EVENTS

Limpopo Enters World Essential Oils Market With Limpopo LED Programme Backing

An ambitious project to turn Limpopo into a supplier of high-value essential oils to the international cosmetics and pharmaceutical industries has been launched near Polokwane.

The project is being supported by grants totalling R10,5 million from the Limpopo Local Economic Development (LED) Programme which is funded by the European Union and implemented by the Department of Local Government & Housing.

The project brings together Polokwane-based agricultural development company Goldex, the community-based Stemora group of small-scale farmers who will cultivate organically-grown geraniums and other high-value essential oil producing plants, and Canada-based Epic Pharmaceuticals which will provide technology to extract and refine oils from the plants and access to international markets. The project is situated in the vicinity of the Zion Christian Church at Moria on the outskirts of Polokwane.

The launch took the form of a ground breaking ceremony attended by representatives of the partners and the Ga-Molepo Tribal Authority which has granted a 20-year lease on communal land for cultivation of essential oil producing plants on an initial 50 hectares.

Essential oil extracted from the plants will be marketed in Europe under the brand name Bioessenza, a joint venture between Goldex, which holds 35% as the project manager, Epic (35%), and Stemora (30%). Plants can be harvested three times a year and each harvest has the potential to yield 40 litres of essential oils per hectare or 2 000 litres on 50 hectares. International market prices for essential oils range from US$100 per litre.

The project also aims to benefit local communities by becoming the the first in the world to supply Fair Trade-accredited essential oils. Fair Trade sells products to so-called ethical consumers who are prepared to pay a higher price as a contribution to socio-economic upliftment in developing countries. The premium is then used to fund community projects.

The project will see the establishment of Limpopo's first large-scale essential oil extraction, distilling and refining facility. The developers envisage diversification into other products such as nutriceuticals, phyto-chemicals, nutrients, fragrances and organic bio-fertilisers. The Limpopo LED Programme grant is enabling Goldex and its partners to:

* Prepare virgin land in the Moria area for cultivation of organically grown geranium and tea tree plants.
* Establish a nursery to produce some 2,5 million geranium and tea tree seedlings and cuttings.
* Develop an equipment and input pool from which farmers can lease such aids as mobile processing units and organic fertilisers.
* Establish a modern processing unit using the latest extractors to produce some 4 000kgs of essential oil a year.
* Undertake capacity building to enable some 50 permanent and 20 seasonal workers to work in the processing unit, the nursery and farms.

For more information on the project, please contact:
Hanneke Laatz: Goldex.
Tel: 015 289 9540; Fax: 015 0866 722119; Cell: 082 960 1022.
E-mail: advidata@mweb.co.za

Limpopo LED Programme Publishes Guide To Fair Trade

The Limpopo LED Programme has produced a special Limpopo Guide To Fair Trade. The publication contains in-depth information on the origins and evolution of Fair Trade; the Fair Trade accreditation process; profiles of accredited companies in Limpopo and how they have benefited from Fair Trade; and how other Limpopo entities can go about seeking accreditation.

The Guide is available as a printed publication and can also be accessed and downloaded from www.limpopoled.com/documents.htm The Limpopo Guide to Fair Trade is part of a series of initiatives being taken by the Limpopo LED Programme under the banner: Limpopo Meets The Future. The objective is to draw attention to promising community-based social and economic development opportunities emerging in Limpopo.

Fair Trade is a unique way in which marginalised communities in the developing world can enter mainstream markets in the developed world.

So-called ethical consumers in developed countries pay higher prices for Fair Trade products as their contribution to ensuring that producers in developing countries receive a fair reward for their labours. The premium is paid back to producers, enabling them to become more competitive, to build sustainable enterprises and livelihoods, and to contribute to community development.

Limpopo's flagship Zebediela Citrus Estate, for example, earned a premium of some R700 000 during the past year and the income has been invested in local community projects.

The Limpopo LED Programme has followed up publication of the Guide by holding a two-day Fair Trade workshop in Tzaneen. The meeting was attended by managers of Limpopo LED-funded projects in the agriculture, tourism, arts and crafts and jewellery sectors as well as by government officials involved in LED.

The objective was to identify constraints faced by projects in seeking Fair Trade accreditation, synergies among them and opportunities to work together.

