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Compiled by the Employment and Economic Policy Research Programme of the
Human Sciences Research Council
Published by HSRC Press
Private Bag X9182, Cape Town, 8000, South Africa
www.hsrcpress.ac.za
© 2005 Human Sciences Research Council
First published 2005
All rights reserved. No part of this book may be reprinted or reproduced or utilised in
any form or by any electronic, mechanical, or other means, including photocopying
and recording, or in any information storage or retrieval system, without permission
in writing from the publishers.
ISBN 0-7969-2100-8
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Copy edited by Susan de Villiers
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CONTENTS
List of Tables v
List of Figures vii
Contributors viii
Acknowledgements ix
Acronyms x
1 Introduction 1
2 Limpopo Province Case Study —
Themba Mthethwa 3
2.1 Introduction 3
2.2 The context of Limpopo province 3
2.3 The Dihlophaneng community 4
2.4 The Depaarl Agricultural Project 9
2.5 Dendron 11
2.6 Summary 14
2.7 References 15
3 Western Cape Case Study — Andries du Toit 17
3.1 Introduction 17
3.2 The Western Cape: a context 18
3.3 The agricultural labour market 20
3.4 Off-farm poverty 32
3.5 Policy issues 42
3.6 References 43
4 Eastern Cape Case Study — Cobus de Swardt 45
4.1 Introduction 45
4.2 Overview of the Mount Frere District and description of the Mount
Frere research 46
4.3 The utilisation of land among subsistence and other small-scale
agriculturalists 47
4.4 Sketching the socio-economic environment as a background to
micro-enterprise development 53
4.5 Government policies and initiatives to promote the rural economy 60
4.6 Concluding recommendations 64
4.7 References 65
5 Kwazulu-Natal Case Study — Themba Mbhele
& Michael Aliber
67
5.1 Introduction 67
5.2 A statistical overview of the sectors 67
5.3 Skhonyana 71
5.4 Macambini 73
5.5 Amahlubi 75
5.6 Amanyuswa 77
5.7 Umzumbe 79
5.8 Summary 80
5.9 Appendix: Summary notes on focus group interviews 81
5.10 References 85
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6 Synthesis and Conclusions — Michael Aliber 87
6.1 Introduction 87
6.2 Labour absorption in commercial agriculture 87
6.3 The subsistence/small-scale agriculture sector 90
6.4 The rural micro-enterprise sector 99
6.5 Government projects 105
6.6 Conclusion 108
6.7 References 109
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v
©HSRC 2005
Table 2.1 Summary of assets within the Dihlophaneng community 5
Table 2.2 Factors influencing the trend in subsistence and small-scale production
in Dihlophaneng 7
Table 2.3 Duration of business and employment trends at Dendron 13
Table 3.1 A profile of the farms surveyed, by district and main activity 21
Table 3.2 Reported changes to permanent labour force in 1997–2000 22
Table 3.3 Planned changes to permanent labour force 23
Table 3.4 Labour usage per hectare for various categories of labour 24
Table 3.5 A comparison of labour intensity for regular and seasonal labour 25
Table 3.6 Use of labour for businesses with/without a packing house or cellar 26
Table 3.7 Main sources of temporary labour 27
Table 3.8 Gender and racial composition of permanent labour force and
harvesting teams 27
Table 3.9 Proportion of farms using labour contractors 28
Table 3.10 Tasks performed by contractors on farms that used contractors 29
Table 3.11 Distribution of empty houses on farms surveyed 31
Table 3.12 Stated future plans for housing on farms 31
Table 3.13 Gender and site distribution of adults in Ceres survey 34
Table 3.14 Places from which adults have moved in previous five years
(percentages) 34
Table 3.15 Most important employment sectors for those with access to paid
employment 35
Table 3.16 Access to land for agricultural use (percentage of households) 36
Table 3.17 Households reporting hungry periods 37
Table 3.18 Employment status of adults, showing gender distribution 39
Table 3.19 Gender distribution of individuals spending more than an hour a day
on key activities 40
Table 3.20 Individuals receiving various types of grants (of entire sample) and
mean per household grant income for households receiving 41
Table 3.21 Percentages of adults reported as self-employed 41
Table 4.1 Livestock ownership percentages within the categories 49
Table 4.2 The distribution of large livestock ownership and income comparison 49
Table 4.3 Food items in order of frequency (Food Security Survey, August 2002) 51
Table 4.4 Income categories, hunger periods, and food security relative to the
previous year 53
Table 4.5 Tasks adults perform on average for more than one hour per day 54
Table 4.6 Years of education in relation to paid work 55
Table 4.7 Sources of income 56
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LIST OF TABLES
