KOMATI DOWNSTREAM DEVELOPMENT PROJECT
KDDP Overview
Objective:
To alleviate poverty in rural agricultural communities through participation in commercialized, irrigated businesses.
Key Facts”
1. Project title |
Komati Downstream Development Project (KDDP) |
2. Description |
Development of 7400 hectares of irrigated farms through participation of all affected people |
3. Crop Mix |
5 500 hectares sugar cane & 1 900 hectares fruit and vegetables |
4. Number of beneficiaries |
19 500 people in the Project Area, 14 500 direct participants |
5. Project cost |
E415 Million |
KOMATI BASIN DEVELOPMENT
The Komati Basin Development project was conceived in the early 1980’s to provide irrigation water for farm development in South Africa and Swaziland. The project in Swaziland consists of three parts:
1. The construction of the Maguga Dam. The cost of this dam, estimated at E900 million, was shared between the Governments of South Africa and Swaziland on a 60:40 ratio
2. The development of 7400 hectares of irrigated farms downstream. The costs of this development will be borne by the Government of Swaziland and the participating smallholder farmers through finance arranged with Government assistance
3. The expansion of the Mhlume sugar mill to accommodate an additional 80 000 tonnes of sugar annually. The cost of this development will be borne by the private sector
DOWNSTREAM DEVELOPMENT
The most appropriate commercial crop for the Project Development area (PDA) is sugarcane, although other crops including vegetables can play significant roles. Sugarcane is well suited to the climate and soils. The presence of an established mill at Mhlume provides additional incentive. Sugarcane is a good pioneer crop for smallholder farmers and the single channel through the mill allows farmers to secure finance for development and working capital against crop revenue.
The project was conceived with four development pillars:
* Setting up of smallholder farmer associations in the form and composition decided by the members to best further the aims of the project;
* Design and implementation of measures to mitigate the environmental and social impacts of the scheme;
* Development of irrigated smallholder farms on approximately 7400 hectares of land along the Komati River. The majority of the smallholders will be growing sugarcane; and
* Monitoring of the measures designed to mitigate the environmental and social impacts of the scheme.
Implementation of KDDP ensures the effective utilization of Swaziland’s portion of 83mcm out of the 332mcm capacity of the dam. This is also to mitigate against possible loss of revenue to the Swazi Nation from failure to utilize water timely.
STATUS
Having commenced in July 1999, originally the project was expected to be complete during 2006, where 6000 hectares would have been developed, 29 farmers associations established and the potential to generate income from viable business enterprises unleashed.
The KDDP has demonstrated an enviable success in getting farmers organizations to diversify and vertically integrate their commercial production. To date about 3 700 hectares of production land has been planted to sugarcane and 350 hectares has been dedicated to diversified agricultural production. A total of 239 homestead garden businesses have been established. Other business enterprises established include dairy, poultry, bee production, beef feedlot, haulage and water usage monitoring.
PROJECT FUNDING COLLABORATORS BENEFITS OF THE DEVELOPMENT
The project was financed by the Governments of South Africa and Swaziland on a ration of 60:40 respectively, for construction of the Maguga Dam.
The farmers’ businesses are funded by various institutions with financing to date as follows:
The KDDP has built and continues to build collaborative partnerships with various government institutions like the Ministries of Agriculture and Cooperatives, Health and Social Welfare, Public Works & Transport, Water Resources Branch, Non governmental organizations and the private sector. This collaboration is to ensure the capacity within these organizations is fully utilized for the long term sustainability of the project.
At full implementation of the KDDP, at least 3 000 jobs will be created. It also presents various opportunities for spin-off businesses that have the capacity to generate revenue in excess of E100 million for small and medium businesses.
Additional physical improvements result from the establishment of irrigable agricultural farms, which are mainly sugarcane. These include the creation of a rural electrification supply and civil works, (access roads, bridges, pump house etc.) and have far reaching effects on community. Improved training and management skills percolate through the Development Area, creating opportunities for the pursuit of diverse businesses.
The infrastructural development and intensive training programs increase the potential for the communities to guide their lives in a positive, sustainable manner.
