Swaziland Rural Development Project Appraisal Report

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Swaziland Rural Development Project Appraisal Report FILECOPY ReportNo. 1306-SW Swaziland RuralDevelopment Project AppraisalReport Public Disclosure Authorized January12, 1977 EasternAfrica Region AgriculturalCredit and Livestock Division FOR OFFICIAL USEONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank This document hasa restricteddistribution and may be usedby recipients only in the performanceof their official duties.Its contents may not otherwise be disclosedwithout World Bankauthorization. CURRENCY EQUIVALENTS Currency Units = Emalangeni (E) or Rand (R)L(E- R) US$1.00 = E 0.87 E 1.00 = US$1.15 WEIGHTS AND MEASURES Metric System Metric British/USEquivalents 1 meter (m) = 3.3 feet 1 hectare (ha) - 2.47 acres 1 kilometer (km) 2 ' 0.62 miles 1 square kilometer (km ) 0.39 square mile (sq. mi.) 1 kilogram (kg) = 2.2 pounds (lb) 1 liter (1) 0.26 U.S. gallon (gal) 0.22 British gallon (imp gal) 1 metric ton (m ton) = 2,204 pounds (lb) ABBREVIATIONS AfDB African DevelopmentBank AU Animal Unit CCU = Central CooperativeUnion CRDB = Central Rural Development Board CTO = Central Transport Organization CDC = Commonwealth Development Corporation CIDA = Canadian International DevelopmentAgency EDF = European Development Fund ODM = Overseas Development Ministry - UK PWD = Public Works Department RDA Rural DevelopmentArea RDO = Rural DevelopmentOfficer SDSB = Swaziland Developmentand Savings Bank USAID = United States Agency for InternationalDevelopment UNDP = United Nations Development Program UBS 3 Universityof Botswana and Swaziland FISCAL YEAR April 1 - March 31 /1 The Lilangeni (pl. Emalangeni)was introducedas the local currency in September, 1974; the Rand is also legal tender in Swaziland. FOROFFICIAL USE ONLY SWAZILAND RURAL DEVELOPMENT PROJECT APPRAISAL REPORT TABLE OF CONTENTS Page No. SUM4ARY AND CONCLUSIONS .. .............................. i-iii I. INTRODUCTION .............................. 1 II. BACKGROUND ..................................... 2 A. General ...................... 2 B. The Agricultural Sectcr ........................ 5 C. Crop and Livestock Marketing and Processing .... 6 D. Rural Development Programs .. ...... ............ 6 E. Government Services and Training .... ........... 7 F. Agricultural Credit and Cooperatives .... ....... 9 G. Rural Social Services .......................... 11 III. THE PROJECT ............................................. 11 A. General Description . ............................ 11 B. The Project Area ............................... 12 C. Detailed Features .. ............................ 14 D. Project Costs .................................. 17 E. Financing ...... ................................ 19 F. Procurement ... 20 G. Disbursement ................................... 21 H. Accounts and Audit .......... ................... 21 I. Environmental Impact ..... ...................... 23 IV. ORGANIZATION AND MANAGEMENT ............................. 22 V. PRODUCTION, MIARKETING, FARM INCOME, GOVERNMENT BENEFITS.. 27 VI. ECONOMIC BENEFITS AND JUSTIFICATION ........... .......... 29 VII. AGREEMENTS REACHED AND RECOMMENDATIONS ........ .. ........ 31 This report is based on the findings of an IBRD appraisal mission to Swaziland in June, 1976, composed of K. Mlarshall,S. Capoluongo (IBRD), K. Landskroner, and A. Vilakazi (consultants). This documenthas a restrictd distributionand may beused by recipientsonly in the performance of theirofcial dutis. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. -2 ANNEXES 1. Agricultureand Livestock - Sector Review Table 1 - Summary of Characteristicsof GeographicRegions Table 2 - Climate Histograms Table 3 - Rainfall data - 1975 Table 4 - Slope Categories: General Statementof Potential Table 5 - Land Use, 1973-74 1 Table 6 - Crop Production - 1972/73 - Cropping Pattern and Volume of Production Table 7 - Swazi Nation Land: Area and Production of Crops - 1971/72 - 1973/74. Table 8 - Average Yields of Major Crops on Swazi Nation Land by Region - 1972/73 - 1973/74. Table 9 - Maize Area Cultivated,Production and Yield Table 10 - Seed Cotton Production - 1963/1964 to 1973/1974. Table 11 - Tobacco Production - 1960/61 to 1974/75. Table 12 - Vegetable Production Table 13 - Swaziland Livestock Numbers - 1971-75. Table 14 - Census of Cattle 1948-1975. Table 15 - Cattle Herd Structure - 1975. Table 16 - Details of Fattening and "SISA" Breeding Ranches. Table 17 - Origin and Dispositionof Cattle at FatteningRanches. Table 18 - Holdings Reporting Cows and Milking Cows - 1974. 