The Eastern Cape Development Corporation has invested R850 000 in a pilot project to breed Angora rabbits.
During the pilot phase around 100 rabbits will be bred, groomed and will have their fibre harvested by April.
The project is the brainchild of PE-based Equipt Consulting, which is billing the project as a solid competitor to the popular Angora goats' mohair.
Project leader, Donevin Lesch, says they want to determine the feasibility of Angora rabbit fibre products.
He says Equipt Consulting is also aiming to become the largest producer within the Eastern Cape.
ECDC's head of Risk Capital, Phakamisa George, says this project, when commercialised in around two years time, will produce around 700 direct jobs.
"We have not looked at how much indirect jobs, because indirect jobs will happen down stream when you talk about boutique jobs and garment manufacturing. When you looking at the direct jobs coming from farming and processing we will produce around 700 jobs." says George.
George says the model being developed at the pilot project in Greenbushes, Port Elizabeth, will hopefully be replicated in others parts of the Eastern Cape, particularly the eastern half.
"The model that we are building in Greenbushes right now is structured in such way that we record all lessons and use that as a model that can be put into Mthatha, Mount Ayliff and in other places where environmental conditions are suitable."