ZULULAND DISTRICT MUNICIPALITY

AGRICULTURAL SECTOR PLAN

MAY 2006

PREPARED FOR:

MR STEFAN LANDMAN / MR BONGANI SIBIYA ZULULAND DISTRICT MUNICIPALITY

PREPARED BY:

TINDALL KRUGER

PR AFRICA PO BOX 872 HILLCREST 3650

TEL NO: 031 œ 765 4090 e-mail: [email protected]

1 ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

TABLE OF CONTENTS

1. INTRODUCTION ...... 1

1.1. PURPOSE OF THE SECTOR PLAN...... 1 1.2. OVERVIEW AGRICULTURE IN ZULULAND...... 1 1.3. CONTENT OF REPORT...... 2

2. THE CONTEXT FOR AGRICULTURAL DEVELOPMENT ...... 3

2.1. INTERNATIONAL AND NATIONAL TRENDS IN AGRICULTURE...... 3 2.2. THE POLICY CONTEXT ...... 4 2.3. THE INSTITUTIONAL CONTEXT ...... 6 2.4. THE FUNDING CONTEXT...... 8

3. LAND REFORM...... 10

3.1. INTRODUCTION...... 10 3.2. OVERVIEW OF LAND REFORM IN THE DISTRICT...... 10 3.3. LAND REFORM OPPORTUNITIES AND CONSTRAINTS ...... 14 3.4. CONCLUDING REMARKS ON LAND REFORM ...... 15

4. ZULULAND AGRICULTURAL POTENTIAL...... 17

4.1. OVERVIEW OF AGRICULTURAL POTENTIAL...... 17 4.2. MUNICIPAL AGRICULTURAL POTENTIAL...... 17 4.3. AGRICULTURAL POTENTIAL: A GIS ASSESSMENT...... 18

5. AGRICULTURAL PROJECTS ...... 27

5.1. CURRENT APPROACHES TO AGRICULTURAL DEVELOPMENT...... 27 5.2. AGRICULTURAL PROJECTS...... 27 5.3. PROPOSED INITIATIVES IN THE PLANNING STAGES AND PROJECTS ARISING OUT OF PREVIOUS PLANNING STUDIES ...... 29 5.4. PROPOSED OPPORTUNITIES ARISING OUT OF STAKEHOLDERS DISCUSSIONS ..30

6. THE PROPOSED STRATEGIC INTERVENTIONS ...... 32

6.1. GENERAL INTERVENTIONS ...... 32 6.2. SECTOR SPECIFIC INTERVENTIONS ...... 33 6.3. PROJECTS PRIORITISED FROM SIYAPHAMBILI PROCESS...... 37

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

1. INTRODUCTION

1.1. PURPOSE OF THE SECTOR PLAN

This IDP Sector Plan consolidates information on the Status Quo of the Agricultural Sector in the Zululand District Municipality and makes recommendations regarding interventions to be taken forward into the Integrated Development Planning process for the Municipality. The Terms of Reference did not require the Service Provider to do any primary research. It is, however, recommended that focussed research relating to the proposed interventions be undertaken in future.

Sector assessments and strategic planning undertaken for the Siyaphambili LED Programme of the Zululand District Municipality in 2003/4 served as the basis for this report. Information updates were done based on interviews with key stakeholders.

1.2. OVERVIEW AGRICULTURE IN ZULULAND

The Zululand District Municipality area is almost equally split between communal areas and privately owned commercial farming land. Generally speaking there is not a large quantity of high potential agricultural land in the district, but there in considerable diversity making for a range of different agricultural enterprises.

There are however small areas of very high potential and there is considerable potential to expand irrigation in river valley areas that would provide a boost to production in these areas. Large parts of the district receive low rainfall and are only suitable for game or cattle ranching.

Given the medium quality and mixed resources in the district there is however considerable opportunities to expand production, investigate alternative production systems, transform the industry and improve cooperation between farmers. Through the amalgamation of the separate farmers unions to form KWANALU there has been considerable interaction between emerging and established farmers and a realisation that they need to work together. There is a realisation that —we are all farmers“ and there needs to be a sharing of experiences and an improved access to resources. This spirit of goodwill and cooperation is an essential ingredient in successful development and transformation of the sector and the economy.

The main drivers for agricultural development in the district will be through improved access to markets, increased irrigation as well as land reform and transformation in the sector. Agriculture can be a bigger contributor to livelihoods and local economic development. A number of agricultural projects and initiatives have been developed these need to be supported through a coordinated district level commitment to local economic development.

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1.3. CONTENT OF REPORT

This Sector Report includes six sections:

ß Section 1 œ Introduction: This section provides an overview of the purpose and contents of the Sector Report. ß Section 2 œ The Context for Agricultural Development: A very brief overview is provided of key agricultural trends, as well as the policy, institutional and funding environment for the sector. ß Section 3 œ Land Reform: The extent of land reform already underway in the District suggests that a thorough understanding of the implementation of this programme in Zululand is important. Most land reform activities will eventually link to agricultural development. ß Section 4 œ Zululand Agricultural Potential: This section provides an overview of agricultural potential in the five local municipalities of Zululand. ß Section 5 œ Agricultural Projects: This section provides an overview of existing and potential projects for the District. ß Section 6 œ The Proposed Strategic Interventions: This section firstly introduces the proposed general economic interventions proposed for the District. This will contribute to establishing an environment conducive for the development of the specific sector. A set of agricultural sector interventions is then proposed and discussed.

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2. THE CONTEXT FOR AGRICULTURAL DEVELOPMENT

2.1. INTERNATIONAL AND NATIONAL TRENDS IN AGRICULTURE

2.1.1. AGRICULTURE AND FOOD SHORTAGES

Considering agricultural production in Zululand it should be noted that some 842 million people in the world are undernourished, of which 24% resides in Sub-Saharan Africa. The proportion of the population being undernourished in Sub-Saharan Africa is estimated to be as high as 33% and progress in reducing the incidence of undernourishment has declined over the past decade. Considering population growth no real impact has been made in Africa (FAO 2004).

In 2003 the number of countries listed as having serious food shortages was 38, with 23 of these being African countries, at least four bordering onto and a number more located in the Southern African region. Factors compounding food shortages include the HIV-AIDS pandemic, adverse weather conditions and civil strife.

DIAGRAM 2.1: COUNTRIES FACING FOOD EMERGENCIES

On a global level crop and livestock production growth has slowed down in the first years of this decade to an average lower than that of the three preceding decades. Sub-Saharan Africa is the only region in the world that has not experienced any growth in per capita food production over the last three decades.

Although South Africa is currently self-reliant in terms of the provision of basic foodstuffs, shortages are being predicted. The table below indicates the expected requirements for basic foods as reflected in the Integrated Food Security Strategy for South Africa (Department of Agriculture [DoA] 2002).

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TABLE 2.1: EXPECTED REQUIREMENTS FOR BASIC FOOD PRODUCTS IN SOUTH AFRICA BY 2000, 2010 AND 2020

Source: Department of Agriculture 2002

Based on the above table future trends in the requirements for basic food products are discussed as follows (DoA 2002).

Projections indicate that should current production trends hold, domestic wheat production would be outstripped by domestic consumption by nearly 60% in 2010, and by over 100% in 2020. Maize consumption is expected to exceed production by 2010, again assuming that current trends continue. Beef demand is expected in increase to 150% of production, and mutton to more than 130%, if production trends continue.

