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17 March 2008

Black people who were previously denied access to progressive farming in the past are set to benefit from the strides made by the Department of Agriculture in the province in the field of biofuel. Eastern Cape Member of Executive Council (MEC) Gugile Nkwinti has vowed that landowners will be primary black economic empowerment (BEE) partners for companies that want to invest in the province's quickly advancing biofuel sector.

To protect and enhance the interest of landowners, the department has introduced a new model for business investments in the biofuel sector that allow landowners to take advantage of BEE opportunities.

"We want to make sure our people do not lose but have a direct link with the market."

"If you (a business) do not take a landowner as a BEE partner, you are not investing in the well-being of the production."

"You cannot come from Johannesburg with your own BEE partner, your primary partner is the person who owns the land," Nkwinti says.

An Eastern Cape biofuel entity has proposed an Integrated Cropping and Bio-fuel Development Model (ICBDM) and it will manage its mandate of developing the industry with carefully selected strategic partners. The new model will be used to develop a sustainable, efficient, equitable and competitive bio-industry in the province and people will be empowered to run sustainable crop developments while making profits.

Through the new model the extraction sector (people who grow biofuel crops) will have direct access to the marketing sector and this would be helpful to emerging farmers as they always find it difficult to access the market. Meanwhile, a new model of AgriBEE that will ensure that participation of black people in the agri-business and agro-processing is increased, will be launched in due course by the national Minister of Agriculture and Land Affairs Lulu Xingwana. Making the announcement in East London recently, the head of the national Department of Agriculture, Masiphula Mbongwa, said: "We are out to make millionaires out of our small industries (farmers)." He said the small farmers would be introduced to new investments and provided with a start-up funding.

For more information:
Thozi kaManyisana
Cell: 078 210 2996

Issued by: Department of Agriculture, Eastern Cape Provincial Government
17 March 2008