KZN South Coast still has untapped agricultural investment opportunities – SCTIE
The South Coast of KwaZulu-Natal is an established produce farming and export region, but the subtropical climate, nutrient-rich soil, steady rainfall pattern and high duration of sunshine present additional opportunities for agricultural investment, says South Coast Tourism and Investment Enterprise (SCTIE) CEO Phelisa Mangcu.
“The launch of SCTIE earlier this year has enabled us to facilitate the many investment opportunities in the South Coast by highlighting the region’s potential and paving the way for those looking to do business in the area,” she adds.
There remains untapped potential for agricultural expansion in KwaZulu-Natal, as well as untapped potential to boost agriculture processing activity in the province, given the significant presence of manufacturing activity, said investment promotion agency Trade and Investment KwaZulu-Natal.
Fruit and vegetable production in the area, including cauliflower, spinach, beetroot, lettuce and tomatoes grown for local and international consumption, is also successful. Other subtropical crops that do really well in this region are flowering and fruiting plants such as citrus, avocado, mango, figs, pineapple and guava, says Mangcu.
Additionally, the area is renowned for its banana production, with the section between Port Shepstone and Port Edward accounting for the bulk of banana production in the province. Mac Banana in Port Edward is an example of the potential for an agricultural venture to shift into agritourism, and generating profits through restaurants, family-friendly activities and locally-grown produce, she notes.
Coffee is also a lucrative produce grown along the South Coast, with great agritourism potential, as shown by Beaver Creek Coffee Estate, in Port Edward, and Mpenjati Coffee, in Munster.
The demand for quality, organically-grown and sustainable coffee is on the rise, she adds.
Further, sugar remains one of the area’s leading exports. However, over the past few years, there has been a significant shift from sugar cane to macadamia nut farming, which offers highly attractive investment opportunities. Prices are increasing significantly, with crops providing good returns for farmers on the South Coast.
Meanwhile, additional investment opportunities in the area lie in agroprocessing. Investment in new processing technologies and increasing the regional capacity to create intermediate goods provide businesses with great opportunities, says Mangcu.
Agroprocessing opportunities include fruit and vegetable canning, sub-tropical and tropical fruit juice processing, oil seed production, edible oil processing, and oilcake production.
Other opportunities include the processing of organic, vegan or vegetarian products and dehydrated foods, and the expansion of dairy, bakery and confectionery production.
There are also opportunities to grow indigenous plants on a commercial scale, and extract high-value additives, and nutraceuticals, processing non-edible oils and the production of crops for feedstock into biofuels, she notes.
Further, the KwaZulu-Natal South Coast also has several timber plantations for commercial use. The dominant species are pine, eucalyptus and wattle, although the South Coast has seen a boom in the tea tree industry in the past few years.
“The ocean’s economy is one that is waiting to be unlocked on the South Coast. The area has two marine protected areas at Aliwal Shoal and Protea Banks, which are already world-class dive sites. However, there are further investment opportunities to be explored in renewable energy production, sustainable fisheries and maritime transport,” she notes.
“The agricultural sector is doing well, but there remains tremendous potential by expanding our dominant products and further developing existing products. This can be achieved by creating strong collaborations between government and the private sector. There is much opportunity to boost our agriculture processing activity given the significant presence of manufacturing activity found here,” Mangcu says.
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