Demand for poultry products has already outstripped domestic production by an estimated 22% in 2000, and is expected to increase to 92% in 2010 and to 192% in 2020. Fresh milk production is expected to fall short by 207% in 2020, if current production trends are not changed. The production shortfall of horticultural products and potatoes in particular, is expected to increase by 74% by 2010, and to 152% by 2020. A Department of Agriculture study concludes that the national food security status of South Africa will remain if current production trends continue.

2.1.2. GLOBAL PRODUCTION TRENDS

In overall terms commodity prices peaked in the mid-1990s, followed by a downward turn in the latter part of the decade, with some recovery experienced during 2001 and 2002. Trends in commodity prices is, however, influenced by various factors and one country expanding production of a specific commodity can lead to a serious decline in prices, e.g. what occurred between 1997 and 2001 with coffee when Vietnam expansion (as well as the devaluation of the Brazilian real) led to a sharp decline in prices (from close to $3 000 per tonne to just over $1 000 in 2003). Such lessons is of direct relevance to the sugar industry (with a strong base in uPhongolo), an industry in which prices peaked at around $275 per tonne in 1995/96 only to drop down to the $160 mark by 2003. Sugar prices have subsequently strengthened considerably.

2.2. THE POLICY CONTEXT

Agriculture is, in terms of Schedule 4a of the Constitution of the Republic of South Africa (1996), a functional area of concurrent national and provincial legislative competence. This

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT implies that national and provincial policy and legislative frameworks should guide the agricultural activities of all spheres of government.

It is therefore important that the development of an agricultural strategy for the Zululand District takes due cognisance of the current national priorities established for the development of the sector. From the State of the Nation Address of President Thabo Mbeki delivered on 21 May 2004 the following focus areas of government is evident:

ß the commitment to securing and allocating funding for the emerging farming sector; ß the promotion of the cooperative concept; ß the support for (1) agriculture in communal land areas and (2) other —small-scale agriculture“; ß the commitment to the implementation of the Land Reform for Agricultural Development process and the Comprehensive Agricultural Support Programme; ß the approval of the Communal Land Rights Bill; ß the commitment to Black Economic Empowerment; ß the commitment to social security and poverty alleviation as part of the process of developing the economy as a whole.

The above policy statements were made against the background of a policy environment in which each of the Agricultural Ministers since 1994 developed their own policies for agriculture. The Policy documents are:

ß The White Paper on Agriculture (RSA 1995): The seven agricultural policy areas addressed by the 1995 policy includes: Production, Marketing, Sustainable Utilisation of Natural Agricultural Resources, Agricultural Financing, Institutional Infrastructure, Information and Agricultural technology, research, extension and training. ß Agricultural Policy in South Africa: A Discussion Document (1998): The policy document includes sections on: the goals of agricultural development; building a competitive and efficient agriculture; supporting agricultural production; conserving agricultural natural resources. ß The Strategic Plan for South African Agriculture (2001): This is viewed as the current policy and was developed as a joint effort between the Department of Agriculture and the agricultural industry, represented by Agri SA and the National African Farmers‘ Union. An overview of the contents of this policy is provided below.

The Strategic Plan developed a vision for agriculture which promotes —… a united and prosperous agricultural sector“ with as a strategic goal —… to generate equitable access and participation in a globally competitive, profitable and sustainable agricultural sector contributing to a better life for all“. The Strategic Plan states that —the main impediment to successful implementation of this strategy is the vast untapped potential that lies in its people and material resources, and the low profitability and competitiveness that constrain the participation of a full spectrum of people and economic entities“. Problems contributing to this include (1) constrained competitiveness and low profitability, (2) skewed participation,

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(3) low investor confidence in agriculture, (4) inadequate, ineffective and inefficient support and delivery systems, and (5) poor and unsustainable management of natural resources.

Importantly this policy document identifies a set of three core strategies and —essential“ supporting and enabling strategies, which are cross-cutting to the core strategies. The core strategies are:

ß Strategy 1: Enhanced equitable access and participation in the agricultural sector ß Strategy 2: Improve global competitiveness and profitability ß Strategy 3: Ensure sustainable resource management

The supporting and enabling strategies include a focus on good governance; integrated and sustainable rural development; knowledge and innovation; international cooperation; safety and security. Priority programmes aligned to this strategy have also been identified.

2.3. THE INSTITUTIONAL CONTEXT

2.3.1. THE DEPARTMENT OF AGRICULTURE

The DOA is very strongly represented within the district. The Northern Region with its regional office in is responsible for the Zululand and Amajuba districts. Within the Zululand District the Department has six district offices servicing the area each of these with approximately ten extension staff, operating at various levels and disciplines. The Department has adequate skills and resources to support an intensive agricultural renewal programme within the district. An important aspect however is to get the Department involved during the planning and project formulation stage to ensure the establishment of a well-grounded partnership arrangement with the Department.

2.3.2. THE KWAZULU AGRICULTURAL UNION (KWANALU)

This non-racial union of farmers associations was established in April 1997 and is an amalgamation of the KwaZulu National Farmers Union the Natal Agricultural Union the South Coast Indian Farmers Association and a KZN chapter of the National African Farmers Union. This is a broad-based civil society organisation that represents a wide range of farming and agricultural interests across the province. The union with its head office in Pietermaritzburg plays largely a representation, lobbying and advocacy role on behalf of its members. It takes up issues of general interest to all farmers and rural dwellers.

Although individual membership is recognised, one becomes a member by joining the local farmers association, who in turn pays your affiliation fee on to the union. KWANALU consists of three tiers, with representative structures at primary, district and provincial level. The primary structures consist of 110 large-scale farmers associations, and over 300 small-scale farmers associations and clubs that are still organised into 26 district farmers associations on the old KwaZulu district boundaries.

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After amalgamation in 1997 the second tier consisted of 16 District Agricultural Councils (DAC‘s). This was reduced to a total of ten DAC‘s in 2002 in accordance with the demarcation of the ten District Municipalities in the Province. These ten District Agricultural Councils consist constitutionally of six representatives from large-scale farmers associations and six representatives from small-scale farmers associations. The DAC‘s meet on a regular basis and take up issues and provide representation at a district level. With the advent of local government and wall-to-wall municipalities, farmer representation at this level is becoming increasingly more critical. Commodity groups and agri-businesses are also affiliated. Twenty-seven organised provincial and national commodity groups are members as well as 25 agri-business members that include co-operatives, processors and suppliers.

KWANALU‘s Zululand District Agricultural Council is an active organisation of which all 12 members were previously invited to serve on the Agricultural Working Group (AWG) for the Siyaphambili Programme.

2.3.3. AGRIBUSINESS CORPORATES

The sugar and timber milling industries are both dominated by two large corporations that play an important role in agricultural development. They provide considerable support to commercial farmers and through out-grower programmes have had a big impact on small- scale farmer development. This however has not really been the case in Zululand where out-grower programmes have had limited impact. The largest impact of the corporates on the local economy has been that they are large owners of land resources for plantation farming. Large tracks of farming land were purchased in the 70‘s and 80‘s, displacing family farms and farm workers and changing the agricultural mix. In most cases this resulted in reduced job opportunities and changes in farm worker relationships.

The new trend however, by these large millers is to dispose of the land holdings as raw materials can be secured more effectively by a supply agreement. The sugar industry has set the trend with the establishment of 140 medium scale farmers (none of this within Zululand). The forestry industry is about to commence with a programme of disposing of land through farm worker equity schemes. It is anticipated that the first pilot project of this nature will be within the Zululand District.

