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Annual Report 2015/16

SWAZILAND WATER AND AGRICULTURAL DEVELOPMENT ENTERPRISE

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VISION : “To attain new opportunities in the service provision of sustainable socio-economic development in the region”

MISSION: Empowering communities to improve their quality of life through projects in commercial agriculture and other enterprises; providing innovative services in infrastructure development and management as well as expertise to public and private entities.

SWAZILAND WATER & AGRICULTURAL DEVELOPMENT ENTERPRISE ANNUAL REPORT 2015/162


VALUE STATEMENTInnovation We will continuously look for new ways to do things and introduce

new methods to make our business and development processes more efficient. We will measure innovations by mapping existing processes and monitoring change – positive or negative in terms of cost and or time of delivery

Integrity We will conduct our business dealings both internally and with external stakeholders with honesty, trustworthiness and reliability. We will conduct periodic surveys of our farmer clients and our development stakeholders to assess how trusted we are

Responsibility We will act correctly and in consideration of others at all times and will hold each other accountable in delivery of our mandate

Professionalism We will strive for excellence in everything we do and will be courteous and fair to all our partners

Empowerment We will use every opportunity to give others, within and outside the organisation, more control and power to achieve more productive and sustainable lives

VALUES:

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TABLEOF CONTENTKey Performance Indicators 01Chairman’s Statement 02Chief Executive Officers Review 03Board Members 04Management 05Corporate Governance Review 06 Status of Delivery: 07 SO 1 Growth and Sustainability of Development 07 SO 2 Human Capital Development 08 SO 3 Systems and Technology Management 09 SO 4 Effective Governnace 010 SO 5 Finance 010

Impact of SWADE projects 011Sustainability 015Audited Financial Statements

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SECTION 1Introduction

and Statements from the Board of Directors

SWAZILAND WATER & AGRICULTURAL DEVELOPMENT ENTERPRISE ANNUAL REPORT 2015/16 5


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RISE +4

RISE 20%

RISE 20%

KEYPERFORMANCE HIGHLIGHTS

PROJECT PORTFOLIO: NUMBER OF PROJECTSIn an effort to alleviate poverty in the country, a total of four new projects were added during the year. The total number of SWADE projects now stands at nine.

NUMBER OF PEOPLE REACHED THROUGH PROJECTS IMPLEMENTATION SWADE has transformed lives of 60 608 people within the Project Development Areas (PDAs) of the different projects through different initiatives which include, potable water, sanitation, agribusiness activities and climate smart initiatives. The initial target was 50 690 people.

TOTAL LAND DEVELOPED The three SWADE projects (KDDP, LUSIPI and LUSIPII) initially targeted to develop a total of 17 500 ha under irrigated agriculture have now reached 9 948ha. Land development has been done in two of the three projects, with LUSIP 2 still at the finance mobilization stage.

FARMER COMPANIES SWADE intended to form 105 farmer companies and to date 91% of the target has been achieved. This is a significant increase from last year’s 66%. A total of 1 174 people benefitted through employment opportunities within FCs.

57% TO TARGET

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CHAIRMAN’SSTATEMENT

On behalf of the Board of Directors, I am pleased to present our 2015/16 Annual Report that incorporates the audited financial statement for the Swaziland Water and Agricultural Development Enterprise, for the year ended 31 March 2016.

This also signifies the end of the current Board’s first full year of

governing the Enterprise. It has been an intriguing and varied

period in which we have achieved good progress in the context

of challenging times, both economically and climatically, with

regards to both our internal and external business environments.

A key focus was the development of SWADE’s Strategic Plan,

from which a solid and sustainable footpath has been mapped

out for the enterprise, in line with the country’s National

Development Strategy. Our ability to deliver on our targets

despite such challenging conditions demonstrates that we are

indeed well positioned to steer this massive rural development

initiative; to deliver timely investments on the physical and human

rural context of Swaziland.

A key element of our strategic direction is to work hard to support

the Ministry of Agriculture (MoA) and the Ministry of Natural

Resources and Energy (MNRE) in realizing the potential for major

water schemes – Ethemba, Mkhondvo, Mpakeni and Silingane in

terms of multiple uses of the water resource stored and climate

change mitigation. Perhaps more importantly, it is vital that the

technical, community and contract management resources of

SWADE are recognised and utilised from start up to ‘up and

running’, that is, the turn key strength of SWADE, to help ensure

the success and sustainability of these projects that are critical

to the food security and transformation of smallholder agriculture

in Swaziland.

SWADE will continue to draw on and strengthen its development

approach whilst working to enhance and make more cost

efficient the Chiefdom development planning process which

is the cornerstone of our development impact. This process,

Chiefdom Development Planning, has evolved to a methodology,

developed and used by SWADE through the implementation of

rural development projects assigned to it by the Government of

Swaziland (GoS). The new Strategic Plan captures lessons learnt

and builds on these. The Board is dedicated to further reinforcing

our core strengths whilst focusing on cost effectiveness and

building our human capability.

To achieve this we will focus on the following key areas:

1. Fostering Effective Corporate Leadership

2. Enhancing SWADE’s Development Approach

3. Advocacy for an enabling environment for rural communities

and within SWADE

4. Investing in organisation development for efficient service

delivery

5. Diversifying funding streams for sustainability.

We look forward to delivering on these objectives whilst providing

prudent fiducial oversight to this vital development agency of His

Majesty’s Government.

May I also take this opportunity and thank the Minister

for Agriculture and his team for their unwavering support,

Management and staff of SWADE for continued delivery towards

realization of the SWADE vision and the Board of Directors for

working with diligence in steering the organisation in the right

direction.

Mkhululi Dlamini

CHAIRMAN OF THE BOARD OF DIRECTORS

Mkhululi DlaminiCHAIRMAN OF THE BOARD OF DIRECTORS

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This is based on the significant number of ‘newly funded

projects’ entrusted to the organisation by both the Government

of Swaziland and Government’s Development Partners.

INCREASE IN PROJECT PORTFOLIO AND STAKEHOLDER COLLABORATION Stakeholder relations continue to be one of our prized values.

Our successful achievements, with regard to developmental

progress, are attributed to good collaboration with our

stakeholders. In the year under review we received strong

financial support and continued to successfully implement our

mandate which has since seen SWADE’s overall coordination and

oversight grow to the current total of nine (9) projects. These are:

Komati Downstream Development Project (KDDP), Lower Usuthu

Smallholder Irrigation Project (LUSIP I), LUSIP II, Innovative Beef

Value Chain Project ( IBVCP), the High Value Crop and Horticulture

Project (HVCHP), Fruit Tree Production and Marketing Project

(FTPMP), and the now complete LUSIP-Global Environmental

Facility (GEF),otherwise referred to the Lower Usuthu Sustainable

Land Management Project (LUSLM which led to the initiation

of the Smallholder Market Led Project (SMLP) and the Climate

Smart Agriculture for Resilient Livelihoods (CSARL).

The Enterprise is also an implementing partner for the World

Bank Private Sector Competitiveness Project, the final approval

for which is with our parliamentary authorities. We are also

undertaking the Mkhondvo-Ngwavuma feasibility studies that

form a key part of Government’s drought response and bulk

water investment programme. These initiatives are proof that

SWADE is up-scaling her development models to benefit more

regions and communities in the country.

Finance mobilisation for LUSIP II is still in progress and finalization

of such is anticipated for June 2016. During the period under

review two successful Appraisal Missions were hosted for the

project - the Pre-Appraisal Mission and the Final Appraisal

Mission in the months of June and December 2015 consecutively.

The first mission was undertaken by the African Development

Bank (AfDB), the Arab Bank for Economic Development in Africa

(BADEA) and the Kuwait Fund, whilst the second mission was

undertaken by the European Investment Bank (EIB).

PROJECT DELIVERY AND CHALLENGES • The KDDP and LUSIP I projects have a combined 9 950ha

of land developed, a 75% achievement against the 12 500

target for the two project areas.

• LUSIP II is underway and great strides have been made in

mobilising and propelling communities towards this new era

of their lives. The resettlement programme of the original

homesteads and graves falling within the route of the

servitude canal is now complete.

The occurrence of the El Nino in the whole of Southern Africa

region is having major negative impact on the sugar industry

and most particularly for smallholder growers. We were swift

in developing drought mitigation strategies to address the

prevailing drought conditions imposed by the El Nino. Farmers

at the KDDP revised their irrigation schedules and reduced the

number of irrigation hours. The strategy for LUSIP farmers on

the other hand dictated that only 70% of the required allocation

could be supplied to irrigating schemes. The full strategy is being

implemented in stages, and by year end, the Lubovane Reservoir

was 77% full (119.839 Million m3). Whilst the drought had

significant negative impacts on the yield (tons of cane achieved),

Samson Silwayiphi SitholeCHIEF EXECUTIVE OFFICER


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CHIEF EXECUTIVE OFFICER’S REVIEW

The year 2015/16 saw substantial growth for SWADE as an organisation, whilst at the same time we were challenged to embrace new innovations and partnerships.

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the average tons sucrose percentage for most growers under

the projects continued to improve. It pleases us to mention that

SWADE also contributed to the Winter White Maize Production

Project, in line with mitigating national drought effects, a project

pioneered by Government through the Ministry of Agriculture. At

year end, a total of 400ha was being prepared for winter maize

production between the KDDP and LUSIP I Projects.

ENSURING LONG TERM SUSTAINABILITY AND PARTNERSHIPS The umbrella bodies for farming companies at the KDDP and

LUSIP I, which are; The Komati Farmer Federation (KFF) and the

LUSIP Farmers’ Organisation managed to join the Swaziland

National Farmers Union (SNU). The two groups have already

established good relations and are co-jointly looking at the

feasibility of establishing their own revolving fund to cater for

developmental needs at a reasonable cost.

Strengthening of community based structures such as Chiefdom

Development Plans, Water User Associations and Farmer

Companies is continuously being strenghthened to further

cement sustainability of established farming enterprises.

Future outlook I conclude by highlighting that this is indeed an exciting time to

be at the SWADE. As we take on all of these new and diverse

projects, we are working on sharpening our processes and

efficiency for accelerated service delivery. We will achieve this

by continuously motivating our staff teams and by fostering a

culture of inclusion for all. We shall continue to deliver value

to our stakeholders and based on this, expect to identify and

secure new opportunities for SWADE to win a more secure and

soundly financed future. On behalf of the management team

and staff, I wish to thank the Board for steering this ship in the

right direction. Key measures for this have been prioritising the

development of the new SWADE’s Strategic Plan and providing

strong constructive leadership. We look forward to a fruitful year

ahead, and wish all our stakeholders and business partners the

best.

