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

including a needs assessment of the training required; improving caneproduction yields and sucrose content by an increased use of fertilisers andagrochemicals, and the expansion of cane farming into virgin land; and,providing a capacity building programme to SWADE and SSA extensionservices, also requiring a needs assessment.- Diversification within and outside of the sugar industry, including the growing andmarketing of crops other than sugar cane, strengthening agricultural research andextension, and diversification into other industries. All require intensive research andinvestigation.- Enhancing a sustainable socio-economic environment, and cross-cutting issues, suchas:ooooImproving access and security of tenure on land, given that access to land isregulated and limited and therefore not easy to use as a means to supportincome generation, nor is it possible to use SNL as collateral for loans.Consultation with the MOA and relevant traditional leaders is required toensure full concessional/grant financing of LUSIP.Providing grant financing of LUSIP, recognising that the sugar reforms haveput LUSIP at risk and financing is required to ensure its viability.Empowerment of the poor to generate income, through expansion andimprovement in the quality of national schooling and technical training inconsultation with the Ministry of Education, and accessing credit for businessand agricultural purposes through the Poverty Fund, developed by the MEPD.Pursuit of good governance, such as through the training of communities onthe utilisation of Poverty Funds to support coping and diversification, includingentry into the sugar industry, by implementing relevant portions of the PovertyReduction Strategy and Action Plan.Recognising the problems facing the viability and sustainability of smallholder sugar canegrowers, the RDMU is undertaking a number of activities relating to the NAS measures. TheSSA is also implementing a Smallholder Assistance Action Programme largely based onimplementation of the NAS, with input from and actions involving relevant stakeholders.Of relevance are the following objectives, each with actions for implementation 25 :Objective 1: Reduce the debt burden of smallholder farmers and make loansrepayableDevelop a programme to assist in reducing the rate of interest and/or obtain grantfunding from government (including the possibility of using a sugar levy):The programme to reduce interest rates has followed two approaches: the first, to reschedulethe loans; the second, to reduce the interest rates. Apparently, according tothe SSA, there has been success in re-scheduling most of the loans. To date,although some Development Finance Institutions (DFIs) did agree to reduce theinterest rates for existing farmers, generally the interest rates remain high, averagingaround 15% 26 . The DFIs state that they are charged prime by most of their sources of25 Information is taken mostly from an SSA paper entitled: Smallholder Assistance Action Programme: Towards EnhancedViability and Sustainability of Smallholder Sugarcane Growing.26 Interest rates go up to 18%; rates vary depending on the DFI. The interest rate that is used in business plans for new FAsapplying for the EC grant is 15%.RDMU (Strategic Environmental Assessment of the National Adaptation Strategy) - Page 58