Illovo Sugar Company has been instrumental in setting up an irrigated small grower sugar project in the Pongola area as a result of irrigation water from the Bivane Dam. Sapekoe Tea, a subsidiary of the IDC has a long established tea estate in the Ngome area (according to reports this tea estate has ceased production after 2003).

2.3.4. DISTRICT AND LOCAL MUNICIPALITIES

Organised and capacitated local government structures are a new phenomenon and something that everyone is still getting accustomed to. These institutions will be able to play a very important role as rural development co-ordinators. They are anticipated to play an ever-increasing role as funders of infrastructure. Although local government does not have PREPARED BY PR AFRICA 7 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT an agricultural responsibility per se, its role in the co-ordination of local economic development activities will become more and more significant. Some form of District Agricultural Working Group can act as the co-ordinating forum.

2.4. THE FUNDING CONTEXT

Various sources of funding are available to support. The information below is indicative of the type of funding available for agricultural development in the District.

ß Settlement Land Acquisition Grant (SLAG): The SLAG grant was the initial Department of Land Affairs financial instrument for supporting land reform initiatives. This was originally based on R15000.00 per beneficiary and later increased to R16000.00 per beneficiary. With the introduction of the new LRAD grant the SLAG grant is no longer relevant to commercial agricultural enterprises. ß Land Redistribution for Agricultural Development (LRAD): The grant may be used to purchase land or to acquire a lease option for agricultural purposes. It may also be used to obtain fixed assets, equipment that improves the value of the land and production inputs for the development of the land that is acquired. The actual size of the grant an applicant gets depends on the resources one is prepared to invest in the enterprise. The grant is at the sliding scale depending on own contribution. The maximum grant size is R100 000.00 with an own contribution of R400 000.00. ß Land Reform Credit Facility (LRCF): The LRCF is a wholesale loan facility established by the Department of Land Affairs (DLA) to assist in the establishment of commercially viable land transfer projects. It has its origins in research conducted by the Department in 1998 which indicated that there was much greater scope than was then being realised within the land reform programme for the establishment of commercially profitable projects on redistributed land. This facility makes loans (with deferred repayments) to financial institutions that wish to finance farmland, or equity in farming, agri-business or eco-tourist enterprises, purchased by disadvantaged South Africans. ß Africare Agribusiness Loan Guarantee Fund: The loan guarantee fund was established by Africare (South Africa) through funds from the United States Department of Agriculture (USDA) under the Rural Enterprise and Agricultural Development Programmed (REAP). In establishing the fund, Africare has teamed up with The Land Bank, National Department of Agriculture (NDA), National African Farmers Union (NAFU) and the Agricultural Business Chambers. The goal of the loan guarantee fund is to ensure access to finance and technical skills by black emerging agribusiness entrepreneurs and farmers. It will achieve this by operating a credit guarantee scheme aimed at assisting borrowers to obtain normal bank financing to enable them to establish, expand or acquire a new or existing business in circumstances where they would not without the support of the guarantee fund qualify for such financing in terms of the normal lending criteria. ß Primary Agriculture Education and Training Authority (PAETA): PAETA is implementing a three-year project called the National Skills Fund Project (NSF). In PREPARED BY PR AFRICA 8 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

essence, the objective of this project is to focus on skills development issues which will impact on/assist with farmers‘ ability to engage in the export market or to maintain and improve their ability to participate in exports. ß Land Bank: The Land Bank has a number of financial instruments that focus on supporting the settlement of previously disadvantaged farmers. Furthermore historically disadvantaged farmers are given preference when properties that have been repossessed by the bank are resold. The following financial instruments are available through the bank, (1) LRAD, (2) Special Mortgage Loans, (3) Establishment Loans, (4) Social Discount Product. ß The Industrial Development Corporation: The Agri-Projects Strategic Business Unit of the IDC provides expertise and finance to promote development in the agriculture, aquaculture, fishing and related value-added industries. Investments are focused on the development of new crops and technologies, as well as the empowerment of emerging entrepreneurs. The SBU‘s goal is to create empowerment opportunities in at least 50% of all new project approvals. The SBU not only provides financial assistance, but also participates in the planning, structuring and strategic management of projects. The IDC also manages the Risk Capital Facility (RCF) whose objective is to invest in black economic empowerment companies and in particular the SMME sector. The RCF is a revolving investment fund complimented by a business support facility. The IDC is expected to provide co-financing in any RCF funded projects and there must be a clear defined exit mechanism over an 8 to 10 year period. Investment sizes range from R500 000.00 to R15 million. ß Ithala: The Ithala Development Corporation is a provincial based development finance parastatal that provides loan funding to previously disadvantaged individuals and enterprises in the field of agriculture. They have a variety of products available for agricultural production and equipment loans at market related interests.

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3. LAND REFORM

3.1. INTRODUCTION

The Zululand region has generated a large number of land reform applications since March 1997. Due to the agricultural potential of the area, the Department of Land Affairs has been striving to generate projects which will create opportunities for individuals who settle upon the land. A key focus has been on creating commercial farming ventures, securing tenure for labour tenants and State land residents and discussing possible share equity schemes around eco-tourism and forestry.

3.2. OVERVIEW OF LAND REFORM IN THE DISTRICT

Set out below is an overview of land reform in the district, referring to various categories of land and the land reform programmes of redistribution, restitution and tenure reform. This is discussed in more detail in the 2003/4 Status Quo Assessment for the Siyaphambili Economic Development Programme.

State Owned Land: There are approximately 415 portions of State owned land registered in the name of the Department of Land Affairs and the Department of Public Works. When dealing with State owned land, especially those portions located adjacent to the Traditional Authority areas, consideration has to be given to the fact that the land is already occupied by members of the Traditional Authority and could only be considered as tenure upgrade projects.

Ingonyama Trust Land: The Ingonyama Trust has approximately 452 773ha in the Zululand District. At present no land reform projects have been initiated on the Ingonyama Trust land. The following tribal authorities are located in the region.

ß uDumbe Municipality œ Dlamini and Mthethwa; ß Abaqalusi Municipality œ Mdlalose, Zulu; ß Muncipality œ Mbatha, Ndebele, Buthelezi, Nobamba, Mpungose, Ximba and Zungu; ß Nongoma Municipality œ Zulu/Mbatha, Zulu/Usuthu and Mandlakazi; and ß uPhongolo Muncipality œ Msibi, Masidla, Ntshangase, Simelane.

Several portions of Ingonyama Trust land adjoin proclaimed nature conservation areas such as Ithala, offering potential for eco-tourism projects with numerous key roleplayers.

Privately Owned Land: The majority of the land in the region is privately owned by White commercial farmers, who run highly productive farms. With the increasingly difficult economic circumstances, changing labour legislation and land reform several privately owned farms have been offered to the Department of Land Affairs for land reform projects. Due to increasing mechanisation on farmers, labour disputes and changing landowners, several

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT families have in the past been evicted from farms and have now approached the Department of Land Affairs for assistance.

Redistribution: The Redistribution programme has been running for since 1997 in the district and by 2004 the following 54 projects have already been approved by the Department of Land Affairs. Approximately 41 000ha of land has been purchased for approximately 3 961 beneficiaries.

