Analysis of the socioeconomic impact of the palm oil industry on smallholder farmers in Rumonge, Burundi

Abstract

This study analysed the impact of the palm oil industry on smallholder and subsistence farmers in the Rumonge region of Burundi, the second poorest country in the world. Burundi has widespread poverty and suffers severe capacity constraints, and skill shortages brought about, in part, by ethnic civil war, political conflict and internal displacement. Ingrained animosity has disrupted farming, escalated poverty and hampered development projects such as palm oil farming. Little research has been conducted into the causes and possible solutions to these problems. Using sustainable development theory and agricultural development theory, this study addressed this gap by considering the potential benefits of sustainable palm oil production in the context of the socio-economic challenges facing Burundi. Using qualitative and quantitative methods, the study targeted four villages of Rumonge District, including Kizuka, Busaga, Dama and Birimba. A combined total of 300 respondents was derived from these four villages. Findings of the quantitative study suggest that palm oil had a positive impact on the social and economic lives of rural communities in Rumonge District;. However, challenges remained in capacity, farming skills and resources. Results from qualitative interviews and focus groups confirmed that earnings from palm oil could be used to support education, skills transfer through family ties; and employment of local people. However, from the perspective of environmentalist activists, it was indicated that while palm oil generated economic benefits for local communities, at the same time traditional farming methods led to pollution and degradation of the natural environment. Qualitative findings further showed that small-scale palm oil farmers faced numerous challenges which often led to the failure of some of their ventures, such as access to funds, lack of technical support, lack of knowledge in utilising business networking, low skills levels, limited understanding of land rights issues, civil conflicts and rising production costs. Additional problems were noted regarding environmental problems and the disappearance of wildlife. The study confirmed the need for small-scale farmers to be adequately capacitated with information, training, resources and technical support to be able to use sustainable farming methods in order to enhance yields. The study contributes to knowledge by identifying how rural smallholder farmers can design more extended longer-term plans to improve their livelihoods, particularly concerning how palm oil production can address the socio-economic problems facing the people of Burundi.