PURPOSE OF THE MEETING a) Present background and structural progression of the Natural Fibre Cluster (NFC) b) Present progress in terms of programme/project.

PURPOSE OF THE MEETINGPURPOSE OF THE MEETING

a) Present background and structural progression of the Natural Fibre Cluster (NFC)

b) Present progress in terms of programme/project implementation and impact

c) Outline the strategic importance of NFC in terms of national and provincial priorities

d) Elicit recognition of NFC and related required support from provincial departments

Background to theNatural Fibre ClusterBackground to the

Natural Fibre Cluster

14 April 2011

IntroductionIntroduction

CSIR made application to DEDEA for funding to establish a fibre innovation hub.

Motivation was the availability of raw fibre resources that provide a distinct economic development opportunity to develop a comprehensive back and forward integrated production and manufacturing platform for value-addition of these fibres for the development of new industries

R6m was approved by DEDEA on 13 June 2008 and ECDC were instructed to manage the funding on behalf of DEDEA.

The duration of the programme is 2 year and CSIR have submitted 6 quarterly reports

Subsequent to DEDEA funding, various other funders also supported this initiative

A Strategic Assessment has been completed for the Cacadu district

FundersFunders

ECDC: R428 000CSIR: R400 000DBSA: R500,000Parliamentary grants: R6m plus a further R12m (to CSIR)Cacadu DM R1,5mTOTAL Say R21m

Strategic Assessment: PurposeStrategic Assessment: Purpose

assess the progress in terms of government-funded fibre innovation in the region,

assess the potential of the fibre innovation hub as a driver of economic growth and job creation,

make recommendations regarding how the hub can potentially be institutionalised and resourced and

identify catalytic projects to be taken forward

Strategic Assessment: Recommendations Strategic Assessment: Recommendations

Get a champion for the entity Define the roles and responsibilities of each

stakeholder better Consider changing the name of the hub Carefully consider where the hub is located Amend contract for funding between CDM

& CSIR Integrate the work of the fibre hub into the

Regional Innovation Forum

Project Name over TimeProject Name over Time

Fibre ClusterFibre Cluster R+DCacadu Fibre Innovation HubEastern Cape Fibre Innovation HubNerve Cluster for Fibre Research, Processing and ProductionNatural Fibre Cluster

InstitutionalisationInstitutionalisation

Natural Fibre Cluster PSC Under this PSC are 5 working groups:

Wool and Mohair working group Flax and Hemp working group Agave working groupPineapple Fibre working group Cashmere working group

Spin offs to DateSpin offs to Date

173 cashmere farmers are benefiting to-date33 seasonal hemp jobs created last year (2010) during the 1st commercial cultivation pilot.

CSIR successfully lobbied the dti for following programmes to be part of IPAP2:Cashmere commercialisationFlax & hemp commercialisationTransforming the informal sector (sewing groups) to formal sector (CMT)

CSIR is the secretariat for European Cooperative Research Network on Flax and other Bast PlantsAt present, the whole Network brings together 357 experts from 52 countries in the fields of research, economics, marketing and industry.

Much research has been completed which is ready to be considered for commercial pilot phase.

ChallengesChallenges

Many funders = many contracts = many reporting lines = many different project names = duplication

To date emphases has been on R+D (a necessary activity requiring huge funding investment and no job guarantees)

Liquidation of agave distillersNeed to reconfigure institutional arrangements

Broaden participation to include other provincial and national departments.

Easy access to company information necessary to guide and enhance R&D work.

Way ForwardWay Forward

Re-constituting working groups to bring on board more private sector players, parastatals & government.

Need to appoint co-ordinator for the Natural Fibre Cluster to consolidate programmes and projects, for the purpose of plotting the development path of the Natural Fibre Cluster.

Need to secure funding to commercialise projects, most of which will start in the rural areas and marginalised regions.

Also need further funding for more research as this is an ongoing activity.

ENDEND

Thank you