As regards agriculture, the NDP lists as sectoral Key Achievements, Strengths and Opportunities:
• Sugarcane: The sugar industry continues to be a key contributor to agricultural output and the economy at large through its backward and forward linkages to other sectors. A total of 9 000 new ha of irrigated land has been developed and put under sugarcane production.
• Maize: An input-subsidy programme was introduced in 2015 with the aim of improving the competitiveness of agriculture production. With the exception of the drought years, maize production has increased to almost 100 000 tonnes per annum. Nevertheless, this does not yet meet domestic consumption requirements, and a study has not yet been done to assess the impact of the subsidy.
• High-Value Crops: A number of new, high-value-added crops are being explored, including horticulture, vegetables, cotton variants and new fruits. Some of these are already experiencing success in trials and in informal markets. The regulatory framework is being developed for these, and support to meet export standards is being put in place.
• Livestock: Pig, poultry and dairy livestock are all undergoing positive developments, with increased pig-breeding capacity, broiler and table-eggs successfully exported to the regional market, and large investments underway in the dairy industry.
• Irrigation Projects: Government has invested heavily in irrigation in the form of small earth-dams as well as large dams for agricultural irrigation smallholder schemes. Projects such as LUSIP I and II are enhancing the irrigation coverage in Eswatini and increasing the country’s resilience to drought.
Key Challenges, Weaknesses and Threats:
• Climate Change: The frequency and intensity of droughts appear to be increasing, and the country has limited climate-change resiliency and mitigation mechanisms. The agricultural sector is greatly affected by droughts, with livestock and crops under Swati Nation Land (SNL) being particularly exposed. The sector contracted by 11.4 percent cumulatively as a result of the previous drought. To exacerbate matters, there is no insurance coverage against any disaster, unlike in other SADC countries that have invested in such.
• Maize: The country has never been able to produce enough to feed itself, and has always relied on imports to meet its consumption requirements. Local maize produce is less price- competitive than imported grains, and local production makes up just 70 percent of the national requirement, despite it being the staple food. Furthermore, lack of coordination and other inefficiencies associated with the rollout of the input-subsidy programme have reduced its potential impact.
• Inflation: High food-inflation has reduced access to food for many families, especially as they depend on purchases to meet their food requirements. The inflation is further exacerbated by the effects of drought and the reliance on imported food. Increasing production costs, particularly electricity and water, are reducing margins and pushing out small producers.
• Land Utilisation: There is a sizeable amount of unused or underutilised arable land, including large hectarages held by government as idle farms. For those in the hands of their owners, most are lying idle and held for speculation as land prices rise significantly. The legislative framework for land procurement often limits commercialisation. Furthermore, land issues are the responsibility of various Ministries, making it difficult to reach consensus decisions.
Response Strategy:
• Diversify product-base by developing agro-processing strengths and value-chains
• Improve irrigation and water supply facilities and prioritise dams on the list of planned large infrastructure projects
• Identify and fully explore a range of potential new agricultural and horticulture crops and potential agro-processing products to prioritise
• Take full advantage of new trade deals to boost current product-base
• Develop an integrated land-use plan
• Promote investment directed towards processing of local raw materials into finished products in the value-chain
• Support cross-border linkages into regional and global value-chains
• Promote movement from subsistence farming to commercial farming, including the enactment of the SNL Commercialisation Bill
• Ensure appropriateness of current legislation to allow current opportunities to be harnessed
• Strengthen livestock breeding and improvement programme
• Review existing Single-Industry Borrower Limit regulations to enable more credit to enter the agriculture sector
MINISTERIAL THINK-TANKS
Cabinet and Principal Secretaries regularly convene to review the Strategic Roadmap, this to ensure that all development plans are geared towards addressing the specific growth pillars of the NDP. In a recent joint statement, an assurance was given that in 2022 and beyond, agriculture would remain a key priority for sustained economic growth in the kingdom, and that an emphasis would be placed on the adoption of smart and modernised agriculture in order to mitigate the effects of climate change. An example of the latter is the prototype drip-irrigation-tunnel project which is sited in the area around King Mswati III (KMIII) International Airport and which aims to increase the production of export-destined vegetables. Government’s drive to propel business growth and job creation also includes boosting milk production for self-sufficiency and export purposes: construction of a milk processing plant has been completed and an operator engaged, which has triggered other local milk producing companies to expand their facilities. Dairy-based enterprises are expected to create 5 000 jobs at full implementation.
