SA tourism gem

Set in pristine wilderness, the Mkambati Nature Reserve is an 8 000ha coastal reserve situated near Lusikisiki in the Eastern Cape, teeming with wildlife and views over the ocean. 

The area, however, is severely impoverished and in dire need of development. Thus when the IDC was approached for funding, it saw an opportunity to make a difference. The operating company, Mkambati Collection, was awarded a 30-year concession lease by the Eastern Cape Parks Board in 2009 to develop and operate an 18-room luxury lodge within the reserve.   

“The transaction was very attractive as it will bring much-needed jobs and economic activity to the poor and rural area of Lusikisiki,” says IDC tourism account manager, Moipone Phajane.

Mkambati Collection shareholders consist of Mkambati Land Trust, the recipient of a successful land claim in the reserve; Landela African Experience, a tourism company; as well as 100% women-owned BEE company, Autumn Skies Trading. Mkambati Collection now plans to develop two luxury camps to attract both local and foreign visitors to the Eastern Cape.  

“From our experience in refurbishing and operating game lodges in Africa, it’s clear that the community needs to be involved from the outset and be integrally involved in the running of the business,” says director of Landela, Cherilyn Wilson. “If communities are going to take over the running of the lodge after the concession period ends, they need to have learnt financial, marketing, conservation and general business skills.”

The company intends to sell the Mkambati experience as part of a wider African tourism experience, linking it with a visit to game lodges in Zimbabwe as well as the Cape Winelands.

"What makes the Mkambati development so enticing for visitors is that it combines luxury accommodation, sea and game," she says. "The reserve also boasts a beautiful waterfall that pours straight into the ocean."

Because the reserve does not have the Big Five, it is likely to attract tourists on walking safaris. 

The proposed development, which commenced in July 2011, will consist of two luxury camps overlooking an untouched coastline. The Mkambati Tented Camp will consist of nine en suite tents on raised platforms built from canvas and recycled materials. Mkambati Palm Lodge will offer luxury villas with spectacular views of the Msikaba Bay and Mkambati Island, complete with butler, private deck and infinity pool. Both camps will be serviced by a separate kitchen and dining area, as well as other facilities such as a spa and library. The reserve has an existing airstrip that requires upgrading and will be used as the hub for arrivals. 

“The transaction is fairly unique because although the reserve 
is under the management of the Eastern Cape Parks Board, 
the lodge will be developed on community-owned land,” 
says Phajane.  

The Mkambati area has been identified by national, provincial and local government as a development node. Construction of the lodges is expected to create 160 temporary jobs over a construction period of 12 months. An additional 60 permanent staff will be employed. 

Phajane adds that two-thirds of the concession fee will be paid to the community trust and the balance to Eastern Cape Parks Board to enable it to fulfil its biodiversity conservation functions.

This transaction demonstrates that the IDC boldly goes where no other funders dare to go.

The total development cost of the lodge is estimated at 
R40.6 million. 

“This transaction demonstrates that the IDC boldly goes where no other funders dare to go,” says Phajane. “By investing in the Mkambati Lodge, the IDC worked with one of the most impressive, passionate and organised communities and we look forward to seeing the positive impact created by this tourism gem hidden deep in the heart of the Eastern Cape.”