P-ZM-AA0-005

Project Details
ID: P-ZM-AA0-005 Name: KALEYA SMALLHOLDER SUGAR PROJECT Status: Completed Country: Zambia
Sector: Agriculture Approval date: 27-mar-1980 Task Manager: LYMON Hoody Leslie, OSAN1
Total cost: 18004000
Currency: UAC
Source(s) of financing
ADF: 8000000
Cofinanced: 8184000
Government: 1961000
Implementing Agency: KALEYA SMALL HOLDERS COMPANY LIMITED Location: Kaleya

Objectives

The project is designed to achieve the following main objectives: - reduce sugar imports through the production of cane for sale to the Nakambala Estate for milling and processing into sugar for the local market; - improve the standard of living of some 302 participing smallholder families by providing them with cash income and simple two-room houses with pipe-borne water and sanitation facilities; - and create job opportunities for the rural population in the project locality.

Description

The project will grow 1885 ha of sugar-cane under irrigation and sell the cane to the Nakambala Estate sugar factory presently producing at about 66% capacity. The entire hectarage will be planted over a period of three years by a project company likely to be known as the Kaleya Smallholder Sugar Company Limited. After cane establishment, the project company will in four years progressively allocate, on lease hold basis, a total planted area of 1,240 ha to be selected smallholders on the basis of approximately 4.1 ha per family; the remaining 645 ha will be retained by the project company as a nucleus estate.

Benefits

The beneficiaries of the project are the 302 farmers who will be settled at Nakambala, the project staff (including cane cutters and tractors drivers), the Z.S.C., and the government. The project will bring about enhanced employment operations in the Mazabuka District of Zambia. Three hundred and two farming families will be settled on farms of 4.1 ha, designed to match the availability of family labout. The ZSC will benefit as their throughput of cane will increase, leading to lower overhead costs per tonne of sugar.

Rational

Examination of the rainfall, evaporation and other relevant data in the project area reveal net monthly water deficits for cane production. Therefore, for a cane production project to be successful supplementary water should be provided through irrigation.