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Ehlanzeni Agri-Park Ehlanzeni Agri-Park Final Master Business Plan 2016 1 This Report has been read and approved by: _____________________________ _____________________ Chief Director: PSSC Head Date Ms. Z Sihlangu _____________________________ _____________________ REID Director: Mr. MC Madolo Date ____________________________ _____________________ RID Director: Ms. A Mametja Date _____________________________ _____________________ Deputy Manager: LED, Rural Development & Tourism Date Mr. M Nkosi 2 Ehlanzeni DM Master Agri-Park Business Plan Road Map Chapter 1: Introduction Chapter 2: Agri-Park Model Summary: An introduction to the master business plan report is provided in this Summary: This chapter provides an overall overview to the Agri-Park model chapter through: the project background, goals and objectives, the project’s which was developed by the DRDLR. purpose and a demonstration of the project methodology. Key words: Agri-Park model, small-scale/smallholder farmers, FPSU, AH, RUMC, Key words: concept, smallholder/small-scale farmer, FPSU, AH, RUMC, capital production, facilities, information, large-scale/ commercial farmers expenditure Must read if the reader: Must read if the reader: Is not familiar with the Agri-Park’s concept. Does not have a background on the Master Agri-Park Business Plan Project. Seeks to understand the 3 units of the Agri-Park model. Does not know what the goals and objectives of the project are. Is interested in the project process. Chapter 5: Main Role Players Chapter 4: Location Context Chapter 3: Policy Review Summary: A list of role-players that are Summary: This chapter provides an overview of the Summary: The important policies that affect the important for the Ehlanzeni Agri-Park Ehlanzeni DM and its features that are important for the Ehlanzeni DM Agri-Park are reviewed in this Development are listed in this chapter, along development of the Agri-Park. chapter and the alignment of the Agri-Park to the with potential duties that they may take on. policy is identified. Key words: Ehlanzeni DM, local municipalities, location, Key words: government, private, associations, economic infrastructure, economic activities Key words: policies, strategies, national, organisations, financial institutions, companies, provincial, local, implications, alignment service providers, roles Must read if the reader: Does not know the location of the Ehlanzeni DM Must read if the reader: Must read if the reader: Does not know the status of important locational Is not familiar with policies that are influential Is not familiar with the role-players that features of the Ehlanzeni DM. to the Ehlanzeni Agri-Parks Programme. are expected be involved with the Does not know the Agri-Hub location and its Is not familiar with the policy implications for Ehlanzeni Agri-Park. selection. the Agri-Park. Is interested in the potential duties to be taken up by the role players Chapter 7: Agricultural Industry Analysis Chapter 8. 9 & 10: Commodity Summary: In this chapter, an analysis of the District’s agricultural features is provided, as well important factors Analysis Chapter 6: Economic and Socio- that are influential to agricultural development. The three Summary: The three commodities that have been agricultural commodities to be produced in the district’s Economic Analysis selected to be produced in the initial phase of the Agri-Park are identified. Agri-Park programme are individually analysed Summary: This chapter analyses the economic Key words: agricultural activities, GVA, commodities, according to: The market; Value chain; Agro- and socio-economic status quo of the Ehlanzeni climate, resources, projects, selection criteria, prioritisation, Processing opportunities; Stakeholders and service DM through statistics of the following indicators: top three commodities providers; Technology; Socio-economic demographics, economic profile, unemployment contributions and influences; Emerging/ Potential status, skills level, income and poverty Must read if the reader needs to know: entrepreneurs; and SWOT analysis The current agricultural status of the District. Must read if the reader: Commodities: Poultry, Agroforestry and The status of resources and climate features Vegetables Does not know the socio-economic status affecting agriculture in the Ehlanzeni DM. quo of the Ehlanzeni DM. The process of selection used for the three Must read if the reader: Does not have knowledge of the effect of commodities. the socio-economic status quo on the Is interested in the commodities’ market The three selected commodities. Ehlanzeni Agri-Park development. trends. Is interested commodities’ business enabling features. Needs to know the value chain relations. Chapter 12: Agri-Park Organisational Chapter 13: