Small-scale lobster producers in the Eastern Cape have received a R2.8m funding boost to help expand production and improve their chances of breaking into international seafood markets.
The funding, from the Eastern Cape Development Corporation, is intended to boost production, improve product quality and strengthen the producers’ competitiveness in export markets.
The funding will support seven fishing co-operatives from Port St Johns involved in the Tsweleni Rock Lobster Project as they prepare for the next fishing season and work towards increasing output.
The co-operatives operate under the Seangabalobi Secondary Co-operative and include the Lower Luphoko Primary Fishing Co-operative, ALBZ Industries Primary Co-operative, Manxokweni Fishing Primary Co-operative, Ndluzula Fishing Primary Co-operative, Rhebu Fishing Primary Co-operative, Nxonxa Fishing Primary Co-operative and Mhadini Fishing Primary Co-operative.
During the 2025 season, which ran from March to October, the fishermen produced more than 1.8 tonnes of lobster.
Of this total, 370kg of live lobster were exported to Asian markets, including Hong Kong and Taiwan.
The farmers are now targeting production of seven tonnes during the March–October 2026 season, with a longer-term goal of increasing output to between 10 and 12 tonnes as the project grows.
The Eastern Cape Development Corporation acting manager for financial incentives and business support, Fikile Mzinyati, said the funding would help strengthen the co-operatives’ infrastructure and support their day-to-day operations.
The remaining funds are being used for operational support, including stock purchases, salaries, security, electrical upgrades, transport logistics and fishing permit acquisitions
— Fikile Mzinyati, ECDC acting manager for financial incentives and business support
From the total investment, R1.7m has been allocated for the acquisition of a lobster holding facility consisting of 10 holding tanks.
He said the OR Tambo district municipality had also donated a 12m freezing facility.
“The infrastructure is designed to preserve the quality and value of the catch by keeping lobsters alive in seawater-filled pools that replicate their natural environment until they are sold and transported.
“The remaining funds are being used for operational support, including stock purchases, salaries, security, electrical upgrades, transport logistics and fishing permit acquisitions,” he said.
We were in debt for rent and the funding got us out of that debt
— Sibongile Jikajika, a member of the Ndluzula co-operative
Sibongile Jikajika, a member of the Ndluzula co-operative, said the funding had already helped relieve financial pressure faced by members.
“We are very grateful for the support we receive from the ECDC regarding our factory.
“It seems clear to us now that our goals are being achieved, and we are taking care of ourselves.
“We were in debt for rent and the funding got us out of that debt,” he said.
Mhadini Fishing Co-operative chair Wandile Potso said the investment had restored pride and hope among the fishermen.
“It revived our dignity and hope in the business sector, we felt that we were visible and we can now point at something tangible like our factory.
“Our grandfathers did not have an opportunity to witness this, however, we are now looking to moving forward from here,” he said.
Mzinyati said the co-operatives had also formed a joint venture, RS Foods, with aggregator Rekaseed, to manage the commercial side of the operation and facilitate access to international markets.
“Under the secondary co-operative, the partners established RS Foods with Rekaseed to support exports to international markets such as the European Union.
“RS Foods manages the business side of the operation, while Rekaseed holds the permits required to transport lobster from fishermen to market and assists in sourcing buyers.
“At present, exports are facilitated through an agent in Gqeberha as the secondary co-operative is still in the process of securing the necessary export certifications,” he said.
He said the project planned to sell the expected seven-tonne harvest for the current financial season mainly as frozen lobster.
“Though frozen lobster generates lower revenues than live exports, it has a longer shelf life and provides more flexibility in accessing markets,” Mzinyati said.
The producers also plan to diversify into other fish species and expand the holding facility to support additional co-operatives in the Port St Johns area.
Rekaseed director Duncan Sejosengoe said the initiative represented an important step in building a fully-integrated seafood value chain.
“Over the past few years we have invested significantly in developing the required infrastructure.
“The next step is securing the necessary certifications.
“Once that is achieved, we are confident that we will be able to meet the [German] Import Promotion Desk’s standards and move to the next level.
“The work we are doing restores dignity and economic agency to local fishing communities.
“Completing the seafood value chain is not only a milestone for our business but also for the communities we serve,” he said.
The funding comes shortly after a German delegation visited the Eastern Cape as part of a seafood sourcing mission to SA to identify local producers ready to export to European markets.
The delegation, which included Linda Lubengu, the trade promotion specialist from the ECDC, along with Lea Reinhardt and Udo Censkowsky from the German Import Promotion Desk, sought to identify support programmes for emerging producers to bring them up to international standards.
Lubengu previously said the Eastern Cape’s seafood industry had strong potential for growth in export markets.
“With the right market linkages and compliance support, our local producers are well-positioned to compete and succeed internationally.
“At the ECDC, we remain committed to working with global partners like the German Import Promotion Desk to unlock export opportunities, strengthen local industries and create sustainable growth for Eastern Cape businesses.
“This mission is another important step in positioning the province as a trusted supplier to the EU market,” she said.
Daily Dispatch
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