The Sierra Leone Smart Farm Village

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1 THE SIERRA LEONE SMART FARM VILLAGE Project Leaders The Sierra Leone Smart Farm Village Prof. Federico Perali Prof.ssa Antonella Furini Mayor Edward Yamba Koroma Research Staff Prof.ssa Michela Sironi Dr. Maikol Furlani Arch. Roberto Carollo Arch. Francesca Benati Eng. Giorgio Pascucci Eng. Remo Tantalo Dr. Elena Dalla Chiara Prof.ssa Martina Menon Prof.ssa Marcella Veronesi Dr. Michele Baggio Mr. France Nathaniel Verona, december 2015

2 A SMART PROJECT BORN AND DEVELOPED INTO THE ECONOMICS DEPARTMENT OF VERONA UNIVERSITY IN PARTNERSHIP WITH THE GOVERNMENT OF SIERRA LEONE

3 ...TO PLAN A NEW SUSTAINABLE DEVELOPMENT MODEL FOR AFRICAN VILLAGES...TO PROJECT POOR PEOPLE INTO THE FUTURE

4 The Sierra Leone Smart Farm Village is a sustainable and replicable Village, at low footprint, autonomous for food supply, energy and water use It is an healthy environment because designed to be an hygienically safe site also thanks to the construction with local materials of a modern health center and a sustainable sewage system It is an agro-industrial local economy specialized in rice and vegetable production used to nourish the local population and for export The village is smart because well-educated local people use advanced environmentally compatible technologies, construction techniques (straw housing, screw foundations, etc.), and complete recyclying of organic and inorganic material

5 Interactions among village households in factor and commodity markets create local income linkages and feedbacks across sectors of the local economy generating a virtuous circle fostering sustainable economic and social growth The village is a peaceful society because based on the respect of traditional social norms and the just distribution of tenure rights to families The village sustainable development model preserves the local environmental assets for future generations while producing and consuming local products, such as rice, fish and wood from the village public forest Both food and construction activitiea are at 0- km

6 From the Study to the Implementation Rokupr The Selected Development area: Rokupr North-East of Freetown Demographic structure: 12,000 people avg household size=6 64% below 24 years old 10% above 50 years old

7 The Social Analysis at the Village Level To create a sustainable village model is crucial to know the social linkages and transfers across households, because only from the knowledge of this interactions we can understand the likely effect of changes in the economic context on household income and food supply. Our approach starts analysing the way people obtain access to the goods they need to survive, socialize and prosper. For example, we analyse: how people in different social and economic circumstances get the food Village Regional Market Urban Centre The Local Village Economy Our goal is to estimate the full impact of the development project from the social and the economic point of view. The Social Accounting Matrix (SAM) for Sierra Leone and the SAM construction for the local village economy permit us to realise an economic snapshot before and after the project implementation. With the SAM tool we can carry out a complete feasibility plan to determine the total internal rate of return of the project to justify the investments (Government, international banks, privates, etc) and Labour Natural Resource sales (fish, charcoal, firewood poles, etc) Poorer Households Richer Households Livestock, Fish & Food Livestock, Fish & Food Food & household goods Food Loans & gifts Remittances

8 The Village impact analysis We start analyzing the microdata from a National to a Local level and creating an organized database: data from LSMS Living Standards Measurement Study - World Bank microdata from Sierra Leone Households Survey From the construction of Sierra Leone Social Accounting Matrix to the ZOOM on ROKUPR Smart Farm Village Economy For example to plan the housing development we studied the microdata on housing materials, win- SIERRA LEONE Use of housing materials Freq. Percent Cum. KAMBIA DISTRICT Use of housing materials Freq. Percent Cum. Mud & Wattle 3, Burnt Bricks Timber Corrugated Iron Sheets Stone Cement/Concrete 1, Tarpaulin Other Mud & Wattle Burnt Bricks Timber Corrugated Iron Sheets Cement/Concrete Tarpaulin Other Total 6, Total

9 To evaluate the impact of the project The impact of Smart Farm Village implementation on Rokupr Gross Production: 3 round of investments, 5 Millions per year The Rokupr daily per capita GDP Pre (Year 0) and The impact of Smart Farm Village implementation on Rokupr employment:

10 The first sketch of the economic and social Sustainable Rokupr Village

11 18 Sub-projects for an integrated and sustainable deve-

12 The rice farm 1,000 ha for rice cultivation General cost in the first three years: about 1,450,000 (machineries, buildings and irrigation system) Operative costs for each year: about 380,000 From 600 employees to 50 employees when technologies are used (the workforce move from the agricultural sector to the manufacture and trade sectors). The cost for a working hour change from 1 of the first year to 5 in the third year. Financial rate of return on investment (25 years, 5% discount rate): 34.52%

13 The fish farm 120 fish ponds in operation covering 7 ha of land, while another hectar will be reserverd for the fingerlings laboratory and breeding General cost in the first three years: about 89,105 per year (machineries, buildings and irrigation system) Operative costs for each year: about 217,569 (fingerlings, fertilizers, harvesting, maintenance costs, labor, other operative costs, transport, etc.) 8 employees. The cost for a working hour will increase of 1 every five years, reaching the level of 5 /hour in year 25 Financial rate of return on investment (25 years, discount rate 5,00%): 10.07%

14 The livestock area Batch size: 5000 birds/flock General cost in the first three years: about 146,250 (machineries, buildings and equipment) Operative costs for each year: about 380,000 (day old chicks cost,feed, medicine/vaccination, maintenance costs, labor, other operative costs, transport, etc.) Financial rate of return on investment (25 years, 5% discount rate): 7.49% Financial net present value of the investment (25 years, 5% discount rate): 47,515.95

15 The forest nursery The forest nursery will cover 84 Ha of land, that will be useble to replace the 84 Ha of existing forest wich is going to be cutted due to have enough sawn timber for the construction of 1000 houses, 500 in the fist 5 years and other 500 within year 10 1,000 mahogany seeds are going to be planted in each hectar, for a total amount of 84,000 seeds, that after 20 years can produce about 11,000 cubic metres of sawn timber. 252 employees during the sivicultural season, and 50 employees during the maintenance season. The cost for a working hour will increase from 1 in the first year to 2 in the fifth year.