The Western Cape company is one of the few that have already accessed the Department of Trade and Industry's (dti) Aquaculture Development and Enhancement Programme (ADEP) incentive and has already created 120 new jobs, said departmental spokesperson Sidwell Medupe.
Abagold MD Christo du Plessis says the company, which applied for financial assistance with the aim to expand and at the same time create jobs for the communities around Hermanus, is so far realising this vision.
"We have already created 97 new permanent jobs in addition to the 265 that we had. There are also 29 new fixed term jobs due to the construction phase, which is likely to continue for more than a year. We are happy to be growing as a company. Our growth is not only for us but for the community and the town at large," said Du Plessis.
Du Plessis said the company acquired 25% Black Economic Empowerment investors in 2010, which provided most of the capital for the Sulamanzi expansion project. He said the dti partly funded this project through the ADEP incentive.
Sulamanzi farm is Abagold's biggest farm and will contribute to the company realising its growth strategy.
"The investment in the project is budgeted to a total sum of R112 million and we have already received R5.6 million as a first claim from the dti. Our maximum production per annum used to be 275 tons of abalone, and with the new project, it will grow to more than 500 tons per annum," said Du Plessis.
He said the company is currently exporting almost 100% of their abalone to markets in Hong Kong, Mainland China, Malaysia, Taiwan, Singapore and Japan. The product is exported in live, canned and dried formats under its own registered brand. He said due to strict permit conditions in the country and the fact that abalone is not that well-known; they do not have a large market locally.
According to Du Plessis, Abagold is expanding its footprint through the manufacturing and selling of specialised aquatic feeds, increased abalone production and wave energy generation.
Kwanele Tom, 20, who is employed on Abagold's Sulamanzi farm, says he is happy with his new job which assists him to support himself and his family of five. "Since I joined the company I have learned how to work with abalone and would like to attend the aquaculture training course and other skills training courses. I want to grow with the company," said Tom.
The objective of ADEP is to stimulate investment in the aquaculture sector with the intention to increase production, sustain and create jobs, encourage geographical spread and broaden participation.
ADEP offers a reimbursable cost-sharing grant of up to a maximum of R40 million qualifying costs in machinery and equipment, bulk infrastructure, owned land and/or buildings leasehold improvements, competitiveness improvement activities, as well as commercial vehicles and work boats.
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