TABLE 3.1: APPROVED REDISTRIBUTION PROJECTS (2003) No of FARM NAME AREA LEGAL ENTITY NAME Hectors Beneficiaries

BERDINA 339 MGAZINI TRUST 25 WITWATER Louwsburg BERDINA-NKOSI TRUST 273.03 20 WITWATER Louwsburg UTHOVANE CPA 424.06 38 DWAALHOEK THEKWANE TRUST 1529. 74 94 BEROOFD Vryheid EMNYAMENU CPA 5714.17 61 GELUK Louwsburg OHOLENI CPA 783. 96 61 GROENEWEIDING Louwsburg MBHUDULA CPA 847.43 55 GOEDGELOOF Pongola GUMBI TRUST 646.00 120 BRAAKVLEI Vryheid GWEBU/THOBELANI CPA 3 229.00 285 DRAAIOM Vryheid KWABANAKILE CPA 110

LANGGEWAACHT Vryheid NGOME COMM. PROP. TRUST 213.00 20 PALMIETFONTEIN Vyheid MBAMBASI CPA 500.00 52 WINTERSHOEK Louwsburg MGWABALANDA CPA 1604.00 63 VOORDAG+ Louwsburg B.M. ZULU DEV. TRUST 7080.68 250 WATERVAL UITKOMST Vryheid UKUKHANYA DEV. TRUST 684.00 163 MAGUDU Pongola NTSHANGASE TRUST NOOITGEDAGDT Vryheid EMPANGISWENI TRUST 3163.07 300 LANGEWACHT Vryheid T.BUTHELEZI TRUST 531.00 110 RIETFONTEIN+ Louwsburg KWAXAMU TRUST 226.00 53 BEROOFD WEGSPRING Vryheid MJB. BUTHELEZI TRUST 392.00 39 VREDEHOF Vryheid KWAGUZINDODA TRUST 57 VRIESCHGEWAAGD Vryheid KWAGUZINDODA TRUST 500.00 27 KWAXAMU TRUST 226.00 53 PARYS Vyheid INQABAKUTHOLWA TRUST 739.05 39 BELLEVUE 600 Vyheid INTUTHUKO 949.22 61 COMM.LAND.TRUST EERSTEPUNT Vyheid DREIKWAART CPA 5897.82 374 ALPHA FARMS Vryheid ALPHA CPA 115 HY IS NET ZOO+ Ulundi KATAZO CPA 3 051.00 177 OTHERS WITKOP+ MTHETHWA(ETHEMBENI 1 244.00 85 LILESFONTEIN SOMANADLA CO-OP) WONDERFONTEIN Vryheid MAHLABANENI CPA 600. 64 80 PARADYS Vryheid SIPHUMELELE SOTOBE TRUST 24. 303 6 WELVERDIEND Vryheid LINDIZWE CPA 180.99 30 REDDERSDAL EDumbe HLANGANANI CPA 554.56 20

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No of FARM NAME AREA LEGAL ENTITY NAME Hectors Beneficiaries AMBERG Edumbe ENKANYEZINI CPA 193.58 31 JORDAAN Vryheid THEMBALIHLE TRUST 50.00 15 GERUST Vryheid MTHASHANE TRUST 252.71 14 GROENEWEIDING Louwburg ZAMOKUHLE TRUST 847.46 64 WELTEVREDEN OF Vryheid BAQULUSINI TRUST BELLVUE WAGENDRIFT Vryheid SENZOKUHLE TRUST 638.51 29 BEDROG Louwsburg UZULU KAFUNI KUSUKA TRUST 180.30 7 WELVERDIEND Vryheid THEMBALIHLE 1 WELVERDIEND Vryheid IMPUMELELO CPA 180.99 25 MAKALUSI Vryheid THUTHUKANI BAQULUSI 929.50 38 BROEDERUST Louwsberg CARLSBAND Vryheid CARLSBAND CPA 314.12 35 CHRISTINASDAL VUKUZAKHE CPA 308 28 31 VAALKOP MAGWETSHANA CPA TRAAKTAAT Vryheid INZALO YABAQULUSI CPA 250.00 44 THAKA GAME ITHEMBA LOHLONYANE CPA 995.00 106 RESERVE JABULA FARM EDumbe KUSEKUNQOBENI TRUST 200.00 67 WELBEDACHT Edumbe VULAMEHLO CPA 434.31 22 VAALHOEK Louwsburg 934.23 62 UITVLUGHT Vryheid VUKUZENZELE CPA 110.00 44 WYKOM Louwsburg 503.60 34 MERIBA MERIBA PROPERTY AND 1926.55 250 DEVELOPMENT TRUST MHLABANENI COMMUNITY 213.00 TRUST

Farm Workers Requiring Tenure Security: Zululand District is characterised by a large percentage of people who are employed as farm workers on White owned commercial farms. Agriculture is a significant contributor to the Gross Domestic Product of the region, and one still finds a significant number of farm workers living on the farms where they work or commuting from the surrounding communal areas on a daily basis. Farm workers and labour tenants are generally considered to be one of the most marginalised groups in Southern Africa and this region is no exception to the rule. It therefore provides ample opportunity to address the issue of farm worker tenure security.

There are several emerging farmers in the Ingonyama Trust land, and many individuals are more than willing to venture into commercial farming in a small way if they had security of tenure and access to finance.

Labour Tenants Requiring Security of Tenure: The ban on labour tenancy in 1969 resulted in the mass removal of excess labour in many areas. Vryheid, , Ngotshe, , Utrecht along with Weenen, Ixopo, Klipriver and Umzinto have been identified as the areas most significantly affected by the ban on labour tenancy according to the Surplus Peoples Project. Bergville (1968), Kranskop and Weenen were the first three areas in Natal to be deproclaimed under labour tenancy. In Vryheid, a large number of

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT families affected by the ban on labour tenancy moved into the resettlement areas of Bilanyoni, or Nondweni, rather than return to the Traditional Authority areas. In the Babanango area tenants were relocated to a string of closer settlements in the Denny Dalton region, including the already established settlements of Emakhosini, Hlungulwana and Mpungamhlophe. Many of the labour tenant communities strongly resisted removals from farms and continued to occupy the land on which they had been for several generations.

Whilst the final proposals on approved projects are not yet known there would appear to be several options which may form part of a solution towards providing tenure security for labour tenants and ensuring that the commercial agricultural base of the region is maintained. The options include:

ß Negotiated leasehold agreements, these would include formal agreements being concluded between beneficiary groups and farmers. ß Use rights, usufruct which could be endorsed by a notarial deed in the title to the farm. ß State assisted land transfers either of an entire farm or a sectional land purchase, based on a more supply driven approach with the Department of Land Affairs driving the land purchase process. ß Share equity schemes, based on strong private sector participation to provide the financial backing to projects which are viable and sustainable but require large capital investments which are beyond the capacity of the beneficiary group. ß Long term share cropping.

Communities/Settlements: Tenants living in the scattered freehold settlements throughout the region could form small groups of potential beneficiaries, especially in projects outside the freehold settlements, with an agricultural, tenure security and infrastructural focus. Within communities specific groups can be identified as potential beneficiaries of land reform projects. These include women, the youth, social organisations such as poultry groups, and garden clubs formed around subsistence agriculture. All the present land reform programmes have a specific focus on meeting the needs of the abovementioned groups and in terms of existing legislation they could approach the department of land affairs with specific project ideas to improve their tenure security and livelihoods.

Tribal Groups: Several large traditional community groups are located within the region. Changing tenure legislation means that cognisance will have to be taken of the role of Traditional Authorities in land reform.

