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Farming out jobs in E Cape

24 July 2003

Another project funded by the Labour Job Creation Trust, the Phakamani Mawethu Development Trust near Stutterheim in the Eastern Cape, has just been launched.

The Job Creation Trust, administered by the Development Bank of Southern Africa, was formed in 1998 and is funded by money donated by workers. The trust has raised over R80-million, of which R57-million has been committed and R12-million disbursed, with an estimated 4 439 job opportunities created countrywide.

Apart from the Labour Job Creation Trust, the Phakamani Mawethu project is sponsored by the departments of land affairs and agriculture and the Amahlati Municipality.

It all began in 1998 when 21 households from the community of kwaMgwali in Stutterheim established the Phakamani Mawethu Development Trust, which was officially registered in April 2001.

The members approached the previous owner of the farm and, with the assistance of the department of land affairs, an agreement was reached. The farm was sold for R400 000 and subsidies amounting to R320 000 were approved. The difference was financed by the Land Bank, and is almost paid up.

In November 2002, the Labour Job Creation Trust granted the project funding to the value of R1.8-million, made up of a R1.5-million loan and a R300 000 grant. The loan has been used to acquire equipment, stock and to cover operational costs.

The Phakamani Mawethu vision is to succeed in the mainstream of commercial farming and to make a difference in the community by creating jobs, fighting poverty and developing farming interests and skills. Partnerships will be created with various stakeholders, and it is hoped that the project will have an impact on local economic development in Stutterheim and the Eastern Cape.

Operations entail the development of community-based agricultural activities over an area of 515 hectares. There is existing infrastructure in the form of boreholes, sheds, houses, and an abattoir for poultry production with a cold room freezer facility. The activities of the farm include small stock production, cattle farming, poultry production and crop production over 50 hectares.

Current projects include poultry, maize, potato and cabbage production and cattle breeding. Planned projects include small stock production, other vegetable produce and value-adding products.

The project has managed to employ 13 members full-time. Additionally, there are 26 workers employed around the farm.

The asset base of the farm is growing, with assets like equipment, motor vehicles, buildings, stock and crops to the value of about R1.8-million. The infrastructure is being improved to enable the expansion of farming activities.

The sacrifice of personal assets by members over the past six years is beginning to bear fruit. The produce and poultry are in demand, and every month the project increases its supply to the local market.

Phakamani Mawethu has added value to the local market because its prices are competitive and communities do not have to travel long distances to acquire the products.

Most clients have been sourced by word of mouth and are within the local community. The client base is to be expanded to include schools, hospitals and the private sector, and the project will tender for business in other sectors as well.

The key product of the project is poultry, with a capacity to produce at least 10 000 chickens per month. The Phakamani Mawethu Development Trust also aims to create partnerships with other farmers and to export chickens outside Stutterheim and South Africa.

Source: Proudly South African

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