Limpopo, EU Leaders Praise Pro-Poor Growth Projects

Pro-poor growth projects being supported by the R300 million Limpopo Local Economic Development (LED) Programme have been highly commended by Limpopo government and European Union leaders. After visiting the projects to assess their impact, Limpopo MEC for Local Government & Housing Maite Nkoana-Mashabane described them as "real, real projects" that were showing tangible results. European Union (EU) Head of Operations in SA Gerard McGovern, who accompanied the MEC, said the projects were "real success stories". They combined EU and Limpopo government resources, and taxpayers in both regions could be confident that their money was being well invested, added McGovern.

The Limpopo LED Programme, which is being funded by the EU and implemented by the Department of Local Government & Housing, has so far invested R150,7 million to support 80 projects designed to reduce poverty in Limpopo through pro-poor economic growth. Most of them support partnerships between private developers and poor communities. They focus on linking marginalised communities in the so-called 2nd economy into the mainstream, 1st economy. Nkoana-Mashabane and McGovern visited manufacturing, agricultural, tourism and cultural projects in Mopani district on February 7, 2008. The projects involve:

* The establishment of an export-orientated plastic waste recycling factory in Tzaneen. The venture has been set up by a partnership between businesspeople and a community-based women's group with support of a R1 365 000 grant from the Limpopo LED Programme.

The factory manufactures Wood Plastics Composites (WPCs), a granulated material made from recycled plastics and wood fibres. Compressed and moulded, the material is turned into tough and durable products ranging from fencing and decking to outdoor furniture and school desks. The partners plan to export much of their production to the United States where WPCs are in high demand.

The project is expected to create some 200 jobs in surrounding communities where trained collectors will sell waste plastic to the factory, which will employ a further 25 people. The partners aim to extend the project into other towns, thus creating additional jobs and small enterprises.

The Limpopo LED Programme grant has supported the appointment and training of collectors, identification of collection points, procurement of handling and recycling equipment, and improvements to the factory premises.

* Upgrading of the Letsitele Citrus Co-operative packhouse, enabling its 11 commercial and 23 emergent farmer members to export to the EU.

The Co-op has used a R2,1 million grant from the Limpopo LED Programme to assist the emergent and some commercial farmers to upgrade facilities on their farms to Eurepgap standards required by the EU. Upgrading of its packhouse has enabled the Co-op to secure HACCP (Health Analysis Critical Control Points) accreditation which is a pre-requisite for export to the EU.

The farmers have already exported 1,1 million cartons of citrus to the EU. Some 176 000 cartons were produced by the emergent farmers, a massive increase in their production during the previous season when they delivered only 35 000 cartons.

* Limpopo LED grants of more than R3 million to boost tourism and emergent businesses in Phalaborwa and to reduce the town's heavy dependence on its mining industry, which has a limited lifespan. Palabora Foundation, the social investment arm of Palabora Mining Company, has received two grants of R1,88 million consisting of two amounts of R940 000 which have been invested in two projects:

- Palabora Foundation's Business Development Centre is training unemployed people in basic business skills as well as developing a wide range of business disciplines among entrepreneurs. The grant has enabled the Foundation to buy equipment for its training centre, to build a data base of small businesses and to train some 500 people in the past year.

The other grant has enabled the Foundation to develop the town's tourism centre in partnership with the local municipality, attend trade shows, develop tourism routes and brochures, and produce TV documentaries and videos.

- The Limpopo LED Programme has given Phalaborwa's tourism industry a further boost by supporting the development of two internet-linked tourism routes anchored around the town: the Bush to Beach and the Kruger to Canyons routes.

The routes are among four that have been developed by Open Africa with support of a R628 000 grant from the Limpopo LED Programme. Offering tourists the best of both worlds, the Bush to Beach route capitalises on Phalaborwa's unique location on the border of Kruger National Park and the access it gives to the Great Limpopo Transfrontier Conservation Area linking KNP and Limpopo National Park in Mozambique via the recently opened Giryondo border post.

- A R1 million grant from the Limpopo LED Programme has enabled a small pottery business, which uses a unique indigenous design, to train other crafters and build a co-operative network, to increase production and to open new markets.

