Analysis of the economic impact of Rural Enterprise Development Hub Project on maize farmers in Mqanduli, South Africa

Abstract

The research analysed the economic impact of Rural Enterprise Development Hub Project (RED Hub Project) on maize farmers. A sample of 200 maize farmers was drawn from a total of 398 beneficiaries of the project using Cochran sample size formula. Convenience sampling was done at the second stage using structured questionnaires which were administered on the beneficiaries of the project from 9 villages in Mqanduli Community. With the use of a 'before' and 'after' approach the study determined the provision of market for supply of maize produce by benefitting farmers and change in annual income of maize farmers. The data were analysed using descriptive and inferential statistics. P-value less than 0.05 were considered to be statistically significant. The results revealed that there has been a significant positive impact of RED Hub Project on the income of benefitting maize farmers per hectare and per farm. This is represented by 100% provision of market by the project for maize produce, a significant (t-statistics 179.4 and p-value < 0.05) mean change of 212.47% in income per hectare in the area, a significant (t-statistics 38.4 and p-value < 0.05) improvement of the mean income of benefitting maize farmers per farm by 264.32% in the area. Therefore, the study recommends sustained purchase of maize produce by the project from its beneficiaries and an extension of purchase from all maize farmers in Mqanduli.