ABOUT SIP 11

SIP stands for Strategic Integrated Project and there are 18 of these projects, all of which are under the Presidency-initiated and coordinated National Infrastructure Plan (NIP). The NIP is a plan designed to implement the aspirations of Chapter 4 of the National Development Plan (NDP) based on this notion: “To achieve sustainable development by 2030, South Africa needs to invest in a strong network of economic infrastructure designed to support the country’s medium and long-term objectives” (National Planning Commission, 2011).

SIP 11 is one of the 18 SIPs, and it specifically focuses on investment in agro-logistics and rural infrastructure. The NAMC was appointed to coordinate SIP 11 in 2013 and this SIP is driven by the following structure, as legislated by the Infrastructure Development Act: Act No. 23 of 2014.

NAMC – COORDINATOR OF SIP 11

As part of its coordination role, the NAMC is populating the agro-logistics infrastructure database using various sources such as commodity organizations and agribusinesses, national, provincial and local government departments. The database captures both the existing and new infrastructure projects, and the latter are captured at various stages such as concept, feasibility, construction and close-out stages. Various reports are constructed from the database

However, one of the challenges within the SIP is lack of understanding of different value chain dynamics. Hence, the NAMC seeks to compile a comprehensive value chain profile for all the SIP 11 value chains. This is done in collaboration with DAFF GIS team, which assists with mapping

The objectives include:

  • To highlight the impact of the SIP11 projects on different agricultural value-chains
  • To highlight the gaps each SIP 11 anchor project is trying to fill
  • To profile anchor projects against agricultural production and existing agricultural infrastructure
  • To do some economic modelling to assess the economic impact of SIP 11 anchor projects investments

Profiles

KWAMBO POLES

The Kwambo Poles business venture is a bankable undertaking. A study has shown that not only will the business double its production capacity in the first year, but it will also create export capacity for value-added timber to earn the country much needed foreign exchange income.

ELUNDINI WOOL PROCESSING PLANT

Elundini Local Municipality (ELM) in the Eastern Cape has started investigating the establishment of a wool processing facility to support the wool value chain in a region that is considered the wool belt of South Africa.

QOLORA AQUACULTURE DEVELOPMENT ZONE

The site has an area of 26.4 ha of land which will be divided into two sub-zones, namely an abalone and marine finfish farming sub-zones. The sites will accommodate multiple users or farms within the same area.

HAMBURG OYSTER AND KOB

The Department of Agriculture, Forestry and Fisheries, Branch Fisheries has identified a number of aquaculture projects that aim to empower coastal communities through transfer of technology, skills development and job creation.

NRMDP

The NRMDP project aims to create feedlot capacity for communal farmers in the rural areas. The project enhances the productivity of livestock in communal areas and farmers’ returns. The key driver of the project is an increased income from raising cattle to developing livestock farmers throughout South Africa.

VINEYARD DEVELOPMENT PROJECT

The Vineyard Development Project started in 2007 and it is expected to be completed in 2023. It is DAFF and Northern Cape Department of Agriculture and Rural Development (NCDARD). A total of six projects sites are already functioning, with a total of 350 hectares having been established.

Maize Value Chains

It is widely understood that maize is the largest locally produced field crop and the most important source of carbohydrates in the Southern African region. Hence in South Africa, the largest area of arable farm land is planted with maize (Botha, et al., 2015). According to Grain SA (2016), more than 9000 commercial maize producers are responsible for the major part of the country’s crop, while thousands of smallholder producers produce the rest.

Furthermore, maize is produced mainly in the Free State, North West and Mpumalanga Highveld, with local consumption amounting to above 8 million tons per annum – the surplus is exported mainly to the SADC region (Grain SA, 2016) .

Given this scenario, the objective of SIP 11 in maize value chains is to a) map maize production by provinces, b) map maize production by farmers categories (commercial and smallholder farmers), c) map road, railway, storage (silos) and millers infrastructure linked to maize production and d) map the ports/harbours and border posts and infrastructure linked to them.

Contact

Bonani Nyhodo (Mr.) – Manager – Trade Research

Markets and Economic Research Centre (MERC)

Tel: +27 (12) 341 1115 | Fax: +27 86 762 5496 | Cell: +27 73 244 3507

e-mail: bonani@namc.co.za 

Ndumiso Mazibuko – Economist: Statutory Measures

Tel: +27 (12) 341 1115 | Direct: +27 (12) 441 0596 | Fax: +27 (12) 341 1811

Cell: +27 73 551 8388 | e-mail: ndumiso@namc.co.za

Kayalethu Sotsha – Senior Economist: Marketing and Economics Research Centre (MERC)

Tel: +27 (12) 341 1115 | Direct: +27 (12) 400 9746 | Fax: +27 (12) 341 1811

Cell: +27 73 797 6164 | e-mail: KSotsha@namc.co.za

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