Based in a private game reserve near Phalaborwa, Afrikania Pottery is creating a niche for itself by making pots with a distinctive design based on a colourful synthesis of Pedi and Tsonga cultural symbols.

Afrikania has used its Limpopo LED Programme grant to train eight Phalaborwa potters; acquire an electronic wheel to make large-scale products; buy a slab roller to expand its range of products; and purchase a kiln to fire bigger pots and to increase production. Pots made by crafters who do not have kilns can also be re-fired, thus helping them to add value to their products.

Lessons From China

A Limpopo delegation has visited China to gain first hand experience of how a province similar to Limpopo is successfully reducing poverty through pro-poor local economic development. The delegation was hosted by the Foreign Affairs Office of south west China's Sichuan province which, like Limpopo, is a largely rural region.

The Limpopo delegation included Hazel Mihloti Hetisani, Morongwe Adelaide Monyepao, Mongadi Ellen Mashakwe, Masala Thomas Makumule, Mapongo Phillip Ndlovu, Nape Solomon Nchabeleng , Mavhungu Alfred Netshifhefhe and Timothy Wilkinson.

With Limpopo facing the demanding challenge to reduce its high levels of poverty, the delegation was interested to learn how China has lifted some 400 million of its people out of poverty in recent years.

Though predominantly rural and remote from China's main growth centres, Sichuan has seen significant development in recent years. Based in Sichuan's capital, Chengdu, the Limpopo delegation visited the cities of Leshan and Mianyang to see the development of technology zones, and the rural town of Pixian to understand how agriculture research and extension services assist in advising and organising rural areas to increase the incomes of the poor. The main observations were that in China the government has the capacity to lead economic growth and development. It does this through making land available for development, taking a lead in infrastructure development, and promoting education. In rural areas, specific advice is available to local farmers on the best crops to grow to address new markets and increase incomes.

It was also interesting to understand how China has become competitive. Skilled factory workers producing televisions are paid about R700 a month and have high productivity levels. Efficiency wages (the relationship between wage costs and productivity) are low, allowing Chinese manufacturers to compete in world markets.

A session with the Development and Reform Commission enabled the Limpopo delegation to understand the workings of China's five-year plans. A key message was that once adopted, plans are strictly adhered to.

Bakgobokane Arts & Culture group added dazzling colour at a conference where Limpopo LED presented its programme to reduce poverty through pro-poor economic growth.

Held in Polokwane on November 21 and 22, the conference saw the National Development Agency combine forces with the Limpopo Provincial Government and the University of Limpopo to focus on "Going Beyond Best Practice" in "Forging Partnerships for Sustainable Poverty Reduction in Limpopo".

Bakgobokane Arts & Culture, represented in this photograph by Ngwanatheko Maserumule, is a community-based initiative in Sekhukhune district and was one of several groups that displayed their work at the conference.

Women Awarded R18 Million For Development Projects At Special Awards Ceremony

With August being women's month in Limpopo, R18 million has been granted to local economic development projects in which they are playing a leading role.

The grants, made by the R300 million Limpopo Local Economic Development (LED) Programme, were presented by MEC for the Department of Local Government & Housing (DLGH) Maite Nkoane-Mashabane at a special awards ceremony in Elim near Makhado on August 14.

The grants are supporting 18 projects, including a plan to turn the Elim area into a major tourism destination.

The Limpopo LED Programme, which is funded by the European Union and implemented by DLGH, has made the awards from its Marginalised Community Fund (MCF) which focuses on linking poor, rural communities to the mainstream economy.

Most of the awards enable communities to develop assets, such as restituted or unutilised communal land, into commercially viable joint ventures, usually with private sector partners who contribute management and marketing expertise and also transfer skills.

Some R61 million has been allocated to support marginalised communities in Limpopo, and the MCF has already invested R21,1 million in 21 projects, including awards made by MEC Nkoana-Mashabane. Proposals for new projects are now being evaluated, and remaining funding is expected to be fully committed by year end.