Samson Silwayiphi Sithole

CHIEF EXECUTIVE OFFICER

BOARD MEMBERS

CHIEF LEMBELELE DLAMINIBOARD MEMBER

MR NEAL RIJKENBERG BOARD MEMBER

MR BERTRAM STEWART BOARD MEMBER

MR OSWALD MAGWENZI BOARD MEMBER

MR BONGANI MASUKU BOARD MEMBER

MR SAMSON SITHOLE CHIEF EXECUTIVE OFFICER

MR MKHULULI DLAMINI BOARD CHAIRMAN

MS LOMAGUGU NTSHAKALA BOARD MEMBER

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SENIOR MANAGEMENT

MR BAFANA MATSEBULA LUSIP II EXTENSION PROJECT MANAGER

MS LYNN KOTASMLP PROJECT DIRECTOR

MR RAY GAMALUSIP I PROJECT MANAGER

MS NOKUTHULA DLAMINI CHIEF FINANCIAL OFFICER

MR SAMSON SITHOLE CHIEF EXECUTIVE OFFICER

MS ZINHLE MOTSA INFORMATION MANAGEMENT SYSTEMS MANAGER

MR MUSA DLAMINIHR AND ADMINISTRATION MANAGER

PRINCE MANGETSE EXECUTIVE DIRECTOR


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OPERATIONS MANAGEMENT

MR. MUSA MASILELAWATER INFRASTRUCTURE MANAGER

MR. RONNIE MKHOMBE AGRIBUSINESS DIVERSIFICATION MANAGER

MS PETRONELLA MAMBASOCIAL FACILITATION MANAGER

MR JOHN MKHWANAZI AGRICULTURAL DEVELOMENT MANAGER (KDDP)

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MEETING AP

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Regular Board 0 0 2 0 0 0 0 0 0 0 1 0 3

Special Board 0 0 1 1 0 1 0 1 3 0 1 0 8

Projects and Tender 0 0 1 0 1 0 0 0 0 0 0 1 3

REMCOAnd Finance

1 0 0 0 0 0 0 1 0 1 0 0 3

AUDIT 0 0 0 1 0 0 0 0 0 0 0 0 1

BOARD AND COMMITTEE MEETINGS 2015/2016

Table1. Schedule of Board and Committee meetings for the period 2015/16


BOARD COMPOSITION AND APPOINTMENT The governance structure at SWADE is through the Board that is

appointed by the Minister for Agriculture. The Board comprises

7 non-executive directors including the Chairman. As such, our

governing body possesses a balance of skills and competencies

which complement the requirements of the organization and the

strategic environment.

Since the Board’s appointment in October 2014 the Directors

have continued to provide effective leadership and direction

to enhance SWADE’s long term value to both the project

beneficiaries and stakeholders alike. The Board has continued

to review the strategic plan, financial plans, annual budgets, key

operational initiatives, major funding proposals and corporate

governance practices.

The Board was able to carry out this mandate as well as achieved

the following in the past financial period:

• Appointment of the CFO, and was at an advanced stage of

appointing the CEO at the end of the reporting period.

• Initiating the process of a strategic review for the organisation

to ensure continued delivery on mandate through the 2015 –

2022 rolling strategic plan.

• Delivering improved sustainability including the review of the

organisational mandate by drafting a SWADE bill.

DELEGATION BY THE BOARDThe SWADE Board has delegated certain functions to various

committees, namely;

a. The Remuneration and Finance committee whose role is

twofold as it is responsible for:

- Assisting and supporting the Board in discharging its human

resources and remunerations related duties in an effective

and competent manner.

- Reviewing the organisation’s strategy objectives in resource

mobilisation and revenue generation.

b. The Audit Committee with the responsibility to provide a link

between the Board and its external auditors and review the

effectiveness of the company’s internal controls, including

the company’s internal audit function.

c. The Projects and Tender Committee whose objective is

to establish, oversee and control the integrity of SWADE’s

projects’ tendering process and activities.

The Board committees have terms of reference and all actions are

reported and monitored by the Board. While these committees

have the authority to examine particular issues and report back to

the Board their decisions and/or recommendations, the ultimate

responsibility still remain with the Board.

BOARD PROCESSES A schedule of Board Committee meetings is normally drafted at

the beginning of the year and the Board is expected to adhere

to the number of meetings prescribed in the Public Enterprises

Monitoring Act.

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RISK MANAGEMENTRisk management overview SWADE continues to recognise the importance of risk

management for protection of the organisation and its staff

as well as facilitation of effective operations by ensuring risk

identification, assessment, and prioritisation.

A COSO Enterprise Risk Management Framework was used

as a guide in the risk identification process by viewing the

organizational objectives in the context of four critical categories,

namely: strategy operations, reporting and compliance areas.

Each of these categories were assessed across our five strategic

focus areas: i) Governance ii) Human capital iii) Systems and

Technology iv) Finance and v) Growth and Sustainability of

Development. From this base a SWADE Risk Register was

developed. Management is responsible for monitoring and

mitigation of internal risks.

STATUS OF DELIVERYGROWTH AND SUSTAINABILITY OF DEVELOPMENT Improving the effectiveness of methodology and rate of delivery in SWADE projects The SWADE mandate supports policy and legal reforms that

will encourage commercialisation of Swazi Nation Land (SNL)

agriculture. This is substantially achieved by the formation

and registration of Farmer Companies and groups. Significant

progress towards assisting farmer companies in developing

their constitutions was made. The majority of farmer groups that

are under the mobilisation process have already drafted and

endorsed their shareholder agreements. In a bid to address the

challenge of good governance which is very common in Farmer

Companies, induction and corporate governance trainings were

conducted.

Companies have taken interest in their legal matters and eight (8)

farmer companies already have paralegals (individuals trained in

subsidiary legal matters but not fully qualified as lawyers) trained

on the Employment Act (1980), Memorandum and Articles of the

association, Code of Conduct and Ethics of Board of Directors,

Child’s Protection Act and the Swaziland National Constitution

(2005).

The SWADE continues to use the chiefdom development

planning process and partnerships have been enhanced with

other development agencies and the Ministry of Tinkhundla

Administration and Regional Development (MTARD) to strengthen

and develop a uniform development framework for the country.

The SWADE continues to provide a comprehensive programme

of long-term technical assistance, training and material support

at farmer and community level for participatory planning of land

use and irrigation development. The diversification programme

has strengthened SWADE’s focus by including other crops

and livestock production while further including environmental

management and climate smart agriculture principles in line with

climate change.

Project New FCs registered this year FCs already registered Total groups registered (to date)

KDDP 80 27 27

LUSIP I 8 87 95

LUSIP II 0 0 0

LUSLM 2 2 4

TOTAL 10 116 126

STATUS OF DELIVERYGROWTH AND SUSTAINABILITY OF DEVELOPMENT

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Improving the quality of life of communities in the PDA through poverty reductionSWADE projects ensure that poverty in communities in their

project development area (PDA) is reduced. This is done

through investments that support capacity building to ensure

that households are food secure and have a source of income.

The capacity building seeks to ensure sustainability after projects’

implementation as communities are left with the necessary skills.

Reviews of our projects have

shown that the benefits derived include:

• The implementation of efficient and supportive resettlement

programmes

• An increase in income generation within the PDAs initially

through the sugar cane schemes and other agricultural

enterprises with average household income increasing by

over 30%.

• Introduction of alternative crops and livestock development

despite being more challenging, particularly due to the

reluctance of the finance sector to invest in rural economic

activities other than sugarcane production

• Provision of potable water and sanitation

• The introduction of climate smart agriculture for rain fed

communities has seen them take agriculture as a business

• Reduced poverty - analysis and wealth indices show positive

trends and these can be attributed to SWADE managed

targeted community investments

• Beneficiaries are now able to build sustainable structures

and there are positive trends in the type of durable assets

owned by beneficiaries

• The projects have contributed immensely to fostering

functional relations at all levels in the communities, based on

the participatory approach that SWADE adopts.

Establishing concrete market platforms for selected niche cropsSugarcane has a steady market while diversification produce

markets are being strengthened. The National Agricultural

Marketing Board (NamBoard) is the major market for fresh

vegetables and fruits, banana to be specific, while other sales

are done informally with vendors and the public. This financial

year SWADE developed a Memorandum of Understanding (MoU)

with the National Maize Cooperation (NMC) to buy maize and

sugar beans from their farmers.

Livestock production by SWADE supported farmers has

increased and the farmers have acquired several marketing

platforms which include the Swaziland Meat Industry (SMI).

Indigenous chickens farming is also on the rise with steady

markets being secured for the farmers.

Improving levels of participation of homesteads in commercial activities in rain fed areasThe SWADE through the LUSLM project has promoted

participation of households in commercial activities through

implementation of the project’s alternative livelihoods

component. The project which came to an end in March 2016

is complemented by a new project that commenced in February

2016. This is the Smallholder Market-Led Project and the Climate

Smart Agriculture for Resilient Livelihoods (SMLP/CSARL) is

targeting an additional 27 chiefdoms. It is noteworthy that both

projects focus on climate smart agricultural activities.

The LUSLM project has mobilized 453 farmers to produce

commercially indigenous poultry, 380 farmers to produce and sell

honey and honey products while others are into hay baling. There

are a number of spin off businesses from this project such as

carpentry, traditional chicken nest weaving and farmer to farmer

facilitators.

Increase SWADE’s contribution to poverty reduction by establishing new projects The LUSIP II project has completed its baseline survey and

strategic environmental assessment. While 3 more projects have

commenced. These are:

• Swaziland Sugar Facility (SSF) grants in Komati and LUSIP

– SWADE as partner with RSSC and Illovo respectively –

estimated at E25 million

• High Value Crop and Horticulture Project (HVCHP) covering

some LUSIP I areas as well as national targeted areas with

an EU funding of E13.5 million

• Smallholder Market Led Project (SMLP) which is an upscaling

of the LUSLM project and is funded to the tune of USD

20 Million by the Government of Swaziland , International

Fund for Agriculture Development (IFAD) and the Global

Environment Fund (GEF).

All SWADE projects contribute to poverty alleviation, development

of the country’s water and agricultural resources as they all

empower communities to generate income and ensure food

security.

HUMAN CAPITAL DEVELOPMENTTo ensure SWADE achieves its strategic mission there is a need

to ensure that staff are engaged and motivated to collectively

drive the organization towards achieving its strategic goals

Staff complement/ manpower

At the conclusion of 2015/16 financial year, the company staff

complement stood at 131 employees on fixed term contracts

plus an additional 34 casuals making a total of 165 employees.