Freehold Communities: Between 1960 and 1982 the State embarked on a campaign to remove black freehold settlements to quota land purchased for resettlement. Black freehold communities have, prior to legislation amendments, been the "living contradiction of apartheid theory" simply by owning and living on land within white South Africa. In the region the following are examples of such communities œ Mooiplaats, Voorslag, Apologie and Besterspruit. PREPARED BY PR AFRICA 13 MAY 2006

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For many years these communities lived under the threat of removal and were denied basic infrastructure and other social services. A large-scale tenure reform programme could be undertaken in each of these settlements under either redistribution or restitution.

Potential For Leasehold Land Use: There are several tracts of private, small portions of State land and communally owned land which could be considered for leasehold purposes as leasehold is not confined to a specific tenure system for successful application .

Communities Seeking Restitution: Several individuals, community groups and traditional authorities have repeatedly lodged claims, with various government departments, NGO;s and other role-players, to portions of the conservation land, which presently fall under the control of the KwaZulu-Natal Nature Conservation Services. This issue is likely to remain a highly contentious issue within the District. However, unless claims have already been formally lodge with the Land Claims Commission, no further consideration will be given to restitution claims of communities, as the cut off date for claims was 31 December 1998.

Restitution claims per District are as follows:

Babanango 34 Mhlabathini 17 Ngotshe 41 Nongoma 14 Paulpietersberg 26 Vryheid 289

3.3. LAND REFORM OPPORTUNITIES AND CONSTRAINTS

3.3.1. OPPORTUNITIES

ß The district has had a range of planning initiatives and development support provided over the years and communities are familiar with various government departments active in the area. ß The district has a significant role to play in the national development context, particularly in regard to tourism and nature conservation. ß There are large tracts of privately owned land available for purchase. The drawback however is high market related prices and the land is considered as highly productive agricultural land for game farming. ß The district is developed in terms of existing road, electricity and water infrastructure and offers opportunities for the expansion of the existing supply systems. ß The opportunity exists to develop the tourism and agricultural sectors further. ß Several community institutional structures have also been created and are aware of land reform issues and requirements. ß The Ingonyama Trust Board creates an opportunity to deal with development issues on the Ingonyama Trust land which fall beyond the scope of the land reform programme. PREPARED BY PR AFRICA 14 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

ß The IDP planning study is in the process of being revised and will provide a clear vision for the future development of the region. ß The Department of Land Affairs and the District Municipality are in the process of concluding a programmatic transfer agreement which allows for the immediate commencement of detailed project planning and implementation of land reform projects, utilizing the Planning Grant and Settlement and Land Acquisition grant offered by the Department of Land Affairs.

3.3.2. CONSTRAINTS

The district has the following general constraints, which, though they are not unique to the area, could affect land reform:

ß The region has experienced a considerable degree of conflict over land in the past. This has included political, tribal, nature conservation and labour tenant/farmer conflicts. ß The most complex land issues in the region relate to the communal and freehold settlements, where there is an overwhelming demand for additional land, for both settlement and agricultural land use. ß The way the Ingonyama Trust lands are to be dealt with, specifically in terms of the Land Reform programme, are unknown at present. ß The lack of capacity within government departments and service provider organizations to fully support the government land reform programme. ß The lack of funding from government departments and the private sector to support land reform after project approval. ß The high price of land in well located pockets of high potential agricultural land with the region. ß The lack of awareness amongst junior level staff of the governments land reform programme and the key role they should play in the implementation of the programme. ß A lack of awareness and knowledge at community level about opportunities created through current legislation and policies around land reform and development planning.

3.4. CONCLUDING REMARKS ON LAND REFORM

In reviewing the data presented in the status quo report it is evident that there are a large number of land reform projects in the district and considerable opportunity still exists. The area has good tourism potential and a rich variety of cultural attractions, which could be further developed and integrated into the land reform programme. The high agricultural potential of the land is key to the future development of the region and as such should be protected for long term sustainability, this however does not mean that it should be excluded from consideration in projects that relate to land reform and commercial farming ventures. The high population and livestock concentration in the freehold settlements highlight the need for additional land, and creates possible opportunities for the development of PREPARED BY PR AFRICA 15 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT commonage scheme in relation to these areas. In addition tenure upgrade projects could be considered for tenants presently living on portions of the freehold land.

A large percentage of the district is allocated to communal land. Within these areas there is considerable pressure to extend grazing rights into adjoining areas. Strategies to deal with the need to accommodate the increasing demands for grazing land need particular attention. This will require extensive consultation between all key role players in the region.

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

4. ZULULAND AGRICULTURAL POTENTIAL

4.1. OVERVIEW OF AGRICULTURAL POTENTIAL

Agricultural and grazing potential in the District are largely a reflection of rainfall in particular parts of the district. Rainfall in the hinterland is largely determined by altitude. Good agricultural potential exists in the western highlands and the eDumbe Municipality has very high potential as has most of the Abaqulusi municipality. High potential in the Phongola valley are as a result of irrigation opportunities that have been developed in this area. Current land cover reflects theset potentials.

The communal areas of Ulundi and Nongoma are however not as fortunate and the agricultural potential is marginal to poor except for to high lying plateaus in each district, but these make up a small portion of the total area. Valley bushveld of the two Umfolozi rivers does provide considerable potential for the development of irrigation. Given the high temperatures in these valleys and the moderate winters, these areas are perfectly suited for the production of vegetables in the winter or off-season.

The deep low altitude river valleys of the two Umfolozi‘s and the Phongola are hot and dry with a valley bushveld climate. The river valleys do however provide an excellent opportunity for intensive agricultural production where irrigation is available. Irrigation transforms the valley bushveld into the highest value agricultural land. This land is suitable for sugar cane, out of season vegetables and sub-tropical fruit crops.

Agricultural potential outside these valleys is limited to stock and game farming. Out of the three valleys at higher altitude (in excess of 800m) one gets into to very high potential agricultural land that is suitable for intensive rainfed agriculture, grain crops and timber farming are suited to these areas.

The fact that high potential land in the western areas is largely in the hands of white commercial farmers and the poor potential land is in the hands of communal farmers ads an additional dynamic of dispossession into the district. It is these issues that a comprehensive land reform programme needs to tackle in the district.

4.2. MUNICIPAL AGRICULTURAL POTENTIAL

4.2.1. ABAQULUSI (VRYHEID)

This municipality has medium to high agricultural potential, with grain crops, timber and semi intensive beef farming being the main enterprises at present. The district consists largely of commercial farms and this is where most of the land reform projects have taken place to date. The proposed sesame seed and Coronation mine agri-village are in this district. The two abattoirs in Vryheid will fulfil an important role in a beef-marketing

PREPARED BY PR AFRICA 17 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT programme for the Zululand District Municipality. The Lenjane forestry farm workers equity share project is also being planned at the present.

4.2.2. EDUMBE (PAUL PIETERSBURG)

This local municipality has the highest potential for rainfed agriculture and consists largely of commercial forestry farming. In the communal areas of this municipality there is potential for small holder forestry, but this has not yet been developed mainly because of distances to markets. No development projects are currently planned or implemented and a pecan nut project has been referred to in the literature, but no detailed planning has begun.

4.2.3. UPHONGOLO

The main commercial enterprises in this municipality are irrigated sugarcane and game farming replacing beef operations. The irrigated sugar has been expanded as a result of the construction of the Paris Dam and this has included opportunities for black sugar farmers. The second small holder sugar project is in the process of being planned. There is potential in the region for citrus and sub tropical fruit under irrigation. In 2003 the then DEDT approved funding for a fruit canning project in the municipality, but this project never came to —fruition“.

