A PLANTATIONOF OPPORTUNITYI N T H E E A S T E R N C A P E

The Eastern Cape Development Corporation is the visionary steward of development assets in the Eastern Cape. Together with its private and public stakeholders, it has identified the bamboo industry as being of strategic importance for the development of the province – most importantly for the creation and sustainability of jobs, and to quell the poverty experienced by rural communities. As a result, the testing phase of the sector has been initiated, and the corporation has begun to engage with potential investors and participants in the industry.

This brochure introduces the Eastern Cape as a strategically attractive location to bamboo investors, and presents bamboo as an opportunity to interested or existing agriculturalists in the province.

BAMBOO’S BUDDINGGLOBAL PROMINENCEOriginating in China 7,000 years ago, bamboo has long since been recognised as a valuable plant to humankind. Having been utilised in the historic crafting of arrows, paper, building materials and books, modern technology has opened vast opportunity to use the plant as a renewable resource across a wide range of economic sectors including:

• Nutrition:humanconsumptionofshoots;livestockconsumption of leaves (SA growth: 20% p.a.)• Construction:bothweightbearingstructuresandaesthetic finishes• Paper-making• Flooring• Bio-fuels:thereplacementoffossilfuels• Personalcare:extractsusedinhairandskinproducts• Carpentry:furniture• Creativeindustries:Artsandcrafts• Agriculture• Themanufactureofelectricbatteries• Theuseofbambooashtopolishjewels

China and India, the world’s leading bamboo producers and exporters, cultivate and harvest 11.4 million and 5.4 million hectares of bamboo respectively. Only five African countries (mainlyNigeriaandEthiopia)growbambooonasurfaceareaof2.7 million hectares, 4.7% of the continent’s total agricultural area. South Africa exports R9.8 million worth of bamboo and rattan products annually, and imported R120 million worth of bamboo andrattanbetween2007and2010.Firsttargetistosubstituteimports with locally manufactured bamboo products.

...bamboo has long since been recognised as a valuable plant tohumankind.

millionR120

imported

WORTH OF BAMBOO & RATTANBETWEEN 2007 & 2010

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EffICIENT,& ROBUSTRENEWABLE

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Bamboopossessesqualitiesthatmakeitamaterialofhigh importance in an era of environmental sustainability, productive innovation, and the research of alternative energy sources. Some of the important qualities of the plant are:

• Rapidgrowthof0.3to1metresperday• Producesgreaterbiomassinitslifecycleof50yearsthanany other known plant (four times more than Eucalyptus, while using15mlofwaterperdayasopposedto4-12litres)• Absorbstoxicelementspresentinsoil,andenhancessoilstability• Providesawindbreak(highdensityplantation),andhence reduces soil erosion• Isabletogrowinmarginalanddegradedsoils• Constitutesaviablereplacementforwoodinconstructionand carpentry• Highdensityplantationinidealconditionscouldyield40tons per hectare in year four, and 700 tons p.a. from year seven• Isarenewableresourceandsustainablefeedstockthat produces and negates the need to utilise food resources for fuel-making• Requiresminimalcapitalinvestment• Nutrition–shootsforfoodandleavesforfodder

• NoformalbambooindustrycurrentlyexistsintheEastern Cape,providinganopendoorforfirst-movers• Ongoingextensionofbambooproductlinerequires additional supply on a local and global scale• Anestablishedtimber-processingindustrywellpositionedfor downstreambamboovalue-addition• EasternCape,asanagriculturalprovince,enjoysreadily available and affordable labour• Thebambooindustrywillprovideemploymentsuitableforall people, including women and youth, and hence is of strategic importance to provincial government• Thegrowingofbambooforcommercialmarketswillenhance rural economies

Wide availability of fertile land in a strategic locationThe province is the largest in South Africa, and is ripe for timber processing investment due largely to the availability of an estimated 100,000 hectares of land suitable for the cultivation and growing of bamboo plants. The province possesses the third largest commercial plantation area in South Africa, and presents substantial expansion potential in the realm of forestry and timber processing. Currently, 170 000 hectares are occupied by commercial forestry plantations,and130,000hectaresbyindigenousnaturalforests.Furthermorealientimbersuchaswattlecouldbereplacedwithbamboo plantations

ThislandispositionedinproximitytoSub-SaharanAfricanmarketsvia multimodal road, rail, air and sea logistics. Three of South Africa’seightports,namelytheNgquraPortinPortElizabeth,thePortElizabethHarbour,andtheEastLondonPort(theonlyriverport in South Africa) are found in the Eastern Cape, making for a convenient linkage to global market access.

A development priority of governmentBamboo,togetherwithplantfibre,isadevelopmentpriorityforprovincial government. It is seen to be a sector that will add value to the existing agriculture in the province, and will provide a mechanism by which to integrate rural subsistence farmers into the commercial mainstream.The South African government has approveda10-15yearForestryandTimberExpansionProjectaimed at developing 100,000 hectares of new forests in the east of the province.

in the Eastern CapeFACTSQuick

The eAsTerN CAPe:A PlANTATION OfOPPORTUNITy

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In March 2011, ECDC launched the testing phase of the bamboo initiative in the Eastern Cape. Three locations were identified for the testing, which cumulatively received R1 million funding to establish the viability of the growing and processing of bamboo in the province. NdakanaVillagenearStutterheimintheformerCiskei,CentaneVillagenearButterworthintheformerTranskei,andStAlbansnearPortElizabethwillcollectivelycompriseover500hectareswhentheprojectreachesfullscale.Activityonthethreesiteshasalreadycommenced, and the project is proving to be a success thus far.

TheNdakanaarmoftheprojectcomprisesa216m²bamboonurserythathasbeenestablishedforthehardeningofbambooplantletspriortoplanting.6,000plantlets–3,500ofthebambusabambosvariety,and2,500ofthebambusabalcooavarietywillundergotherequisitehardeningprocessbeforebeingplantedtotheNdakanaandCentanesitesduringthespringof2011.

Job creationAlready, 10 new jobs have been created as a result of the project, withafurther37tobecreatedasthetestingphasereachesmaturity.

Community benefitECDC’s strategy is to empower communities economically. As a result, community trusts will be established, and will form a mechanism for ownership to provide sustainable wealth creation in historically marginalised areas. In addition to this, 50% of all membersoflocalco-operativeswillbewomen.

Small, micro and medium enterprises (SMMEs)Other opportunities for SMMEs include the growing of cash crops on the plantation, as well as a carbonisation project to be run by theNdakanaWoodProductsCo-operative.

Creative industry opportunitiesInanticipationofbambooharvestsatNdakanaandCentane,plans

for local ‘cottage industries’ are being established for the making of bamboo mats, baskets and allied products to provide residents withself-employmentandincomegeneratingopportunities.

Investment opportunityInvestors in the following classifications are invited to discuss their proposalswiththeDevelopmentProjectsUnitofECDC:• Furniture• Buildingmaterials• Textiles• Renewableenergy(biomass)• Foreignbuyers• Processedbamboo(flattenedforexport)

CURRENT PROjECTS AND

IN THE EASTERN CAPEOPPORTUNITIES

Projectgoals

BamBoo pilot plantations- ndakana, Centane & st alBans

ECDC invites interested parties to contact ECDC’sDevelopmentProjectsUnit:Tel: + 27 (0) 43 704 5606 | Email: projects@ecdc.co.za

The Bamboo Symposium AninitiativebyECDC.