If all goes to plan, Mpumalanga will soon have its own state-of-the-art fresh produce market. Thanks to a whopping investment of R1.2 billion, the facility is expected to crack open new markets for local farmers, to boost food security and to create job opportunities for local communities.
The provincial government’s finance, economic development and tourism MEC, Vusimuzi Mkhatshwa recently made the announcement during a trade and investment roundtable discussion with business owners from the United States. The market will be built through the Mpumalanga Economic Growth Agency (Mega).
Mkhatswa said the facility would attract international and large domestic food retailers to Mbombela as well as create open markets for the province’s food producers.
“Our neighbouring countries like Eswatini and Mozambique will be our key clients in terms of the regional export market. Thus far, the provincial government has invested R540 million in the project,” he said.
Farming and the economy
About 3% of the province’s economy relies solely on agricultural activities. Commodities like citrus, sugarcane, canola, soya beans, sheep farming and cereals are main boosters of the Mpumalanga agricultural economy.
During the summit, Mkhwatsha also flagged the importance of the province’s exporting activities around fruits and nuts.
“Our position in the province, where we are located near [Swaziland and Mozambique, allows] us to aggressively take advantage of African free trade movements because we are a diverse province with so many investments opportunities in sectors like agriculture,” Mkhwatsha said.
Meanwhile, the chairperson of South African Business in USA, Neil Diamond, said as someone who hailed from Mpumalanga, he knew that agro-processing was a key investment commodity which investors were looking to tap into.
“I can assure the provincial government that capital is available to invest in Mpumalanga particularly. An initiative by provincial government is needed to ensure that the sectors like agriculture are friendly and conducive for investors,” he said.
‘There’s urgent issues to address’
Speaking to Food For Mzansi, Jabu Mahlangu, provincial chairperson of the National African Farmers Union, praised the initiative but pointed out that the provincial government urgently needed to address access to land for farmers.
Those who did have land, faced other burning issues like water rights, electricity, input and running costs, farm roads, dams, and livestock theft. “Our view is that the business of agriculture is more about food security than it is about profit. Therefore, government needs to review its policy on how to fund agriculture and ensure its sustainability.
“South Africa is a water-scarce country but there are countries on the continent with huge water resources. There are countries up north with lakes. These waters can be shared through the Africa Free Trade Agreement,” he said.
Praising existing governmental initiatives and efforts to assist farmers of all scales in the province, Mahlangu said it was important that the provincial government continued its work in creating conducive conditions for farmers to operate in, as well as job creation.
Speaking on the fresh produce facility, Mahlangu dubbed it a step in the right direction. “The establishment of the Mpumalanga international fresh produce market [will] support and create an avenue to allow local and regional farmers to trade their produce internationally, regionally and globally.”
Mahlangu also expressed hope for partnerships between the government and agriculture stakeholders to realise growth in the sector.
Investment blockages
Mpumalanga premier Refilwe Mtshweni-Tsipane agreed that the multi-million-rand fresh produce facility was one way of reviving the local economy.
Mtshweni-Tsipane confirmed that the provincial government was working on addressing infrastructure issues which many investors and local businesses flagged as major investment barriers.
The premier said fixing power outages, poor roads and water challenges featured high in the agenda of her cabinet.
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