2. Rural DevelopmentPrograms Table I - ODM Land Purchase Scheme - List of Areas Purchased or Under Negotiation Table 2 - ODM Rural Development Areas Program - Physical Achievements and Project Submission Targets for 1975 Table 3 - Rural Development Areas - Sale of Inputs Appendix 1. Rural DevelopmentProjects and Programs 3. Land Tenure and SociologicalBackground Table 1 - Developmentand Utilizationof Freehold Title Farms by EcologicalArea Table 2 - Swazi Nation Land Holdings - Characteristics Table 3 - Swazi Nation Land - Number and Area of Holdings 4. Marketing,Processing, and Prices, Crops and Livestock Table I - Maize - Production, Imports, Consumption, Values and Prices Table 2 - Cotton Lint Prices - South African Custom Union, 1970-75 Table 3 - Beef Production,Exports, and Consumption Table 4 - Marketing and Slaughter of Cattle -3- ANNEXES Table 5 - Cattle Slaughter 1969-1975 Table 6 - Beef Exports - Country of Destination Table 7 - Exports of Animal Products Table 8 - Exports of Agricultural Products, 1971-74 Table 9 - Raw Materials used in Processing Agricultural Products Table 10 - Production of Processed Agricultural Products 1970-74 Table 11 - Value, Volume, and Destination of Principal Agricultural Exports 1973-74 5. Institutions Involved in Rural Development Appendix 1. Order by Ngwenyana in Libandla - Order No. 4 of 1954 Creating the Central Rural Development Board 6. Training and Manpower Requirements for Rural Development Table 1 - Field Officer Demand and Supply Projections 7. Agricultural Credit and Cooperatives Table 1 - SDSB - Comparative Balance Sheets Table 2 - SDSB Loan Portfolio Table 3 - Registration of Cooperative Societies Table 4 - Agricultural Credit Usage 8. The Project Area Table I - Characteristics of Proposed Project Rural Development Areas Table 2 - Cropping Pattern in Proposed RDA's Table 3 - Characteristics of RDA's in ODM-financed Rural Development Program Appendix 1. Soil Classification 9. Rural Social Services 10. Project Agricultural Production Estimates (a) Agricultural Production - Technical Parameters for Inputs and Outputs Table 1 - Local Maize Table 2 - Hybrid MIaize Table 3 - Cotton Table 4 - Tobacco Table 5 - Potatoes Table 6 - Beans Table 7 - Groundnuts -4- ANNEXES (b) Estimated Gross margins per hectare Table 8 - Estimated Gross Margins (c) Herd Projections - Technical Parameters Table 9 - Cattle Production (d) Incremental Production in Project RDA's Table 10 - Incremental Production Table 11 - Financial and Economic Prices 11. Development Projections (a) Extension Services and Infrastructure Table I - Fixed Investments - Vehicles and Equipment Table 2 - Fixed Investments - Buildings and Installations Table 3 - Fixed Investments - Summary Table 4 - Operating Costs - Wages and Salaries Table 5 - Operating Costs - Other Recurrent Costs Table 6 - Operating Costs - Summary Table 7 - Extension Services and Infrastructure Summary of Investment Costs. (b) Livestock Development Table 8 - Fixed Investments Table 9 - Recurrent Costs Table 10 - Livestock Development - Summary of Investment Costs. (c) Land Development and Consolidation and Conservation Works Table 11 - Development Costs Table 12 - Maintenance Costs Table 13 - Land Development and Conservation Works Summary of Investments. (d) Crop Inputs Table 14 - Incremental Investment Costs. (e) Agricultural Credit Services Table 15 - Fixed Investments Table 16 - Recurrent Costs Table 17 - Agricultural Credit - Summary of Investments. -5- (f) Road Development Table 18 - Investment Costs (g) Social Infrastructure Table 19 - Fixed Investments Table 20 - Recurrent Costs Table 21 - Social Infrastructure: Summary of Investments (h) Project Management Services Table 22 - Investment Costs (i) Technical Services Table 23 - Investment Costs 12. Summary of Project Costs Table 1 - Summary of Annual Project Costs Table 2 - Project Financing Plan 13. Project Management Appendix 1 - Terms of Reference, Technical Advisers 14. Project Implementation Procedures Table 1 - Project Implementation Plan 15. Estimated Schedule of Disbursements 16. Government Finance 17. Government Project-Related Funds Statement 18. Economic Analysis Table 1 - Economic Rate of Return Calculation 19. List of Principal Project-Related Documents CHARTS Ministry of Agriculture IBRD 16390 Proposed Project Organization MAPS IBRD 12360 IBRD 2940R3 SWAZILAND RURAL DEVELOPMENT PROJECT SUMMARY AND CONCLUSIONS i. Swazi agriculture displays an unusually sharp duality between an intensive, modern, largely foreign owned and managed farming sector, and the traditional subsistence sector. Most subsistence farmers are concentrated on about 57% of Swaziland's land area known as Swazi Nation land; here, tradi- tional authority aid land tenure systems prevail. Despite recent economic growth, largely fueled by agriculture development, Swazi Nation land farmers have not shared in the nation's prosperity, and for many years Government agricultural programs neglected them. Since before independence in 1968, the Swazi Government
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