By Amahle Cele
In a bid to revive rural economies, the Eastern Cape Rural Development Agency (ECRDA) held a meeting at City Hall on 4 September to highlight its rural finance program. The program provides loans to rural entrepreneurs to ignite economic activity and job creation in underdeveloped regions.
The ECRDA wants to drive socio-economic progress and opportunity in the province’s most disadvantaged areas by offering financial support where traditional lenders fall short.
The agency has also spearheaded the growth of the wool and mohair industry to enhance income and value for small-scale producers. With the province’s ideal grazing conditions for wool sheep and angora goats, this sector has immense potential. The industry produces diverse products, including jerseys, suits, socks, blankets, scarves, carpets, apparel, duvets, jackets, upholstery materials, and felts, contributing significantly to local economies and expanding opportunities for rural entrepreneurs.
According to Mzobanzi Nkwentsha, the head of the Makana Municipality’s Local Economic Development (LED), the agency served as the central coordinator for a recent event to empower emerging farmers.
Representatives from various government agencies addressed the gathering, highlighting how farmers can be pivotal in addressing unemployment and improving access to capital. While the event focused on farmers, the agencies also supported other entrepreneurs, emphasizing their role in tackling broader economic challenges.
The ECRDA plan includes establishing a facility to aggregate and add value to wool from communal and emerging woolgrowers while promoting sustainable and environmentally friendly practices. The ECRDA also aims to help these farmers attain “green” certification, ensuring their operations meet Responsible Wool Standards (RWS) and Responsible Mohair Standards (RMS). This certification will enable them to secure premium prices for their wool and mohair.
The ECRDA has launched five community-managed forestry projects to promote sustainable and profitable forest plantations. The Eastern Cape, unique for its forestry expansion potential, shows the most significant promise in the Alfred Nzo and OR Tambo districts, with some potential in the Joe Gqabi and Amathole districts.
Representatives from various government agencies gathered to present their programs, offering the local community a range of loan options.
SEDA (Small Enterprise Development Agency) and SEFA (Small Enterprise Finance Agency) are two key institutions in South Africa that have been working together to enhance support for small and medium-sized enterprises (SMEs).
According to S Makasi, who represented the SEDA and the SEFA government agency, SEDA focuses on non-financial support for SMEs, such as business development services, training, and mentorship. It helps entrepreneurs with the necessary tools and knowledge to run and grow their businesses.
SEFA provides financial support to small businesses and entrepreneurs, including loans and credit facilities. It addresses the funding needs that many small businesses struggle to meet.
The event concluded with an engaging discussion platform, where attendees were invited to ask questions and seek clarification on any issues they needed more information about. This open forum allowed participants to address their concerns directly with the experts present.
Reflecting on the event’s impact, an attendee who wished to remain anonymous said, “The session was incredibly informative, even though it was primarily aimed at farmers. As a fashion designer with the Billkali Collective, I found it highly beneficial and had the chance to network with many people. Events like these are crucial for Grahamstown; they provide valuable information and broaden our perspectives.”
For more information about the ECRDA, contact Ms Majola at 071 609 7470, Ms Mbiza at 082 825 6999, and Mr Melane at 082 850 0315.
