KZN agricultural sector set for revival

Tuesday, February 22, 2011

Durban - The KwaZulu-Natal Provincial Government will take advantage of the potential in the agricultural sector to increase its contribution to the regional economy.

This is one of the province's plans to boost economic growth and deal with unemployment levels, according to Premier Zweli Mkhize, who delivered the State of the Province Address in Pietermaritzburg.

Although growth over the past 15 years in KwaZulu-Natal has been recorded marginally above the national rate, job creation has not been sufficient and in 2010, a total of 125 000 jobs were lost.

Apart from efforts to drive economic progress through agricultural projects, over R37 billion will be invested in the Richards Bay and Durban port rails corridors over the next five years, creating 9 000 jobs.

Mkhize said the province will jointly with Transnet sign Port Pairing agreements with Angola, China and India as well as Shanghai Municipal Transport.

With favourable climatic conditions, KwaZulu-Natal is expected to produce beyond the local consumption capacity and focus on building export potential.

"The provincial government is looking at reviving projects studied and analysed in the past, where integration between emerging, subsistence and commercial farmers will guarantee sustainability," said Mkhize.

Several projects are under review for immediate implementation and include the Besters Beef Operation, Jikijela Agricultural Project and the Masibambisane project in Nkandla, in which President Jacob Zuma is involved.

There are other reorganisation and mechanisation projects that will continue to receive support from government to boost job creation and economy revival.

Mkhize said to support the New Growth Path, "certain strategic investments will be made by government in selected projects in a manner that leverages private sector investment, where there is evidence that government intervention to create such public-private partnership will enhance sustainability."

KwaZulu-Natal's newly appointed Provincial Planning Commission will review the Provincial Growth and Development Strategy (PGDS) and ensure it is aligned with the National Growth Path.

"The primary aims of a new KZN PGDS will to be to ensure that there is full alignment, integration and co-ordination between national, provincial and municipal growth and development initiatives. This will imply that we will have to contribute at least 1.1 million of the national target of 5 million new jobs," said Mkhize.

He added that government will continue to help farmers and small businesses to talk to large corporate bodies to create and sustain a market for them.

"Successful negotiations have resulted in exemplary steps being undertaken by South African Breweries-Millers, who will be sourcing 5 000 tons of yellow maize from the rural subsistence farmers of Bergville. The project has taken off well and we look forward to the first crop to be harvested in the autumn," said Mhkize.

The provincial government is also looking at the green economic sector to assist with job creation and improving living conditions by conserving nature and energy.

A successful job creation programme was initiated by the Agriculture Environmental Affairs and Rural Development Department to eradicate alien invasive weed species. The programme focuses on environmental restoration, allowing the revival of the indigenous grass and trees, as well as opening unusable land and rivers to flow again.

At least 12 000 job opportunities will be created together with business opportunities for youth in creating nurseries of various types of indigenous plants to be planted in their hundreds of thousands across the province.

The Departments of Economic Development and Tourism and Cooperative Governance and Traditional Affairs have been asked to work with solar panel manufacturers and companies that operate wind farms to invest in the province.

"Areas of concern for potential investors involve determination of the buy-back rates for electricity by Eskom for them to determine the profitability of the venture. We know that such a matter is receiving due attention from the national government," Mkhize added.