4.2.4. NONGOMA

The entire municipality consists of communal settlement and a mixture of farming takes place by small holders with cattle and goats being the most important enterprises. The region consists mainly of valley bushveld, so the agricultural potential is low unless irrigation is available. Two programmes that will take place in the district is improving production and marketing of vegetables on the Bulelwane project as well as improving access to markets for beef farmers.

4.2.5. ULUNDI

This district is also predominantly valley bushveld as well as communal ownership of land. The Black Umfolozi irrigation scheme is being planned here and could represent the beginning of some substantial irrigation developments in the future. The highlands of Babanango are dominated by corporate forestry. There is however potential land reform as well as irrigation opportunities from farm dams.

4.3. AGRICULTURAL POTENTIAL: A GIS ASSESSMENT

In 2004 a GIS assessment was undertaken for each of the local municipalities with a view to develop an understanding of agricultural potential in each of the municipal areas. This assessment was intended to inform agricultural and spatial planning.

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The GIS assessment focussed on providing guidance on:

ß Short shelf live crops: Areas with short distances to market ß Frost Risk: Areas may be susceptible to frost ß Environmental Buffers: Generally strips of land surrounding key nature conservation areas. This can be used for for grazing, but large scale monocropping is not recommended. ß River Irrigation Potential: Areas on low lying land bordering on major rivers that are easily irrigated. ß Potential Forestry (Based on BRU MAP): Areas with rainfall greater than 800mm p.a. ß Dry land Cropping: Areas with rainfall of greater than 800mm p.a. Good for most crops and grazing lands. ß Small scale cropping: Areas where the rainfall is between 700 to 800 mm p.a. Good cropping potential and grazing. ß Severe Limitations to cropping: Areas covered by thick bush. High cost of clearing the land. Can be used for gazing or Game farming. ß Major Limitations to cropping: Limited Rainfall / areas of low rainfall – may not sustain dry cropping. Will be suitable for irrigation.

The result of the GIS assessment is reflected overleaf in the following maps:

ß District Agricultural Restrictions Map ß District Agricultural Potential Map; and ß Five local municipality agricultural potential maps.

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

5. AGRICULTURAL PROJECTS

5.1. CURRENT APPROACHES TO AGRICULTURAL DEVELOPMENT

The most dominant method of incorporating small farmers on communal land into formal commercial agriculture in this province has been through out grower programmes or contract farming. Three large industries of sugar, pulpwood and cotton have been successful in contracting large numbers of small farmers to grow produce on their behalf. Farmers in Zululand have however not really benefited from this as only 80 timber growers and very recently only 47 small cane growers have been contracted in the district.

In terms of irrigation development for 40 years the 350 plot holders at Bulelwane have been the only beneficiaries of this technology. The full benefits however have as yet not been realised as these farmers have not received a full range of farmer support services in order to maximise their irrigation benefit. This issue is busy being dealt with by the Department of Agriculture. The proposed Black Umfolozi irrigation project is being investigated and a number of other irrigation opportunities should be followed up as properly managed irrigation development could transform the lives of a number of small farmers.

The major opportunities for emerging farmers are in the areas of land reform and the opening of up and access to markets for agricultural produce. Subsistence farmers will only be able to improve their livelihoods through greater access to markets. Improved market access is one of the farmer support functions that need to be provided by the Department of Agriculture.

5.2. AGRICULTURAL PROJECTS

An investigation of existing agricultural development projects within the district reveals a small number of —large scale“ projects that are already in existence. These projects are largely successful and are making a contribution to the local economy, but one would expect to find more of these. Relative to other parts of the province agricultural opportunities within Zululand have been neglected and the potential for new projects is considerable. Agricultural stakeholders within the district are realising that local development is their responsibility and they cannot continue to blame government for not delivering.

5.2.1. PONGOLA SMALL SCALE SUGAR PRODUCTION

Sugar is only grown in the northern part of the district. Until recently no small-scale sugar farmers existed within the district. With the construction of the Bivane Dam and additional irrigation water being made available for farmers in the Pongola Valley a project for emerging farmers has been set up. The project established in 1999 consists of 47 emerging farmers being settled on ten-hectare sugar farms. The land that they are farming on is stateland owned by the Department of Public Works. The farmers are presently leasing the

PREPARED BY PR AFRICA 27 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT land, but transfer to the farmers is anticipated in the future, with the use of LRAD grant funding. The Illovo Sugar Company has been providing support to the project.

5.2.2. BULELWANE IRRIGATION

This is a 544-hectare flood irrigation scheme in the Usuthu Ward Nongoma that was established during the period 1960-67. The area is highly suited for the growing of vegetable crops out of season, because of the high winter temperatures and the availability of cheap irrigation water. Farmers from the Usuthu and neighbouring Buthelezi ward participate in the scheme. Presently only 70% of the plots are allocated and only 40% of the total area is being utilised. A total of 311 farmers are allocated plots of an average size of 0.65 hectares.

Farmers on the scheme have experienced difficulty in marketing their vegetables and have approached the Department of Agriculture on this issue. In the past the Department has appointed the Lima Rural Development Foundation to appoint a full time extension officer on the project to provide additional support to farmers as well as to open up direct linkages with markets as well as suppliers and financiers. There is considerable scope on the project for improved production and using the project as a training ground for local emerging farmers.

5.2.3. FOOD GARDENS (XOSHINDLALA)

Community food gardens have long been used to organise women‘s groups, introduce vegetable production and to provide food for household food security. A large number of community gardens exist throughout the communal areas of the district. The Dept. of Agriculture‘s Xoshindla programme started in 1999 has provided considerable impact to establishment and support of gardens. The Zululand District Municipality also has staff supporting gardens in the district.

5.2.4. SMALL SCALE TIMBER

The potential for timber production in the district is limited as there are not that many high rainfall areas suitable for timber production that are close enough to existing pulp mills. Sappi‘s project grow has 80 growers with approximately 100 hectares in two areas near Nongoma, being Emaphophoma and Emahashini. Mondi‘s Khulenathi programme also has a few growers in the area. There is not much scope for and considerable expansion in the Nongoma area. Suitable communal areas in Simdlangetsha have not been planted to plantations as they are considered to be too far from the pulp mill at Richards Bay

5.2.5. NGOME TEA ESTATE (CLOSED DOWN PRODUCTION)

This is a 500-hectare tea estate in the Abaqulusi district. Established in 1964 this estate is owned by the Sapekoe Tea Company a subsidiary of the IDC. The tea on this estate is organically grown and a majority of the tea is exported into premium tea markets. The

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ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT estate provided employment to over 1 000 people, but closed down production two year ago.

5.3. PROPOSED INITIATIVES IN THE PLANNING STAGES AND PROJECTS ARISING OUT OF PREVIOUS PLANNING STUDIES

Previous planning studies have put forward projects proposals to enhance local economic development in the agricultural sector. These projects have as yet not been established, but do represent some potential. The amount of information on each of the projects varies considerably and obtaining reliable information on the status of each of these proposed projects has been difficult, but we anticipate undertaking more investigative work as well as project prioritisation and selection in the next phase.