The total staff complement is tabulated below according to base

or work station.

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Work base/station Number of employees

KDDP 16

LUSIP I 67

LUSIP II 17

LUSIP GEF 2

HQ 18

Regular Staff 131

Casuals 34

TOTAL 165


Employee turnoverAlthough the staff turnover in the form of resignations declined

during the year under review in comparison to the previous years,

it remains an issue of concern as the organisation continues to

lose critical skills to the market. In the period under review, a

total of 13 professional staff resigned from employment, which

presented a resignation rate of 1.1 employees per month (casuals

excluded). The main reason for the increased turnover was

dissatisfaction with pay.

Industrial relationsThe staff /employee relations were well managed during the

period under review and the key matter of discussion is that of

staff unionization. The organisation’s appreciation of the rationale

to the move towards unionisation is the severity of the measures

implemented by the organisation in the review of pay packages.

Staff and Management continue to work together towards an

amicable solution that will result in healthy staff relations.

Employee wellnessAs a very important resource, the organisation continued to grow

commitment in terms of assisting its employees on wellness

related issues. As baseline surveys as well as training of SWADE

peer educators were done in the previous financial year, the

organization continued to build on this solid foundation. While

acknowledging that the wellness function is relatively at inception

stage, the progress recorded thus far is gratifying for the SWADE

as it provides a platform for the employer to create awareness

and sensitise all employees, both male and female on health

matters.

As an ongoing process and in partnership with other relevant

organisations employees were provided free medical screening.

The results of the screening process lead to a healthier workforce

in that those diagnosed with sickness are put on treatment and

those without any sickness were encouraged to maintain a healthy

lifestyle. The end result of such a process is an increased morale

of workers which augers well for productivity. The organisation

endeavors to bolster the wellness area going forward. Over and

above that, the organisation participated in multiple sporting

events both internally and nationally which also reinforces team

work and productivity culture.

Human capital developmentDue to the fact that the organisation remains committed to the

overall development of its employees, SWADE continued to

invest on its employees. In this endeavor, SWADE was assisted

by other development partners and agencies including but not

limited to the European Union through its Technical Assistance

programme f and the Swazi Government. As a product of such

an initiative, the organisation was for the first time able to appoint

Engineers in training (Cadet Engineers) as a pro-active measure

to bridging the shortage of engineering skill within SWADE and

the country in general.

SYSTEMS AND TECHNOLOGY MANAGEMENT Integration of management information systems The drive towards the integration of systems at SWADE is

still ongoing. Whilst budgetary constraints remain a common

challenge, efforts have been made to find innovative ways of

achieving desired results. A number of enterprise solutions were

reviewed during the period with the aim of coming up with a new

strategy for systems implementation.

The advent of new projects has also presented an opportunity for

a revised systems and technology approach. The new projects

present an opportunity for partnering and leveraging on existing

infrastructure and also exploring better ways of collaboration and

information sharing.

Whilst the SWADE has a well-developed network infrastructure

that continues to grow, there has been a need to consider

improving operational efficiency in the past year. This led to the

current efforts to implement satellite connectivity for the sites to

provide reliable network connectivity and failover for the current

sites.

The integrated financial management system has been

maintained and is continuously being enhanced for operational

efficiency.

Selection and implementation of appropriate ISO standardsQuality management remains key in our everyday trade.

Thirty two (32) staff members have been trained and capacitated

on the Environmental Management System (ISO 14001:2015)

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implementation. The programme will be rolled out to farmer

companies by extension officers, while efforts to raise awareness

internally have been prioritised as well. In addressing this aspect

which has negative impacts on the environment, the LUSIP I

office introduced a waste recycling programme in an attempt to

minimize the volumes of waste that are disposed indiscriminately.

This programme willl be implemented at all SWADE offices in the

next financial year.

In addition to these, efforts have been made to align to best

practices in terms of: risk management, total quality management

and information security management during the period under

review.

Effective Information dissemination and stakeholder management mechanism for SWADE The SWADE has made major, albeit uncoordinated, strides in

developing communications with key stakeholders and the wider

public in Swaziland, an example of which is the weekly articles

in the Times of Swaziland about SWADE projects. An enhanced

need to review the SWADE Communication strategy was realised

during the reporting period. As SWADE’s communication

activities seem to have been taking place in an ad hoc reactive

mode, it is essential to mobilise key target audiences around one

strong, empowering message. To facilitate this process , work

commenced on developing a SWADE Communication Strategy,

the first draft which needs to be reviewed and adopted.

EFFECTIVE GOVERNANCEDrafting of SWADE bill To protect the Government’s investment through SWADE, it

was deemed necessary to promulgate an Act of Parliament

that formally establishes SWADE with a wider mandate than the

current one.

The process of developing this very necessary SWADE Bill

continued in earnest in this period and working through a team of

consultants, a draft bill and associated position paper was done.

A Draft Bill was submitted to the Board for its consideration,

amendment as necessary and subsequent endorsement before

submission to the Ministry of Agriculture for onwards transmission

to the relevant authorities.

Review and development of prudent organizational policies SWADE is currently reviewing its existing policies and procedures

During the year work continued on updating the SWADE Financial

Management Policy and associated regulations and the Human

Resources Policy and Staff Terms and Conditions of Service

The approach to review these policies has been both through

outsourcing and an internal review process. The internal review

process will be complemented with a peer review to ensure that

they comply with relevant Swaziland legislation and best practice.

FINANCE

The donor funding received to implement SWADE projects

was adequate and there remains a positive outlook for future

funding of SWADE projects. This demonstrates the high level of

confidence in SWADE by its international funding partners.

The development of a funding structure that ensures generation

of at least 20% income has not been achieved. As such, SWADE

receives its total budget from the Swaziland Government and

the Donor Funding Institutions (DFI) community to support

operations. Prudent management of this funding structure has

been maintained with the overhead requirements being between

7-9% of the total expenditure.

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IMPACT OF SWADE PROJECTSIncome and Economic Empowerment: Performance of the farms has remained impressive, thus yielding revenue for the farmer companies’ shareholders as they share sizeable

dividends.

SUGAR CANE YIELD PERFORMANCE

Indicator SWADE target 2015/2016

2015 /2016 PERFORMANCEKDDP LUSIP INDUSTRY

Tons Cane per Hectare(TCH) 108 98.20 101.81 101.16

A Pol % 13.5 14.76% 12.82% 13.92%

Tons Sucrose per Hectare (TSH) 14.6 14.48 12.96 14.13

Burn Harvest To Crush Delay (BHTCD ) in Hours

60 51.50 59.32 36-48

Positive gains have also been realised for households engaged in rain fed agriculture in the LUSLM project area.

Project

Households with access to potable water

People with access to

potable water

Households with access to Sanitation

facilities

People with access to sanitation facilities

LUSIP I 2 186 15 302 2 771 19 397

LUSIP II - - 152 760

KDDP 3 513 24 591 3 655 25 585

Total 5 699 39 893 6 578 45 742

Beneficiaries of potable water and sanitation interventions


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Industrial relationsFood Security:SWADE continues to contribute to food security in the country.

In the wake of the drought conditions that were experienced

countrywide, the SWADE was roped in for assistance in the

production of dry white maize. By March 2016, a total of 138.6ha

had been planted between the two SWADE projects (LUSIP 1

and KDDP).

Other food security activities include:

• A total of eight hundred and ninety 890 (579 LUSLM, 118

LUSIP 1 and 193 KDDP) households have established

permaculture gardens. This contributes to ensuring that a

family has at least a variety of vegetables in their daily diet.

• One thousand two hundred and twenty (1220) farmers are

practicing conservation agriculture for crop production.

Twenty (20) farmers from these are lead farmers where

demonstration plots have been set up in their fields.

• Five (5) community and school nurseries have been

established in the PDA. Community nurseries sell tree

seedlings to community members in the PDA. Over six

thousand (6 000) fruit and indigenous trees have been

planted in homesteads.

Access to clean water and sanitationAccess to potable water and sanitation contributes to

improvement of livelihoods and health in the SWADE project

areas’ communities.

011

Women and Youth InvolvementThrough the SWADE Gender Policy, women involvement in all

project activities is still encouraged. A draft Gender Policy Action

Plan is in place and awaits finalization . Gender mainstreaming

activities in the year included gender awareness campaigns

on equity and wealth distribution, workshops on women in

leadership, Life Improvement Projects, Commemoration of

International Women’s Day, raising awareness on Gender Based

Violence (GBV), and 16 Days of Activism against GBV.

Adaptation to Climate Change:

SWADE through the different projects is mitigating the effects of

climate change, not only in the PDA but also at national level

through enhancing the resilience, and increasing the capacity

of communities to cope with the adverse impacts of climate

change on the land resources. This is done through climate

smart agriculture practices namely; conservation agriculture for

crop production, permaculture vegetable growing, reforestation,

land rehabilitation and water harvesting techniques. LUSIP also

encourages farmers to leave some of the sugarcane residues

along the farrows so as to act as soil cover and conserve moisture

SUSTAINABILITY Partnerships and collaborationsThe SWADE has entered into partnerships with the Ministry of

Tinkhundla ] Administration and Regional Development (MTARD),

the Swaziland National Trust Commission (SNTC)and other

partners in the development and implementation a common

framework for chiefdom development planning (CDP). There have

been initiatives to partner with learning and training institutions

such as Swaziland Skills Centre to provide training and capacity

building for farmers and communities.

Apex/umbrella organisations

Farmer companies affiliate to umbrella organisations such as the

KDDP Farmers Federation, the LUSIP Farmers Organization and

Swaziland National Agricultural Union (SNAU). These structures

give the farmers increased bargaining power when negotiating

the procurement of inputs, on policy matters and farmers in the

KDDP have affiliated to Fairtrade through the Komati Downstream

Development Project Farmers Federation (KDDPFF)

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SECTION 2Financial Statements

Contents Page

Statement of responsibility by the board of directors 015

Independent auditors’ report 016

Directors’ report 017

Statement of comprehensive income 020

Statement of financial position 021

Statement of changes in equity 022

Statement of cash flows 023

Summary of significant accounting policies 024

Notes to the financial statements 028

Other information not covered by audit opinion

Detailed income statements 038

Statement of sources and application of funds 040

Project costs 042

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STATEMENT OF RESPONSIBILITY BY THE BOARD OF DIRECTORS

The directors are responsible for the preparation and fair presentation of the financial statements of Swaziland Water and Agricultural Development Enterprise Limited

The directors are responsible for the preparation and fair

presentation of the financial statements of Swaziland Water

and Agricultural Development Enterprise Limited, comprising

the statement of financial position at 31 March 2016, and the

statements of comprehensive income, changes in equity and

cash flows for the year then ended, and the notes to the financial

statements, which include a summary of significant accounting

policies and other explanatory notes, and the directors’ report, in

accordance with International Financial Reporting Standards and

in the manner required by the Swaziland Companies Act.

