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SADP II Drives Agricultural Transformation Through Business Support

Business

By Kabelo Masoabi

The Smallholder Agriculture Development Project II (SADP II) continues to revolutionise Lesotho’s agricultural sector by equipping small-scale farmers with the tools and skills they need to thrive.

With the support of over 100 business service providers, SADP II is helping farmers create viable business proposals and adopt innovative practices to boost productivity and resilience.

Funded by the World Bank, the Government of Japan, and the International Fund for Agricultural Development (IFAD), SADP II aims to promote the adoption of climate-smart agricultural technologies, increase commercialisation, and improve dietary diversity.

These objectives align with the project’s broader goal of transforming subsistence farming into a more profitable and sustainable enterprise.

SADP II launched its third and final round of grant funding a fortnight ago, inviting applications from small-scale farmers across Lesotho.

The Matching Grants Program is a central component of the project designed to support small and medium-sized agricultural businesses, farmer associations, and cooperatives in their efforts to commercialise operations.

Tankiso Mothae, SADP II Grants Officer, explained the different categories of grants available:

  • Large Grants for Lead Firms: Up to M1.5 million
  • Medium Grants for General Farmers: Up to M500,000
  • Youth Grants: Up to M300,000

Mothae explained that applicants are required to contribute at least 30% of the requested amount, while SADP II covers the remaining 70%.

“This co-financing model ensures that farmers have a vested interest in the success of their projects. It also encourages financial discipline and ownership,” he stressed.

He further emphasised that applicants must have relevant experience in agriculture and adhere to the specified grant limits.

“These grants are meant to enhance productivity and market access, empowering farmers to achieve long-term success,” he added.

Comprehensive Support from Service Providers

To ensure farmers maximise the benefits of these grants, SADP II has engaged and trained more than 100 business service providers.

These providers play a crucial role in guiding farmers through the application and implementation processes.

“The service providers help applicants refine their business ideas, prepare detailed applications, and develop implementation plans. Their support extends to managing grant funds, monitoring project progress, and ensuring compliance with financial and technical reporting requirements.”

During a recent media briefing held in Pitseng, Leribe, Mothae highlighted the importance of these providers in bridging the knowledge gap for many farmers.

“Their expertise ensures that farmers adopt best practices, improve the quality of their products, and build resilience against climate challenges,” he said.

SADP II prioritises investments in areas that have the potential to drive significant growth and resilience in Lesotho’s agricultural sector. The following are some of the key focus areas:

  • Protected Agriculture and Vegetable Production
    Farmers are encouraged to use shade nets and greenhouses to protect crops from harsh weather conditions and pests.
  • Livestock Production
    This includes broiler and egg production, as well as ram and buck breeding programs aimed at improving livestock quality and productivity.
  • Post-Harvest Handling and Processing
    Investments in storage facilities, grading, packaging, and branding are crucial for reducing post-harvest losses and enhancing the marketability of agricultural products.
  • Food Safety and Certification
    SADP II supports initiatives that improve product quality and align with food safety standards, enabling farmers to access new and lucrative markets.
  • Value Addition and Diversification
    Farmers are encouraged to explore niche products and high-value crops to diversify their income streams and mitigate risks associated with market fluctuations.

Success Stories: Transforming Lives Through Agriculture

One of SADP II’s notable success stories is that of Malefetsane Makhabane, a beekeeper from ’Moteng in the Butha-Buthe district. Malefetsane’s journey into beekeeping began modestly in 2018 with just two bee boxes. However, his business took a transformative turn after receiving support from SADP II.

“The program provided me with additional bee boxes, advanced equipment, and essential skills. Today, I manage over 50 bee boxes and produce around 500 litres of high-quality honey annually.”

What sets Malefetsane’s honey apart is its chemical-free production process. This commitment to quality has not only enhanced his product’s appeal but also opened doors to potential international markets.

“Our goal is to diversify into other honey-related products and expand our reach globally,” he said.

Beyond his personal success, Malefetsane’s business has created jobs for five local residents, significantly improving their livelihoods.

Addressing Sector Challenges

Despite the progress, Lesotho’s agricultural sector faces several challenges and Mothae noted that subsistence farming remains prevalent, with limited access to modern farming techniques and weak extension services.

“These issues contribute to low production levels and hinder commercialisation efforts,” he said.

“SADP II seeks to address these challenges by providing farmers with the tools and knowledge needed to transition from subsistence to commercial farming. The project also emphasises climate resilience, recognising that changing weather patterns pose a significant threat to agriculture.”

“By adopting climate-smart practices, farmers can protect their crops and livestock against extreme weather conditions, ensuring sustainable production,” Mothae explained.

Long-Term Impact and Future Prospects

SADP II’s Matching Grants Program is set to conclude in 2026, marking the end of a transformative era for Lesotho’s agricultural sector. Since its inception, the program has supported 54 general grants in the first round, 173 in the second, 63 youth grants, and six lead firm grants.

“The goal for this third round is to increase the number of beneficiaries and solidify the program’s impact,” Mothae said.

The project’s comprehensive approach—combining financial support, technical assistance, and capacity building—has laid a strong foundation for sustainable growth. By the time the program concludes, it aims to have created a more resilient, competitive, and inclusive agricultural sector.

Encouraging Participation

Mothae urged farmers to take full advantage of the opportunities offered through SADP II. “This is the final chance to benefit from the program, and we encourage all eligible farmers to apply,” he said.

He also highlighted the broader benefits of the program, which include improved food security, reduced reliance on imports, increased exports, job creation, and enhanced rural incomes.

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