Financing

Since LUSIP is a large smallholder project, the funding of the project will need to come from both the Government of the Kingdom of Swaziland and a number of donors.

The Government is presently preparing a Financing Plan for the project recommending an appropriate balance of Government funding, donor grant funding, loan financing from both local and international sources, technical assistance and the significant co-funding from the agro-processing industry.

It has been suggested that the project will be parallel financed. In accordance with the implementation schedule, LUSIP will be financed in two stages. Several donors have been approached in order to identify their level of interest and willingness to make grants, soft or commercial loans and other contributions.

It has to be noted that the private agro-processing industry will finance about one quarter of the total project cost.