The directors are also responsible for such internal control as

the directors determine is necessary to enable the preparation

of financial statements that are free from material misstatement,

whether due to fraud or error and for maintaining adequate

accounting records and an effective system of risk management

as well as the preparation of the supplementary schedules

included in these financial statements.

The directors have made an assessment of the Company’s ability

to continue as a going concern and have no reason to believe the

business will not be a going concern in the year ahead.

The auditor is responsible for reporting on whether the financial

statements are fairly presented in accordance with the applicable

financial reporting framework.

APPROVAL OF THE FINANCIAL STATEMENTSThe financial statements of Swaziland Water and Agricultural

Development Enterprise Limited, as identified in the first

paragraph, were approved by the board of directors and signed

on behalf its behalf

FOR THE YEAR ENDED 31 MARCH 2016

CHAIRMAN OF THE BOARD OF DIRECTORS DIRECTOR

015

DIRECTOR


TO THE MEMBERS OF SWAZILAND WATER AND AGRICULTURE ENTERPRISE LIMITED

CHAIRMAN OF THE BOARD OF DIRECTORS

REPORT ON THE FINANCIAL STATEMENTSWe have audited the financial statements of Swaziland Water and

Agricultural Development Enterprise Limited, which comprise the

statement of financial position at 31 March 2016, the statements

of comprehensive income, changes in equity and cash flows for

the year then ended and the notes to the financial statements

which include a summary of significant accounting policies and

other explanatory notes, and the directors’ report.

Directors’ Responsibility for the Financial StatementsThe Company’s directors are responsible for the preparation and

fair presentation of these financial statements in accordance with

International Financial Reporting Standards, and in the manner

required by the Swaziland Companies Act and for such internal

control as the directors determine is necessary to enable the

preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those

standards require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable assurance

whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgement,

including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control

relevant to the entity’s preparation and fair presentation of the

financial statements in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of accounting

estimates made by the directors, as well as evaluating the overall

presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all

material respects, the financial position of the Company at 31

March 2016 and its financial performance and cash flows for

the year then ended in accordance with International Financial

Reporting Standards, and in the manner required by the

Swaziland Companies Act.

Other matterThe detailed income statement, the statement of sources and

application of funds and the schedule of project costs set out on

pages 31 to 35 do not form part of the financial statements and

are presented as additional information. We have not audited

these statements and accordingly we do not express an opinion

on them.

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DIRECTORS REPORT

Swaziland Water and Agricultural Development Enterprise Limited (SWADE) is a company incorporated in November 1999. The company operates as a Public Enterprise, under the terms of the Public Enterprises (Control and Monitoring) Act, 1989.

ObjectivesThe four main objectives of the company are:

1. Co-ordination of all activities related to the construction of

Maguga Dam and the Swaziland portion of Lake Matsamo

(Driekoppies Dam), to ensure that Government’s interests are

properly served. The construction of the dams and ancillary

works is the responsibility of KOBWA.

2. Monitoring and Evaluation of resettlement and development

processes for persons affected by the construction of

Maguga Dam and the Swaziland portion of Lake Matsamo.

Actual resettlement on Maguga dam is the responsibility of

KOBWA. SWADE is responsible for the implementation of

development activities accepted as mitigation of impacts on

persons displaced by Lake Matsamo.

3. Planning and Implementation of the Komati Downstream

Development Programme (KDDP) to enable Swaziland to

utilise its share of water from Maguga Dam.

4. Planning and Implementation of the Lower Usuthu

Development Project (LUSIP) and any other river basins, as

determined by the Swaziland Government.

Review of Activities1. Co-ordination Activities

SWADE seeks to address two broad national objectives i.e:

• Promoting participation of smallholder farmer organisations

in irrigated commercial agriculture and other enterprises

development as part of a poverty eradication program for

rural areas; and

• Enhancing private sector development through the active

participation of small and medium enterprises in agricultural

development.

SWADE efforts have focused on the empowerment of

communities to improve quality of life and sustainable poverty

alleviation through projects in water, agricultural development

and other socio-economic initiatives.

SWADE Headquarters (HQ) provides the overall coordination and

oversight for the nine projects currently assigned to SWADE –

KDDP, LUSIP I, LUSIP II, the Innovative Beef Value Chain Project,

the LUSIP-Global Environment Facility (GEF), High Value Crop and

Horticulture Project (HVCHP), Fruit Tree Production and Marketing

Project (FTPMP), Smallholder Market Led Project (SMLP) and

Climate Smart Agriculture for Resilient Livelihoods (CSARL). In

particular it manages the financial reporting, procurement review

and processing through the appropriate Board committee,

human resources and ICT services and communication with

international and national stakeholders. It works closely with the

Project Managers to facilitate resource mobilisation for future

projects that may be entrusted to it.

These currently include World Bank Private Sector

Competitiveness project funding (partially approved) and

Mkhondvo Ngwavuma feasibility studies.

Based on these initiatives SWADE has significant work for the next

five to ten years. These services are provided for a management

overhead of around 11%. The remainder – almost 90% of the

funds assigned to SWADE are for development activities made

on behalf of Government.

2. Komati Downstream Development Project (KDDP)

An area of approximately 5 207 ha out of the total 6 000 ha had

been developed in the KDDP by March 2016. The average yields

for KDDP farmers in 2015/16 were 98.2 tons cane per hectare

(TCH), 14.76% sucrose (2015: 14.67%) and 14.48 tons of sucrose

per hectare (TSH). Yields for the KDDP dropped by 7.2 tons per

hectare during the 2015/16 mill season something that can be

ascribed mainly to the drought though some management

related problems also contributed to the decline in yields.

All farmers once again finished harvesting within the mill season

stipulated time. A total of 362 315 (2015: 388 995) tons of

cane was harvested by March 2016. Assets bought by various

FOR THE YEAR ENDED 31 MARCH 2016

017

SWAZILAND WATER & AGRICULTURAL DEVELOPMENT ENTERPRISE ANNUAL REPORT 2015/16 SWAZILAND WATER & AGRICULTURAL DEVELOPMENT ENTERPRISE ANNUAL REPORT 2015/16

farmers during that time were to the value of E1 990 400 and a

total amount of E6 240 000 (2015: E2 458 156) was remitted to

Government as tax by farmers during the same time. Regardless

of the drought and the fallen sucrose price, an overall amount of

E19 452 131 (2015: E21 083 334) was declared by shareholders

from the various famer companies as dividends.

Other activities at the KDDP include production in nurseries,

open field and greenhouse tunnels, livestock production and

business management support. The total revenue generated

from the nursery and other crops is a sum of E100 900. Livestock

production generated a total revenue of E128 174. A mini feedlot

project was established within the KDDP with the assistance of

ILRI (International Livestock Research Institute). On the overall

the drought had a negative impact on performance of other

crops and livestock.

One of the key activities under business management support

was strengthening of production under tunnels where the

assistance of NASTA (National Adaptation Strategy Technical

Assistance) was employed to come up with a turnaround strategy.

This exercise culminated in the engagement of a consultant and

facilitation of workshops for both farmers and SWADE Officers.

KDDP project continued to support 26 farmers with financial and

accounting support and business advisory services in order to

ensure that these companies/farmers are sustainable.

Six (6) out of nine (9) potable water schemes were operational

during the year and a working plan to revive the other schemes

had been crafted by end of year with assistance of NASTA by end

of the financial year.

3. Lower Usuthu Smallholder Irrigation Project (LUSIP)

At the LUSIP I, ninety-five (95) (2015: 90) farmer groups have

been registered, and of these, 54 (2015: 44) are operational

sugarcane schemes. To date, a total of 4 743 ha (2015: 3 553 ha)

has been developed for agricultural production against the target

of 6 500 ha. This total is made up of 4 455 ha (2015: 3 076 ha) for

sugarcane and 288 ha (2015: 477 ha) for alternative crops which

include alternative cash crops, commercial gardens and others

– a demonstration centre, Chiefdom homage plots, backyard

gardens and greenhouse tunnels.

The total area of sugarcane harvested for the 2015/16 season is

3 088 ha (306 615 metric tonnes) (2015: 2 797 ha, 290 387 metric

tonnes), with a gross revenue of E109 599 281 (2015: E105 523

542) (before tax), with E107 157 425 from sugar cane and E2 441

856 from diversified agribusiness.

The total number of ventilated improved pit latrines (VIPs)

constructed to date with financial assistance from SWADE has

increased to 2 638 (2015: 2 526), households with access to

sanitation facilities increased to 2 771 (2015: 2 568) and people

with access to improved sanitation increased to 19 397 (2015: 17

809), bringing the total population percentage of beneficiaries to

96%.

The potable water programme is 100% complete in five (2015: 4)

chiefdoms (Gamedze, Shongwe, Ngcamphalala, Mphumakudze,

and Lesibovu Chiefdoms). A tender has been awarded to a

contractor for the construction of the last communal water

supply scheme in LUSIP phase 1, this being the kaMamba

Potable Water Supply Scheme.

Development of farms under the Swaziland Sugar Facility (SSF)

has commenced and funding has also been secured.

4. Lower Usuthu Smallholder Irrigation Project

Global Environment Facility (LUSIP-GEF)

The overall goal of the LUSIP-GEF – (also known as Lower Usuthu

Sustainable Land Management Project) (LUSLM) is to contribute

to reducing land degradation and protect biodiversity through

widespread adoption of sustainable land management practices

in Swaziland; while also contributing to mitigating and increasing

communities’ capacity to adapt to the adverse effects of climate

change. The specific project objectives are: 1) to promote

development and mainstreaming of a harmonised, cross-sectoral

approach to Sustainable Land Management at the national level;

2) to reduce land degradation, biodiversity loss and mitigate

climate change in the Lower Usuthu River Basin area through

the application of sustainable land management practices which

will contribute to adaptation to climate change; 3) to improve

the livelihood opportunities, resilience and food security of rural

communities (men, women and children), including catalysing

development of a range of alternative complimentary livelihood

opportunities; and 4) to manage the project effectively and

disseminate result appropriately. The Project implementation is

led by the Ministry of Agriculture (MoA) in close collaboration with

LUSIP I and SWADE as the implementing agency.

