Eastern Cape Business 2017 edition

The Masisizane Fund was established in 2007 as
an initiative of the Old Mutual Group and with a
mandate to contribute measurably to job creation
that in turn helps eradicate poverty in South Africa.
The Fund focuses on creating clusters of partnerships
that work together toward the common goal of
establishing sustainable farming ventures operating
the formal value chains.
In 2013, the Masisizane Fund adopted a Cluster
Development approach in order to address the
agricultural challenges faced in the rural Eastern
Cape and to ensure socio-economic transformation.
Clustering small scale farmers to ensure that
they benefit from economies of scale has its own
challenges and nuances.
Some of these challenges, particularly in remote
rural areas, include deficient infrastructure, long
distances from markets, skills deficiencies and social
dynamics among others. It is only when one is
immersed in the work in these areas that the
challenges that lie ahead become visible and they
can be daunting. It is for these reasons that the
Masisizane Fund has based their work on the
following principles:
• Building a foundation and establishing trust
among the cluster of farmers and partners.
• Creating the necessary infrastructure by building
capacity, providing financial assistance and
networking opportunities.
• Putting systems in place starting with steering
committees and ongoing support, mentoring
and training.
• Developing partnerships and incorporating the
technical support provided by government in
the form of extension services.
• Working with government and other financial
partners to leverage the available financial
resources.
WE WERE FACED WITH THE
FOLLOWING AGRICULTURAL CHALLENGES
IN THE RURAL EASTERN CAPE:
• How do we develop rural communities where
there is no infrastructure or capacity?
• How do we assist the local farmers to establish
sustainable farms/businesses, creating work
opportunities and improving food security?
• How do we bring disconnected and small farming
ventures operating in the informal markets into
the formal value chains, local and even global?
• How do we ensure that small farmers gain
economies of scale, which is one of the critical
success factors in modern farming?
In an attempt to provide answers to these questions,
the Masisizane Fund established a flagship pilot
project in the Alfred Nzo and Harry Gwala
districts. These areas are characterised by high
levels of unemployment, low economic activities
and investments, dependency on social grants and
a high number of unskilled labourers. With the aim
of bringing about economic transformation with a
legacy effect in these areas through agricultural
investment, a total of 1600 hectares were planted
with soya and dry beans in the Matatiele,
uMzimkhulu and Nkwazini areas during the
2014/15 season. The severe drought that affected
South Africa and Southern Africa had an impact on
the production of this pilot project, which as a result
produced yields significantly below expectations,
generating revenue of R2.86 million with 20%
distributed to funded entities as dividend and land
use fees.