A number of projects illustrate how the MCF is enabling poor communities to link with the mainstream economy. Among them are:

Limburg Farming Enterprises based near Mokopane received the biggest grant from the Limpopo LED Programme during a special awards ceremony in Elim near Makhado on August 14. Winnie Sibiya (second from left) received on behalf of her community a cheque for more than R2,3 million from the MEC for Local Government & Housing, Maite Nkoana-Mashabane (left). Looking on were Sergio de Marco from the office of the European Union, Glory Mashaba, mayor of Makhado Municipality, and Kgoshi TJ Makhari.The funding will support the local community and its private sector partners to launch a large-scale beef production operation for emerging farmers.

• The opening of two new community-based tourism routes, one in the remote Blouberg area, the other, known as the Land of Legends, in the heartland of the Venda people. The routes will be marketed to potential tourists worldwide through an innovative website. This enables them not only to access maps and detailed information on attractions and accommodation, but also to download GPS co-ordinates to guide them on their way in remote areas if they choose to go on the routes.
• Cultivation by emergent farmers of guar, or clusterbean, which is used by platinum mines to recover metals from ores. A pilot project in which 54 emergent farmers are already growing guar is showing positive results, opening the strong possibility that as many as 1 000 small-scale growers could cultivate a new cash crop with a ready market in Limpopo's burgeoning platinum mining industry.

Marginalised Community Fund Special Awards Ceremony.

Full List Of Grants Awarded By Maite Nkoana-Mashabane, MEC for Local Government & Housing, on August 14.

CSIR -- R, 827,412 to implement an essential oils project.

CSIR is working with 45 emergent farmers in Mopani District to prepare 30 hectares of land for cultivation of geraniums and to establish a geranium-based essential oils processing plant.

Afristar Foundation -- R398,400 for a community-based Natural Resource Management Plan.

Afristar is undertaking an audit of natural assets of a community in Mogalakwena Municipality, and identifying viable agricultural and agri-processing business opportunities with the aim of developing a sustainable local economy, job creation and community upliftment.

Safcol Eco-tourism -- R399,120 for a feasibility study to enhance
community-based eco-tourism in and around SAFCOL forests.

Safcol Eco-tourism is assessing eco-tourism opportunities in and around SAFCOL forests in Makhado and Greater Tzaneen municipalities, with a view to developing community-based tourism destinations and to undertake marketing and business plans for potential opportunities.

Mintek -- R2,976,111 to establish a Heritage Park.

Mintek is supporting the development and marketing of a heritage park with a museum, arts & craft centre, iron age set and other cultural tourism attractions in Thomo village, Greater Giyani municipality.

Open Africa -- R628,997 to develop four community-based tourism routes.

Open Africa has identified tourism opportunities in rural communities in Capricorn, Mopani and Vhembe districts. It is assisting them to develop these opportunities to their full potential, and to market them to local, national and international tourism markets through a well developed GIS-based internet platform.

Gestalt -- R769,458 for an economic development plan for the Mphahlele community.

Gestalt is mobilising community stakeholders and private companies in Lepelle-Nkumpi and GaMphahlele, and conducting an audit of community assets, skills and infrastructure in order to develop an agriculture-based economic development plan.

Womiwu Rural Development -- R789,307 for a pilot project to improve productivity of goat production.

Womiwu is developing a replicable action plan to improve goat meat production around five villages under the Masemola Tribal Authority in Makhudu Mathamaga Local Municipality.

Green Nut Farms -- R397,170 to develop a community action plan for a joint venture initiative within the macadamia cluster.

Green Nut Farms is developing a plan for a sustainable, land reform-based joint venture involving commercial farmers, the Ratombo Community Property Association, farm workers and processors in the production, processing and marketing of macadamia nuts in the Luvuvhu valley of Vhembe District.

Teba -- R564,362 to develop community-based Guar, or cluster bean, production and processing.

Teba is assessing the feasibility of growing Guar, or cluster bean, and of processing it for use in platinum groups metals mines.

Cranbrook -- R827,032 to implement an agriculture and agri-processing project.

Cranbrook is working with communities in Sekhukhune District to develop 1 500 hectares of land and to identify products that can be produced and processed.

Africa Ecogap -- R484 239 for a community eco-tourism land use study.

Africa Ecogap is undertaking a viability study on how the Makgato community in Capricorn District can best use 15 000 hectares of claimed land, and developing a business plan for an eco-tourism-based training centre and conservancy.

Lemagararo -- R850,000 to develop an agricultural project.