Implementation Guidelines Structure Summary: The implementation guidelines for the Chapter 11: Agri-Park Concept development of the Agri-Park are discussed. Summary: The organisational structure for the Development Agri-Park is demonstrated schematically and Key words: implementations, guidelines, process explored. Summary: The concepts for the Ehlanzeni Agri-Park are recommendations, programmes, action plan, developed, based on the Agri Park Model, and a basic timeframes Key words: structures, organisational, advisory, capital expenditure is provided. approval, implementation, monitoring Must read if the reader needs to know: Key words: concept, smallholder/small-scale farmer, The implementation of the Ehlanzeni Agri-Park. Must read if the reader: FPSU, AH, RUMC, capital expenditure How government programmes are aligned with Does not know how the Agri-Park is the Agri-Park. organised. Must read if the reader needs to know: The recommended action plan and timeframes. What the concept of the Ehlanzeni Agri-Park is. How the 3 units in the Agri-Park model will function. 3 URBAN-ECON DEVELOPMENT ECONOMISTS Suite 203 Metropolitan House 15 Russell Street Mbombela 1200 Tel: 013 752 4932 E-mail: [email protected] Website: www.urban-econ.com Manstrat Agricultural Intelligence Solutions Tel: 012 460 2499 Email: [email protected] Website: www.manstrat.co.za 4 EXECUTIVE SUMMARY The Agri-Park concept together with the introduction of an Agri-Park per district municipality is a relatively new concept in South Africa. This document represents the master business plan which will serve as a guiding document in the implementation of the Agri-Park model that was developed by the Department of Rural Development and Land Reform (DRDLR). Section 1 - Introduction: provides the background information on the Agri-Park concept. It also provides the goals and objectives of the project. Lastly, the section presents the purpose of the master business plan and outlines the various steps that are undertaken in completing the master business plan i.e. the project methodology. Section 2 - Agri-Park Model: provides an insight into the Agri-Park model. The section provides the definition of the Agri-Park and describes the three basic units within the Agri-Park. All the basic functions together with how the basic units will interact are also described in this section. Section 3 - Policy Review: in order to achieve its set objectives, the Agri-Park Model seeks to align with some of the key government strategies set out in existing policy frameworks. For this reason, the section three (3) of this document provides an overview of the national, provincial and local policies that will guide the development of the Agri-Park Project. The policy review section provides a background on the relevant policies; identifies key focus areas and targets; and discusses the implications of the policies for the Ehlanzeni District Municipality (EDM) Agri- Park. Section 4 - Locational Context: in order to establish an Agri-Park in the EDM, it is important to have a good understanding of the strength, weaknesses and the comparative advantages that the district holds. Section 4 therefore describes some of the main features and the major economic infrastructure that are crucial to the development of the Agri-Park in the EDM. The proposed location of the Agri-Hub together with some of the existing infrastructure that can be utilised by the Agri-Park are also described. Section 5 - Main Role-Players per District: section 5 outlines the main role-players that could potentially be involved in the EDM Agri-Park at varying levels of the development process. The role-players are summarised into three categories such as: Government and Public Sector; Private Companies; and Associations and Organisations. The purpose of this chapter is to 5 provide an insight into the possible partnership opportunities with regards to the recommended agricultural opportunities. Section 6 - Economic and Socio-Economic Analysis: The purpose of this Section is to describe the economy of the Ehlanzeni District Municipality in relation to population and economic growth; job creation; and income and poverty level, as viewed against the economic performance of Mpumalanga and South Africa as a whole. A sectoral analysis is also provided, setting out the structure of the EDM economy with respect to the different economic sectors and their output and employment contributions to the district’s economy. Section 7 - Agricultural Industry Analysis: Part of the objectives of the Agri-Park project is to identify three dominant or most feasible commodities within the district. Hence, this section provides an overview of the main agricultural activities occurring in the district, focusing on the types of commodities
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