Agro-processing is the subset of manufacturing that processes and transforms raw materials and intermediate products derived from the agricultural sector, forestry and fisheries for intermediate and final consumption.
The Tshwane Economic Development Agency (TEDA) has identified a potential opportunity to establish an agro-processing hub within the confines of the City of Tshwane (CoT). The proposed facility will focus on the processing of agricultural output from the CoT and surrounding areas to produce food and beverage related products. It is anticipated that the envisaged hub will capitalise on the large tracts of available farm land in the City, and the Tshwane Fresh Produce Market, to create a facility that will lead to significant job creation and economic development within CoT.
The Gauteng Infrastructure Financing Agency (GIFA), a government component of the Gauteng Treasury has a mandate to develop bankable infrastructure projects for funding and implementation by the Gauteng Provincial Government either through a PPP or directly by the Private Sector. As such, a major part of the GIFA mandate is to test the market through proper procurement mechanisms including Request for Qualifications (RFQ) and Request for Proposals (RFP) in terms of the Preferential Procurement Policy Framework. GIFA has conducted an infrastructure feasibility study for the TAP on behalf of TEDA and is now considering testing the market through a Request for Qualification (RFQ) for potential developers to undertake the project.
TEDA is a wholly owned entity of the City of Tshwane Metropolitan Municipality, who has identified an opportunity to capitalise on the availability of fresh produce at the Tshwane and Johannesburg Fresh Produce Markets (TFPM and JFPM) to establish an agro-processing hub. The agro-processing industry is among the sectors identified by the National Development Plan (NDP), Industrial Policy Action Plan (IPAP), the New Growth Path, Gauteng Employment, Growth and Development Strategy and Gauteng Agricultural Development Strategy for its potential to spur growth and create jobs because of its strong backward linkage with the primary agricultural sector.
The government of SA seeks to transform the country’s economy into a globally competitive industrial economy, built on the full potential of all citizens and regions. The government’s agro processing agenda is presented in the NDP, NGP and the IPAP. It calls for job creation, prioritization of industrial sectors and a range of interventions to accelerate economic growth and fight poverty, inequality and unemployment. The key benefits that will be realised through the implementation of the Agro Processing Hub includes:
Trade balance of the industry shows that South Africa has become a net importer for processed food (since 2004). Provision of operating space (Hub) will focus on a combination of mass food processing and niche food processing opportunities. Nine (9) food processing opportunities were identified i.e. powdering, mixing and packaging, drying, canning, pastes, juicing, bottling, dairy, jam and chutney. A pre-feasibility study, detailed feasibility study and business plans for every opportunity have been completed. The project is at investment promotion phase (recently exhibited at TITIIC).
ETL Consulting has been appointed by TEDA and the Gauteng Financing Agency to provide Technical and Project Management support in the early stages of the project.