Notable achievements include the establishment of a

comprehensive field programme to introduce and capture both

the biophysical and social impacts of Conservation Agriculture

(CA) to more than 2 200 (2015: 500) households, continued

promotion of Permaculture Gardens and construction of roof

top water harvesting tanks in more than 1 500 households.

Other achievements include assisting various honey and poultry

production groups to move towards a more commercial footing.

The Project Management Unit continues to work with a wide

range of stakeholders and coordinated the development of a

Land Governance project that has been approved by the EU

following consultations with the Project Steering Committee. The

project is currently undergoing the EU processes for contract

award to consultants on one hand, and on the other, approval

by the appropriate authorities since it involves land governance

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5. LUSIP 2 Extension

LUSIP 2 Extension seeks to complete the LUSIP development

so that the investments that were made on the bulk water

infrastructure for LUSIP 1 are put into economic use. The

feeder canal and the Lubovane Reservoir were designed and

constructed with sufficient capacity to irrigate 11 500 ha which

includes the area under LUSIP 2.

The Project has enjoyed tremendous support from both the

public, private sector, the Government, local and international

financiers. Major achievements for the last financial year have

been the successful Final Appraisal of the Project which has

paved way for the loan negotiations. The loan application to

the African Development Bank for the construction of the main

conveyance infrastructure has been approved by the Bank.

This is now subject to ratification by Parliament. The remaining

loans with the European Investment Bank (EIB), Arab Bank

for Economic Development (BADEA) and KUWAIT Fund for

International Development are earmarked to be finalised over the

next financial year.

Resettlement of homesteads along the foot print of the canal

is now complete. The construction of the potable water supply

scheme for Gamula/Mahlabaneni has been completed and

pending commissioning as soon as water is made available by

USA Distillers within the next financial year.

Construction of the main conveyance infrastructure is earmarked

to start by November 2016. Construction of the main conveyance

system including the tertiary distribution system is earmarked to

take 3 years. Therefore the system should be fully commissioned

by the end of 2019 allowing another 3 years to fully develop all

the irrigation schemes so that all the farmers are able to enjoy a

harvest by 2022.

ManagementThe company is controlled by a Board of Directors which is

composed of members drawn from the private and public sectors

and community representatives. They, in turn, are accountable to

the Minister of Agriculture. The responsibility for running the day-

to-day activities of the company rests with the Chief Executive

Officer.

DirectorsThe following directors served on the board during the period under review:Mr M Dlamini Chairman

Mr S S Sithole Chief Executive Officer – appointed 16 June 2016

Mr D Z Mngomezulu Chief Executive Officer – contract expired 30 October 2015

Ms L Ntshakala

Mr N H Rijkenberg

Mr O Magwenzi

Chief Lembelele Dlamini

Mr B B Stewart

Dr R S Thwala Resigned 15 November 2015

Mr B Masuku Appointed 15 November 2015

Secretary to the BoardCEO – Samson Sithole Appointed 16 June 2016

CEO – Dumisani Mngomezulu Contract expired 30 October 2015

Business and Postal AddressP O Box 5836

Mbabane

H100

Suite 403 Dlanubeka Building

Corner Mdada & Lalufadlana Streets

Mbabane

Auditors Bankers AttorneysKPMG

Umkhiwa House

195 Kal Grant Street

Mbabane

Nedbank (Swaziland) Limited

P O Box 68

Mbabane

H100

Standard Bank Swaziland Limited

P O Box A294

Swazi Plaza

Robinson Bertram

P O Box 24

Mbabane

H100

019


STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 March 2016

STATEMENT OF FINANCIAL POSITIONat 31 March 2016

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Notes 2016 2015

E E

Grant income 1 147 842 882 140 882 974

Other income 3 054 815 829 523

Depreciation of property, plant and equipment 6 (2 427 703) (2 145 822)

Administration costs (11 236 392) (11 416 649)

Project development costs (137 233 602) (128 150 026)

Operating profit - -

Finance income 3 1 538 149 1 365 241

Profit before income tax 2 1 538 149 1 365 341

Income tax expense 5 - -

Profit for the year 1 538 149 1 365 241

Other comprehensive income for the year - -

Total comprehensive income for the year 1 538 149 1 365 241

Notes 2016 2015

E E

Assets

Non-current assets

Property, plant and equipment 6 12 982 361 4 556 420

Current assets

Grants and other receivables 7 20 515 610 6 518 293

Advances to contractors and consultants 8 3 624 660 370 311

Cash and cash equivalents 9 42 935 901 65 228 550

67 076 171 72 117 154

Total assets 80 058 532 76 673 574



STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 March 2016STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 March 2016

STATEMENT OF FINANCIAL POSITIONat 31 March 2016

Notes 2016 2015

E E

Grant income 1 147 842 882 140 882 974

Other income 3 054 815 829 523

Depreciation of property, plant and equipment 6 (2 427 703) (2 145 822)

Administration costs (11 236 392) (11 416 649)

Project development costs (137 233 602) (128 150 026)

Operating profit - -

Finance income 3 1 538 149 1 365 241

Profit before income tax 2 1 538 149 1 365 341

Income tax expense 5 - -

Profit for the year 1 538 149 1 365 241

Other comprehensive income for the year - -

Total comprehensive income for the year 1 538 149 1 365 241

Notes 2016 2015

E E

Assets

Non-current assets

Property, plant and equipment 6 12 982 361 4 556 420

Current assets

Grants and other receivables 7 20 515 610 6 518 293

Advances to contractors and consultants 8 3 624 660 370 311

Cash and cash equivalents 9 42 935 901 65 228 550

67 076 171 72 117 154

Total assets 80 058 532 76 673 574

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EQUITY AND LIABILITIES

Notes 2016 2015

E E

Share capital and reserves

Share capital 13 2 2

Retained earnings 11 670 584 10 132 435

(2 427 703) (2 145 822)

Non-current liabilities

Deferred grants 14 38 105 000 46 962 239

Borrowings 15 5 112 075 -

43 217 075 46 962 239

Current liabilities

Accounts payable 10 17 393 450 13 908 828

Borrowings 15 2 598 818 -

Taxation 12 2 201 864 2 205 364

Provisions 11 2 976 739 3 464 706

25 170 871 19 578 898

Total liabilities 19 578 898 66 541 137

Total equity and liabilities 80 058 532 76 673 574

STATEMENT OF CHANGES IN EQUITYfor the year ended 31 March 2016

Share CapitalRetained Earnings

Total

E E E

Balance at 31 March 2015 2 10 132 435 10 132 437

- 1 538 149 1 538 149

Balance at 31 March 2016 2 11 670 584 11 670 586

Balance at 31 March 2014 2 8 767 194 8 767 196

Profit for the year - 1 365 241 1 365 241

Balance at 31 March 2015 2 10 132 435 10 132 437


STATEMENT OF CASH FLOWSfor the year ended 31 March 2016

Notes 2016 2015

E E

Cash flows from operating activities

Cash utilised in operations 16 (11 813 938) (195 774)

Interest received 6 1 538 149 1 365 241

Interest paid (13 370) -

Tax paid (3 500) -

Net cash flows from operating activities 1 538 149 1 169 467

Cash flows from investing activities

Additions to property, plant and equipment 6 (10 853 644) (1 448 594)

Net cash flows from investing activities (10 853 644) (1 448 594)

Cash flows from financing activities

Net grant (utilised)/received 16.1 (8 857 239) 623 109

Finance lease raised 7 710 893 -

Net cash flows from financing activities (1 146 346) 623 109

Net (decrease)/increase in cash and cash equivalents

(22 292 649) 343 982

Cash and cash equivalents at beginning of year 65 228 550 64 884 568

Cash and cash equivalents at end of year 9 42 935 901 65 228 550

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1.General informationSwaziland Water and Agricultural Development Enterprise

Limited (SWADE) is a company incorporated in November 1999,

under the Companies Act. The Company operates as a Public

Enterprise, under the terms of the Public Enterprises (Control and

Monitoring) Act.

2.1 Basis of preparationThe financial statements of Swaziland Water and Agricultural

Development Enterprise Limited have been prepared in

accordance with International Financial Reporting Standards, and

the requirements of the Companies Act. The financial statements

have been prepared under the historical cost convention, as

modified by financial assets and financial liabilities at fair value

through profit or loss.

The principal accounting policies applied in the preparation

of these financial statements are set out below. These policies

have been consistently applied to all the years presented, unless

otherwise stated.

The preparation of financial statements in conformity with IFRS

requires the use of certain critical accounting estimates. It also

requires management to exercise its judgement in the process of

applying the Company’s accounting policies.

The financial statements are presented in Emalangeni, the entity’s

functional currency.

2.1.1 New standards and interpretations not yet adoptedA number of new standards, amendments to standards and

interpretations are effective for annual periods beginning on or

after 1 April 2016, and have not been applied in preparing these

financial statements. The following standards are expected

to have a significant effect on the financial statements of the

Company:

IFRS 15 Revenue from contracts with customers

This standard replaces IAS 11 Construction Contracts, IAS

18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC

15 Agreements for the Construction of Real Estate, IFRIC 18

Transfer of Assets from Customers and SIC-31 Revenue – Barter

of Transactions Involving Advertising Services.

The standard contains a single model that applies to contracts

with customers and two approaches to recognising revenue:

at a point in time or over time. The model features a contract-

based five-step analysis of transactions to determine whether,

how much and when revenue is recognised. This new standard

will most likely have a significant impact on the Company, which

will include a possible change in the timing of when revenue is

recognised and the amount of revenue recognised. The Company

is currently in the process of performing a more detailed

assessment of the impact of this standard on the Company and

will provide more information in the year ending 31 March 2017

financial statements.

The standard is effective for annual periods beginning on or after

1 January 2018, with early adoption permitted under IFRS.

IFRS 9 Financial Instruments

On 24 July 2015, the IASB issued the final IFRS 9 Financial

Instruments Standard, which replaces earlier versions of IFRS

9 and completes the IASB’s project to replace IAS 39 Financial

Instruments: Recognition and Measurement.

This standard will have a significant impact on the Company,

which will include changes in the measurement bases of the

Company’s financial assets to amortised cost, fair value through

other comprehensive income or fair value through profit or

loss. Even though these measurement categories are similar to

IAS 39, the criteria for classification into these categories are

significantly different. In addition, the IFRS 9 impairment model

has been changed from an “incurred loss” model from IAS 39 to

an “expected credit loss” model, which is expected to increase

the provision for bad debts recognised in the Company.


