Restructuring and Diversification Management Unit Swaziland

NAS PROJECTS

Specific Objective 1 (SO 1) – Support to Smallholders
16 September 2008

In the long run Swaziland can place sugar profitably in the world market. This justifies the strategy of increasing profitability by exploiting economies of scale through an increased cane base. The only available source is Swazi Nation Land (SNL) in combination with irrigation from large dams. This means promoting smallholder production, which in turn fits very well with the government’s poverty reduction strategy.

The area under smallholder cane has risen fast in the last ten years, up from 38,000 ha in 1996 to 50,000 ha in 2006. Smallholder Farmers Associations represent 23% of the supply to the two northern mills, and 18% in the south. Promoting access to irrigation for small-scale farmers is a substantial element of Government’s poverty reduction policy. Two large irrigation schemes (KDDP and LUSIP) are expected to add up to an additional 17,000 ha of cane production. These schemes provide access to irrigation on the principle of equitable ownership and distribution of benefits.

Ongoing Projects

Project Title	Support to Smallholder Sugar Cane growers
Donor:	European Commission
Budget:	€14, 895,000.
Dates	December 2007 – December 2012

The project aims to enhance the profitability of smallholder sugar cane growers. There are two strategies that will be pursued simultaneously: reduce the investment and working capital costs for sugar cane growing smallholders and help them manage their farms competitively as businesses.

The project will be managed by Project Management Unit, staffed by a team of three experts: a team leader; an irrigation/land development engineer and a business development expert. The Unit will also contract business development facilitators and administrative staff. The PMU is expected to be in place in early 2009.

Result 1: Investment and working capital costs are reduced for sugar cane growing smallholders

The project will provide grant support towards the development cost of smallholders who wish to grow sugar cane. This includes existing and new farmers. The EC will finance 100% for the costs of land preparation, and the supply and installation of irrigation equipment, providing this is less than 70% of the total project cost. The limit is two ha per household. To be eligible for financing, farmers must meet the following conditions:

Be grouped into a Farmers Association
Have a holding that is not greater than two ha per household
Have the sucrose quota and water abstraction rights
Have the approval of the chief
Have a viable farm and business plan
The agreement of a bank or development finance institution to provide loans up to the value of part not covered by EC financing

The budget for land development and irrigation is approximately €11 million

Result 2: Smallholder farms are competitively managed as businesses.

The EC project will also provide business management support and training to new and existing Farmers Associations. It will work with SWADE and the Business Support Units established by the RSSC and Ubombo.

Related pages:

The NAS

NEWS

SCGA Grant System Development: Stakeholder Consultation Workshop 12 Ap ...

Read more ...

NAS PROJECTS

Specific Objective 4 (SO4) - Diversification ...

More projects

VACANCIES

Vacancy Announcement: Short-term (Agricultural) Economist for RDMU ...

More vacancies

TENDERS

WORKS PROCUREMENT NOTICE Land preparation, supply and installation of ...

More tender opportunities

DOCUMENTS

Job Vacancy: Short-term (Agricultural) Economist wanted ...

More documents

PHOTO GALLERY

TOP	HOME \| THE NAS \| NAS PROJECTS \| THE RDMU \| DOCUMENTS \| NEWS VACANCIES & TENDERS \| LINKS \| PHOTOS \| CONTACT US \| SITE MAP

Contact Us: Tel: (+268) 404 4560/404 3352 Fax: (+268) 404 33524 Email: info@rmdu.org