Strategic Roadmap
When the Minister of Agriculture, Jabulani Mabuza, unpacked the Strategic Roadmap to media representatives, he highlighted government’s belief that the time had come for Eswatini to commercialise agriculture. He noted that the sector currently contributed nine percent to GDP, and that the target was to increase it to 15 percent within the next five years. Mabuza pointed out that the same applied to employment opportunities generated – currently nine percent of the workforce, to be increased to 15 percent – then added that in order to achieve said percentages, the country would have to build enough dams to irrigate as much as 30 000 hectares of new farmland. That figure included completion of the Lower Usuthu Smallholder Irrigation Project Phase II, he said, and after which it will develop the Mkhondvo-Ngwavuma Dam and also construct 20 or more small- and medium-size dams across the country.
Mabuza said that he also wished to see improved service delivery of the inputs subsidy and tractor hire services, which would lead to increased production of maize, legumes and sorghum, resulting in a greater likelihood of attaining food security. He declared that further enhancement of output could be realised through ensuring optimum production on both government-owned and private-sector farms, saying that the country must increase agricultural exports and value-add activities by placing a determined focus on daily production and agro-processing. The Ministry of Agriculture’s planned outcomes from the NDP/Strategic Roadmap include:
• Further optimise the export-oriented production and marketing of baby vegetable as currently under way in the tunnel-project near KMIII International Airport
• Upscale the facilitation of private sector investment in the tunnel-based programme to encompass all four regions of the country
• Promote beef production and processing in order to increase annual output from its current 11 000 tonnes to about 16 000 tonnes
• Similarly with goat production, increase annual output from its current 16.25 tonnes to a significantly greater 2 500 tonnes
• Increase milk production from 18 million to 100 million litres and thereby attain self-sufficiency with surplus for export
PURSE-HOLDER
When the Minister of Finance, Neal Rijkenberg, allocated to the Ministry of Agriculture a total of E1.6-billion “to ensure adequate service delivery for crop and livestock services, agricultural research, water harvesting and irrigation development, as well as commercialisation of the sector”, he also told Parliament and the nation that government “continues to prioritise the agriculture sector for investment in order to spur economic growth and overall acceleration of national development”. Rijkenberg pointed out that the projects and programmes attracting government budget in this sector were aimed at addressing food insecurity and rural poverty, then extended thanks to the kingdom’s cooperating partners for their continued support in this sphere of activity. Specific undertakings and their allocations:
• Towards completion of the Lower Usuthu Smallholder Irrigation Project Phase II (Downstream Development) E745.1-million
• High Value Crops Project E191.9-million
• Livestock Development Project E30.9-million
• Construction of the Mkhondvo-Ngwavuma Dam E83.8-million
• Construction of small and medium dams E83.7-million
• Feasibility study for proposed Nondvo Dam E22-million
Situation Report
Minister Rijkenberg pointed out that agriculture has in the quest to build its resilience and improve production received a great deal of assistance from the kingdom’s development partners: he said that several measures were being implemented in response to climate change, and emphasised that these initiatives would be ongoing in order to enhance production. Continuing, the Minister reported that a number of coordinated programmes, including the High Value Crop and Horticulture project, the Fruit Tree project and the Smallholder Market-Led project, have begun to generate significant output for farmers. The latter have received support while diversifying their production activities away from the traditional sugarcane and maize to horticulture and small stock, resulting in a marked increase in local production of vegetables in particular.
GOVERNMENT ARM
The Ministry of Agriculture’s obligation is to ensure household food security and increased sustainable agricultural productivity through diversification and enhancement of commercial agricultural activities. The Ministry is also responsible for the development and promotion of appropriate technologies and efficient extension services, while ensuring stakeholder participation and sustainable development and management of natural resources.
