1. AGRICULTURE : Production of indigenous medical plants

The potential of producing indigenous medicinal plants in Capricorn DM.

The project comprises the commercial production of indigenous medicinal plants by providing green health alternatives and other eco-friendly products for both domestic and industrial uses. Thus, mixed farming systems that include different herbal plants. Market segments include:

• Direct consumers
• Patients of indigenous healers
• Pharmaceutical companies.

There is a growing worldwide demand for high quality, certified, and/or organic herbal products. Unfortunately, this demand is outstripping the natural production of these crops, resulting in the loss of biodiversity and environmental degradation. The commercial production of indigenous medicinal plants will therefore contribute in filling this market by providing such alternatives and products for both domestic and industrial uses.

Medical clinics indicated that approximately 53% of the black clinic patients made use of indigenous healers at least once a year, with an average of 3.34 visits per year. Basing the quantity demanded on the reported number of visits to indigenous healers (3.34 times per annum), it is estimated that between 900 tonnes and 1 500 tonnes of plant material were consumed in 1995. There is an overall increase in the use of indigenous medicine.

Indigenous medicinal plants can easily be incorporated into existing cropping systems due to the availability of a large number of species and the ability to choose plant types based on their suitability to be grown under different eco-physical conditions.

The production of indigenous medicinal plants are labour-intensive, and therefore well suited to the rural communities because the production and handling requirements for these crops match their available land and labour resources. As a result, production and processing of these plants offer promising new income and employment opportunities to improve the livelihoods of the communities in an environmentally sustainable manner. The production, postharvest handling and marketing of indigenous medicinal plants have the potential to significantly contribute to the cash income of the rural communities, especially women. Skills training of labourers of the projects will also lead to the bettering of the lives of project owners, their households and those of the community at large.

For the production of indigenous medicinal plants, the estimated total cost, which includes variable and capital cost, is projected at R11 770 per hectare.

List of potential national funders:

• Department of Labour
• DTI
• Ntsika, etc.

List of potential international funders:

• Multilateral Investment Guarantee Agency (MIGA)
• International Finance Corporation
• Africa Project Development Facility (APDF)
• British Investment in South Africa (BIS), etc.

Opportunities arising from the project could be grouped in:

• Demand opportunities - Indigenous medicine is a basic consumer good for which there are limited alternatives. This statement is supported by the frequency of visits to healers, the relatively high costs of a consultation and their use by people in a broad range of economic strata. Given the willingness to pay relatively high fees for indigenous medicine, the current level of demand is unlikely to decline.
• Supply opportunities - Commercial farms could be managed and harvested to provide the grassland and savannah species currently demanded. The higher prices paid for scarce species could help offset management costs.