Lemagararo is mobilising community stakeholders and leaders in 41 villages in Waterberg District to develop an agriculture-based economic development action plan.

LTT Algemene Handelaars -- R1,365,240 for a community waste collection and processing project.

LTT Algemene Handelaars is developing a waste recycling project in
Mopani District. This involves appointing and training waste collectors; identifying collection points; and procuring handling equipment for collection as well as a plant which will process and add value to waste.

Afrika Leadership -- R484,400 to develop a community-based LED plan.

Afrika Leadership is supporting community-based socio-economic development initiatives for the Mabatlane community in Vaalwater, Waterberg.

Africa Wildlife Foundation -- R850 000 to develop eco-tourism opportunities for communities adjacent to Kruger National Park.

Africa Wildlife Foundation is supporting tourism-based development among some 100 villages in the Ntirhiswano, Mahlamba Ndlopfu, Phalaborwa, Hlanganani and Makuya areas. The Foundation is promoting economic linkages between community assets and resources with opportunities in the Kruger Park; identifying communities that offer the most viable opportunities to commercialise their natural resources assets; and piloting community-private sector partnerships.

Khulile Africa -- R850,000 for a feasibility study to create a tourism destination based on heritage, culture, arts & crafts and sport.

Khulile Africa is mobilising community stakeholders in the Elim area of Makhado Municipality, and researching development of the area as an eco-friendly tourism destination.

Limburg Farming Enterprises -- R2,243,771 to establish a community-based beef production system.

Limburg Farming Enterprises is supporting the upgrading of the quality of beef production at Gillemburg farm near Mokopane, and linking small-scale cattle farmers to markets by providing centralised infrastructure, other support and marketing. This is being done by building infrastructural capacity, such as feedlots; training of emerging farmers; creating access to markets; and establishing added value and support businesses.

Mohlanatsi IRDP -- R1,291,213 for a Mopane worms-based project.

Mohlanatsi is improving harvesting, storage, value-added processing, and marketing of Mopane worms in the Dzumeri Traditional Authority in Mopani District.

Two community-based tourism routes opening remote and little known parts of Limpopo have been launched with support from the Limpopo Local Economic Development (LED) Programme.

more info...

An ambitious plan to establish a co-operative to assist Limpopo Lowveld artists and crafters to improve and market their products and also attract tourists to the area has been launched with the support of the Limpopo LED Programme.

more info...

Exchanging Ideas On LED

With the European Union (EU) funding local economic development programmes in Limpopo, KwaZulu-Natal and the Eastern Cape, representatives from the three provinces recently gathered in Limpopo to assess progress and exchange ideas.

Seen here during the conference at Mabalingwe Game Reserve near Bela-Bela in Limpopo are (left) Hubert Perr, Counsellor (Development) in the Delegation of the European Commission to South Africa, and Alfred Netshifhefe, Senior Manager in the Limpopo Department of Local Government & Housing (DLGH). Netshifhefe heads the DLGH unit responsible for implementing the Limpopo Local Economic Development Programme in which the EU is investing some R300 million in a wide range of initiatives.

Limpopo LED Programme Introduces Communities to Banks

The Limpopo Local Economic Development (LED) Programme has created an opportunity for rural communities and entrepreneurs to present their economic development plans to leading financial institutions.Some 100 people representing a wide range of groups met eight banks and development agencies at a special matchmaking seminar arranged by the Limpopo LED Programme and held in Polokwane on March 6, 2007.

The groups were applicants for Limpopo LED Programme funding. The LED programme awards grants of up to 70% of the investment required to undertake projects if they are considered to be viable and will benefit significant numbers of people.Groups who have been awarded grants can then leverage this substantial debt-free portion of their equity to raise the remaining 30% of their funding requirements through financial institutions.

The seminar gave applicants the opportunity to assess various co-funding options and to hold one-on-one meetings with eight financial institutions.Nape Nchabeleng, general manager in the Limpopo Department of Local Government and Housing (DLGH), explained to the matchmaking seminar that Limpopo LED Programme grants removed much of the risk in co-funding a project.

"I call on financial institutions to seriously support these new entrepreneurs until they become financially strong enough to go on their own."However, a number of speakers at the conference urged the groups to ensure that they have viable business plans in place before approaching financial institutions for co-funding.