TEDA has identified a potential opportunity to establish an agro-processing hub within the City of Tshwane (CoT). Agriculture and agro-processing has an important role to play in the advancement of economic development in the continent country, province and City, further seeking to address matters of food security.

It is envisaged that the Hub to be implemented as a regulated Public-Private Partnership (PPP). The preliminary site identified is in Region 5 on city-owned property. The Hub intends to promote economic activity and create jobs in the urban periphery of the east of the City, while optimising the use of existing City assets. The Hub will achieve this not only through agro-processing as its primary activity, but also through the development of supply from emerging farmers. During the early years of establishment, the hub will likely source its supply directly from established contract farmers and the Tshwane Fresh Produce Market. Over time, this will transition to supply from emerging farmers, who will, in turn, use the associated support mechanisms to establish their businesses beyond the confines of the Hub.

The base case technical and market approach proposed for the Tshwane Agro-processing Hub is to initially capitalise on a growing market for peeled, cut fresh and frozen fruit and vegetables, including basic by-products, and to diversify over time to processing of high-value export product. The rationale behind this is to start initially with simpler, less capital- and more labour-intensive processing, using readily available raw materials that could be produced relatively easy and with shorter time-to-harvest (cash crops). This will allow for early initial cash flows which will support later diversification to higher value and more complex processing of ready-made foods and to establish an emerging supply of high-value raw materials such as avocados and berries.

The proposed facility will initially make use of very basic, manually operated equipment – permitting high labour intensity. As the facility reaches maturity, the Private Party may diversify into more advanced processing equipment. The facility will include receiving and dispatch areas, as well as controlled low- and high-risk processing areas. The entire operating area will be climate-controlled and cold-storage facilities are also included. The base case design further caters for office space, a laboratory, amenities and a training centre. The facility will secure electrical supply from the grid but will likely abstract and treat its water supply and process all waste and effluent on-site. Redundant utility supply will be ensured through back-up generation, sparing on boilers and an on-site water reservoir. The project is at project planning phase as guided by TEDA – PPM Project Management Framework. The project is estimated at R341 million. It is estimated that 6725 direct and indirect jobs will be created.