5.2.1. The model: initial circumstances
KASCOL is a company set up through the initiative of the Government of the Republic of Zambia (GRZ) and other stakeholders, in 1980. This initiative had two objectives: One was to increase sugarcane production, in order to meet the Zambia Sugar Company’s (the sole
sugar milling company in the country at that time) expanded processing plant capacity in Mazabuka District: and the other objective was to improve the incomes of poor, ordinary Zambians, by involving them in the sugar industry. In order to achieve these objectives, a unique model had to be developed that could solve the following challenges: the need for having land close to the mill and a source of irrigation water; identifying a source/s of funding for the development of infrastructure; management and technical expertise; and working with smallholder farmers, without any prior experience in sugarcane production.
5.2.2. The model: organisation
The ‘Commonwealth Development Corporation’ (CDC) was asked to develop an organisational model, based on its experience with similar projects in Africa, in particular, the ‘Vuvulane Irrigation Scheme of Swaziland’ and the ‘Dwangwa Scheme of Malawi’. CDC was keen to step in because it was, at that time, seeking investment opportunities, in
order to contribute to the development of the economy of Zambia and to improve the livelihoods of the Zambian people. CDC suggested a model that saw the creation of a sugarcane production and farming services company (KASCOL) which would: (1) own the 4,179 hectares of land given by the Zambian government for the development of this project; (2) lease part of the 2,500 hectares of arable land to smallholders, for the production of sugarcane; (3) plant its own sugarcane on the remaining area, to cover its overhead costs; (4) provide agricultural services and advice to the smallholders; and (5) facilitate relationships between the smallholders and the Zambia Sugar Co. which would provide the irrigation and buy the sugarcane.
5.2.3. The model: ownership
The initial shareholders of KASCOL were CDC and two commercial banks (which provided loans for financing the infrastructure and equipment) and the Zambia Sugar Co. that provided irrigation water from the Kafue River, through its bulk water supply system. These four organisations each had a 25% stake in the company. In addition, CDC (because of its previous experience with similar projects) provided the initial management of the project.
5.2.4. The model: smallholders
It was not until 1984, after everything had been set up and the cane fields had been planted, that smallholders were integrated to the model. The conditions for a smallholder’s
eligibility were that s/he was a healthy individual with a reasonable family size (about eight in total). However, since the concept of this project was new to the local people, the public invitation for Zambians to join the project as smallholders was not easily taken up, as one of the initial managers from CDC explains:
“The Kaleya Smallholder settlement [KASCOL model] was a new unproven concept that
people needed to see working before they took the major step of uprooting themselves and their families. Sugarcane as a commercial crop, and its organisation to supply the sugar factory, were both new to most people and certainly very different to the usual Zambian
His sentiments are supported by one of the original smallholders who states:
“My father and others did not want me to come here [to KASCOL] because they thought
sugarcane was not a good crop for me. As Tongas [Local tribe of Mazabuka District] we are used to maize: you grow it and then store some for your food.”
Consequently, only eight smallholders joined the project. These eight volunteers were also KASCOL employees, who decided to resign and take up sugarcane farms because they trusted the system. These first eight smallholders were subjected to a selection process, set up in January 1984 and comprised of a district agricultural officer, representatives from the Zambia Sugar Co. and KASCOL, four district chiefs and the district governor, as chairperson of the group. These first smallholders had prior experience in sugarcane farming hence no training was necessary; each was immediately given a four Ha cane field, plus ½ Ha plots, to build his/her house on and grow subsistence crops (See App-1.2 and App-1.3 in Appendix 1 for photos of some smallholders with some of their other crops).
However, the following year, interest in the project grew, as these eight smallholders received their incomes. KASCOL re-advertised and a reasonable number of people applied, with all applicants passing through the selection committee and undergoing six months training in cane husbandry, before being integrated. As a result, the number of smallholders continued to grow over a period of 10 years, until the project closed up entry in 1994, with a total of 160 smallholders.
5.2.5. The model: division of work
The smallholders assumed the responsibility of activities, such as ridging, smut rouging, weeding and irrigating their cane fields. KASCOL was responsible for cane-harvesting; chemical application; supervising the farmers’ field activities; replanting the cane; water
roads; and providing other social amenities, such as domestic water and recreational facilities.
5.2.6. The model: governance
The composition of the KASCOL board, contracts and the farmers’ association, were the three major areas, which were considered under the model’s governance and these are now described.
KASCOL Board
The initial board of directors of KASCOL consisted of representatives of CDC, the Zambia Sugar Co. and the two shareholder banks. In addition, the Zambian government appointed a high ranking official from the Ministry of Agriculture, who had a strong inclination to serve the interest of the smallholders, to sit on the KASCOL board.
Contracts
The Zambia Sugar Co. and KASCOL signed a renewable three years sugarcane supply and irrigation contract. Under this contract, KASCOL would only supply its cane to the Zambia Sugar Co. and in turn it would receive irrigation water. On the other hand, KASCOL and the smallholders signed an agreement in which smallholders would lease land from KASCOL, for a renewable 14 year period. The contract bound the smallholders to grow cane according to the stipulated agronomic practices and also allowed them to receive agronomic services and irrigation water from KASCOL. The contract was explicit about the duties of KASCOL and the farmers and what action would be taken, in the event that a smallholder breached any of the terms of the contract.
Farmer association
In 1985, the smallholders formed an association, ‘Kaleya Smallholder Farmers Association’
(KASFA), thus responding to advice from KASCOL, since this had been in the plan of the model developers.
“It was always envisaged that there would be some form of farmer representative group to liaise with Kaleya [KASCOL] management,” explains the former CDC official and former KASCOL manager.
The first farmers’ association was mostly composed of the first eight smallholders. The primary role of this association was to represent the smallholders in negotiations with KASCOL. KASFA became a registered entity and it had a constitution by which it was governed. The chairperson of the farmers’ association also attended KASCOL board meetings.