Magwa to be Sustainable in 2024 – MEC
By Thozi kaManyisana
MEC for Rural Development and Agrarian Reform Nonkqubela Pieters proclaimed that by the year 2024
Magwa Tea Enterprise (MET) will reach break even point and reduce its over-reliance on government
support.
Addressing journalists after she led harvesting of 1443 hectares of tea and touring Magwa processing
factory, MEC said government was “making inroads” in the MET turnaround process.
“Government is not throwing away money by investing here, we have created employment opportunities
in an economically depressed region. Through this development, Magwa has created sustainable
livelihoods, supporting multitudes of families. Indeed we are making inroads though we are not yet where
we want it to be. By 2024, the enterprise will break-even, and it will be sustainable,” she said.
The main objective of the turnaround is repositioning the Magwa-Majola Development Corridor within
Lusikisiki and Port St Johns area as a thriving sub-local economic hub in the Wild Coast Region.
We are currently engaging prospective investors and I’m confident that the enterprise will be able to
make profit when there is private sector capital injected on tea production, tourism and high-value
commodities. The eco-tourism enterprise will also be the mainstay to unlock the tourism potential of the
region.
The company has diversified its products and markets, and this product and market diversification, has
positioned Magwa brand in the same platform as its competitors and introducing Magwa Rooibos
stimulated product demand within local markets. Magwa and Majola Tea in Black and Rooibos is available
in more than 50 retail stores in the province and KZN.
Over and above this diversification, conglomerates such as Unilever, Joekels and National Brands buy tea
in bulk from Magwa and Majola. Eastern Cape government approved the procurement of locally
produced tea so that government departments municipalities and public entities buy it. The procurement
of locally produced tea products is critical in improving Magwa profit margins, reduce over-reliance on
provincial fiscus and stabilising the socio-economic outlook of the Ingquza Hill and Port St. Johns local
municipalities (these two local municipalities are ranked among the poorest in South Africa).
To this end the MET has created employment opportunities totalling 957 employees (481 permanent and
476 seasonal workers, predominantly women and young people).
General Manager of MET, Mr Chuma Velani announced that the Majola Tea Estate has been awarded an
organic tea certificate by ECOCERT (an international certification body), which will open doors for niche
and export markets for Majola Tea.
In line with the strategic direction of achieving the highest level of sustainability, MET has achieved the
pinnacle of environmental sustainability by reaching ‘Sustainable Agriculture’ status certified for product
and farms, he added.
“Being one of the leaders in the tea market over the years, Magwa has embarked on an aggressive path
in its marketing approach to ensure an advantage over its competitors as a single origin product,” he said.
He said by 2024 in the tea production and processing they expected to employ about 2500 employees
while other value crops and tourism planned for the MET might take the employment numbers to 5000.
One of the longest serving employees in Magwa, Nontshumayelo Vonqongo, who started in 1989 as a
casual worker and is now a permanent Section Manager hailed the estate as a “great job creator in this
region.”
“Working here has changed our lives. It has made me a better person as I have built a house for my family,
out of the money I earn from Magwa”, she said.
Workers representative from Majola Tea Estate, Nofikile Tungani, said “We thank government for
assisting us, we would not be here if it was not for government support”.
In thanking the good working relationship between management and staff, MEC Pieters said the
Enterprise is the “pride of the province and government will assist it until it is sustainable.
“These Estates will never fail but will continue to prosper” she concluded.
The MEC’s visit, which included tea tasting ended up with her viewing the famous Magwa Falls.