Challenges of Lesotho’s Largest Trout Farm: Community Impact and Fund Mismanagement

SanLei Premium Trout, claiming to be Africa’s largest trout farm, contributed just R5,000 to the Catchment Resilience Fund aimed at supporting local communities affected by environmental changes. The initiative appears to have failed, as funds were misallocated and local agriculture deteriorates in part due to the impact of the dam. Community members express frustration over the shortcomings of the project and the need for improved support and accountability.

The Lesotho Highlands aquaculture project, touted as Africa’s largest trout farm by SanLei Premium Trout, has contributed a mere R5,000 to the local community fund intended to support area residents affected by environmental changes. SanLei’s financial contribution was required as part of its licensing agreement with the Lesotho Highlands Development Authority, aimed at showcasing community benefits derived from the project. However, the initiative, known as the Catchment Resilience Fund, has largely failed within the past year.

SanLei, which operates on the Katse Dam, claims to assist local communities enduring challenges from overgrazing, soil erosion, and adverse weather conditions. Yet, critics argue that the company’s contributions are insufficient and the fund, initiated in 2018, did not facilitate the desired environmental improvements. Instead, local farmers are contending with deteriorating agricultural conditions since the dam’s construction.

SanLei, owned by South Africa-based Mergence Asset Managers, has reported that its trout production currently stands at 1,000 tons annually, with expectations to double by 2030. The dams built in the 1990s, aimed at supplying water to South Africa, have altered livelihoods in Lesotho significantly. While certain farmers received compensation for land loss, many others confront issues such as soil erosion and a loss of vital resources.

The Mergence impact report elaborated that the Catchment Resilience Fund sought to motivate Khokhoba farmers to manage degraded lands in the dam catchment area. Nonetheless, reports indicate that funds were misallocated, including loans for individuals and building an office for the village chief, diverging from community benefits outlined in the fund’s objective. Community member Malieketso Ramokoatsi voiced her frustrations, stating the fund’s potential benefits were squandered, leading to its collapse.

SanLei’s compliance officer acknowledged that a significant portion of project financing came from USAID, which had earlier supported training initiatives. Despite this, crucial support for climate change management ceased when USAID withdrew in 2018, prompting concerns among local leaders regarding the project’s sustainability. Additionally, the Lesotho Highlands Development Authority suggested reviving the fund, yet concrete plans remain absent.

Khokhoba residents are vocal about the negative impacts of the dam, citing increased instances of hailstorms that erode soil and disrupt agricultural productivity. Furthermore, altering weather patterns have led to earlier frosts, adversely affecting crop yields. Such conditions compel the community to grapple with increasing food insecurity, reinforcing the pressing need for accountability from SanLei and regulatory bodies involved in the project.

The Lesotho Highlands aquaculture project, while claiming to be Africa’s largest trout farm, continues to draw criticism for failing to provide sufficient support to the local communities impacted by its operations. The minimal contribution to the Catchment Resilience Fund and reports of misuse highlight deficiencies in accountability and the need for meaningful engagement with local stakeholders. With the negative effects of environmental changes on agriculture, there remains a critical need for effective management and support for those adversely affected by the construction of the dam.

Original Source: groundup.org.za