SanLei Premium Trout, the largest trout farm in Africa, provided only R5,000 to the local community fund, failing to deliver promised environmental benefits. The Catchment Resilience Fund has collapsed, resulting in deteriorating conditions for local farmers affected by the dam’s construction. Questions remain regarding accountability and the company’s true commitment to community welfare.
SanLei Premium Trout, claimed to be Africa’s largest trout farm, has only contributed R5,000 to the community fund designated for the Katse Dam catchment area. This very modest contribution was essential for the company to secure its operational license from the Lesotho Highlands Development Authority by demonstrating potential benefits to local communities. However, the Catchment Resilience Fund (CaRe Fund) appears to have faltered within a year, leading to local complaints about deteriorating conditions.
The company asserts its commitment to local communities affected by issues such as overgrazing and soil erosion. Nonetheless, its minimal financial contribution to the CaRe Fund in 2018 has not yielded any implemented environmental projects, raising concerns among locals regarding the farm’s genuine commitment to community welfare.
SanLei is owned by Mergence Asset Managers via the Lesotho Private Equity Fund, which is primarily funded by Lesotho’s Public Officers’ Defined Contribution Pension Fund. Currently, the company’s trout production is reported at 1,000 tons annually, with plans to double this by 2030. The dams constructed in the 1990s for water supply to South Africa significantly impacted local populations, resulting in compensation for some, but many others face ongoing struggles with environmental degradation.
Mergence’s 2023 report defines the CaRe Fund’s objective as improving rangeland management among Khokhoba farmers in the degraded dam catchment area. It was meant to incentivize community involvement through better management practices. However, the funds were instead reportedly utilized inappropriately, leading to broken community trust and discouragement from participation in environmental sustainability efforts, as highlighted by local leaders.
Observations from community representatives indicate that the CaRe Fund resources were ineffectively managed, focusing on small loans rather than environmental projects. Although SanLei’s compliance officer stated additional funds were allocated to training, the actual aid to the community was significantly less than claimed, leading to skepticism about the project’s execution.
The original goal of mitigating climate change effects through grazing restrictions and community training was largely unfulfilled after funding from USAID ended in 2018. Attempts made by the Lesotho Highlands Development Authority to revive the fund have not materialized, leaving many members of the community disillusioned.
Questions concerning SanLei’s regulatory obligations and accountability were sent to both the Lesotho Highlands Development Authority and the company’s CEO, but responses regarding their contributions and commitments have been notably absent. Local residents continue to voice their concerns about worsened agricultural conditions, such as increased storm frequency and premature frost affecting crop yields.
In summary, SanLei Premium Trout, while touted as the largest trout farm in Africa, has contributed very little to the well-being of local communities near the Katse Dam. The intended benefits of the Catchment Resilience Fund have largely failed, resulting in misunderstandings and unmet needs among the community. Despite prior plans to rehabilitate environmental conditions and enhance rangeland management, the project has not delivered as promised, warranting further scrutiny into the company’s commitments and regulatory adherence.
Original Source: groundup.org.za
