The
implementation and coordination of this national strategy requires the use of
dedicated institutional structures, whilst not replacing existing ones. In this
regard, existing institutions will be assessed for their capacity and
effectiveness in delivering the programmes espoused in this national strategy.
Where necessary, capacity building support will be provided.
In
addition to the existing institutional structures, there is a need to establish
and staff a dedicated unit to implement this National Adaptation Strategy. The unit will operate semi - autonomously and its
activities will be co-ordinated by the Ministry of Economic Planning and
Development. Its activities will also be driven by the private sector, which
will include representatives of smallholder farmers. The unit will be operationally efficient,
and will administer funds dedicated to restructuring and diversification. The
unit will also coordinate with other institutions in the delivery of the
assistance.
The
unit will have to be supervised by a National Adaptation Strategy Steering
Committee coordinated by MEPD, which will be responsible for policy and
direction. This steering committee will comprise representatives of all
relevant stakeholders. Support will be required in the establishment and
running of the unit, and other operational activities of the Steering
Committee. The institutional assessment and capacity building will also be
undertaken under the activities of the Unit. This Unit will be called the
Restructuring and Diversification Management Unit.
table 25:
Estimated Costs of STRATEGY RESPONSE MEASURES, €1,000
Code and Description
|
Sources of Funds
|
Phase I Budget
|
Phase II Budget
|
Phase III Budget
|
Total
|
|
|
III-A Competitiveness |
|
|
|
|
||
|
Intensify programmes for
reducing field level costs, raise sucrose content, streamline cane delivery,
reduce harvesting, haulage and loading costs, and reduce irrigation costs |
Industry/
Govt
|
200
|
500
|
300
|
1000
|
|
|
Explore the use of
alternative forms of energy |
Industry
|
100
|
200
|
100
|
400
|
|
|
Improve and expand the
system of tarmac roads in the Lowveld |
Donor
|
0
|
10000
|
20000
|
30000
|
|
|
Improve Maputo freight
handling facilities |
Donor
|
0
|
500
|
200
|
700
|
|
|
Expand bagging capacity |
Donor
|
0
|
1000
|
2000
|
3000
|
|
|
Expand refining capacity |
Donor
|
0
|
3000
|
4000
|
7000
|
|
|
Reduce the cost of public
utilities and improve their efficiency |
Govt
|
0
|
4000
|
4000
|
8000
|
|
|
Support research and
development initiatives |
Donor
|
200
|
3000
|
8000
|
11200
|
|
III-B
TRADE POLICY DIMENSION AND ACTIVE PURSUIT OF PREMIUM MARKETS
|
|
|
|
|
||
Extend the provisions
of TDCA to the entire SACU area and modify where necessary to include the
development of regional demand for regionally produced sugar.
|
Govt
|
50
|
50
|
50
|
150
|
|
Maintain (and were
possible expand) preferential access to regional markets and preserve the
value of the domestic (SACU) market
|
Govt
|
50
|
50
|
50
|
150
|
|
|
Ensure a good transition
arrangement is created to secure continued preferences on volume sales to the
EU (particularly SPS allocation) and seek increased access of Swazi sugar to
the EU, and other preferential markets |
Govt
|
10
|
0
|
0
|
10
|
|
|
III-C PROMOTING Smallholder
SUGAR CANE GROWING |
|
|||||
|
Support smallholder farmers
in improving their farm operations to improve efficiency and viability of
existing farmers and facilitate the entry of new ones |
Govt/Donor/Industry
|
500
|
750
|
300
|
1550
|
|
|
Re-examine the viability of
the smallholder cane grower component of LUSIP and KDDP |
Donor
|
300
|
50
|
0
|
350
|
|
|
Stabilize the financial
situation of existing small and medium sized cane
growers |
Donor
|
7000
|
8000
|
14000
|
29000
|
|
|
Re-examine, with a view to
improve, management training programmes presently provided to sugar farmer
associations |
Donor
|
300
|
2000
|
4000
|
6300
|
|
Improve cane production
and harvesting, yields and sucrose content
|
Industry
|
200
|
200
|
300
|
700
|
|
Provide capacity
building programme to SWADE and SSA extension services
|
Donor
|
100
|
100
|
100
|
300
|
|
|
Introduce management (and
productivity) conditions to smallholder cane crushing contracts |
Industry
|
0
|
0
|
0
|
0
|
|
|
Design a financing/lending
model for smallholder farming to be used by financial institutions |
Donor
|
200
|
150
|
100
|
450
|
|
|
III-D Diversification |
|
|
|
|
||
|
Expedite approval of
legislation allowing the commercial sale of electric energy to the national
power grid |
Govt
|
0
|
300
|
0
|
300
|
|
|
Identify best practices to
develop electric power co-generation within sugar-industry-based initiatives. |
Govt
|
300
|
0
|
0
|
300
|
|
Investigate alternate
energy sources and products, including the efficiency of energy generation
from bio-fuels
|
Industry
|
-
|
-
|
-
|
-
|
|
|
Support studies and
programmes on the (viability of the) generation and use of bio-energy and
production of ethanol |
Govt
|
200
|
300
|
0
|
500
|
|
Provide low-cost
financing for pilots phases of
co-generation of electric energy
|
Industry
|
0
|
20000
|
0
|
20000
|
|
|
Re-visit the industry
agreement to ensure that growers get benefits from co-generation activities
(on proceeds of bagasse) |
Industry
|
0
|
0
|
0
|
0
|
|
|
Establish a