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Skills Development in Very Small and Micro Enterprises
vi
©HSRC 2005
Table 4.8 Total monthly expenses 57
Table 4.9 Amount of savings by households 58
Table 4.10 Amount of debts held by households 58
Table 4.11 Disasters suffered by households in the past 12 months 60
Table 4.12 Comparing average number of large livestock in households with and
without social grants 62
Table 4.13 Average difference of a Basic Income Grant to the different income
categories 63
Table 5.1 Composition of the agricultural labour force in KwaZulu-Natal 68
Table 5.2 Sub-categories of hired labour 68
Table 5.3 Transitions into and out of agriculture in KwaZulu-Natal 69
Table 5.4 Main reasons for engaging in agriculture, KwaZulu-Natal 69
Table 5.5 Composition of the rural micro-enterprise sector in KwaZulu-Natal 70
Table 5.6 Estimated numbers of individuals moving into and out of self-employment
in micro-enterprise, KwaZulu-Natal 71
Table 5.7 Summary of estimates of participation in various economic sectors,
KwaZulu-Natal 71
Table 6.1 Share of household income derived from agriculture (percentages) 90
Table 6.2 Reasons for engaging in agriculture (percentages) 91
Table 6.3 Transition matrix of black rural adults who did and did not farm in
two consecutive years 92
Table 6.4 Row percentages for black households’ transitions into, out of, and
within agriculture 94
Table 6.5 Changes in household incomes for selected transitions 95
Table 6.6 Estimated numbers of households moving into and out of production
for an extra source of food 96
Table 6.7 Incidence of employment and unemployment among black African and
coloured people, rural versus urban, 2002 100
Table 6.8 Transition matrix of rural adults by labour force status in two
consecutive years (percentages) 101
Table 6.9 Changes in household incomes for transitions between labour
force status 102
Table 6.10 Average percentage change in the number of household members
having employment in relation to individuals’ transitions between labour
force status 103
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LIST OF FIGURES
Figure 3.1 Year-on-year fluctuations in regular agricultural employment 21
Figure 3.2 Seasonal fluctuations in labour use for various sectors 26
Figure 3.3 Month-by-month fluctuations in average incomes 37
Figure 3.4 Aggregated months with sufficient food (households as % of
entire sample) 38
Figure 3.5 Month-by-month breakdown of hungry periods 38
Figure 4.1 Sources of drinking water in Mount Frere District 47
Figure 4.2 Maize harvest quantities during 2001 48
Figure 4.3 Comparison of livestock ownership and income between the top,
middle and bottom third of livestock owners 50
Figure 4.4 Comparing food expenditure between top, middle and bottom
income groups 52
Figure 4.5 Comparing gender differences in paid employment categories 55
Figure 4.6 Impact of existing social grants on households 61
Figure 6.1 Trends in commercial farm employment 87
Figure 6.2 Comparison of transitions into and out of agriculture by individuals
versus by households 92
Figure 6.3 Transitions into and out of agriculture for RSA and four provinces,
based on the household approach 93
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viii
©HSRC 2005
Michael Aliber, Integrated Rural and Regional Development Research Programme, Human
Sciences Research Council.
Cobus de Swardt, formerly Programme for Land and Agrarian Studies (PLAAS), University
of the Western Cape, now Transparency International, Berlin, Germany.
Andries du Toit, Programme for Land and Agrarian Studies (PLAAS), University of the
Western Cape.
Themba Mbhele, independent consultant, KwaZulu-Natal.
Themba Mthethwa, Discipline of Development Studies, formerly University of the North,
now University of Limpopo.
CONTRIBUTORS
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ix
©HSRC 2005
This project was made possible by Miriam Altman, Executive Director of the HSRC’s
Employment and Economic Policy Research Programme, who both motivated for it
and provided for it financially out of the Programme’s budget. For the field research in
Limpopo Province, we would like to acknowledge the important role played by Mr Isaac
Kwaw, in the Discipline of Development Studies at the University of the North, as well as
the assistance of two students, Ms M Kola and Mr J Mathabatha. For the Western Cape and
Eastern Cape studies, we would like to acknowledge the Chronic Poverty Research Centre
of the University of Manchester, in partnership with which much of the fieldwork used in
the chapters was conducted. For the Western Cape case study, we also wish to express
thanks to the Centre for Rural Legal Studies, which commissioned some of the earlier
research that the Western Cape chapter relies upon. For the KwaZulu-Natal case study,
we would like to acknowledge the organisational assistance of Jennifer van Rensburg.
