Service Contract No 2007 / 147-446 NYANYALI ... - Swaziland

Figure 16. Nyanyali yield in tones cane per hectareInterest RatesIt can be argued that even relatively large reductions in interest rates have not had anysignificant impact on the sustainability of this sector. The sector appears to have deterioratedto one of a sustained financial crisis. This, therefore, calls for an integrated programme ofaction, to look at:‣ Discounted tariffs with regards to bank charges, including administration fees.‣ A re-look at the repayment period with regard to capital loans, with a view to having itextended from the current 7 years to at least 10 yearsConsidering the reduction of interest rates on all loans to a level not exceeding 12% perannum, such measures would allow smallholder growers to realize some return on theirinvestment and to be able to eventually pay dividends to the investing members. Alternativelyother financial arrangements can be put in place without any prejudice to the commercialoperations of the financial institutions currently engaged with the sector (SSA, 2008).ElectricityEnergy costs are too high. During dry periods the pumps run continuously for 24 hours perday and 6 days a week, there is a need to have the tariffs looked at and, maybe have thetariff rate discounted for sugar cane growers to enable them to be sustainable in thebusiness. It is imperative to train the farm manager and/or pump attendants on when and howmany pumps to start at a time as this affect electricity maximum demand.Appendix three shows a calculation of the amount of energy used by this FA and compares itto what should have been used per season. This maximum demand calculation gives anNyanyali Farmers Cooperative Report - 2009 Page - 31 -