Rural economic development depends on community-led solutions says the National Development Agency (NDA). And agriculture, by contributing R124 billion to South Africa’s gross domestic product (GDP), is the industry that rural South Africans looks to for economic development.
By turning primary agricultural products into other commodities, one co-operative has harnessed this potential and is making the changes needed to ensure a bright future for its community.
Registered in 2005, Mphatlalatsane Cooking Oil Co-operative in Mpumalanga started as a local economic development initiative aimed at improving the living standards of its members and the community at large. As 68 percent of Mpumalanga is zoned for agriculture, development of this industry is a major focus for local government.
Over 60 percent of sub-Saharan Africa’s labour force is involved in small scale food processing, indicating that it holds the much-needed potential to alleviate poverty and offer economic development.
Based in Grootvlei, Mphatlalatsane Cooking Oil Co-operative works with the agro-processing principles of reducing waste, enhancing food security for the community, improving livelihoods and empowering women.
Believing the co-op to be working positively towards uplifting its community, the NDA has allocated R1 481 230 towards its growth. “The project was initiated at community level and this gave us the confidence that it has the right ingredients for success. At the NDA, we seek to improve the economic capacity of local communities while encouraging sustainable development.
We hope that this project will be a beacon of hope to other communities facing the economic downturn. We were also impressed by community participation and commitment from its members who are encouraged to make their own decisions in terms of their development needs,” said Nimrod Mbele, NDA Provincial Manager for Mpumalanga.
The project employs 50 individuals but benefits more than 500 in the community due to the employee being the sole family breadwinner. Members have been trained in the making of cooking oil by Rutec (Pty) Ltd. Project members have already been trained in financial management, organisational development and governance, monitoring and evaluation, business and strategic planning, and production data management though NDA development grants; skills that will ensure the steady and smooth running of the business, enabling it to grow and become more effective.
Further grants secured the purchase of sunflower seeds and the construction of a silo complex which is used for storing the sunflower seeds. Funding has also enabled the co-op to purchase a vehicle to transport to the wholesalers.
In his budget speech this May, Executive Mayor of the Gert Sibande District Municipality, the area in which the co-op is based, committed his government to local economic development as one of the five key strategic priorities for the municipality. Mphatlalatsane Cooking Oil Co-Operative is one example of an initiative that offers a way forward for economic development not only in this district, but across South Africa.
For more information contact:
Makgodu Tsehloane
Tel: 011 018 5500
Cell: 083 444 4114
Issued by: National Development Agency
24 August 2009
Source: National Development Agency (http://www.nda.org.za/)
