Rural non-farm activities in South Africa

Abstract

Rural poverty, underemployment and labour migration have continued to increase in recent years, reinforcing the importance of non-farm economic activities for rural households. Rural non-farm activities are an important source of employment and income for poor and landless women and farmers. In the rural economies of most developing countries, rural non-farm employment accounts for a significant share of total employment. In addition, rural non-farm activities account about 35-50% of rural incomes in developing countries. The main objective of the study is to examine the salient features of the rural non-farm sector in South Africa in terms of geographical locality, employment trends, gender, age and education characteristics therein, as well as recommend appropriate policy options. The study focuses only on one aspect of rural non-farm activities, namely, informal sector activities. The study is descriptive in nature and uses data for the period 2008-2019. Informal activities (non-agricultural) in South Africa grew by twelve per cent over an eleven year period. This demonstrates the need for policy makers to use rural development to provide a platform for the prosperity of the rural non-farm sector. Therefore, the promotion of these types of enterprises will help increase rural employment and incomes.