Job Creation

Job creation in South Africa is a national prerogative. This is a key focus for the Company. Mabele Fuels has developed a blueprint for the execution of a procurement structure that favours local emerging farmers. Farmers located in under developed agricultural areas will be encouraged, through cooperative agreements, to participate in supplying Mabele. This will empower emerging farmers, restituted landowners, enhance rural infrastructure and agricultural development, support South Africa’s green economy and contribute to energy security. Sustainable direct, indirect and induced jobs will be created from the operation of the 150,000 m3pa bioethanol plant ranging from the agricultural, logistics, spinoff industries and plant operations value chain.

The agricultural value chain, infrastructure and the green economy are all key drivers of job creation. The Mabele Fuels grain sorghum to ethanol plant to be built in Bothaville, Free State Province will create jobs through both direct and indirect operations. In a study conducted by Sustek SA in March 2011 it was determined that approximately 16,700 sustainable direct, indirect and induced jobs would be created from the operation of a 150,000 m3pa (cubic metres per annum). These would range from agricultural, the plant itself, logistics, spinoff industries (accommodation, animal feed, support services e.g. workshops, CO2 recovery, trucking jobs and brick making from ash).

Mabele’s main focus from a job creation perspective will be to empower emerging farmers. The formal homeland areas (Transkei, Bophuthatswana, Ciskei & Venda), where South Africa has 14% under utilized arable land will be the focus for commercial agricultural development. This will in turn stimulate rural development, create sustainable income earning for these people and reduce poverty. This boost in economic growth will look to create job security, promote agricultural education & training, allow farmers who produce on a purely sustainable level, to growth and become viably commercial operations.

The South African Government has committed to cutting South Africa’s unemployment rate in half by 2014. This would bring the official unemployment rate down to 13%. If we continue along the growth patterns that we are currently projected on, unemployment will have risen to 33% by 2014. Mabele Fuels aims to assist in reducing this by contributing to job creation. The 14% arable, under utilized land in the former homeland areas, which will result in increased infrastructural investment, job creation, a reduction in the need for urban migration and the up skilling of emerging farmers. Expansion in production and thereby increased employment is not something that will happen without favourable, committed, and aligned social, political and economic environments.