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An Assessment of the Transformation of Mkwasine Sugar Estate

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An Assessment of the Transformation of Mkwasine Sugar Estate AN ASSESSMENT OF THE TRANSFORMATION OF MKWASINE SUGAR ESTATE AFTER LAND REFORM: THE TENSIONS AND CONFLICTS By FRANCIS MUROMO Submitted in partial fulfillment of the requirements for PhD Degree in Agricultural Extension and Rural Resource Management In the School of Agriculture, Earth and Environmental Sciences College of Agriculture, Engineering and Science University of KwaZulu-Natal Pietermaritzburg June2017 DECLARATION COLLEGE OF AGRICULTURE, ENGINEERING AND SCIENCE SCHOOL OF AGRICULTURE, EARTH AND ENVIRONMENTAL SCIENCES DECLARATION - PLAGARISM I, FRANCIS MUROMO declare that; 1. The research reported in this thesis, except where otherwise indicated, is my original research. 2. This thesis has not been submitted for any degree or examination at any other university. 3. This thesis does not contain other persons‟ data, pictures, graphs or other information, unless specifically acknowledged as being sourced from other persons. 4. This thesis does not contain other authors' writing, unless specifically acknowledged as being sourced from other researchers. Where other written sources have been quoted, then: a. Their words have been re-written but the general information attributed to them has been referenced b. Where their exact words have been used, then their writing has been placed in italics and inside quotation marks, and referenced. 5. This thesis does not contain text, graphics or tables copied and pasted from the Internet, unless specifically acknowledged, and the source being detailed in the thesis and in the References sections. Signed: F. Muromo (Candidate) Date ………………………………….. As the candidate„s supervisor, I agree to the submission of this thesis; Professor P. Mafongoya (Supervisor) Date ………………………………… i ABSTRACT In examining whether corporate agriculture can be replaced by small-scale agriculture undertaken through the nucleus estate-out grower model after land reform in Zimbabwe‟s sugar estates in the south eastern Lowveld, there is need to answer the following critical questions: „Has the unbundling of formerly large–scale corporate plantations to much smaller scale farming units destroyed the once vibrant sugar estate? Is the participation of ordinary farmers without experience in sugarcane-production a wise move and does that initiate new modes of accumulation from below? Can contract farming arrangements with corporate processors or buyers provide a more viable support model than involving state support in kick-starting small- scale farmers‟ entry into sugarcane production? Who currently owns what, who does what, who gets what and what do they do with it? Despite the negative perception being peddled in the local and international media about the dramatic transformation of the three sugar estates in Zimbabwe‟s south eastern Lowveld, land redistribution in the sugar estates had to be done to redress the colonial disparity in land ownership. This study therefore examined the subdivision of one of the sugar estates (Mkwasine Estate) into small-scale farming units, against the backdrop of tensions and conflicts between a South African multinational firm-Tongaat Hulett Zimbabwe (THZ) and the resettled black farmers. This is done to determine the changes that have occurred in the land ownership structure, land tenure system as well as contestations that arose over input accessibility, utility provision and sugar pricing after the reconfiguration of the estate. To achieve this, a stratified random sample of 45 farmers from three broad farmers‟ strata, namely the high, middle and low producer categories was used to collect both quantitative and qualitative data that described what unfolded in the estate in the aftermath of land reform. Overall, the results highlighted significant land ownership and tenure system changes in the estate after the transformation. The results also established tenure insecurity in the estate as freehold tenure paved way to leasehold tenure after the Fast Track Land Reform Programme (FTLRP). There was gender disparity in the land allocation exercise as only 31.1% of the sample who benefited is women compared to 68.9 % men. Of the same sample73.3% of the beneficiaries had no sugarcane farming experience against 26.7% who had it prior to receiving farms on the estate. The former are A2 farmers who were resettled under the FTLRP and came from the civil (35.5%) as well as the security services (37.8%) and are farming on a part time basis. The term „A2 farmers‟ refer to a new class of black commercial farmers introduced by government under ii the FTLRP to deracialise commercial farming. The latter (26.7%) came from the Chipiwa Settlement Scheme and are into full-time sugarcane farming and are former