The Herald (South Africa)

Boost for black wine-makers

Sector part of agro-processing industry growth plan

- Shaun Gillham gillhams@tisoblacks­tar.co.za

BLACK wine-makers top the list of five key subsectors targeted for incentive scheme support by the Department of Trade and Industry in its drive to grow agro-processing in the Eastern Cape and other regions in the country.

This emerged from a joint Coega Developmen­t Corporatio­n (CDC) and department agro-processing workshop held at the CDC’s Coega Business Centre this week.

They encouraged new investment in the agro-processing sector in the region and particular­ly in the Coega Special Economic Zone.

Wines of South Africa, which is mandated to promote South African wines abroad, confirmed the drive to increase the number of black winemakers, saying it had a close relationsh­ip with the department.

Representa­tives from more than 20 companies in the agricultur­e and agro-processing sector in the province took part in the event at Coega.

“The sector is a core target industry for the zone,” CDC spokesman Simlindele Manqina said.

“Among other reasons, our close proximity to the regional agricultur­al industry, such as the citrus industry in the Sundays River Valley and dairy operations in the region, make this sector a perfect fit for the Special Economic Zone.

“This means that the benefits for agro-processors include short logistical lines and all the benefits associated with the zone, including its close proximity to a port and access to skilled labour.”

Among others, the Coega zone is currently home to agro-processing companies such as Coega Dairy, Dynamic Commoditie­s, and Famous Brands.

The workshop’s key focus points were the Agro-Processing Support Scheme, which is an incentive scheme devised by the department to develop and grow the sector, and to inform the Eastern Cape companies of the opening of the second applicatio­n window of the scheme.

This will be open for submission­s until January.

The department’s director of strategic partnershi­ps and customer care, Mark Alard, said the zone was the right place to be for companies wishing to grow their business.

He named the key sub-sectors that the incentive scheme was targeting.

They were food and beverage processing, which included black winemakers, furniture manufactur­ing, fibre processing, feed production and fertiliser production.

“The scheme aims to increase capacity, create employment, boost competitiv­eness and contribute to transforma­tion in these agro-processing sub-sectors,” he said.

The project developmen­t manager of the agro-processing sector for the Coega zone, Dr Keith du Plessis, said the agro-processing industry was vital for developmen­t in the Eastern Cape as it had the potential to create “sustainabl­e employment up- and downstream”. Du Plessis said the CDC was also hard at work to create synergies among companies operating in the zone to provide more value to their presence.

It was also investing in infrastruc­ture to accommodat­e start-up and smaller enterprise­s there, specifical­ly those that wanted to operate in the agro-processing sector. Wines of South Africa spokeswoma­n Maryna Calow said extensive efforts were being made to bring more black wine-makers into the industry.

“There are a number of challenges, such as available land for vines and the costs involved in starting up,” she said.

“One way new entrants and others are getting around this is through purchasing grapes from other growers and then rebranding the wines once they are made.

“As Wines of South Africa, we pay a 20% levy which goes towards transforma­tion of the sector.

“The department is obviously making a strong contributi­on towards transformi­ng the industry through its incentive scheme,” she said

The department is obviously making a strong contributi­on

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