Smallholder Promotion
In order to create an enabling environment for smallholder development, the Government is in the process of amending the relevant policies and laws, which will facilitate the implementation of LUSIP.
Deregulation of sugar industry
Since 1997 GOS has done many efforts in the deregulation of the sugar industry. This has been effectively achieved. Due to the deregulation of the sugar market, the quotas of sugar production by smallholders have been steadily increased.
Simultaneously, the revenues of smallholder farmers from sugar cane production have expanded in disfavour of the millers.
Liberalisation of maize market
GOS has started with the liberalisation of the maize market. The policies to liberalize the market will offer benefits to all concerned and will have a positive impact upon poverty alleviation. Opening up maize markets by creating more
transparency and the removal of price barriers will encourage smallholder production.
New Water Bill
Government is presently undertaking a modification of the Water Act (1968). A new Water Bill (1998) has been submitted to the parliament for approval. This new Water Bill will considerably facilitate the establishment of water user groups
through smallholder farmers on SNL forming a sound legal framework for the smooth implementation of LUSIP. Moreover, it will encourage a more efficient use of water rights.
National Land Policy
Currently, Government is in the process to establish a new National Land Policy which proposes the introduction of leasehold agreements on SNL. This will facilitate the commercial development of SNL by smallholder farmers.
Private sector development
Finally, Government has put much emphasis on the support for the private sector, particularly investment promotion and on support for small and medium enterprises through vocational education, skill development, access to credit, etc. These
measures will create a healthy business environment for service providers within the proposed irrigation scheme.
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