By African Farming contributor
The Matsamo Community Property owns various farms covering just over 14 000 hectares within the Nkomazi Local Municipality in Mpumalanga Province. The Community Property Association (CPA) was established to produce bananas, sugarcane, citrus fruits, litchis, and vegetables, and engage in game farming and livestock management. Additionally, it includes a few tourism sites and a power plant. This initiative serves as an excellent model and example of what can be achieved when communities on restituted land collaborate to strengthen the local economy, create jobs, and become part of something greater. African Farming visited the Matsamo Community Property in Mpumalanga.
The Matsamo Community Property Association (CPA) is well-known for its beautiful orchards and expansive green fields, covering a large area of prime agricultural land. The CPA operates numerous commercial enterprises, featuring many structures and long-term investments. It is arguably one of the best-performing CPAs in the country in recent years, encompassing approximately 2 000 families and spanning over 14 000 hectares, divided into 25 land parcels valued at around R1 billion.
Through its operational entities and joint ventures, the Matsamo CPA utilises this land to create jobs, finance training and skills development, achieve economies of scale, and promote community development, among other initiatives. Recently, Matsamo unveiled its extensive infrastructure, and diversification plans to enhance its participation in various sectors of the economy.
Matsamo’s agricultural operations include the production of citrus fruits, litchis, papayas, bananas, mangoes and sugar cane for both local and export markets. The CPA also operates a hydro-power plant on the land.
According to Adv. Zibonele Shabangu, Acting Secretary of the CPA, in addition to the farming activities, Matsamo continues to make strategic advancements in various sectors, including energy, tourism and hospitality, as well as infrastructure. “While agriculture remains the backbone of our operations, we have made a deliberate and strategic decision to engage in different sectors of the economy. We recognise the value of land and understand that it enables participation in various sectors,” explains Shabangu.
“We are actively involved in the entire value chain of agriculture and other sectors of the economy. We are already engaged in the energy sector through the hydro-power plant and a R25 billion gas power plant. The hydro-power plant is operational, while developments around the gas plant are at very advanced stages. Additionally, there are official discussions underway to establish a solar farm and plans for expanding and enhancing the capacity of the hydro-power plant,” adds Shabangu.
Matsamo has initiated investment roadshows to secure funding and mobilise resources for its expansion plans. The goal is to finance ambitious projects, including a solar farm and a hydro-power plant, which will help the CPA meet its electricity needs and contribute surplus power to the national grid as embedded energy. These major projects are expected to enhance the CPA’s financial standing, create economic opportunities and generate thousands of jobs – both skilled and unskilled. They will also provide various socio-economic benefits to local communities, including training programmes, supplier development and enterprise support, particularly benefiting small, medium and micro enterprises (SMMEs).
According to a report from the CPA, approximately 40% of its energy requirements are met through the hydro-power plant. This facility is managed by a private operator and serves both Matsamo and neighbouring farms involved in the agreement. The asset and land remain the CPA’s property. In addition to energy production, the CPA has land parcels with stunning views and diverse flora and fauna. The CPA plans to leverage these strategic locations to actively enter the tourism and hospitality sectors.
Mbuso Thumbathi, CEO of Phahlane AgriSolutions, a land development company that offers professional consulting services, believes the recent news from Matsamo is refreshing and a positive step forward. He regards it as a testament to the wisdom that comes from the East, specifically Mpumalanga. “The leadership at Matsamo recognises the value of land and understands the true meaning of restitution and land reform. The CPA understands that land ownership does not solely equate to agricultural operations. The visionary outlook and business-minded attitude of the Matsamo CPA leadership deserves recognition. The story of Matsamo is one of resilience, patience, vision, discipline and inspiration. Agriculture is a numbers game; it is capital-intensive and requires patience. Running commercial operations demands significant investment,” explains Thumbathi.
He emphasises that Matsamo has beautiful, fertile and water-rich properties with stunning landscapes and land parcels that contain mineral deposits. He believes these attributes are advantageous for the Matsamo CPA and can propel it into any sector, as has already been demonstrated.
“The land’s features, the leadership’s attitude and the community’s stability create fertile ground for attracting investment and fostering confidence, making it a recipe for success. Collaborations and partnerships are crucial to the CPA’s success and are essential in agriculture,” stresses Thumbathi.
“The community must build on this momentum and continue to advance. Strong partnerships should be formed, grounded in shared values rooted in trust, confidence and good corporate governance principles. All stakeholders must engage honestly and openly with one another regularly,” Thumbathi added. “This ongoing communication will enhance understanding among all parties regarding opportunities, challenges, plans and leadership. A clear framework should be developed, and a beneficiation scheme programme should always serve as a point of reference. The win-win principle is the hallmark of successful and sustainable partnerships and forms a solid foundation for business.”
Shabangu says the community, through its structures, is openly talking to different players, including regulators, investors, tour operators and travel management companies to consider developing tourism products that will link and benefit Matsamo. “We have the assets and the location. Ours is to build on that,” adds Shabangu.
Some land parcels of the CPA feature historic landmarks and mineral deposits. There is general alignment that this will launch the participation of the CPA in mining as well as arts, culture and heritage.
Florence Hluyako, a retired teacher and member of the Matsamo CPA, welcomed the recent developments. She expresses confidence that Matsamo will excel in tourism and hospitality. “We view tourism and hospitality as a significant revenue-generating stream for the CPA. All the mentioned developments are exciting. Tourism is one of our greatest opportunities. We have the land, properties, workforce, products and location to succeed,” says Hluyako.
According to Shabangu, the CPA was registered in 2007 and began operating in 2013, having received its first farm around 2010 or 2011. Matsamo conducts its business based on three models: straight leasing, joint venture partnerships, and self-managed operations, all without government support. Shabangu notes that Matsamo has not received any support, despite submitting applications for grants accompanied by business plans.
Despite these challenges, the CPA has achieved remarkable success. “The project is a trendsetter and a pacesetter. It ignites hope in the land-reform sector. Our offices receive numerous telephone calls and are flooded with emails from industry players, other land-reform projects, businesses and investors requesting to visit our operations for exploratory tours and benchmarking exercises,” explains Shabangu.
So far, the CPA has created over 8 500 direct and indirect jobs and has funded 92 students through its bursary scheme. The bursary is fully funded and does not require repayment. Recipients include CPA members, their families (beneficiaries) and the public. Applicants are encouraged to focus on fields such as agriculture, engineering, tourism, marketing, finance and accounting. The total investment in skills development and training to date exceeds R50 million. “We are passionate about investing in training and skills development, as well as improving the livelihoods of our members and the community. We also aim to benefit non-CPA-linked citizens. Our goal is to invest in the entire community,” says Shabangu.
Through its Corporate Social Investment programme, the CPA has renovated schools and hospitals and provided carports and tools of trade for the local Matsamo traditional council’s offices. The CPA is actively signing Memoranda of Understanding and forging partnerships with universities, research institutes, foreign missions and other organisations focused on agriculture, tourism, biodiversity, training and skills development, as well as energy and minerals.
Recently, members of the CPA’s leadership participated in a roundtable discussion sanctioned by the National Planning Commission in collaboration with the National Marketing Council to accelerate the implementation of South Africa’s Master Plan on Agriculture and Agroprocessing (AAMP). Additionally, the CPA has completed a R82 million state-of-the-art packhouse for citrus, papaya and mango. This facility, with a storage and carrying capacity of over 400 000 tonnes per season, enables the CPA to enhance its production capabilities and compete in international markets.
