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North West agri-parks gain momentum, producers to own 70%

Rural Development and Land Reform Minister Gugile Nkwinti

Rural Development and Land Reform Minister Gugile Nkwinti

Photo by Duane Daws

6th May 2015

By: Tracy Hancock

Creamer Media Contributing Editor

  

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With the progress made on the Springbokpan agri-park, in the North West, Rural Development and Land Reform Minister Gugile Nkwinti was confident that the national launch of the agri-parks concept would be hosted by the province.

Government had identified three agri-parks in the North West whose establishment was expected to assist the province in achieving its earmarked 6% economic growth. 

The Springbokpan agri-park included the refurbishment of a grain silo. The other two were the Moretele and Vryburg agri-parks.

Nkwinti, along with North West MEC for Rural Environmental and Agricultural Development Manketsi Tlhape, recently visited the Springbokpan agri-park to assess the “state of readiness” of the silo.

Nkwinti emphasised that it was important for government to look into South Africa’s existing infrastructure, hence the refurbishment at Springbokpan.

Funding to rehabilitate the Springbokpan grain silo was secured from Treasury and as of June last year the process was already under way.

The Springbokpan agri-park would consist of milling (starch and animal), a mechanisation warehouse, an input warehouse and foodbank.

Springbokpan, as with all agri-parks, would also implement a sub-sector operator model to enforce clustering and processing, thereby creating market access.

The initiative was projected to ensure job creation, and would generate revenue and empower women and youth. It was further expected to attract investment in both domestic and international fund markets and guarantee food security in rural households and the revival of food gardens in rural areas.

Nkwinti advised that government planned for producers to own 70% of the agri-parks, with the balance to be allocated to government and other contributors, adding that the national concept was ready for implementation and should, therefore, go ahead.

However, Tlhape noted that government had yet to decide what percentage of produce farmers would need to contribute to the silos.

She stressed that the agri-park concept was meant to support farmers and, therefore, it was important that they be hands-on with regard to the initiative.

"It is, therefore, up to the farmers to ensure that the agri-parks concept lives," Tlhape said.

Nkwinti echoed her sentiments and emphasised the need for communities in the North West to ensure that all land was productive.

"If we have productive land, our silos will fulfil their purpose,” he said.

The establishment of South Africa’s agri-parks follows President Jacob Zuma’s State of the Nation address earlier this year, when he committed government to promote agri-parks and the transformation of rural economies.

As such, economically viable sites in 27 priority districts had been identified across the country for the construction of agri-parks and R2-billion had been made available for the agri-park initiative. Of this sum, 1% had been allocated to capacity building, especially in municipalities.

 

Edited by Creamer Media Reporter

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