R2.8 Million Boost for Eastern Cape Lobster Operation

A R2.8 million investment by the Eastern Cape Development Corporation (ECDC) into seven lobster-farming primary cooperatives in Port St Johns is expected to boost production, improve product quality and strengthen export competitiveness as the project prepares to increase output in the upcoming fishing season.

The funding supports the Tsweleni Rock Lobster Project, which is targeting production of 7 tons in the March–October 2026 season as part of a longer-term plan to scale output to between 10 and 12 tons.

“Of the total investment, R1.7 million was allocated to the acquisition of a lobster holding facility comprised of 10 holding tanks. A 12-metre freezing facility was also donated by the OR Tambo District Municipality. The infrastructure is designed to preserve the quality and value of the catch by keeping lobsters alive in seawater-filled pools that replicate their natural environment until they are sold and transported. The remaining funds are being used for operational support, including stock purchases, salaries, security, electrical upgrades, transport logistics and fishing permit acquisitions, says ECDC Acting Manager for Financial Incentives and Business Support, Fikile Mzinyati.

The project operates under the Singabalobi Secondary Cooperative, which brings together seven primary cooperatives: Lower Luphoko Primary Fishing Cooperative, ALBZ Industries Primary Cooperative, Manxokweni Fishing Primary Cooperative, Ndluzula Fishing Primary Cooperative, Rhebu Fishing Primary Cooperative, Nxonxa Fishing Primary Cooperative and Mhadini Fishing Primary Cooperative.

During the 2025 season, which ran from March to October, the cooperatives produced more than 1.8 tons of lobster. Of this total, 370 kg of live lobster were exported to Asian markets, including Hong Kong and Taiwan.

The cooperatives have also formed a joint venture, RS Foods, with aggregator Rekaseed, to manage the commercial aspects of the operation and facilitate access to international markets.

“Under the secondary cooperative, the partners established RS Foods with Rekaseed to support exports to international markets such as the European Union.

“RS Foods manages the business side of the operation, while Rekaseed holds the permits required to transport lobster from fishermen to market and assists in sourcing buyers. At present, exports are facilitated through an agent in Gqeberha, as the secondary cooperative is still in the process of securing the necessary export certifications,” Mzinyati says.

For the 2026 season, the project plans to sell the expected 7-ton harvest primarily as frozen lobster.

“Although frozen lobster generates lower revenues than live exports, it has a longer shelf life and provides more flexibility in accessing markets,” says Mzinyati.

The project also intends to diversify into other fish species and expand the holding facility to service additional cooperatives in the Port St Johns area. Plans are also under way to introduce seafood processing activities at the facility.

The Port St Johns operation recently received further exposure following a February visit by a German delegation participating in a Seafood Sourcing Mission to South Africa. The mission aimed to identify seafood producers capable of supplying European markets and to assess the support required for emerging producers to meet international standards.

Conducted in partnership with the ECDC, the visit formed part of a broader initiative to assess the export readiness of Eastern Cape producers, strengthen compliance, and link local seafood businesses with European buyers. The Eastern Cape has a growing seafood industry, supported by abundant marine resources, experienced processors and an expanding value chain with strong potential for sustainable exports to Europe.

Rekaseed director Duncan Sejosengoe said the initiative represents an important step in building a fully integrated seafood value chain.

“Over the past few years we have invested significantly in developing the required infrastructure. The next step is securing the necessary certifications. Once that is achieved, we are confident that we will be able to meet the Import Promotion Desk’s standards and move to the next level.

“The work we are doing restores dignity and economic agency to local fishing communities. Completing the seafood value chain is not only a milestone for our business but also for the communities we serve,” Sejosengoe adds”