1 January 2018 with retrospective application, early adoption is

permitted.

IFRS 16 Leases

IFRS 16 was published in January 2016. It sets out the principles

for the recognition, measurement, presentation and disclosure of

leases for both parties to a contract, i.e the customer (‘lessee’)

and the supplier (‘lessor’). IFRS 16 replaces the previous leases

Standard, IAS 17 Leases, and related Interpretations. IFRS 16

has one model for lessees which will result in almost all leases

being included on the Statement of Financial position. No

significant have been included for lessors.


1 January 2019, with early adoption permitted only if the entity

also adopts IFRS 15. The transitional requirements are different

for lessees and lessors. The company is assessing the potential

impact on the financial statements resulting from the application

of IFRS 16.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFOR THE YEAR ENDED 31 MARCH 2016


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3.1 Property, plant and equipmentItems of property, plant and equipment are stated at historical cost

less accumulated depreciation and impairment losses. Historical

cost includes any expenditure that is directly attributable to the

acquisition of the items.

Subsequent costs are included in the asset’s carrying amount

or recognised as a separate asset, as appropriate, only when

it is probable that future economic benefits associated with the

asset will flow to the Company and the cost of the item can be

measured reliably. The carrying amount of the replaced part is

derecognised. All other repairs and maintenance are charged

to the statement of comprehensive income during the financial

period in which they are incurred.

Depreciation on assets is calculated using the straight line

method to allocate their cost amounts to their residual values

over their estimated useful lives as follows:

Leasehold property 6 2/3%

Computer equipment 33 1/3%

Field equipment 20%

Furniture and fittings 15%

Motor vehicles 20%

Office equipment 20%

The assets’ residual values and useful lives are reviewed, and

adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its

recoverable amount, if the asset’s carrying amount is greater

than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the

disposal proceeds with the carrying amount and are included in

the income statement.

3.2 Accounts receivableAccounts receivable are carried at original invoice amount less

provision made for impairment of these receivables. A provision

for impairment of receivables is established when there is

objective evidence that the Company will not be able to collect all

amounts due according to the original terms of receivables. The

amount of the provision is the difference between the carrying

amount and the recoverable amount. The amount of the provision

is recognised in profit or loss.

Bad debts are written off when identified.

3.3 Cash and cash equivalentsCash and cash equivalents includes cash in hand, deposits held

at call with banks, other short-term highly liquid investments with

original maturities of three months or less, and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities

on the statement of financial position.

3.4 ImpairmentThe carrying amounts of the Company’s assets are reviewed at

each reporting date to determine whether there is any indication of

impairment. If any such indication exists, the asset’s recoverable

amount is estimated. An impairment loss is recognised whenever

the carrying amount of an asset or cash generating unit exceeds

its recoverable amount. Impairment losses are recognised in

profit or loss.

The recoverable amount of assets is the greater of the net

selling price and value in use. In assessing the value in use,

the estimated future cash flows are discounted to their present

value using a pre tax discount rate that reflects current market

assessments of the time value of money and risks specific to the

asset. For an asset that does not generate largely independent

cash inflows, the recoverable amount is determined for the cash

generating unit to which the asset belongs.

The impairment loss is reversed if there has been a change

in the estimates used to determine the recoverable amount.

Impairment is reversed only to the extent that the assets’ carrying

amount does not exceed the carrying amount that would have

been determined, net of depreciation, if no impairment loss had

been recognised.

3.5. Deferred income taxesDeferred income tax is provided in full, using the liability method,

on temporary differences arising between the tax bases of assets

and liabilities and their carrying values for financial reporting

purposes.

However, if the deferred income taxes arise from initial recognition

of an asset or liability in a transaction other than a business

combination that at the time of the transaction affects neither

accounting nor taxable profit or loss, it is not accounted for.

Deferred income tax is determined using tax rates (and laws) that

have been enacted or substantially enacted by the reporting date

and are expected to apply when the related deferred income tax

asset is realised or the deferred income tax liability is settled.

The principal temporary differences arise from depreciation on

property, plant and equipment, leases and provisions.

Deferred taxation assets relating to the carry forward of unused

tax losses and tax credits are recognised to the extent that it

is probable that future taxable profits will be available in the

foreseeable future against which the unused tax losses and tax

credits can be utilised.

3.6 ProvisionsA provision is recognised in the statement of financial position

when the Company has a legal and constructive obligation as

a result of a past event and it is probable that an outflow of

economic benefits will be required to settle the obligation. If the

025


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effect is material, provisions are determined by discounting the

expected future cash flow at a pre-tax rate that reflects current

market assessments of the time value of money and, where

appropriate, the risk specific to the liability.

3.7 Accounts payableTrade payables are obligations to pay for goods or services that

have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if

payment is due within one year or less (or in the normal operating

cycle of the business if longer). If not, they are presented as

non-current liabilities.

Trade payables are recognised initially at fair value and

subsequently measured at amortised cost using the effective

interest method.

3.8 Employee benefitsEmployee entitlements to annual leave are recognised when

they accrue to employees involved. The provisions for employee

entitlements to salaries represent the amount that the Company

has a present obligation to pay, as a result of employees’ services

provided up to the reporting date. The provision has been

calculated at undiscounted amounts based on current salary

rates.

Termination benefits

Termination benefits are payable when employment is terminated

by the Company before the normal retirement date, or whenever

an employee accepts voluntary redundancy in exchange for these

benefits. The Company recognises termination benefits when it is

demonstrably committed to either: terminating the employment

of current employees according to a detailed formal plan without

possibility of withdrawal; or providing termination benefits as a

result of an offer made to encourage voluntary redundancy.

3.9 Revenue recognitionGrants

Grants are recognised at their fair value as deferred income

where there is a reasonable assurance that the grant will be

received and the entity will comply with all attached conditions.

Grants relating to project costs are deferred and recognised in

profit or loss over the period necessary to match them with the

costs that they are intended to compensate.

Grants relating to the purchase of property, plant and equipment

are included in non-current liabilities as deferred grants and are

credited to profit or loss on a straight line basis over the expected

lives of the related assets.

Interest income

Interest income is recognised on an effective interest method in

the profit or loss as part of finance income.

3.10 Financial Instruments and Risk ManagementFinancial risk factorsThe Company’s activities expose it to a variety of financial risks,

including the effects of changes in debt and equity market prices

and interest rates. The Company’s overall risk management

programme focuses on the unpredictability of financial markets

and seeks to minimise potential adverse effects on the financial

performance of the Company.

Risk management is carried out by management under policies

approved by the Board of Directors. Management identifies and

evaluates financial risks in close co-operation with the Company’s

sub-committees. The Board provides written principles for overall

risk management, as well as written policies covering specific

areas such as interest rate risk, credit risk and investing excess

liquidity.

The Company’s overall risk management programme focuses

on the unpredictability of financial markets and seeks to

minimise potential adverse effects on the Company’s financial

performance.

Legal risk

Legal risk is the risk that the Company will be exposed to

contractual obligations which have not been provided for.

The Company has a policy of ensuring all contractual obligations

are documented and appropriately evidenced to agreements

with the relevant parties to the contract.

During the development stage of any new project and for any

corporate transactions the legal resources of the Company, and

if required external resources, monitor the drafting of the contract

document to ensure that rights and obligations of all parties are

clearly set out. All significant contracted claims are reviewed by

independent legal consultants and amounts are immediately

provided for if there is consensus as to any possible Company

exposure. At 31 March 2016, the directors are not aware of any

significant obligation not provided for.

Operational risk

Operational risk is the risk of direct or indirect loss resulting from

inadequate or failed internal processes, people and systems or

from external events.

The initiation of all transactions and their administration is

conducted on the foundation of segregation of duties that has

been designed to ensure materially the completeness, accuracy

and validity of all transactions. These controls are augmented

by management and executive review of control accounts and

systems, electronic and manual checks and controls, back-up

facilities and contingency planning. The internal control systems

and procedures are also subjected to regular internal audit

reviews by project funders.

026

Financial InstrumentsFinancial assets of the Company include cash and bank balances

and accounts receivable. Financial liabilities of the Company

include accounts payable. Accounting policies for financial

assets and liabilities are set out in the statement of accounting

policies.

Credit risk

Credit risk is the risk that counterparties to a financial instrument

will fail to discharge an obligation and cause the Company to

incur a financial loss.

Credit risk represents the accounting loss that would be

recognised at the reporting date if counter parties failed

completely to perform as contracted. The Company does not

have significant credit risk exposure. To reduce exposure to

credit risk the Company performs an ongoing credit evaluation

of the financial conditions of its customers but does not require

collateral. The Company is exposed to credit related losses in

the event of non performance by counter parties to financial

instruments but does not expect any significant counter party to

fail to meet its obligations.

The table below discloses advances to contractors and

consultants.

2016

E

2015

E

Roots 2 932 045 368 433

SII 1 878 1 878

Vince Investments 690 737 -

3 624 660 370 311

No credit limits were exceeded during the reporting period, and

management does not expect any losses from non-performance

by above counterparties.

Fair Values

The fair values of cash and bank balances, accounts receivable

and accounts payable are not materially different from their

carrying values.

Capital risk management

The Company’s objectives when managing capital are to

safeguard the Company’s ability to continue as a going concern

in order to provide returns for shareholders and benefits for other

stakeholders and to maintain an optimal capital structure to

reduce the cost of capital. The Company’s strategy is to maintain

a gearing ratio of zero.

Fair value estimation

The nominal value less impairment provision of receivables and

payables are assumed to approximate their fair values. The fair

value of financial liabilities for disclosure purposes is estimated

by discounting the future contractual cash flows at the current

market interest rate available to the Company for similar financial

instruments.

The nominal value less impairment provision of receivables and

payables are assumed to approximate their fair values. The fair

value of financial liabilities for disclosure purposes is estimated

by discounting the future contractual cash flows at the current

market interest rate available to the Company for similar financial

instruments.

3.11 Share CapitalOrdinary shares are classified as equity.

3.12 Related PartiesParties are related if one party has the ability to control the other

party or exercise significant influence over the other party in

making financial and other operating decisions.

3.13 ComparativesWhere necessary, comparative figures have been adjusted to

conform with changes in presentation in the current year.

