The socio-economic impact of recapitalisation and development programme on beneficiaries in Gauteng Province

Abstract

Land reform in South Africa is characterised by unsuccessful farming enterprises. As a result, the South African government initiated a series of agricultural support programmes to assist in turning around this status quo. This study investigated the impact of the Recapitalisation and Development Programme (RADP) on the socio-economic status of beneficiaries in the Gauteng Province. The objectives of the study were to determine the socio-demographic characteristics of RDAP beneficiaries, the impact of the programme on agricultural production, the factors influencing income increase, to assess the socioeconomic impact of the programme, and to identify general constraints faced by RADP beneficiaries. A survey research design was adopted to conduct the study whereby 51 beneficiaries of the RADP across all municipalities of Gauteng were selected to participate in the study. Primary data were collected through face-to-face interviews using a semistructured questionnaire. To analyse quantitative data, the Statistical Package for Social Sciences (SPSS) version 24 was used. The analysis of quantitative data included descriptive statistics (frequencies, percentages, mean, standard deviation, standard error of mean), the Binary Logistics Regression (BLR) model, t-test and binomial test. The level of significance was determined at a 95% confidence interval. Coding and memoing were used to analyse qualitative data from open-ended questions, which were then converted into frequencies and percentages. The findings about the socio-demographic characteristics of beneficiaries showed that the majority of the respondents (51%) were female and their average age was 55 years. More than one-third (39.2%) had university qualifications. The majority of respondents were married black Africans. IsiZulu was the language spoken by most of the respondents (21.6%). Farming was the main source of income of the majority of the beneficiaries of the RADP (76%); and the majority (78.4%) had acquired their farmland through land reform programmes, mainly Proactive Land Acquisition Strategy (PLAS). The majority of respondents practised mixed farming on an average of 195.4 hectares (ha); and they had an average of 12.5 years of farming experience. An analysis of the socioeconomic impact of RADP on beneficiaries showed that RADP had an insignificant impact on agricultural production in respect of area cultivated, crop yields and number of livestock kept by the beneficiaries of the programme (farmers). The overall impact of the RADP on the socio-economic status (social, financial, physical and natural capital) of the respondents was not statistically significant. Only the human capital of the respondents improved significantly after they had received support from the programme. The study found that the factors influencing increases in the respondents’ income from farming were gender, age, farm size, source of income, access to credit, farming skills and access to bigger markets. However, only three factors (age, access to credit and access to bigger markets) were significant at a 5% level. The general constraints indicated by the beneficiaries were a lack of adequate farm equipment; poor communication with officials of the Department of Rural Development and Land Reform (DRDLR); high input costs; a lack of access to markets; poor relationships with mentors; stock theft; and insufficient funding. It is recommended that youth should be recruited to participate in farming to sustain it; government and farmer organisations should assist farmers in accessing bigger (formal) markets that offer lucrative prices; and farmers should be trained in the marketing of agricultural produce. In addition, the RADP should provide support programmes to improve both the socio-economic status of its beneficiaries and agricultural production (crop yields and number of livestock kept).