About Us

Magwa Enterprise Tea SOC (“Magwa”) was established by the Eastern Cape Development Corporation on 3rd June 2004 to operate the tea estate located in the eastern part of the Eastern Cape (Lusikisiki area)

Although the Eastern Cape Rural Development Agency (ECRDA) is technically in charge of Magwa, there is an on-going legal process to transfer the tea estate to ECRDA from the Eastern Cape Development Corporation (ECDC).

DRDAR has transferred Magwa shares to ECRDA for warehousing. The Board of ECRDA has taken an in-principle resolution to accept Magwa shares.

A two-phase share transfer process has been adopted by the Business Rescue Practitioner and Magwa Project Steering Committee. The first phase has been the transfer of 100% shares from ECDC to DRDAR. ECDC wrote a letter of share transfer to DRDAR and the transfer of 100% shares from ECDC to DRDAR and that was agreed upon by the two parties. A two-phase share transfer process has been adopted by the Business Rescue Practitioner and Magwa Project Steering Committee. The first phase has been the transfer of 100% shares from ECDC to DRDAR. ECDC wrote a letter of share transfer to DRDAR and the transfer of 100% shares from ECDC to DRDAR and that was agreed upon by the two parties.

The above process follows the signing of a Deed of Agreement in 2014 by the former Executive Authority of the Department of Rural Development and Agrarian Reform (DRDAR) and the Department of Economic Development, Environmental Affairs and Tourism, in respect of transfer of Magwa Enterprise Tea shares from the ECDC to ECRDA, which falls under DRDAR.
The legal transfer will be completed once ECDC and ECRDA have approved and concluded an agreement between them. The conclusion hinges on the Eastern Cape Government committing or agreeing to commit to budgetary provision to fund the operations of the tea estates. The current shareholding structure is that the DRDAR holds 100% of Magwa shares until ECRDA Board has formally approved the transfer. 

w

Magwa consists of 1703 hectares of commercial tea plantations and 100 hectares of smallholders’ tea plantations, and all the green leaf is fed into a single factory

Smallholders' tea hectares

Commercial tea plantations hectares

Majola Commercial tea plantations hectares

tea plantation

The tea plantation forms part of a greater Lambasi area totalling over 10 000 hectares on which little agricultural activity is taking place.

magwa factory

The Magwa factory is large by any standards in the tea industry but is still in need of finance and attention to improve maintenance standards to the levels required.

Majola factory

The Majola factory is considerably smaller than the Magwa factory