A R1 million bio-fuels pilot project will be launched on Tuesday next week in one of the poorest regions of the Eastern Cape, the Job Creation Trust said.

"The project, which is designed to produce bio diesel fuel, soap and glycerine from waste oil products will be launched in Mhlontlo municipality, which covers the towns of Qumbu and Tsolo," the JCT said in a statement on Friday.

Eighty-eight percent of households in the Mhlontlo municipality live below the poverty line and more than 70 percent of the population is unemployed.

In its initial phase, the project will employ 26 people at a plant, with land made available by the local council, and in agreement with the local tribal authority.

This was the first financed project in the JCT's new financial year.

The launch would be attended by the JCT chairperson Willie Madisha, Eastern Cape premier Nosimo Balindlela, traditional leaders, the mayor and councillors.

Another contribution of R243 000 would go towards the Kalkfontein Development Trust in the Western Cape.

The JCT said this would provide working capital for community brick, block and slab making.

Madisha would sign a memorandum of understanding with the provincial ministry of transport and public works for co-operation on job creation in the province.

The Trust has so far committed more than R53-million and has created an estimated 36 000 jobs.

Sapa