Seven lobster-farming cooperatives in Port St Johns have received a significant boost with a R2.8 million investment from the Eastern Cape Development Corporation (ECDC), positioning the project to substantially increase production and strengthen its export capabilities for the upcoming fishing season.
By Maile Matsimela, digital editor at African Farming
The Tsweleni Rock Lobster Project is targeting production of 7 tonnes during the March-October 2026 season, marking a major step toward its long-term goal of scaling output to between 10 and 12 tonnes annually.
Infrastructure Investment Enhances Operations
The bulk of the funding (R1.7 million) has been allocated to acquire a state-of-the-art lobster holding facility featuring 10 specialised tanks. Additionally, the OR Tambo District Municipality has donated a 12-metre freezing facility to support the operation.
“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,” explains Fikile Mzinyati, Acting Manager for Financial Incentives and Business Support at the ECDC.
The remaining funds support operational requirements, including stock purchases, salaries, security, electrical upgrades, transport logistics and fishing permit acquisitions.
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Cooperative Structure Drives Growth
The project operates under the Singabalobi Secondary Cooperative, which unites 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.
This collaborative approach has already shown promising results. During the 2025 season, the cooperatives produced more than 1.8 tonnes of lobster, with 370kg of live lobster successfully exported to Asian markets, including Hong Kong and Taiwan.
Strategic Partnership Opens International Markets
To manage commercial operations and facilitate international market access, the cooperatives have established a joint venture called RS Foods with aggregator Rekaseed.
“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,” Mzinyati says. “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.”
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Market Strategy Adapts to Demand
For the 2026 season, the project plans to sell its expected 7-tonne harvest primarily as frozen lobster. While this approach generates lower revenues compared to live exports, Mzinyati says: “Frozen lobster has a longer shelf life and provides more flexibility in accessing markets.”
Expansion Plans on the Horizon
Looking ahead, the project has ambitious plans for diversification and growth. These include expanding into other fish species, enlarging the holding facility to service additional cooperatives in the Port St Johns area, and introducing seafood processing activities at the facility.
International Recognition
The operation gained international attention in February when it hosted a German delegation participating in a seafood sourcing mission to South Africa. The mission sought to identify seafood producers capable of supplying European markets and assess support requirements for emerging producers to meet international standards.
Conducted in partnership with the ECDC, the visit was part of a broader initiative to evaluate export readiness among Eastern Cape producers, strengthen compliance and introduce local seafood businesses to European buyers.
Also read: German mission scouts Eastern Cape’s seafood export potential
Building a Complete Value Chain
Rekaseed director Duncan Sejosengoe views the initiative as a crucial step in creating 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 we will be able to meet the Import Promotion Desk’s standards and move to the next level,” Sejosengoe explains.
“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.”
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