By Nangamso Mabindla
31 August 2005

WITH a proposed R100-million investment in paprika production in Dimbaza, Buffalo City could rival Zimbabwe as one of the largest paprika producers in southern Africa.

The investment plan is the brainchild of Mahanjana Mechanisation, a black-owned company that has teamed up with the provincial government to propose a paprika factory in Dimbaza. It would boost the province's economy and encourage rural development and paprika farming.

With three top car manufacturers based in the Nelson Mandela Metro and Buffalo City, the province relies heavily on the automotive industry, but Mahanjana Mechanisation hopes to change that.

The company's marketing director, Luvuyo Mahanjana, says paprika is a labour intensive, high value crop. Top producers can harvest up to eight tons per hectare, at a value of R7 000 to R8 000 a year per hectare.

"It is for this reason that it was found crucial for the paprika appraisal to have been started and conducted as soon as possible, before the start of the new season so that farmers can secure seeds for the Eastern Cape planting season," Mahanjana says.

Dimbaza, once a thriving area, was struggling after the recent closure of all its factories. Setting up a paprika factory would boost employment in the area.

"The project we [are proposing] has huge potential for economic growth, employment and black economic empowerment for the province's community," Mahanjana says.

"The major challenge that needs to be addressed is for its economic development potential to be realised."

Farmers also needed to be mobilised to produce paprika for the existing market, which processes paprika into spices for the Australian and American markets.

Local farmers would buy paprika as a raw material from farmers in the northern parts of the country or from local nurseries in places like Gonubie, in East London.

Mahanjana says that because of the high cost of buying paprika from Zimbabwe, farmers from Northern Province identified an opportunity to switch from maize to paprika. However, because Zimbabwe was still the largest paprika producer, local farmers would need to get some seeds and seedling from that country.

"Once the project is up and running, the East London harbour will be very busy exporting our product to top markets in America and Down Under," Mahanjana adds.

Furthermore, the project would be in line with the province's pro-poor Growth and Development Programme, which aims to eradicate poverty.

Buffalo City and surrounding municipalities have endorsed the proposal. The provincial departments of agriculture; land affairs; water and forestry; economic affairs; finance; and trade and industry are also involved.

"Buffalo City's portfolio holder for local economic development and tourism, Luntu Bobo, and the municipal manager at Emahlathini Municipality have both encouraged our company to go ahead our plans," Mahanjana says.