THZ employees. Since their incorporation in the industry, the resettled farmers‟ contribution to total sugar output rose from 17% in 2011 to 33% in 2016. The study also established that two formulas are used by Tongaat Hulett Zimbabwe (THZ) to procure the farmers‟ sugarcane namely the milling agreement (MA) and the cane purchase agreement (CPA). The MA allows farmers to enjoy proceeds from byproducts of sugar whereas the CPA does not allow farmers to enjoy those benefits. Of the sample 26.7% indicated they use the MA and 73.3 % used the CPA raising questions as to why two procurement formulas were used by THZ for farmers on the same estate. Lastly, further evidence from the study also shows the benefits of land reform going beyond sugar production as all the resettled farmers in the estate engage in a diverse range of livelihood portfolios like petty trading, livestock farming and natural resources extraction to augment their family incomes. The study recommends farmer capacity and capability building since over 70% of the sample had no prior sugarcane farming experience. It also recommends the standardization of land sizes and tenure system as well as the adoption of one procurement price for all the farmers‟ sugarcane in the estate. The formation of a sugar council by all the stakeholders to regulate the industry by government is also recommended as it does to other crops under its input support programmes. This would greatly reduce the challenges facing the sugar industry in Zimbabwe. iii ACKNOWLEDGEMENTS Firstly, to the Lord Almighty, I thank Thee because Your eyes were always on me throughout my study. Thank You for Your spiritual guidance through Your anointed men, Pastor Musindo of the Christian Revival Centre (Senga Assembly) of Gweru in Zimbabwe and Pastor Muswaka of the Divine Life Centre of Pietermaritzburg in South Africa. The two great men invested their prayers in me which made me tick in the face of adversity! Thank you for the Divine protection on my numerous field and holiday trips to and from Zimbabwe and stay in South Africa. The mere knowledge that You were with me gave me the faith to move mountains. Glory to Your Mighty Name! Secondly, I would like to thank the University of KwaZulu-Natal for its full-fees remission policy adopted in 2009 for local, SADC and international students who are full-time research Masters and doctoral students. The policy went a long way in assisting me realize this long cherished dream. Without it, this study would have been impossible considering that I had no sponsor Thirdly, many thanks go to Professor Mafongoya for his invaluable guidance and supervision throughout the study. Thank you for believing in me and accepting to supervise my study. I have grown under your wings. I would also like to thank Dr Dewah and Dr Sharaunga for their constructive criticism in the early stages of this thesis proposal writing. Your contribution assisted me to refine the problem under study. To Onismo Muza thank you for your invaluable assistance in data analysis particularly the SPSS software. To Khayelihle Ncama- my hostel mate thank you very much for editing my chapters and for your constructive criticism and valuable insights throughout the study. Many thanks go to Mkwasine Estate farming community including Tongaat Hulett Zimbabwe (THZ) and Zimbabwe government officials in Chiredzi District for welcoming me into their i workplaces and homesteads, to live with and learn from them. Without your cooperation, this work would have been impossible. Lastly to my wife Beauty and children: Ruvimbo Lorraine, Takudzwanashe Leon and Ruramai Lesley and friends, thank you for being always there for me despite my long absence from home! This is what kept me from you for that long away! I hope you also share the joy of having it done at last! Ebenezer! I salute you all! ii LIST OF ACRONYMS ACP African Caribbean and Pacific states Banc ABC African Banking Corporation BOT Build Operate and Transfer CAP Community Agricultural Policy CAQDAS Computer Aided Qualitative Data Analysis Software CF Contract Farming CPA Cane Purchase Agreement CSA Commonwealth Sugar Association CSFAZ Commercial Sugarcane Farmers Association of Zimbabwe CSS Chipiwa Settlement Scheme EC European Community ESAP Economic Structural Adjustment Programme FTLRP Fast Track Land Resettlement Programme GIP Government Investment Plan HVA Hippo Valley Act LHC Lancaster House Constitution LRRP Land Rural Resettlement Programme MA Milling Agreement MSS Mpapa Settlement Scheme NCA National Constitutional Assembly NOCZIM National Oil Company of Zimbabwe NRZ National Railways of Zimbabwe OG Out grower SADC Southern Africa Development Community SCA Sugar Control Act SLA Sabi Limpopo Authority SusCo Successful Rural Communities THZ Tongaat Hulett Zimbabwe iii UDI Unilateral Declaration of Independence UK United Kingdom
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