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NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 2016

2016 2015

E E

1. Grant income

Analysis of grant income is as follows:

Sources of GrantsSwaziland Government 135 076 301 125 848 500

Opec Fund for International Development (OFID) 11 756 991 4 314 446

International Fund for Agricultural Development (IFAD) 993 915 10 526 797

International Livestock Research Institute 12 924 193 231

European Development Fund (EDF) 1 429 193 231

147 842 882 140 882 974

2. Profit before income tax

The following items have been included in arriving at profit before income tax:

Director fees and expenses 259 824 464 481

Staff costs (note 4) 6 678 120 6 793 176

Auditors’ remuneration - statutory audit - other fees

23 353-

46 808-

Legal expenses 343 309 26 200

Repairs and maintenance 20 168 46 274

Rentals 725 890 679 588

3. Finance incomeInterest income – bank interest 1 538 149 1 365 241

1 538 149 1 365 241


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NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 2016

2016 2015

E E

4. Staff costs

Salaries and wages 5 227 017 5 148 262

Other benefits and allowances 1 451 103 1 644 914

6 678 120 6 793 176

The number of employees during the year was 130 (2015:110).

5. Income tax expense

Current tax (note 12) - -

Reconciliation of rate of taxation:

Profit before tax 1 538 149 1 365 241

Tax calculated at tax rate of 27.5% - -

Tax charge - -



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Bui

ldin

gsFi

eld

equi

pmen

t

Mot

or

vehi

cle

Furn

iture

and

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ings

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ce

equi

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t

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pute

r

equi

pmen

tTo

tal

EE

EE

EE

E

Year

end

ed 3

1 M

arch

201

6

Ope

ning

bal

ance

1 21

3 72

41

015

564

921

818

508

736

204

315

692

263

4 55

6 42

0

Add

ition

s-

153

038

9 28

8 74

250

0 92

232

3 18

458

7 75

810

853

644

Dis

posa

ls-

--

--

--

Dep

reci

atio

n(2

34 8

23)

(242

941

)(1

008

869

)(2

91 8

13)

(134

261

)(5

14 9

96)

(2 4

27 7

03)

Clo

sing

car

ryin

g am

ount

978

901

925

661

9 20

1 69

171

7 84

539

3 23

876

5 02

512

982

361

At 3

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arch

201

6

Cos

t3

522

346

1 46

8 84

915

207

262

3 75

3 07

42

191

941

3 46

9 87

729

613

349

Acc

umul

ated

dep

reci

atio

n(2

543

445

)(5

43 1

88)

(6 0

05 5

71)

(3 0

35 2

29)

(1 7

98 7

03)

(2 7

04 8

52)

(16

630

988)

978

901

925

661

9 20

1 69

171

7 84

539

3 23

876

5 02

512

982

361

Year

end

ed 3

1 M

arch

201

5

Ope

ning

bal

ance

1 44

8 54

748

1 54

61

464

310

779

862

270

291

809

092

5 25

3 64

8

Add

ition

s-

700

590

222

936

123

461

69 2

1033

2 39

71

448

594

Dis

posa

ls-

--

--

-

Dep

reci

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n(2

34 8

23)

(166

572

)(7

65 4

28)

(394

587

)(1

35 1

86)

(449

226

)(2

145

822

)

Clo

sing

car

ryin

g am

ount

1 21

3 72

41

015

564

921

818

508

736

204

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692

263

4 55

6 42

0

At 3

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201

5

Cos

t3

522

346

1 31

5 81

15

918

520

3 25

2 15

21

868

757

2 88

2 11

918

759

705

Acc

umul

ated

dep

reci

atio

n(2

308

622

)(3

00 2

47)

(4 9

96 7

02)

(2 7

43 4

16)

(1 6

64 4

42)

(2 1

89 8

56)

(14

203

285)

1 21

3 72

41

015

564

921

818

508

736

204

315

692

263

4 55

6 42

0

NO

TES

TO

TH

E F

INA

NC

IAL

STAT

EM

EN

TSfo

r th

e ye

ar e

nded

31

Mar

ch 2

016

(con

tinue

d)

6. P

rope

rty,

pla

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nd e

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Som

e of

the

entit

y’s

prop

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, pla

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ets

with

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the

entit

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he c

ost o

f the

se a

sset

s ar

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3 91

4 05

6 (2

015:

E2

787

245)

.

030

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NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 2016 (continued)

2016 2015

E E

7. Grants and other receivables

Grants receivable 17 526 500 5 711 362

Prepayments and deposits 635 419 550 745

Other accounts receivable 2 353 691 256 186

20 515 610 6 518 293

8. Advances to consultants

Advance payments to consultants 3 624 660 370 311

Advance payments are funds paid to contractors and consultants appointed to carry out the various development projects in the Company. These payments are for the initial start up costs to be incurred by such contractors in respect of these projects. These advance payments are recovered in full from the consultants over the period of the contracts.

9. Cash and cash equivalents

Bank balances 42 924 892 65 217 909

Cash on hand 11 009 10 641

42 935 901 65 228 550

10. Accounts payable

Project cost accruals 7 143 834 4 917 058

Retention fees 5 155 717 4 243 173

Other accruals 5 093 899 4 748 597

17 393 450 13 908 828

11. Provisions

Leave pay 1 155 839 4 917 058

Severance pay 77 416 4 243 173

Other provisions 1 743 484 4 748 597

2 976 739 3 464 706



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2016 2015

E E

12. Taxation

Opening balance 2 205 364 2 205 364

Charge for the year (note 5) - -

Provisional tax paid (3 500) -

Closing balance 2 201 864 2 205 364

13. Share Capital

Authorised

1000 shares of E1 each 1 000 1 000

Issued and fully paid

2 ordinary shares of E 1 each 2 2

14. Deferred grants

Swaziland Government Grants -Operational grant (note 14.1)

27 749 945 46 804 422

IFAD Grants- operational grant (note 14.2)

- -

IFAD – Global Environment Facility- operational grant (note 14.3)

- -

OPEC – operational grant (note 14.4) - -

International Livestock Research Institute (note 14.5) - -

EDF – operational grant (note 14.6) 7 872 263 -

ICDF – operational grant (note 14.7) 2 482 792 -

38 105 000 65 228 550


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2016 2015

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14. Deferred grants (continued)14.1 Swaziland Government Grants – operational

Balance at beginning of the year 46 804 422 38 604 715

Received during the year 118 449 527 136 194 029

Recognised in the statement of comprehensive income (135 076 301) (125 848 500)

Depreciation charge for the year (2 427 703) (2 145 822)

Closing balance 27 749 945 46 804 422

14.2 IFAD grants – operational

Balance at beginning of year - -

Received during the year - -

Recognised in the statement of comprehensive income - -

Depreciation charge for the year - -

Balance at end of the year - -

14.3 IFAD Grants – Global Environment Facility



Recognised in the statement of comprehensive income (993 915) (4 314 446)

Grant adjustment (1 252 022) -

- -

14.4 OPEC Grants – operational

Balance at beginning of year - 7 734 415


Recognised in the statement of comprehensive income (11 756 991) (10 526 797)

Grant adjustment (2 382 458) -

Balance at end of year - -



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2016 2015

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14. Deferred grants (continued)14.5 International Livestock Research Institute Grants

Balance at beginning of year 157 817 -

Received during the year - 351 048

Recognised in the statement of comprehensive income (12 924) (193 231)

Grant adjustment (144 893) -

Balance at end of year - 157 817

14.6 EDF grants - operational


Received during the year 7 873 585 -

Recognised in the statement of comprehensive income (1 322) -

Balance at end of the year 7 872 263 -

14.7 ICDF grants - operational



Recognised in the statement of comprehensive income (1 429) -

Balance at end of year 2 482 792 -

15. BorrowingsNon-current liabilities

Finance lease liabilities 5 112 075 -


Current liabilities

Current portion of finance lease liabilities 2 598 818 -

2 598 818 -

Balance at end of year 7 710 893 -


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NO

TES

TO TH

E FIN

AN

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L STATEM

EN

TSfor the year ended 31 M

arch 2016 (continued)

15. Borrow

ings (continued)The term

s and conditions of outstanding loans are as follows:

Terms and repaym

ent schedule31 M

arch 201631 M

arch 2015

Interest

Rate

Year of

maturityE

Face

valueE

Carrying

amountE

Face

valueE

Carrying

amountE

Finance leases9.5%

20188 736 812

7 710 893-

-

Finance lease liabilities are payable as follows:

Terms and repaym

ent scheduleFuture m

inimum

lease payments

InterestP

resent value of minim

um lease paym

ents

2016E

2015E

2016E

2015E

2016E

2015E

Less than one year3 187 425

-588 607

-2 598 818

-

Betw

een one and five years5 549 387

-437 312

-5 112 075

-

More than five years

--

--

--

Finance leases8 736 812

-1 025 919

-7 710 893

-



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2016 2015

E E

16. Cash utilised in operations

Profit before tax 1 538 149 1 365 241

Depreciation of property, plant and equipment 2 427 703 2 145 822

Interest received (1 538 149) (1 365 241)

Interest paid 13 370 -

Operating income before working capital changes 2 441 073 2 145 822

(Increase)/decrease in advance payments to consultants

(3 254 349) 1 607 260

Increase in grant and other receivable (13 997 317) (3 871 337)

Increase in accounts payable 3 484 622 696 252

Decrease in provisions (487 967) (773 771)

Cash utilised in operations (11 813 938) (195 774)

16.1 Net grants (utilised)/received

Grants received during the year 138 985 643 141 506 083

Utilised to finance operations (147 842 882) (140 882 974)

(8 857 239) 623 109

17. Related party transactionsThe Company is controlled by Swaziland Government as it is wholly owned by the Government and operates as a Public Enterprise.

The following transactions were carried out with related parties.

(i) Grant incomeSwaziland Government

135 076 301 125 848 500

2 484 221 -

(ii) Deferred grantsSwaziland Government

27 749 945 46 804 422



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17. Related party transactions (continued)(iii) Compensation for key management personnel

Key management are those charged with planning, directing and controlling the activities of the Company, directly or indirectly. Transactions with key management personnel include salaries, provident fund, severance pay allowance and directors’ fees. Compensation paid to key management is shown below:

Directors’ fees and expenses 259 824 464 481

Executive management:

Short term employee benefits 2 885 174 3 292 711

Post-employment benefits 326 004 291 531

Termination benefits - 58 338

3 211 178 3 642 580

Operating income before working capital changes 2 441 073 2 145 822

(Increase)/decrease in advance payments to consultants

(3 254 349) 1 607 260

Increase in grant and other receivable (13 997 317) (3 871 337)

Increase in accounts payable 3 484 622 696 252

Decrease in provisions (487 967) (773 771)

Cash utilised in operations (11 813 938) (195 774)

(iv) Doubtful debtsThere is no provision for doubtful debts, nor any bad debt written off during the year that relates to related parties.

