In the latest bid to revitalise the struggling Magwa and Majola Tea Estates in Lusikisiki, the provincial department of rural development and agrarian reform (DRDAR) is inviting private investors to invest into the incorporated tea estate.
This is part of DRDAR’s new shareholding structure in its business rescue mission of the two ailing estates.
Already 100% of Magwa tea estate’s ownership has been transferred from the Eastern Cape Development Corporation (ECDC) to DRDAR, and there is also a court ruling that approved the incorporation of Majola into the Magwa tea estate, after workers had resolved to join the two tea estates to form a single incorporated entity.
DRDAR spokesman Mvusiwekhaya Sicwetsha yesterday told the Dispatch they wanted “reputable investors” who have interest in the tea industry.
“We are calling for people who have interest of the tea industry at heart and who will be able to take the business forward.
“We have pumped money into the projects to stay afloat so when an investor comes, it will see that there is already work that is being done,” said Sicwetsha.
The proposed new shareholding structure of the incorporated tea estates will give the private investor a controlling 51% share, with 26% going to the community and 13% to the employees, while the government will hold the remaining 10% stake.
Former DRDAR MEC Mlibo Qoboshiyane, who was replaced as MEC by Xolile Nqatha on Thursday, lobbied the provincial cabinet last year for this rescue plan to be approved.
As a result the provincial treasury allocated R116-million for the rescue process, to improve tea production in the incorporated tea estates.
The amount added to the R20-million that was transferred to the business rescue practitioner for interim operational requirements by the department.
“We invite private individuals or corporations interested in investing in tea production to respond to this expression of interest to commercialise tea production in the Eastern Cape.
“This is so that we can contribute towards economic growth, create jobs and improve rural economy of the province,” said Qoboshiyane at the time.
Interested parties may visit the provincial DRAR website for tender documentation and further information.
Scramble to save EC tea estates: Bhisho now in search of investors
This is part of DRDAR’s new shareholding structure in its business rescue mission of the two ailing estates.
Already 100% of Magwa tea estate’s ownership has been transferred from the Eastern Cape Development Corporation (ECDC) to DRDAR, and there is also a court ruling that approved the incorporation of Majola into the Magwa tea estate, after workers had resolved to join the two tea estates to form a single incorporated entity.
DRDAR spokesman Mvusiwekhaya Sicwetsha yesterday told the Dispatch they wanted “reputable investors” who have interest in the tea industry.
“We are calling for people who have interest of the tea industry at heart and who will be able to take the business forward.
“We have pumped money into the projects to stay afloat so when an investor comes, it will see that there is already work that is being done,” said Sicwetsha.
The proposed new shareholding structure of the incorporated tea estates will give the private investor a controlling 51% share, with 26% going to the community and 13% to the employees, while the government will hold the remaining 10% stake.
Former DRDAR MEC Mlibo Qoboshiyane, who was replaced as MEC by Xolile Nqatha on Thursday, lobbied the provincial cabinet last year for this rescue plan to be approved.
As a result the provincial treasury allocated R116-million for the rescue process, to improve tea production in the incorporated tea estates.
The amount added to the R20-million that was transferred to the business rescue practitioner for interim operational requirements by the department.
“We invite private individuals or corporations interested in investing in tea production to respond to this expression of interest to commercialise tea production in the Eastern Cape.
“This is so that we can contribute towards economic growth, create jobs and improve rural economy of the province,” said Qoboshiyane at the time.
Interested parties may visit the provincial DRAR website for tender documentation and further information.
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