Page 58 - Estimates of Public Entities Revenue & Expenditure 2023

PROVINCE OF THE EASTERN CAPE ESTIMATES OF PUBLIC ENTITIES REVENUE AND EXPENDITURE 2023/24

RED Hubs: The agency has supported the transformation of RED Hubs into aggregation centres
despite many challenges. This includes payment of electricity bills, security services and water.

Furthermore, construction of the potato sorter facility in Mbizana Red Hub and construction of
greenhouse tunnel for vegetable production at Tshabo Red Hub is underway.

7.2. Key challenges

• Social and community dynamics within the areas of project implementation continue to hinder
projects from being successful. These are experienced more specifically in areas where land
claims are prevalent.
• The shortage of quantity and quality feedstock in the areas of production to support the RED Hubs

continue to be a challenge, thus threatening the viability and sustainability of the hubs. Reasons
for shortage include poor maize production practises and theft of maize before reaching normal

harvesting stage.
• Cannabis project is experiencing some challenges which are being discussed with both the
DRDAR Head of Department (HOD) and the MEC.

8. 2023/24 Performance Outlook

• RED Hubs: Entity will continue to identify suitable prospective private and independent companies
willing to forge hands with the RED Hubs co-operatives. Improve hubs towards sustainability by

securing assets at Emalahleni, Tshabo, Ncora and Mqanduli as well as constructing an additional
tunnel at Tshabo. Transform Mbizana RED Hub as a sustainable aggregation centre,

operationalise the potato sorting facility and design potato branding, procure packaging material
and refurbish existing storage infrastructure at Mbizana, including preparing the potato sorting
facility for Food Safety Certification.

• Wool Hub & Mohair: Focus on training communal and emerging farmers with regards to animal
husbandry, environment protection, financial management, labour relations, and greening. Farmer
certification for the sustainable wool and mohair production will be facilitated. Equipment in animal

husbandry, health and nutrition will be procured for the use of the communal and emerging
farmers.
• Cannabis Development Industry: Establishment and implementation of financial support

programs for cannabis non-flower and flower Producers. Research & Technology Development
(RTD); Market Development (MD); Enterprise & Supplier Development (ESD) and Manufacturing
& Product Development (MPD), Support Program and Communication, Awareness and Events.

The ECRDA will operationalise two cannabis incubators.
• Forestry: Entity will continue to support and where possible expand on the forestry operations;
resource mobilization will be pursued to enhance participation within value-chain. ECRDA plan to

support four community-based forestry projects/enterprises to expand the existing planted area,
to cease the opportunity of the existence of Water use licence which will expire once the area is
not planted.

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