18. CommitmentsThe Company has the following commitments

Contracted for: Due within one year 79 891 039 8 752 647

Authorised - -

Swaziland Government 79 891 039 8 752 647

These commitments are in respect of project development costs and are to be funded by future grant funding.

19. Contingent liabilities

There are no contingent liabilities.



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DETAILED INCOME STATEMENTfor the year ended 31 March 2016

2016 2015

E E

IncomeGrants recognised during the yearOther incomeFinance income

152 435 846 143 077 738

Expenditure

Advertising and promotions 105 100 266 779

Auditor's remuneration 23 353 46 808

Bank charges 70 374 57 679

Conferences and seminars 6 600 898

Consulting fees 55 413 74 440

Director's fees 259 824 464 481

Electricity and water 132 000 121 000

Company licences 92 565 71 743

Entertainment 41 608 46 510

General expenses 575 149 520 139

Insurances 484 123 388 282

Interest expenses 13 370 -

Legal expenses 343 309 26 200

Motor vehicle expenses 100 942 159 519

PEU loan guarantee contribution 101 612 91 321

Postage 9 875 10 051

Printing and stationery 93 648 131 250

Rent 725 890 679 588

Repairs and maintenance 20 168 46 274

Salaries and related costs 6 678 120 6 793 176

Staff training and development 504 513 421 548

Subscriptions 28 306 13 655

Telephone and fax 517 503 653 169

Travelling and subsistence 253 027 332 139

11 236 392 2 145 822



DETAILED INCOME STATEMENTfor the year ended 31 March 2016 (continued)

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2016 2015

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Assets related costs Depreciation of property, plant and equipment

2 427 703 2 145 822

Project development costs

Lavumisa Project - -

Komati Downstream Development Project 7 140 102 9 171 250

Lower Usuthu Smallholder Irrigation Project 70 171 616 92 869 264

Lower Usuthu Smallholder Irrigation Project Phase II 53 544 386 8 475 097

Lusip Global Environment Facility 6 373 990 17 634 415

High Value Crops Horticulture Project 1 322 -

Fruits Tree Production and Marketing Project 1 429 -

Smallholder Market-led Project 757 -

137 233 602 128 150 026

Total expenditure 150 897 697 141 712 497

039


Sw

azila

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Gov

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135

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-1

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993

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--

--

1 42

911

756

991

12 9

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7 84

2 88

2

Gra

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1 53

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--

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--

--

--

--

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3 05

4 81

5

139

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-1

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993

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--

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tsK

omat

i Dow

nstr

eam

Dev

elop

men

t P

roje

ct

Pro

ject

dev

elop

men

t cos

ts(7

140

102

)-

--

--

--

--

-(7

140

102

)

Low

er U

sutu

Sm

allh

olde

r Ir

riga

tion

Pro

ject

Pro

ject

dev

elop

men

t cos

ts

(58

401

701)

--

--

--

--

(11

756

991)

(12

924)

(70

171

616)

LUS

IP II

(5

3 54

4 38

6)-

--

--

--

--

-(5

3 54

4 38

6)

LUS

IP G

EF

Pro

ject

dev

elop

men

t cos

ts(5

380

075

)-

-(9

93 9

15)

--

--

--

-(6

373

990

)

Hig

h Va

lue

Cro

ps H

ortic

ultu

re

Pro

ject

Pro

ject

dev

elop

men

t cos

ts

--

(1 3

22)

--

--

--

--

(1 3

22)

Frui

t Tr

ee P

rodu

ctio

n an

d

Mar

ketin

g P

roje

ct

Pro

ject

dev

elop

men

t cos

ts

--

--

--

--

(1 4

29)

--

(1 4

29)

Sm

allh

olde

r M

arke

t-le

d P

roje

ct

Pro

ject

dev

elop

men

t cos

ts(7

57)

--

--

--

--

--

(757

)

Adm

inis

trat

ion

cost

s(1

1 23

6 39

2)-

--

--

--

--

-(1

1 23

6 39

2)

Ass

ets

rela

ted

cost

s:

Dep

reci

atio

n(2

427

703

)-

--

--

--

--

-(2

427

703

)

(138

131

116

)-

(1 3

22)

(993

915

)-

--

-(1

429

)(1

1 75

6 99

1)(1

2 92

4)(1

50 8

97 6

97)

Ope

ratin

g in

com

e fo

r th

e ye

ar1

538

149

--

--

--

--

--

1 53

8 14

9

2016

STAT

EM

EN

T O

F S

OU

RC

ES

AN

D A

PP

LIC

ATIO

N O

F FU

ND

Sfo

r th

e ye

ar e

nded

31

Mar

ch 2

016

SE

CTI

ON

2: F

INA

NC

IAL

STA

TEM

EN

TS

040

STATEM

EN

T OF S

OU

RC

ES

AN

D A

PP

LICATIO

N O

F FUN

DS

for the year ended 31 March 2016

Sw

aziland

Governm

entIFA

D

European

Developm

-

ent fund

IFAD

GE

FA

DB

AD

B

LUS

IP

Phase 11

European

Investment

Bank

BA

DE

A

Grant

ICD

FO

FIDILR

ITotal

EE

EE

EE

EE

EE

EE

Income

Grant recognised during the year

125 848 500-

-10 526 797

--

--

-4 314 446

193 231140 882 974

Grant recognised during the

1 365 241-

--

--

--

--

-1 365 241

Project beneficiaries contributions

829 523-

--

--

--

--

-829 523

128 043 264-

-10 526 797

--

--

-4 314 446

193 231143 077 738

Project costs

Kom

ati Dow

nstream D

evelopment

Project

Project developm

ent costs(9 171 250)

--

--

--

--

--

(9 171 250)

Lower U

sutu Sm

allholder Irrigation

Project

Project developm

ent costs

(88 361 587)-

--

--

--

-(4 314 446)

(193 231)(92 869 264)

LUS

IP II

(5 494 027)-

--

--

--

--

-(5 494 027)

LUS

IP II Feasibility study

(2 981 070)-

--

--

--

--

-(2 981 070)

LUS

IP G

EF

Project developm

ent costs(7 107 618)

--

(10 526 797)-

--

--

--

(17 634 415)

Adm

inistration costs(11 416 649)

--

--

--

--

--

(11 416 649)

Assets related costs:

Depreciation

(2 145 822)-

--

--

--

--

-(2 145 822)

(126 678 023)-

-(10 526 797)

--

--

-(4 314 446)

(193 231)(141 712 497)

Operating incom

e for the year1 365 241

--

--

--

--

-1 365 241


SE

CTIO

N 2: FIN

AN

CIA

L STATE

ME

NTS

2015

041


SE

CTI

ON

2: F

INA

NC

IAL

STA

TEM

EN

TS

PROJECT COSTSfor the year ended 31 March 2016

LUSIP 1 PROJECT COSTS TO 31 MARCH 2016 Cumulative 2015 This Year Cumulative 2016

Cumulative 2015 This Year Cumulative 2016

Dams & spillway 371 777 086 - 371 777 086

Weir intake & sand trap 40 431 480 - 40 431 480

Feeder canal 247 508 527 - 247 508 527

Main canal south 382 632 574 - 382 632 574

Tertiary distribution systems 239 334 911 9 264 853 248 599 764

Downstream project management 167 208 959 31 624 128 198 833 087

Public health 11 454 499 466 601 11 921 100

Agricultural development 199 951 151 20 743 628 220 694 779

Resettlement 69 854 106 855 069 70 709 175

Engineering design & supervision 65 613 407 - 65 613 407

Upstream project management 23 136 459 - 23 136 459

Environment monitoring 2 082 965 140 705 2 223 670

Potable water & Sanitation 76 159 229 2 626 338 78 785 567

LUSIP Water Service Provider 71 888 487 3 156 884 75 045 371

Roads & Crossing 13 598 198 - 13 598 198

International Livestock Research Institute 386 108 1 293 410 1 679 518

1 983 018 146 70 171 616 2 053 189 762

LUSIP 2 PROJECT COSTS TO 31 MARCH 2016

Feasibility study 13 219 963 - 13 219 963

Planning and Institutional Development - 61 491 61 491

Life Sustenance 11 629 25 647 598 25 659 227

Enconomic Empowerment and Agricultural Develop-ment

- 26 221 26 221

Project Management 16 709 361 13 816 565 30 525 926

Upstream Works - 13 992 511 13 992 511

29 940 953 53 544 386 83 485 339



KDDP PROJECT COSTS TO 31 MARCH 2016 Cumulative 2015 This Year Cumulative 2016


Site Staff project management 99 223 077 7 007 540 106 230 617

Farm Engineering Services 40 207 767 - 40 207 767

Electricity for farms 1 991 439 - 1 991 439

Roads and Crossings 20 894 139 - 20 894 139

Potable water & Sanitation 61 600 479 456 61 600 935

Civil works 9 213 516 - 9 213 516

Farmers rebates 97 424 403 - 97 424 403

Farm Development 8 561 040 132 106 8 693 146

339 115 860 7 140 102 346 255 962

LAVUMISA PROJECT COSTS TO 31 MARCH 2016

Irrigation study 12 008 739 - 12 008 739

12 008 739 - 12 008 739

LUSIP GEF PROJECT COSTS TO 31 MARCH 2016

Consultancy National 2 598 637 7 370 2 606 007

Consultancy International 712 686 196 263 908 949

Training and workshops 5 318 246 404 632 5 722 878

Vehicle and materials 10 081 073 280 236 10 361 309

Program unit staff 7 255 296 1 826 278 9 081 574

Operations & maintenance 4 614 670 3 659 211 8 273 881

Technical assistance 600 774 - 600 774

31 181 382 6 373 990 37 555 372

HVCHP PROJECT COSTS TO 31 MARCH 2016

Project management - 1 322 1 322

- 1 322 1 322

SE

CTIO

N 2: FIN

AN

CIA

L STATE

ME

NTS



SE

CTI

ON

2: F

INA

NC

IAL

STA

TEM

EN

TS

FRUIT TREE PROJECT COSTS TO 31 MARCH 2016


Project management - 1 429 1 429

- 1 429 1 429

SMLP PROJECT COSTS TO 31 MARCH 2016

Project management - 757 757

- 757 757

Grant total 2 395 265 080 137 233 602 2 532 498 682


044

045

Contact usHead Office P.O Box 5836 , Mbabane 4th Floor Dlanubeka Building Corner Lalufandlana and Mdada Street

Telephone : (00268)2404 7950/1Fax (00268)2404 7954Website : www.swade.co.szEmail : [email protected]

Date post:	15-Mar-2018
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