MyPE

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Economic Disaster Looms For Alexandria

By

Dear Editor

The Democratic Alliance (DA) is calling for urgent intervention from the Department of Rural Development and Agrarian Reform (DRDAR) to assist farmers in the Alexandria area to identify alternative produce and revenue streams. This comes as Chicory SA, the largest employer in Alexandria for over 130 years, faces imminent closure at the end of the month, putting over a thousand jobs at risk.

The Alexandria region, once a thriving hub of chicory production that contributed significantly to the local economy, has seen a sharp decline due to an influx of cheaper imports, particularly from India. At its height, South Africa produced between 18,000 and 20,000 tons of chicory annually, with Alexandria at the heart of this activity since 1895. However, the current economic conditions and global competition have pushed this century-old industry to the brink of collapse.

With the expanded unemployment rate in the Eastern Cape standing at a staggering 49.7%, the potential closure of Chicory SA poses a devastating blow to the local economy. The effects will be felt beyond the thousand workers directly employed by the company, as the entire value chain—farmers, suppliers, logistics providers, and processing facilities—faces collapse. It is estimated that over 10,000 people in the Ndlambe municipal area are sustained by this industry, and its closure would ripple through the region, leading to widespread hardship.

Small towns like Alexandria, with a population of 10,000 people and nearly 3,000 households, are already struggling under the weight of failing infrastructure and a fragile economy. The loss of this key industry threatens to further erode the agricultural diversity that underpins the local economy, affecting both commercial and emerging farmers, many of whom are already grappling with limited resources and opportunities.

The DA calls on DRDAR MEC Nonkqubela Pieters to ensure that her department urgently engages with these farmers to identify alternative crops or produce that could offer new revenue streams and mitigate the anticipated job losses. By exploring diversification strategies, farmers can be supported in shifting to more sustainable agricultural practices, helping to prevent a complete collapse of the local economy. This proactive approach is critical to ensuring that Alexandria’s agricultural sector remains viable in the face of this crisis.

Furthermore, we urge DRDAR to work alongside other provincial and local stakeholders to develop a long-term strategy that will support immediate relief efforts and create opportunities for sustainable economic growth in the region. This crisis must be seen as a turning point for Alexandria, where innovative solutions can be implemented to secure the future of this small but vital town.

The closure of Chicory SA represents more than just the loss of an industry. It threatens the very livelihood of a community that has depended on this trade for generations. Without swift action, Alexandria risks becoming yet another casualty of the province’s economic struggles. The DA remains committed to fighting for the future of this town and its people.

Regards

Heinrich Müller
DA Shadow MEC for Rural Development and Agrarian Reform

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