ACKNOWLEDGEMENTS
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©HSRC 2005
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©HSRC 2005
ACRONYMS
ABET Adult Basic Education and Training
AMS Agricultural Management Service
ANC African National Congress
ARDC Agricultural Rural Development Corporation
BIG Universal Basic Income Grant
CBPWP Community Based Public Works Programme
CPRC Chronic Poverty Research Centre
CRLS Centre for Rural Legal Studies
CWSS Community Water Supply and Sanitation Programme
DBSA Development Bank of Southern Africa
DFID Department for International Development
ESTA Extension of Security of Tenure Act
GEIS General Export Incentive Scheme
HDI Human Development Index
HSRC Human Sciences Research Council
IDMP Institute for Development Policy and Management
IFP Inkatha Freedom Party
KIDS KwaZulu-Natal Income Dynamics Study
LAC Lebowa Agricultural Corporation
LED local economic development
LIMPAFU Limpopo African Farmers Union
LIMPUST Limpopo Province Agriculture Strategic Team
LRAD land restitution and development
NAFCOC National African Federated Chamber of Commerce
PLAAS Programme for Land and Agrarian Studies
SALDRU South African Labour and Development Research Unit
SLAG Settlement/Land Acquisition Grant
TAU Transvaal Agricultural Union
TNC transnational corporations
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[...]... and Policy Challenges in the Rural Economy According to the respondent small-scale farmers, the previous government divided their land into trust land and communal land The farmers argued that trust land had more potential for development and that most previous government or homeland services to farmers during apartheid were, in fact, concentrated within the trust lands There were no services within... of the total population living in rural areas in 2001, down slightly from 88.5 per cent in 1996 (The second most rural province is Eastern Cape, at 61.2 per cent.) This reflects the fact that Limpopo’s economy is relatively nonindustrial, with its two main primary sectors – agriculture and mining – accounting 3 ©HSRC 2005 Trends and Policy Challenges in the Rural Economy for the major share of the. .. course of the research This chapter will discuss these in its concluding section 17 ©HSRC 2005 Trends and Policy Challenges in the Rural Economy Structure of this report The history of social relations on farms and in rural districts forms an essential backdrop to any understanding of the nature and direction of change in the agricultural and rural economy of the Western Cape This paper, therefore,... of intangibles (brands and intellectual property) in determining the nature and implications of corporate strategy; and • The increasing sophistication of the technologies (information technology and social technologies) used in the private monitoring and auditing of supply chains, and the development of new and complex kinds of quality regulation (Raikes & Gibbon 2000; Du Toit & Ewert 2002) Raikes and. .. pressure on prices, increased levels of risk and uncertainty and raised direct and indirect costs at home Fourth, the transition to democracy has itself impacted powerfully on producers, and on their perceptions of themselves and their relation to the state The worldview and 19 ©HSRC 2005 Trends and Policy Challenges in the Rural Economy self-perception of the white landed elite and its culture of mastery... – the analysis draws mainly on ongoing research into chronic poverty in the Mount Frere District, with particular attention to land utilisation and changing livelihood strategies KwaZulu-Natal – five sites were identified for primary research (involving mainly key informant and focus group interviews): Skhonyana, Macambini and Amahlubi, each in the north of the province, and two sites in the southern... allegation that there is manipulation of prices of maize and other food crops; • Increased fuel prices; and • Weather uncertainty in the absence of a clear drought relief system The farmers explained that the removal of subsidies and the dismantling of the marketing boards have affected them more than the other factors listed above They pointed out that the price of maize is quoted in dollars The farmers... In addition to primary data, the analysis also depends to some extent on other recent studies in the areas, not least research on the small business sector in and around Dendron (Kwaw & Mthethwa 2001) 2.2 The context of Limpopo province Limpopo province is overwhelmingly rural (De Villiers 1997; Northern Province 1997) In fact, according to the census, Limpopo is by far the most rural province in the. .. at the Cape during the 17th and 18th centuries (Elphick 1977) Colonial conquest and support for land acquisition by settler farmers meant that, in the course of a century, most of the arable land in the west of the Cape Colony (as it then was) fell under settler control This provided the underpinnings for the development, over the years, of a settled and distinct white rural landed elite, bound together... of the research, and their owners interviewed All five businesses in Dihlophaneng involve the retailing of groceries and other goods purchased from wholesalers in Polokwane One of the businesses also retails beer and liquor The general observation is that most of the businesses in Dihlophaneng are struggling to survive The common symptom is that, over time, customer numbers have been falling and the . Macambini and Amahlubi,
each in the north of the province, and two sites in the southern part of the province,
namely Amanyuswa and Umzumbe.
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Trends and Policy Challenges in the Rural Economy
Small business in Dihlophaneng
Out of five businesses in Dihlophaneng, three shops were visited during
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