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

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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
funds, and they then have to mark up the interest rates to cater for management andadministrative costs.The government has provided a facility to rebate several farmers at KDDP for some ofthe funds loaned by financiers towards land development and water conveyancefrom source to field edge. Modalities for determining the rebate due, and fordistributing/managing the funds, are being finalised by the industry.On a sugar levy, the SSA successfully negotiated that the levy be stopped given thatthe Sugar Protocol had expired. The government agreed to stop it as of 1 October2009. The SSA itself does not impose any levy.Re-schedule existing loans by extending the repayment period:Some DFIs have reduced their interest rates, and repayment periods have beenextended for the highly indebted growers for 7-15 years.The operations and modalities of a Ratoon Management Fund (RMF) is beingfinalised, to facilitate the timely sourcing and distribution of cheaper funds to sugarcane growers during periods when funds are needed – e.g. for fertiliser afterharvesting prior to being paid by the mill.Set up a facility for the financing of development costs (land clearing, supply andinstallation of irrigation infrastructure) at concessionary rates:Through the EC Accompanying Measures (ECAM) new smallholder sugar canegrowers will have up to 70% of their development costs grant-financed 27 . To beeligible, growers need to meet the following criteria 28 : be part of a FA, with landholdingnot exceeding 3.5 ha per household; reasonable representation of womenand vulnerable groups; financially viable and sustainable Business Plan; Chief’sletter of consent; water abstraction rights and a sucrose quota; EnvironmentMitigation Plan; undertaking to maintain in proper condition the irrigation equipment;evidence to finance the remaining 30% of the total development cost (for seed-caneplanting and cane establishment).EC Round 1: Eight FAs (with 379 members) were approved for an area covering 630ha; seven FAs (200 members) in LUSIP (397 ha), and one (179 members) in KDDP(233 ha). In all areas, land development and irrigation installation works are ongoing,with seed-cane being expected to be planted in LUSIP.EC Round 2: The Business Plans of 11 FAs (with 550 members) have been approvedby the NAS Evaluation Committee as eligible for EC funding, covering an area of865.4 ha; eight FAs (337 members) in LUSIP (484.8 ha), two FAs (93 members) inKDDP (140.6 ha), and one FA (120 members) in Hlane (240 ha).EC Round 3: The Business Plans of 10 FAs (with 463 members) have been approvedby the NAS Evaluation Committee as eligible for EC funding, covering an area of646.6 ha; eight FAs (395 members) in LUSIP (542.2 ha), and two FAs (68 members) inKDDP (104.4 ha).Existing growers will be assisted through rehabilitation of irrigation equipmentdesign flaws, and with procurement of seed-cane for replanting.These interventions should help farmers generate sufficient surplus funds to share27 As part of the Multi-Annual Action Plan (MIP) 2007-2010. See: European Union (2009).28 RDMU. National Adaptation Strategy Newsletter. Issue 1 2010.RDMU (Strategic Environmental Assessment of the National Adaptation Strategy) - Page 59
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Restructuring and DiversificationMa
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DISCLAIMERThe contents of this repo
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5.7.2 Expected impacts in absence o
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List of Acronyms and Abbreviations
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HIVHPIIAIAIDIPCCIPPISOITFIWRMJWCKDD
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PSIRBARDMUREASWARMFRPDPRSARSSCSS&MS
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UNEPUNFCCCUNICEFUNISWAUSUS$VACVCTWF
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1 EXECUTIVE SUMMARYSwaziland has be
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- In spite of the above water-stora
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to keep the same quality), destruct
Page 21 and 22: ooooMust be based on a basin-wide h
Page 23 and 24: ooooMust address the socio-economic
Page 25 and 26: - Optimal use should be made of thi
Page 27 and 28: 2 BACKGROUND2.1 The EU sugar reform
Page 29 and 30: eing implemented directly by the in
Page 31 and 32: for implementation. For future StrE
Page 33 and 34: operating in Swaziland, one in Simu
Page 35 and 36: 4.2 Climate and climate changeSwazi
Page 37 and 38: 4.4 Land and land tenureLand tenure
Page 39 and 40: Most of the water in Swaziland (96%
Page 41 and 42: −−−Decline in biodiversity (m
Page 43 and 44: Figure 6: Cause-effect relationship
Page 45 and 46: Figure 8:Cause-effect relationships
Page 47 and 48: Figure 10:Cause-effect relationship
Page 49 and 50: economic and social welfare in an e
Page 51 and 52: 5.2.1.3 Water usage and demand in S
Page 53 and 54: Table 7:Capacity, use, types and ch
Page 55 and 56: 5.2.1.5 The Komati Downstream Devel
Page 57 and 58: Table 8: Industry area (ha) by irri
Page 59 and 60: 5.2.2 Expected impacts in absence o
Page 61 and 62: ipening period. Presence of pests a
Page 63 and 64: 5.2.2.5 Effects of future water sho
Page 65 and 66: As was noted in the scoping report,
Page 67 and 68: contribute to poverty alleviation.
