

Barkly East

N9

N9

Sterkspruit

Indwe

Dordrecht

Seymore

Whittlesea Cofimvaba

Cala

Tsomo

KomgaCentane

Willowvale

Elliotdale

LESOTHO

UKHAHLAMBA DISTRICT

KWAZULU-NATAL

N2

N2

Mthatha

Qumbu

Port St Johns

Tsolo

Mount Ayliff

Brooks Nek

Lusikisiki

MkambathiCutweni

Umngazana

Flagstaff

Mbizana

Sidwaneni

Elliot

Rhodes

Ugie

Maclear

Matatiele

Ongeluksnek

Tsitsa Falls

Nyandeni

Tsitsa Bridge

Mount Frere

Mount Fletcher

Tabankulu

EASTERN CAPE

Tsitsa Falls Scheme

The Tsitsa Falls Scheme still needs further investigation.

hydro power

HIPP 4 Hydro and alternative energy

Hydropower potentialRIVER DAM NAME MAR 0.5 x MAR 1 x MAR 1.5 x MAR

Upper Dam 2 240 0.53 1.05 1.37 Mzimvubu Siqingeni 709 3.92 6.54

Mzintlava Bokpoort 130 0.37 0.58 0.92 Luzi 198 0.63 1.14 1.67 Dam B 282 1.55 2.85 3.25

Kinira Thabeng 307 1.37 2.15 2.85 Somabadi 324 1.50 2.50 3.34 Ntlabeni 396 2.19 3.45 4.60

Tina Pitseng 55 0.11 0.22 0.30 Hlabakazi 248 0.87 1.64 2.21 Mpindweni 337 1.41 2.38 3.20 Mangwaneni 414 1.50 2.63 3.00 Ku-Mdyobe 424 2.65 4.25

Itsitsa Nomhala 206 0.50 1.02 1.38 Ntabelanga 403 1.70 2.71 3.40 Malepelepe 696 2.95 3.66 4.65 Laleni 755 3.70 4.70 Gongo 800 5.80

Lower Mbokazi 2520Mzimvubu 4

hydro power

Hydro and alternative energy

• Complete pre-feasibility on renewable energy strategy

• Implement short-to-medium renewable energy strategies

• Help implement identified hydro and alternative energy projects

tourism

HIPP 5 Tourism development

Nelson Mandela (Mthatha) Cultural Precinct PSP appointed on the feasibility and conceptual design of the precinct

Key themes

• Mthatha as a colonial town

• Mthatha as political home of legends – Nelson Mandela, King Dalindyebo and

others

• Mthatha as a homeland capital

• Mthatha as a university town

• Mthatha – The unexploited historic and cultural treasure

5

The Ntlango Conservancy Master Plan • Nature based tourism

• Environmental management

• Agriculture and agro-processing

human settlement

HIPP 6 Human settlement and planning Projects• OR Tambo District Municipality SDF Review

• Agribusiness model implementation

• Ingquza Hill (Qaukeni Infrastructure Master Plan development)

• Development charter and social compact

• Mholontlo and EluadiniTsitsa River Basin Land Use and Environmental

Management Study

• Mhlontlo Infrastructure Atlas Study

• Water resource technical support

• Resource mapping

• Wild Coast tourism initiative - Wild Coast Resort Club

• Feasibility studies and business planning

human settlement

6

Investment management

• Prioritising dormant and under utilised rural lands

• Increase economic opportunities for previously disadvantaged communities/individuals

through resources, assets land, people

• Establish direct linkages between project beneficiaries, external service providers

and markets

- External organisations to be introduced to various community groups

- Suppliers of goods, investors, government and parastatal service providers, credit

organisations, other support groups, NGOs

• Provide ongoing monitoring, support to projects; continuously look for new investment

opportunities

• Realising sustainable partnerships for specific programmes/projects - productive networks

of enterprises for economic growth

• Engage with the private sector for job creation, poverty, enterprise development, improved

income levels

Stakeholder management

• Effective engagement, mobilisation vital

• Key to overall sustainability strategy

• Stakeholder engagement

- our full range of our endeavours to understand, involve stakeholders in our activities

and decisions

• Engagement

- helps us to meet our tactical, strategic needs

- help us build strong partnerships with communities, land owners, municipalities and

traditional leaders

- includes gathering information, spotting trends that may improve effectiveness,

- improves transparency, builds trust of the individuals/groups whose support is critical

management

Stakeholders important to AsgiSA EC

Community stakeholders Primary stakeholders who are very critical to the success of AsgiSA EC’s success - must be

consulted, informed, involved in the planning , execution of the projects – targeted for social

compact/development charter process.

Traditional Leaders, Project Beneficiaries , Ward Committees, Women in Agriculture, Youth in

Agriculture, Existing Cooperatives, Local Nafcoc, Nafu, Commodity interest groups

Funders and donorsStakeholders targeted for partnership development programme and co- funding of AsgiSA EC

programmes.

DBSA, IDC, NEF, PIC, Land Bank,Teba Bank, Commercial Banks, Kellog Foundation, Eskom

Development Foundation, Nerpo, Old Mutual Development Foundation, Transnet Foundation,

Sappi, Hans Merensky Holding, Natal Cooperative Timber

GovernmentImportant stakeholders who will be part of the District Forum envisaged for each District -

they should form part of sector specific forums planned, e.g. Forestry Forum or Agriculture

development forum.

National Departments: Agriculture, Land Affairs, Water Affairs and Forestry and Treasury

Provincial Departments: Agriculture, Economic Affairs and Environment, Premiers’ Office,

Roads and Transport

Local Government: District and Local Municipalities, Municipal Development Agencies

South African Local Government Association

Parastatals: ECDC, ECRFs, RULIV, ECATU, IDT, NDA

Equity/investorsPotential partners that may co- fund AsgiSA EC programmes .

GrainSA, Farmers Co-ops, Input and Chemical Manufactures, Cormack Trust

stakeholders

eastern capeMthatha: ECDC House, 7 Sissons St, Fort Gale, Mthatha, 5100, t 047 501 5100 | f 047 501 5110

East London: 12 Kennington Road, Nahoon, East London, 5217, t 047 501 5100 | f 043 735 2679

Postnet Suite 385, Private Bag X 9063, East London 5200 | www.asgisa-ec.co.za