PARASTATAL ACTIONS
The kingdom’s National Agricultural Marketing Board (NAMBoard) hosted the inaugural Cold Chain Summit Eswatini at the Mavuso Trade and Exhibition Centre in Manzini. The undertaking was said to be in line with the government-issued mandate to grow and expand agribusiness through initiating and maintaining a Cold Chain, Logistics and Produce Handling Programme. Themed ‘Keeping It Fresh’, the Summit was staged in collaboration with the Southern Africa Chapter of the Produce Market Association of which NAMBoard is an affiliate member and whose mission is to connect, inform and deliver industry solutions to enhance members’ prosperity. The first-of-its-kind such event in the region was described as a resounding success that has set the path and tone for agriculture commercialisation on the domestic front.
Cold Chain Summit Eswatini attracted more than 700 local, regional and continental delegates: it featured 34 representatives of various value chain industries – including some of the largest producers and marketers from the SA region – along with 26 exhibitors from across the cold chain technology and services sector, banks and non-bank financial institutions, local and regional media, as well as both export-ready and smallholder farmers from across Eswatini and the SADC region. The Summit specifically sought to achieve the following objectives:
• Kick-start the process of alliances, networks and knowledge required to commercialise agriculture in Eswatini
• Build and maintain an uninterrupted end-end cold chain management system within the country’s fresh produce markets, farming units, handling facilities and retail sector by connecting stakeholders across the agriculture value chain including farmers, input suppliers, academia, cutting-edge technology leaders, cold chain management system providers, cold chain transport providers, exporters, fresh produce market agents and retailers
• Capacitate local farmers with the necessary knowledge, equipment and agents to arrest high rates of post-harvest losses and extend product shelf-life of various value chains including beef, small livestock, dairy and field produce
The Summit was structured around these three Pillars:
• FARM INPUTS: Sustainable Farm inputs • Biological seed, chemicals and soil enhancers• Proper seed and seedling production• Inputs supply chain and opportunities• allowable inputs in exports
• PRODUCTION SYSTEMS: Mechanisation• Genetic modification • Greenhouse production• Biological management• Climate smart focused production• Farming with nature
• POST-HARVEST TECHNOLOGIES: Harvesting and harvest management • Transportation by land, sea and air• Standards and accreditation• Logistics control and calculations• Processing• Refrigeration
NAMBoard’s report-back declared that over the course of the two days, rich knowledge was ingrained, farmers were exposed to new ideas, technologies and relevant tools for cold chain management, valuable relationships and networks were forged, and there was exposure to the great value that can be gleaned from maintaining an effective Cold Chain, Logistics and Produce Handling Programme. According to the organization, it also became apparent that much remains to be done to attain the higher goal of an improved national economy fed by a vibrant agro-processing industry that itself is a result of the application of effective cold management systems in local agribusinesses. The delivery of industry-relevant research papers, exhibitions of cutting-edge technology, pre-arranged sessions and site excursions, exposure to local, regional and global market opportunities, all combined to create a best-case approach that left the majority of delegates, speakers and sponsors expressing very positive sentiments about the event.
Under the heading ‘Summit Benefits to the National Economy and Value-Chains Enhancement’, NAMBoard summed up thus:
• Skills-building has been identified within the Economic Roadmap and Strategy as key for the industry to forge ahead and achieve set growth targets. Skills in Cold Chain Management are highly specialised and difficult to source. The Summit provided these skills in the shortest possible time and in the most cost-effective manner, as all industry players were available in one centre.
• The sharing of inspiration and lessons from experience is important in kick-starting commercialisation and attaining the level of production, logistics and marketing that the country has set as standards. The presentations by leading farm groups and producers at the Summit contributed to making the latter a reality. The speakers also interacted with farmers from all levels, enhancing the motivation.
• Deal making and business enhancement: The Summit connected farmers with key value chain stakeholders such as financiers: it is expected that by the end of the year, at least E20-million will be committed by the various financial institutions towards growing small to large-scale businesses. Major deals already in progress include the King Mswati III Airport Agribusiness Hub where two more financiers and investors have come on board.
• Major industry partners that include ZZ2, RSA Group, Fruit Farm Group and Johannesburg Fresh Produce Market made commitments to start due diligence and value chain identification within the next two months.
• With over 200 participants from outside the country, the event injected income into the local economy. It is planned that in future summits, synchronisation with the tourism sector will be achieved so that maximum value is derived.
