FARMERS STRUGGLE TO MAKE ENOUGH RETURNS

MBABANE - The Minister for Finance, Neal Rijkenberg says that while agriculture is widely recognised as a solution to unemployment and poverty, the sector’s fundamental economics remain weak.

Speaking at the launch of the Smallholder Agriculture Productivity Enhancement and Marketing Project (SAPEMP) last week, Rijkenberg pointed to the economic realities facing Eswatini’s smallholder farmers, arguing that they do not earn enough to justify their efforts.

Over 117 700 emaSwati are set to benefit from the newly launched SAPEMP, a transformative initiative valued at E851 million (US$45.5 million).

The project, which runs from 2024 to 2031, aims to enhance smallholder farmers’ productivity, improve household incomes and strengthen resilience to climate change.

Development

The project is a joint effort by the Eswatini Government, the International Fund for Agricultural Development (IFAD), the Green Climate Fund (GCF), and private sector partners. It will be implemented countrywide by the Eswatini Water and Agricultural Development Enterprise (EWADE).

While projects like SAPEMP aim to boost agricultural productivity, he insisted that a broader restructuring of the sector is necessary to make farming financially viable.

“What we are getting wrong in our agriculture space is the basic economics of it. Because farmers are not making money,” he stated, urging stakeholders to rethink the way the industry operates.

The minister, himself a passionate advocate for agriculture, stressed the need for better economic structures to ensure that small-scale farmers can thrive.

He highlighted the success of the EWADE in grouping farmers into co-operatives, which has transformed some communities but left others lagging.

Collaborations

Rijkenberg believes that the successful model pioneered by EWADE should be expanded nationwide. He emphasised that Eswatini’s agricultural sector has failed in the past because smallholder farmers were not effectively grouped into profitable co-operatives.

“We have to use that same structure now and roll it out across the country in other farming mechanisms. Let’s leverage what we are getting right,” he said.

Beyond restructuring farm ownership models, Rijkenberg stressed the need for greater focus on agro-processing. He pointed to existing initiatives, such as collaborations with Taiwan on fish production, as examples of how smallholder farmers can boost their incomes.

Another key challenge identified by the minister is land size. Unlike commercial farmers in other countries, Eswatini’s farmers typically own small plots, making large-scale farming difficult.

However, Rijkenberg expressed optimism that innovative approaches like tunnel farming could help smallholder farmers achieve high yields despite their land constraints.

Rijkenberg assured the farming community that the Ministry of Finance and government remain committed to supporting agriculture. He called on development partners and private investors to play their part in ensuring that Eswatini’s farmers can earn a sustainable income. “As the Ministry of Finance, we fully support this initiative. As a government, we are fully behind the Ministry of Agriculture, and we will continue to do so,” he declared. SAPEMP will also establish business relationships between smallholder farmer clusters and anchor enterprises, ensuring farmers have access to reliable markets. “Farmers often lack coordination and a business mindset,” IFAD Country Director Francesco Rispoli said.

Production

“Through SAPEMP, we will improve their production practices, access to finance and market integration.”

Dr Samson Sithole, CEO of EWADE, reiterated that SAPEMP will not operate in isolation but will leverage past and ongoing investments such as the recently concluded Smallholder Market-Led Project (SMLP), which benefitted 90 000 farmers.

As Eswatini embarks on this ambitious journey, SAPEMP stands as a beacon of hope for small-scale farmers, promising increased productivity, improved incomes and a resilient agricultural sector for future generations.

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