facility/programme for farmers changing to other crops or to agricultural
services. |
Donor
|
0
|
2500
|
0
|
2500
|
|
|
Establish a scheme to
enhance the capabilities of smallholder associations for quality control,
packaging, and marketing. |
Industry
|
0
|
450
|
900
|
1350
|
|
|
Reduce transport costs and
improve transport infrastructure and services from production centers and to
link with markets |
Donor
|
20000
|
12000
|
30000
|
62000
|
|
|
Develop financing model for
diversifiers and help them in accessing finance and training |
Donor
|
0
|
200
|
0
|
200
|
|
|
Promote and support research
and development into other products/crops |
Donor
|
200
|
4000
|
8000
|
12200
|
|
|
Establish and support
institutions and infrastructure for testing of products for quality and
standards |
Govt
|
210
|
1800
|
0
|
2010
|
|
Develop products for
existing and new markets and the necessary support mechanisms
(infrastructure, marketing information, etc), including making the necessary
investments (and policy changes) to make the production of alternative
products viable
|
Donor
|
200
|
350
|
300
|
850
|
|
Provide support for
downstream value-added industries
|
Donor
|
0
|
1000
|
2000
|
3000
|
|
|
Support the expansion of
refinery capacity and efficiency |
Industry
|
150
|
500
|
300
|
950
|
|
|
Develop
tourism products for the SME sector in the sugar areas, and to support new
initiatives of diversification into sector |
Govt
|
200
|
200
|
2000
|
2400
|
|
|
Establish a support
mechanism to follow up recommendations on control of and compliance with food
safety regulations. |
Govt
|
200
|
500
|
500
|
1200
|
|
|
III-E SOCIAL AMENITIES
PROVISION |
|
|
|
|
||
|
Develop a model for the
sustainable management and financing of social amenities in industry areas to
ensure continued provision of quality housing, health, and education,
currently financed by the industry |
Govt
|
300
|
0
|
0
|
300
|
|
|
Support the gradual
development of local government structures capable of running social &
communal services at the sugar communities |
Govt/Donor
|
300
|
10000
|
30000
|
40300
|
|
Create a programme to
support transitional and coping measures for retrenched workers, especially
with regard to access to industry social services
|
Govt
|
500
|
800
|
0
|
1300
|
|
|
Support the strengthening
of basic social services provision to population, and provide safety nets for
retrenched and unemployed people |
Govt
|
300
|
1000
|
0
|
1300
|
|
|
Implement multi-skilling
programmes for workers retrenched at sugar companies |
Donor
|
300
|
300
|
900
|
2100
|
|
|
Establish an effective and
continuous AIDS programme, and related AIDS (effects) mitigation measures |
Donor
|
0
|
8000
|
2000
|
10000
|
|
|
III-G ENHANCING A SUSTAINABLE SOCI-ECONOMIC
ENVIRONMENT |
|
|
|
|
||
|
Establish effective support
services for rural micro- and small-scale enterprises, as farms and mills lay
off personnel outsourcing services |
Donor
|
300
|
2400
|
2700
|
5400
|
|
|
Relax regulations governing
establishment of new businesses |
Govt
|
0
|
0
|
0
|
0
|
|
|
Support the implementation
of the investor roadmap |
Govt/Donor
|
500
|
1500
|
1500
|
3500
|
|
|
Establish a research farm
to run practical field scale agronomic research and market research on
alternative crops to sugar cane |
Donor
|
300
|
1500
|
1300
|
3100
|
|
|
Improve security of tenure
on land |
Govt
|
0
|
0
|
0
|
0
|
|
|
Ensure full
concessional/grant financing of LUSIP |
Donor
|
0
|
42000
|
0
|
42000
|
|
|
Support
semi-industrial-scale trials of substituting coal by baled sugar cane trash
as supplementary industrial fuel. |
Industry
|
-
|
-
|
-
|
-
|
|
|
Expand and improve quality
of the national schooling and Technical training |
Donor
|
|
10000
|
10000
|
20200
|
|
|
Decentralise planning,
budgeting and delivery of services to the rural poor |
Govt
|
300
|
3000
|
4000
|
7300
|
|
|
Engage the EU with a view to move the assistance modality
towards sectoral and/or general budget support |
Govt
|
200
|
100
|
0
|
0
|
|
|
Promote good governance |
|
|
|
|
|
|
|
Train communities on the
utilization of Poverty Funds to support coping and diversification, including
entry into sugar industry |
Donor
|
200
|
4000
|
4000
|
8200
|
|
|
Support the development of
a national water conservation plan |
Donor
|
0
|
200
|
-
|
200
|
|
|
Improve environmental management
mechanisms |
Donor
|
300
|
1500
|
1500
|
3300
|
|
|
III-H INSTITUTIONAL STRUCTURES FOR IMPLEMENTATION AND COORDINATION |
|
|||||
|
Establish “Restructuring
and Diversification” Unit (includes M34) |
Donor
|
300
|
1000
|
1500
|
2800
|
|
|
Support the continuous
operation of the National Adaptation Steering Committee |
Govt
|
To be financed by
operating costs of Unit
|
||||
|
Evaluate the capacity of
existing institutions and programmes in delivering on the activities required
in the adaptation strategy |
Donor
|
200
|
300
|
100
|
600
|
|
|
Support the creation of additional
structures/institutions/programmes necessary for the successful
implementation of the strategy |
Donor
|
0
|
3000
|
1500
|
4500
|
|
|
TOTAL |
|
12,780
|
152,090
|
162,500
|
349,760
|
|
Phases: Phase I = covers the short
term comprising the period between 2006 to July 2007
Phase
II = covers medium term between the periods of August 2007 and
December 2008
Phase III = covers the long-term between the periods January 2009 to December 2015