• Reference: P-SZ-AAA-001
• Approval date: 12/12/2002
• Start date: 05/10/2004
• Appraisal Date: 30/08/2002
• Status: OngoingOnGo
• Implementing Agency: SWAZILAND KOMATI PROJECT ENTERPRISE LTD.
• Location: Komati area

Background

The Government of Swaziland’s primary objective is the alleviation of poverty within the country. The Komati Project has the potential to significantly improve the living standards of the rural farming communities within the Komati River Basin.  The scheme will affect some 20,000 people (directly and indirectly) who now make their living from subsistence farming in an area encompassing 27,000 hectares.

The prospects for the project area, without a substantial investment in irrigation, are poor.  The area has a low and erratic rainfall and a long dry season. Current arable dry land farming brings less than subsistence returns to the farming communities and is not sustainable. Unemployment, child malnutrition and soil erosion are widespread.  Irrigation in the area, using Swazilands share of water from the Maguga Dam, will substantially increase productivity on sustainable basis.
 
On completion, the project will have assisted the smallholder farmers associations who would be cultivating sugar cane and other crops on 7,400 hectares of irrigation fields, out of which 4,200 ha will be developed under this operation.  The cornerstone of the scheme is participation by project beneficiaries in the design and implementation of the social, legal and economic structures required to ensure a successful project.  The Government of Swaziland intends that all affected people benefit in some way from the project. It is against that background that GOS requested the Bank to finance the project.

Rationale

In line with Swaziland’s National Development Strategy, the Project has the potential to significantly improve the living standards of the rural farming communities within the Komati River Basin. The scheme will affect some 20,000 people who now make their living from subsistence farming in an area encompassing 7,400 hectares. The population in the project area is among the poorest in the country, except for a small number of smallholder households engaged in small-scale commercial irrigated sugar cane production and other crops.
 
The prospects for development for the project area, without provision of irrigation, are poor.  The area has a low and erratic rainfall and a long dry season. The present arable dry land farming brings less than subsistence returns and is not sustainable. Sprinkler irrigation in the already developed areas has proved to substantially increase productivity on a sustainable basis. Smallholder farmers who engage in irrigated farming would be able to graduate out of poverty.

Objective

The overall objective of the project it to reduce poverty through increased household income, enhanced food security and improved access to social and health infrastructure for the rural population of the Komati Downstream Development area. This will be achieved by creating the conditions for the transformation of subsistence level smallholder farmers into small- scale commercial farmers.

Description

The project entails brining of 7,400 ha of land for crops, mainly sugar cane, maize, vegetables and bananas by utilizing Swaziland’s share of the water from the Maguga Dam. Some 2,200 ha have been developed by Government of Swaziland (GOS) and the beneficiaries while another 4,200 ha will be developed under the project. This is in addition to 1,000 ha that will be developed by other private farmers. The project will provide the required irrigation systems and infrastructure as well as credit funds to enable smallholder farmers intensify and diversify their agricultural production, building on existing linkages with the private sector. The project will comprise three main components, mainly: Agriculture Development, Infrastructure Development, and Project Implementation and Management.

Benefits

The project’s internal financial rate of return is 29% and it project will be in a position to cover all of its operating expenses and still provide significant net household incomes that improve the food security situation of the target population.

COOMPSON Joseph Akrofi - OSAN3

Finance source	Amount
ADB	UAC 8,840,000
NTF	UAC 4,950,000
Government	UAC 3,330,000
Total	UAC 17,120,000