The claim is in accordance with Section 42D of the Restitution of Land Rights. Land Restitution is a process adopted by the government of South Africa to restore land to persons or communities that have been dispossessed of their land as a result of past policies and practices. The rationale behind the Restitution of Land Rights is to promote equity and to facilitate development initiatives by bringing together all genuine claimants, promote reconciliation through the restitution process; and subsequently contribute to an equitable redistribution of land in South Africa.
The specific enterprises envisaged by the Trust are the following: feasibility of organic tea production in relation to the existing conventional production system, processing and packaging of various brands of tea, ice tea production, provision of tea garden tourism and the diversification of the estate into avocado production and forestry.Such development ambitions will first have to be matched against available natural resources, human and social factors, capital demands, financial and economic feasibility as well as environmental sustainability before they are subsequently pursued.In subsequent discussions with the community, the Makgoba community agreed that the study should focus on reviving the tea enterprise which is seen as critical to commence with. It is our understanding that in August 2009,the Makgoba Trust entered into a joint venture agreement with the company,HL Hall & Sons of Nelspruit regarding the farming and marketing of the avocado plantation. Funding for the joint venture has been made available through the Hall?s Trust. The forestry enterprise is being addressed.
Business Goal and Objectives
The goal of the Makgoba Trust is to develop appropriate, viable and sustainable business plans for the Middelkop and the Grenshoek Tea Estates with the assistance of an external investor. This is to generate sustainable income, create jobs, facilitate economic growth and capital investment that will address the problems of poverty, low absorption rate of labour force into the economy as underscored in the 2004 State of the Nation Address on the need to bridge the gap between the first and second economy and subsequently improve livelihoods of the community members located within the area of influence of the farm.
This business plan has five main objectives, namely, to:
Establish the best business plan that reflects the optimum use of land, water, capital and human resources within the Makgoba community.
Establish the financial implications of the plan based on the expected future cash flow.
Determine the total capital.
Analyse the marketing, financial and production management structure and the demands on management capability.
Analyse the financial incentives needed to put the plan into operation.
To build capacity of the Makgoba community and other participants of the project through short training programmes and tertiary education.
Product and Business Description
Guided by a comprehensive feasibility study on the Middelkop and the Grenshoek Tea Estates, the phytonutrient extraction technology for the production of high purity bioavailable green tea extract was identified as the most appropriate to pursue.
Current Uses of Green Tea Extract
The current uses of high purity catechin extract including EGCG in beverages include Coca Cola, Nestle, Tate & Lyle, Unilever, Clover SA, which is formulated into juice drinks, iced teas, isotonic drinks, white and fruit yogurts. The extract is also formulated into dietary supplements and two FDA botanical drugs.
The technical and financial assessments of the Green tea extraction technology at both the Middelkop and Grenshoek Tea Estates indicate a very high profit margin which could be realized in the first year following the rehabilitation of the tea estates.
A pilot study is mandatory to realise the full benefit of the business model
The Makgoba Trust can receive financial benefit up to R30 Million per annum when the business is in full production.
There are also gains for the Trust in training and education through an integrated development and training programme
Implementation of the business enterprises will lead to significant income generation in the Municipality, create jobs and improve the livelihood of the poor.