Service Contract No 2007 / 147-446 Strategic ... - Swaziland
Service Contract No 2007 / 147-446 Strategic ... - Swaziland
Service Contract No 2007 / 147-446 Strategic ... - Swaziland
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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) <strong>2007</strong>-2010. See: European Union (2009).28 RDMU. National Adaptation Strategy Newsletter. Issue 1 2010.RDMU (<strong>Strategic</strong> Environmental Assessment of the National Adaptation Strategy) - Page 59