Pecan nut plantation œ eDumbe: This project was proposed in the Urban Econ Report —Economic Regeneration of the Coal Belt“ December 2002. The high lying high rainfall areas of Abaqulusi and Edumbe are suited to the production of pecan nuts. A few commercial farmers have got involved in production and packaging and it is muted that small scale growers may get involved in the growing of pecans. Being a long-term plantation crop a considerable investment is required before returns are realised. Markets for the nuts locally seem well assured. Black Umfolozi irrigation feasibility: The Department of Agriculture has appointed Camdekon Engineers to undertake an investigation into the potential for irrigation on the Black Umfolozi, down stream of Ulundi. The initial area identified is in excess of 700 hectares, but investigation has shown that some of the soils are not suitable. The consultants have not yet published their report on the project. Maphophoma Irrigation Scheme: This is an 80-hectare scheme that has been identified by the District Municipality in the Nongoma district. It involves the construction of an earth dam of 300 000 cubic metres. The project requires an investment of R4,7 million over a three-year investment period. Sesame seed production and oil press œ Vryheid: A sesame seed project has been muted by Riel & Associates in the —Vryheid Economic Regeneration Study“. The crop is suited to the high rainfall grain producing areas near Gluckstad. Large local and export markets exist for the crop and it‘s oil. A project is being piloted on the Bethal Mission Farm. The Department of Economic Development and Tourism‘s LED Directorate has recently put out a tender to investigate sesame seed production and processing on behalf of the Abaqulusi Municipality. Agri-village at Coronation mine: The establishment of an agri-village to provide and economic opportunity for the community at the disused coronation mine has been proposed. The project incorporates various elements including the production of vegetables, medicinal plants, hydroponics and aquaculture. The DEDT‘s LED Directorate are likely funders of the implementation phase, which has not yet started. Beef Processing Unit in Vryheid: Vryheid has had two abattoirs, the municipal abattoir and an abattoir owned by the Stock Owners Co-operative. The municipal abattoir has been leased to a private company that has now taken over the management of both plants. These facilities represent an opportunity for markets for local emerging farmers. PREPARED BY PR AFRICA 29 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

Game meat production and processing unit: An abattoir for the slaughtering and processing of game for the production of venison has been proposed. It appears for a project of this nature to be successful the scale of the operation is an important element and a plant would need a large supply area. Planning of plants in the Mkhuze and Utrecht areas in two neighbouring districts has already begun and these could end up being markets for local game farmers. Local farmers do assist hunters in slaughtering game for their own consumption, but no commercial operations exist. Cashmere production and processing: This project was also proposed in the Urban Econ Report —Economic Regeneration of the Coal Belt“ December 2002. The project consists of producing cashmere fibres from local goatherds that are bred specifically for greater cashmere production. The financial returns per animal estimated at R 1.80 per annum appear to be very low. The report gives no information regarding the implementation of such a project at local level. An official of the Department of Agriculture was aware of a project being piloted in the district, but this has since been discontinued. Bio-Diesel: This project is proposed in the Urban Econ report — Zululand Economic Initiative“ September 2002. It involves the production of biodegradable fuel from the physic nut grown on a Jatropha Curcus tree. The crop grows well in dry areas and the valley bushveld of Zululand would appear to be suitable. Pilot projects are being planned in the Umkhanyakude district and these need to be attracted into the Zululand area. New irrigation proposals: The two Umfolozi river valleys still have a considerable amount of irrigation potential that has not been fully investigated. As a follow up to the Black Umfolozi project being undertaken at present. A study of the remaining irrigation potential in the district as well as a feasibility study for irrigation development would add considerable value to the assessment of the agricultural potential of the district.

5.4. PROPOSED OPPORTUNITIES ARISING OUT OF STAKEHOLDERS DISCUSSIONS

A Siyaphambili Agricultural Working Group meeting held in 2003 resulted in a number of proposals and suggestions. These are to be tabled here and further investigation and prioritisation will result in some of the projects being taken forward. These proposals include:

ß Establish Broiler Abattoir ß Communities using un-planted land on Forestry Estates. ß Fruit production in Swart Mfolozi area ß Bevenson Dam œ Irrigation opportunities for emerging farmers. ß Barley production. ß Re-establishment of dairy project at Bululwane ß Irrigation from farm dams in the Babanango area. ß Hatchery for the provision of day old chicks locally ß Livestock improvement projects and improving market access. ß Proposed dam at Nyokeni for domestic water supply œ Irrigation opportunities need to be investigated further. ß Addressing the shortage of tractors and agricultural implements. PREPARED BY PR AFRICA 30 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

ß Identify and test new agricultural products. ß Aquaculture potential in the Nyathi area. ß Cut flower project in Ulundi œ Funding problem. ß Mkhuze small scale sugar project œ Charl Senekal ß Land reform œ Farmer support and mentorship programmes to ensure sustainability. ß Establishment of small charcoal producing plants.

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6. THE PROPOSED STRATEGIC INTERVENTIONS

6.1. GENERAL INTERVENTIONS

The interventions proposed for the agricultural sector should be viewed in the context of general district-wide interventions proposed as a result of the Siyaphambili Local Economic Development Programme of the Zululand District Municipality. Without sufficient resources being allocated to addressing the identified district-wide interventions it cannot be hoped to develop a sustainable agricultural sector as this will have to be done in isolation of the broader socio-economic environment.

The objectives of the district-wide interventions as proposed through the Siyaphambili Programme are as follows:

6.1.1. DISTRICT INTERVENTION 1: INSTITUTIONAL STRUCTURING FOR LED

The objective of this intervention is to establish appropriate structures and systems for ensuring the coordination and integration of local economic development within the Zululand District Municipality. This will be aimed at ensuring:

ß the most effective use of available resources; ß the coordinated implementation of LED; ß the ongoing effective monitoring of implementation; ß the availability of support and guidance.

6.1.2. DISTRICT INTERVENTION 2: CHANGING ATTITUDES

The objective of this intervention is to change the attitudes of local stakeholders in the economy with a specific focus on aspects such as (sectors to be focussed on indicated in brackets):

ß Local buying (communities, business and government) ß Local investment (business) ß Welcoming new investment (all) ß Cooperation in implementation of economic development (all) ß Entrepreneurship (communities, business)

6.1.3. DISTRICT INTERVENTION 3: ADDRESSING THE FUNDAMENTALS

The objective of this intervention is to establish a solid foundation for economic development in the District by addressing a number of key socio-economic issues in the short to medium term, which will, if not addressed, hamper the ability of communities to effectively participate in economic development in the longer term. In addressing the fundamentals the District aims to also address economic development directly by encouraging job creation and income generation. PREPARED BY PR AFRICA 32 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

6.1.4. DISTRICT INTERVENTION 4: RAISING THE PROFILE OF THE REGION

The objective of this intervention is to raise specifically the investment profile of the Zululand District Municipality and the five local municipalities through a multi-pronged public relations and marketing programme. This marketing will be focussed on the private, public and NGO sectors. Further to this the marketing will be aimed at developing a local sense of belonging and pride with communities, emerging, entrepreneurs and existing business.

6.1.5. DISTRICT INTERVENTION 5: IMPROVING AND PROMOTING ACCESS

The objective of this intervention is to improve access within the District and access between the District and neighbouring areas.

6.1.6. DISTRICT INTERVENTION 6: VISIBLE DELIVERY

The objective of this intervention is to focus on achieving visible delivery with regard to local economic development. This visible delivery is intended to have the following impacts:

ß make stakeholders (including investors) aware that the District is actively pursuing economic development; ß encourage communities and emerging entrepreneurs to become involved in economic development; ß develop an awareness of the investment opportunities available in Zululand; and ß contribute to raising the profile of the region.

6.2. SECTOR SPECIFIC INTERVENTIONS

Four agricultural sector specific interventions have been identified, viz.

