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A socio-economic impact assessment (SEIA) of the Idutywa agripark project on project beneficiaries in Mbashe local municipality of the Eastern Cape Province

Poverty, inequality and unemployment have always been challenging first in South Africa with special reference to rural South Africa. These persistent challenges with severe impacts on black population are believed to be the results of the previous governance in South Africa. Policies have been formulated, reformulated and others implemented in a form of development projects which have achieved little success in pursuit of combating these challenges. However, in the process of achieving rural development through developmental projects, a fundamental stage in the life cycle of these projects is often omitted or given little attention. This stage is the monitoring and evaluation stage which is critical to ascertain potential impacts (both positive and negative) especially if the project is to be replicated and achieve its objectives as postulated in the millennium development goals. This thesis attempted to carry out a Socio-Economic Impact Assessment (SEIA) of the Agripark project implemented at Dutywa on the livelihoods of communities directly affected by this project. The Agripark project is a project that comprises three linked components, a seedling nursery, an agro-processing facility and a sizeable feeder plot and has been implemented to benefit four villages. This project has been implemented as the second Agripark project by the University of Fort Hare in partnership with the province’s Department of Agriculture. To track change after the implementation of the project, data were collected from the same respondents that were interviewed for the baseline study, therefore, the same sample size that was used in the baseline study was also used for this study. As a tool for data collection, a questionnaire was developed to elicit the required information and was interviewer administered during data collection. The results of the study revealed that Agripark project has impact on both social and economic wellbeing of the households. The processing unit of the project was not yet functioning therefore the project was not fully effective thus the impact was not as intended by the project when the study was carried out. Skills transferred were only on production but only a small number of people could receive them. These households largely relied on external sources of income mainly on social grants and their contribution to total household income had increased to 88% in 2011 compared to 80% in 2008. As much as the increase in incomes cannot be entirely be because of the project but Agripark had a positive impact on household incomes through wages of those employed there and through increased profitability of hawking vegetables. The proportion of household earning incomes less than the Poverty line fell from 85% in 2008 to approximately 79% in 2011. The household complemented their staples with a variety of vegetables and the main source of these vegetables was Agripark even though own production was declining. Even though food was still the main item of these households expenditure, the proportion of income spent on food fell from 64% in 2008 to 48% in 2011. There were no environmental impacts found. From the descriptive analysis, the project had impact on the livelihoods of these households because it brought change on the household expenditure as a result of the income earned by those who are working in the Agripark. There was an improvement on risk of food insecurity through cheaper vegetable that both physically and financially attainable. However, as much as the project had positive impact, there were also concerns raised by the respondents that the employment was only biased to certain individuals which cased stress to some households. Furthermore, the empirical analysis of the selected variables showed that participation in Agripark had an impact on economic wellbeing of the beneficiaries. Thus, funding must be made available to the project so that it can upgrade their electricity and have the processing plant running as it may be the major source of employment, skills development and achievement of its objectives.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufh/vital:11211
Date January 2014
CreatorsMagida, Phiwokuhle Thulani
PublisherUniversity of Fort Hare, Faculty of Science & Agriculture
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MSc Agric (Agricultural Economics)
Format120 leaves; 30 cm, pdf
RightsUniversity of Fort Hare

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