Page 69 and 70: sufficient to cover all the farmers
Page 71: which revealed that 66% of the popu
Page 75 and 76: contracts; in practical terms there
Page 77 and 78: The United Nations Conference on Tr
Page 79 and 80: safety net would alleviate fears ar
Page 81 and 82: Table 11:Species diversity by ecosy
Page 83 and 84: Figure 19:Distribution of endemic p
Page 85 and 86: mostly on paper, are not cross-sect
Page 87 and 88: particularly true where mitigation
Page 89 and 90: Enforcement of legislation is key t
Page 91 and 92: In general, however, the HIV preval
Page 93 and 94: The HAPAC Programme applied two imp
Page 95 and 96: The company implements an HIV/AIDS
Page 97 and 98: improving co-ordination; to have a
Page 99 and 100: measures of the NAS, the RDMU indic
Page 101 and 102: sustainable business. Based on ISO
Page 103 and 104: Table 15:Synthesis of advantages an
Page 105 and 106: Considering an approximate total of
Page 107 and 108: Many factors intervene in determini
Page 109 and 110: The legal responsibilities for the
Page 111 and 112: 5.8 Key aspect 7: Regulation of eff
Page 113 and 114: effluent standards. Otherwise there
Page 115 and 116: 5.9.4 Options to address the key as
Page 117 and 118: Table 17:NAS logframe indicators ne
Page 119 and 120: IndicatorObjective 1a: Positive and
Page 121 and 122: IndicatorObjective 1a: Positive and
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6.2 Proposed StrEA performance indi
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Indicator Measurement ObservationsL
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Indicator Measurement ObservationsR
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7.1 Addressing High Priority aspect
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RECOMMENDATION INVOLVED INSTITUTION
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H. REGULATION OF ATMOSPHERIC EMISSI
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NAS Area Description Proposed measu
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Figure 29:Environmental and socio-e
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NAS ACTIONSWater balanceCont. of gr
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NAS ACTIONSWater balanceCont. of gr
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Annex 3: Key stakeholdersTable 19:M
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Institutional ActorMinistry of Natu
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Institutional ActorSwaziland SugarA
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Institutional ActorDepartment of Wa
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Table 20:Other key stakeholders rel
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StakeholderRiver BasinAuthorities (
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StakeholderWorld VisionWorld FoodPr
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Annex 4: Main policy documents and
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Policy, Plan orProgrammeNational Re
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Policy, Plan orProgrammeComprehensi
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Policy, Plan orProgrammeNational En
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Policy, Plan orProgrammeDraft Natio
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Piece of legislationNational TrustC
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Piece of legislationThe Public Heal
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Piece of legislationTreaty on devel
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Piece of legislationUnited NationsF
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Annex 5: Stakeholder engagement met
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Date Time Place Name Organisation P
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StrEA STUDY PHASEDate Time Place Na
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Annex 7: List of participants to th
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Annex 8: Agenda for the stakeholder
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Cortez, LAB and Brossard Pérez, LE
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Matsebula, M (2009) EC Accompanying
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Seebaluck, V.; Leal, MRLV; Rosillo-
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Annex 10: Terms of ReferenceTERMS O
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2.2. Requested services for the fir
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under consideration. The consultant
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2.5.4. Analysis of performance indi
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• Fluency in both written and spo
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