About Rural Enterprise Development Hubs

ECRDAs RED Hub concept prioritises the village as the centre of operation. The RED Hub concept has at its core a Mega Farm approach which emphasises the establishment of viable economic

units which entail pulling together fallow land in rural communities and turning these dormant assets into productive clusters.

RED Hubs presence in the Eastern Cape

Combined these hubs occupy 3754 hecters of land in three regions; Chris Hani,O.R Tambo and Alfren Nzo Municipalities.

 

    The Red Hub links three market elements of production, processing and marketing to boost the competitiveness of rural economies and communities. These physical hubs should link production to the mills and other value adding operations as well as marketing. The result is that production receives the market support it needs to flourish and money is kept ‘alive’ and circulates within a community as long as possible. This implies that value adding should be done by the community rather than by conglomerates far from these communities.

    These market elements therefore make up the value chain of the rural economy with coordination, integration and marketing being the core functions of the RED Hub. Ultimately, this concept creates a platform for economic activity resulting in increased rural incomes through the facilitation of primary production, promoting rural savings, investment, processing as well as the creation of a communal and external market.