A R2.8 million investment by the Eastern Cape Development Corporation (ECDC) into seven lobster-farming cooperatives in Port St Johns is set to boost production, improve quality and strengthen export competitiveness ahead of the 2026 fishing season.
The funding supports the Tsweleni Rock Lobster Project, which is targeting production of 7 tons between March and October 2026, with plans to scale output to 10–12 tons in the coming years.
ECDC acting manager for Financial Incentives and Business Support, Fikile Mzinyati, said R1.7 million of the investment has been allocated to a new lobster holding facility consisting of 10 tanks.
“A 12-metre freezing facility was also donated by the OR Tambo District Municipality. This infrastructure ensures lobsters are kept alive in seawater tanks that replicate their natural environment, preserving quality until sale and export,” said Mzinyati.
The remaining funds are being directed towards operational support, including stock purchases, salaries, security, electrical upgrades, transport logistics and fishing permits.
Cooperative model strengthens local fishing economy
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 fishing season, the cooperatives produced more than 1.8 tons of lobster, with 370kg exported live to Asian markets, including Hong Kong and Taiwan.
To strengthen market access, the cooperatives have partnered with aggregator Rekaseed to form a joint venture, RS Foods, which manages the commercial side of the business and facilitates access to international markets.
“RS Foods handles the business operations, while Rekaseed facilitates permits, logistics and buyer sourcing. Currently, exports are routed through an agent in Gqeberha as the cooperative works towards securing full export certification,” Mzinyati said.
Export strategy shifts to frozen lobster
For the 2026 season, the project will primarily export frozen lobster, offering longer shelf life and greater market flexibility.
“Although frozen lobster generates lower returns than live exports, it allows for broader market access and reduced risk,” Mzinyati explained.
Expansion plans and European market opportunities
The Port St Johns lobster project is also planning to diversify into additional fish species and expand its holding facility to support more cooperatives in the region. Seafood processing capabilities are also being considered.
The initiative recently gained international exposure during a recent visit by a German delegation as part of a Seafood Sourcing Mission to South Africa.
Conducted in partnership with the ECDC, the visit aimed to assess export readiness, strengthen compliance and connect Eastern Cape seafood producers with European buyers.
The Eastern Cape’s seafood sector continues to grow, supported by rich marine resources, skilled processors and an expanding value chain with strong export potential.
Rekaseed director Duncan Sejosengoe said the project marks a key step in building an integrated seafood value chain.
“The next step is securing the required certifications. Once achieved, we are confident we can meet international standards and unlock new market opportunities,” he said.
“The work being done here restores dignity and economic agency to local fishing communities. Completing the seafood value chain is not only a business milestone, but a community one as well.”
