CHDM to benefit from Tunisian investment in agriculture sector
Deal focuses on animal feed, grain production
The Chris Hani Development Agency (CHDA) is negotiating with potential Tunisian investors for feed manufacturing, seed multiplication and grain production for barley, wheat, and maize.
They are also exploring the possibility of investing in a processing plant that could have a significant impact on economic growth and job creation in the region.
The CHDA and the Eastern Cape Rural Development Agency (ECRDA) recently signed a memorandum of engagement with FeedCom, an investor based in Tunisia.
FeedCom specialises in feed manufacturing for livestock and has expressed an interest in expanding into SA’s animal feed production sector.
Premier Oscar Mabuyane led the delegation which included CHDA CEO Abongile Hala, ECRD MEC Nonkqubela Pieters, and DRDAR acting head Bonginkosi Dayimani, on the working visit to Tunisia and Egypt recently.
During the visit, the delegation discussed issues of agriculture which include highvalue crops such as fruits and manufacturing, which are areas of opportunity for investment and job creation.
“We want to draw investment which will create
more jobs and change the socioeconomic outlook of our province and the people of Chris Hani district won’t be left behind,” the premier said.
CHDA’s Hala said the premier signed a twinning agreement with the governor of the Tunisian city of Medenime.
He said CHDA had positioned the Komani Industrial Park as an ideal location for animal feed production, to support the local livestock industry.
The CEO announced that the company has been invited by the office of the premier to attend the upcoming Eastern Cape Investment Summit.
During their visit to the province in November, FeedCom will perform a site assessment and begin the commercial planning and investment process, Hala said.
CEO stated that the DRDAR will lead the investment facilitation process, alongside ECRDA and CHDA.
He also noted that Rose Blanche Holding, based in Tunisia, is a major producer of pasta, flour, and animal feed, and supplies these products to Europe.
Hala added that the company’s proximity to the Mediterranean Sea allowed easy access to European markets.
The negotiations with Rose Blanche Holding began in 2019, facilitated by the Cooperative Development Centre, where Hala was CEO.
A technical visit was made by representatives of the office of the premier and the departments of economic development & agrarian reform, which led to the plans for investment and collaboration.
Hala stated that a draft agreement is being discussed between the ECRDA, CHDA, and Rose Blanche Holding Company, which would involve investments in seed multiplication, grain production (barley, wheat, and maize), and a processing plant.
“CHDA committed thousands of hectares of land available for this investment, and the processing facility, through Industrial Park.
“A meeting between the senior management of Rose
Blanche, ECRDA and CHDA will be held before the end of November to finalise the agreement, and to do site due diligence and planning,” Hala said.
He added that this investment will be facilitated by EC-DRDAR’s Dayimani with ECRDA and CHDA as its entities.
Hala believed the development of the Chris Hani district economy required a deliberate decision of focusing on primary production efficiencies, to increase a large number of hectares for grain production.
This would be coupled with the performance of yield produced per hectare, which is crucial towards contribution to gross value addition.
He said that the positioning of the Komani Industrial Park, as the agri-logistics provider, for both processing and in-land grain terminal would enhance the district’s economy.
“The partnership with Rose Blanche is crucial for us as they require a significant amount of grain production, seed multiplication, animal feed and processing.
“In this case, the Chris Hani production sites (farm units) will benefit from this investment and jobs will be created at the primary and secondary levels of production.
Hala said the time was right for increased primary and secondary production to support the growth of the tertiary sector in this district.
He further stated that the support of the office of the premier, the DRDAR and ECRDA, along with the leadership of the district mayor was crucial for this investment.