ß Intervention 1: Institutional Structuring for Agriculture ß Intervention 2: Sustainable Land Reform ß Intervention 3: Improved Market Access for Agricultural Products ß Intervention 4: Visible Delivery in the Agriculture Sector

Each of the interventions are discussed below in terms of:

ß The Status Quo ß The Objective of the Intervention ß The recommended Components of the Intervention

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6.2.1. INTERVENTION 1: INSTITUTIONAL STRUCTURING FOR AGRICULTURE

6.2.1.1. The Status Quo

At farmer level the Zululand District Agricultural Council of KWANALU is in position and is reasonably well representative of both the large and small scale farmers in the district. Lack of funding from KWANALU‘s perspective has however prevented the DAC from getting more involved in a range of development activities. The existence of the DAC has however not resulted in any policy changes by the Department. of Agriculture to incorporate them in their planning and delivery. Programmes. No formal channel of communication exits between the DAC and the District Municipality and matters related to agriculture or infrastructure.

6.2.1.2. The Objective

To strengthen and empower the existing KWANALU DAC so that it can interact with provincial and local government as equals. The ideal situation would be the creation of a district level agricultural forum or working group that could drive multi stakeholder activities at district level on a continued basis. A second objective would be to ensure that the DAC is involved in all the planning structures of the Department of Agriculture as well as the ZDM.

6.2.1.3. Components

Establishing district level coordination between the DAC and Government organisations: Continued close liaison between the DAC, representing the private sector, and government departments involved in agricultural development is essential for the sustainable growth of agriculture in the District. Government departments will continue to fulfil a strong supporting and guiding role in agricultural development. The relevant departments are the Department of Agriculture, the Department of Land Affairs and the Department of Economic Development and Tourism. Establishing & driving new agricultural projects: Visible delivery in the agricultural sector is essential in order to illustrate the potential of the sector in the District. The various institutions involved in agricultural development should be encouraged to promote and guide delivery. The initial focus should be on multi-stakeholder projects. Facilitating change in the focus of agricultural stakeholders and investors: It is important that agricultural institutions in the District start to fulfil a developmental role.

6.2.2. INTERVENTION 2: SUSTAINABLE LAND REFORM

6.2.2.1. The Status Quo

A total of 52 land reform projects have been identified and are presently in the delivery phase. These projects are related to SLAG (Settlement Land Acquisition Grant) funding from DLA. Development relating to these projects are slow to happen and facilitation of both physical and economic development relating to these projects are required. PREPARED BY PR AFRICA 34 MAY 2006

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6.2.2.2. The Objective

ß To ensure implementation of infrastructure on the existing projects ß To ensure that extension support is provided to newly settled farmers and communities by the DOA. ß To provide reliable information on LRAD to all agricultural stakeholders within the district. ß To programme of land reform delivery starting with the settlement of bona fide farmers within the district in order to create opportunities for new class of emerging farmers.

6.2.2.3. Components

Implementation of infrastructure development on existing land reform projects: Extremely limited attention has to date been afforded to the provision of basic infrastructure on land reform projects in the District. Agreements between the District (or other service providers) and the Department of Land Affairs need to be finalised as a matter of priority to ensure basic access for communities settled on farms to infrastructure. Agricultural extension support to existing land reform projects: At present no coordinated approach to the provision of agricultural extension support on land reform projects exists. Although agriculture should be the main income generator on land redistribution projects limited to no progress has been made in terms of agricultural development in these project areas. A coordinated approach to the provision of agricultural extension services is required. LRAD (Land Reform For Agricultural Development) information campaign within the district: The LRAD programme, supporting the establishment of small emerging farmers, has the potential to establish a new vibrancy in the sector. However, few communities are aware of the programme and how to access the grant funding. An information programme should be facilitated in the District to get LRAD delivery happening within the district.

6.2.3. INTERVENTION 3: IMPROVED MARKET ACCESS FOR AGRICULTURAL PRODUCTS

6.2.3.1. The Status Quo

The only emerging farmers with access to agricultural produce markets are the very few in the district that are part of a sugar or timber outgrower programme. Al the others experience considerable difficulty and transaction costs in getting access to formal markets. Stock sales are being held in the district, but better prices can be obtained through direct marketing to feedlots and abattoirs.

6.2.3.2. The Objective

To establish programmes for improving market access for agricultural produce. PREPARED BY PR AFRICA 35 MAY 2006

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6.2.3.3. Components

Agricultural market access programme: Although a large number of individuals and groups are involved in agricultural production, either on a commercial or for household food security purposes, access to markets for produce remain a key challenge in the development of the sector. Programmes to promote improved access to markets for all needs to be initiated. On the basis of such programmes being implemented the sector can thrive and develop a new vibrancy. A specific focus on providing market access for emerging farmers, community food gardens, beneficiaries of land reform programmes, irrigation schemes and the like is required.

Two specific focus areas proposed include access to beef markets and access to vegetable markets.

Beef market access programme: Setting up channels for the marketing of beef through feedlots and abattoirs need to be established.

Vegetable market access programme: Providing direct contact and linkages between vegetable farmers and hawkers and retailers

6.2.4. INTERVENTION 4: VISIBLE DELIVERY IN AGRICULTURE SECTOR

6.2.4.1. The Status Quo

There a few existing agricultural projects in the district and these do have a positive impact on the local community, but a lot more could be done. These projects include support to community gardens, Bulelwane irrigation scheme, uPhongolo small holder sugar irrigation, limited small grower timber projects and a number of land reform projects.

6.2.4.2. The Objective

To establish competent agricultural organisations and well run projects within the District that will support the developmental activities of the District and Local Municipalities. The proposed —Agricultural Development Working Group“ will drive an agenda for delivery on a number of projects and will add additional pressure on funders and projects managers to get delivery on a all existing and proposed projects as well as providing a platform where new project can be defined and taken forward.

6.2.4.3. Components

Monitor & support existing: Various projects specifically focussing on alternative agricultural produce and the processing of existing produce have been initiated in the District. These projects need to be actively support and facilitated on a District level. A specific effort should be made to ensure that all farmers in the District are integrated and benefit from such projects. PREPARED BY PR AFRICA 36 MAY 2006

ZULULAND DM IDP SECTOR PLAN AGRICULTURAL SECTOR: DRAFT

Identify and table new projects: New opportunities need to be identified and packaged on a continues basis. Specific attention need to be given to producing for niche markets where the District will have a competitive advantage.

6.3. PROJECTS PRIORITISED FROM SIYAPHAMBILI PROCESS

The table below reflects the agriculture sector related projects as proposed through the Siyamphambili Programme and subsequent initiatives.

TABLE 6.1: PROPOSED AGRICULTURE SECTOR RELATED PROJECTS NO PROJECT NAME INTERVENTION 1 Establish Zululand Agricultural Working Group Intervention 1 2 Identification and Support to Pilot Land Reform Projects Intervention 2 3 Finalise Land Reform Agreement between District & DLA Intervention 2 4 Forestry Management Plan and Market Linkage for Land Intervention 2 Reform Projects 5 Beef Market Access Programme Intervention 3 6 Vegetable Market Access Programme Intervention 3 7 Abaqulusi Bean Production and Processing Intervention 4 8 Sesame Seed Production and Press Intervention 4 9 Fruit and Nut Tree Planting Project Intervention 4 10 Black Umfolozi Irrigation Feasibility Intervention 4 11 Coronation Mine Agri-Village Intervention 4 12 Phase 2 of Phongola Sugar Irrigation "Siyaqubeka" Intervention 4

PREPARED BY PR AFRICA 37 MAY 2006