The Prime Minister asserted during his keynote address that the summit came at the most opportune time, with agriculture deemed one of the fundamental vehicles to revive the country’s economy: for this reason, he said, government considered the event to be of great significance and pivotal in stimulating the objectives of the Strategic Roadmap towards ensuring that the country attains Vision 2022. He described the two-day programme as “a clear demonstration that when we get agricultural processes right, benefits will accrue to a myriad industries and, by extension, communities and towns as the country witnesses renewed economic activity”.
The PM added said that government’s aim was to generate over 20 000 jobs in this sector within the next three years through downstream activities such as LUSIP and the Earth Dams project which, collectively, shall bring more than 4 500 ha under irrigation for commercial production of non-sugar crops. He spoke of how the dairy industry aims to increase annual milk production beyond the 100 000-litres mark, and how growth is expected in other fresh products such as beef, fish and fruits. He concluded his remarks by encouraging farmers to follow best cold chain management practices and standards in all operations in order to attain a good shelf life for their produce and successfully penetrate export markets, ensuring sustainability and a reliable income.
Eswatini Dairy Board (EDB)
The entity has in place a Dairy Industry Development Strategy to 2024, which aims to improve the subsector through effective and relevant production and management systems, human resources development and dairy marketing/promotion.
• Dairy Industry Structure Reform: Involves the introduction of new and influential players who can bring about effective economic change and industry dynamics. This strategy involves the establishment of large dairy farms which can boost production volumes and quality and further attract investments into manufacturing and processing. Large-volume milk production is central to evolving the industry into import substitution and export promotion. The establishment of other small, medium and large processing plants is also key in changing the dynamics of the industry.
• Farm Production System: Eswatini’s dairy industry is focusing on investing in increasing adoption of existing beneficial dairy technologies and developing new techniques to increase productivity and production from forage, potential feed-conversion efficiency, cow-functionality and resource-use efficiency. The industry is also focusing on conducting farm research to analyse and address challenges relating to farm health, management and farm profitability. The implementation of business- and production-targeted extension services is also key in enterprise development. Effective dairying is achieved through creating industry networks and building capability in all parts of the industry. Finally, effective communication needs to be in place between government and dairy farms and other stakeholders in the value chain in order to test the effectiveness of government policy initiatives.
• Farm Management Systems Strategy: Ensuring that farm managers have the business skills to identify their goals and implement their plans could enhance dairy farm management. Farm managers’ capabilities could be improved through appropriate education, research, on-farm training, establishing high-quality information sources and ensuring that dairy businesses have access to improved methods and tools that could support farm management. To ensure capacity building, develop a graduate trainee programme in collaboration with dairy farms and processors and furthermore collaborate with youth agencies and Tinkhundla Centres in empowering young people in dairy entrepreneurship skills.
• Dairy Industry Marketing/Promotion: This strategy is mainly focused on increasing the range of products manufactured locally which may include UHT, cheese, ice cream, butter, powdered milk and others. This can be done through attracting investments and promoting dairy processing in the industry and providing a business model that is focused on trade issues and the needs of the two ends of the value chain, namely the consumer and the farmer. Other strategies include the formation of a stakeholder task team which will be focused on promoting dairy throughout the broader community to develop goodwill and awareness about the benefits of dairy. Create a dairy-promotion forum to facilitate dairy seminars and presentation of dairy research papers to stakeholders. Promote campaigns throughout the value chain that will create awareness about the benefits of dairy.
• Attracting Talent to the Dairy Sector: The industry will promote dairy careers to school leavers, tertiary students and early career-change individuals through ensuring that people in the industry are fully informed of career and business opportunities in dairy, and know how to access these opportunities. Also, it is important to promote the schools’ dairy projects and school feeding programmes to ensure that pupils learn about dairy and its benefits while at school. On-farm innovations are encouraged to improve the work environment. In addition, dairy people’s careers could be developed through ensuring that high quality training services, leadership programmes and mentoring or coaching programmes are in place.
