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

The United Nations Conference on Trade and Development (UNCTAD) reiterated some ofthe above points, outlining recommended policies for small-scale sugar cane growers inSwaziland 32 :1. Present land tenure policies and legislation should be reviewed to facilitatecommercial farming on SNL, as stated in the National Development Strategy (NDS).2. The government should review ways of providing loans guaranteed for small-scalesugar farmers.3. Measures, including legislation, need be considered to ensure that FAs are legallyconstituted.4. The taxability of income from commercial farming on SNL is to be clarified.5. The MOA should consider monitoring yields; any field that does not meet an agreedminimum reference yield should be investigated on the grounds of “wasting a nationalresource”.6. Establishment of a development fund, administered by the industry, to assist newsmall-scale participants.7. Growers to be ensured of receiving the required amount/type of extension services.8. Improved training to trainers and growers, in all aspects of cane-growing and insupport services, such as in money management, loan applications, administrationand bookkeeping.9. Funding for small/medium enterprises is required to provide support services togrowers, such as for machinery pools, haulage contractors, land developers, farmingcontractors, and management services.The NAS actions taken to date address some of the key issues: around long-termsustainability through financial support, support in the provision of infrastructure, capacitybuilding and training, extension services, and options around diversification. However, thereseems to be a key problem in the viability of small cane growers: the management modelselected for implementation, which in turn affects financial success and profitability, and thusconcerns around food security and poverty.If appropriate and proficient management of the FAs was established, and the ‘business’ ransuccessfully, there might be lesser concern around issues such as high interest rates, costsand tax. Concentration on getting the model right, in agreement with the participants is a toppriority. Thereafter the long-term sustainability can be assured through some of the issuescurrently addressed by stakeholders in the sugar industry, particularly in relation to NAS:reducing the debt burden through the provision of grants, rescheduling loans, or establishingfunds; assisting in the development of business plans, including financial management;negotiating with relevant bodies around relief in the high costs of services; providing supportin the form of infrastructure, extension services and training; and mainstreaming gender toensure participation of women.Until the core issue is addressed, all NAS actions will not necessarily have the desiredoutcome: long-term sustainability of small cane growers. Rather, they may be curative ratherthan preventative, with no guarantee of a ‘cure’, exposing the high level of risk to failure.32 UNCTAD (2000).RDMU (Strategic Environmental Assessment of the National Adaptation Strategy) - Page 63