• Government Regulations/Strategies: In terms of regulations, relevant government departments and agencies should ensure that all plans and policies relating to land use, resource availability, animal health issues, trade and quality control, economic and social principles are developed to create an enabling environment for the industry, rather than to frustrate plans and operations. Benchmarks and targets for increasing resource efficiency and guiding good practice by stakeholders should be established. This goal seeks to ensure that Eswatini’s dairy industry is progressive across all segments of the supply chain, including the harmonisation of all dairy import and export permits (one-stop shop) for ease and efficiency. This goal also focuses on smooth operations and engagement with stakeholders for the industry to thrive: it is important that the above is achieved through involving, working and negotiating with dairy stakeholders to develop regulations that will maximise the effectiveness of the industry performance rather than hinder such practices.
PANORAMIC VISION
Royal Eswatini Sugar (RES) Corporation in its most recent Integrated Report declared: “Our strategy is a key part of our intellectual capital. The year under review was the first in our five-year Simama strategic growth plan to 2025 which aims to increase capacity in the factories, increase the area under cane and diversify our product portfolio. Part of the plan includes an efficiency drive in the mills, distillery and support functions. Despite the many challenges, we have made progress on a number of fronts.
“RES’s strategic aspiration speaks to a continued cost control consciousness that will drive employee behaviours over the next five years and reduce the unit cost of producing one tonne of sugar by 20 percent by 2025. Our strategy is supported by three distinct themes that guide management in selecting strategic initiatives. These are, firstly, cost optimisation through efficient, cost effective and innovative production of agricultural products using soil as our base asset. Secondly, we are pursuing new products and markets. Thirdly, we aim to enhance our organizational culture based on strong motivation and innovation as we hold each other accountable to exceed individual and organizational goals.
“Our strategic programme includes Simunye centrifugal upgrade, Simunye B continuous pan, upgrade Simunye A evaporators, overall energy efficiency, accelerated conversion to drip irrigation, land and factory expansion, and distillery upgrade. New products and markets to be investigated include an alcohol bottling plant, anhydrous alcohol plant, ethyl acetate plant, polylactic acid plant and opportunistic crops. To achieve our organizational culture objectives, initiatives will include business process improvements, enhancing management capability,
increasing our use of value-add technology and encouraging high performance at both team and individual levels. Our ongoing horizontal growth projects include new cane lands under drip irrigation and bulk water infrastructure, expansion of capacity at both mills, and the upgrade of D1 plant in the distillery to the same specification as the modern D2 plant.
“Through the IYSIS acquisition, we secured the leases on new land for cane production and we improved water storage. In addition, we increased capacity for CMS and molasses storage. We also continued to research becoming self-sufficient in energy, which was a key priority of our previous strategic plan. We finalised a SAP project in the mills and distillery to ensure accurate reporting in order to aid decision-making and planning. This will allow us to track our performance against strategic plans. Our attempts to secure certification for food safety for the mills have not yet been successful, but will continue in the new financial year as we work with the Eswatini Sugar Association and their consultants. At Simunye, a mud filter project was postponed as consultants from outside the county were unable to travel due to lock-down restrictions.
“Our two major priorities centre around productivity and efficiency, but we have also started to pursue product diversification to dilute our long term reliance on the sugar industry. Biodegradable plastics, growing new crops and the production of gin, vodka and rum in the distillery were considered, and feasibility studies will be conducted over the next two years. Now that the revised Petroleum Bill allows for fuel blending, we can take advantage of the changed legislation to pursue opportunities in this area.
“There is much to be done to achieve our objectives by 2025, including ensuring that we consult and cooperate with our Outgrowers. In order to succeed, we need to increase our use of value added technology and reshape our organizational culture through skills enhancement, a consolidated in-house research and development capability, and the practice of a high performance culture. We will also need to develop the required marketing skills for a diverse range of new products.”
D-DATE 2022
Local timber giant, Montigny Investments Limited (Montigny), committed itself to a target of having created 12 500 jobs by 2022: CEO Andrew le Roux made the undertaking when addressing His Majesty King Mswati III during an annual Shiselweni Business Dinner. Montigny was founded in 1997, and is today the 100 percent Swati-owned and operated, largest integrated timber company of its kind in Southern Africa. According to le Roux, its workforce during the interim grew to 6 700 by 2016, then to 11 600 by 2019: he said that in line with the country’s Vision 2022 and NDP/Strategic Roadmap to 2022, Montigny then aimed to create an additional 900 jobs, most if not all of which in rural areas that customarily offer few employment opportunities.
