Challenges facing international projects for entrepreneurial development in South Africa

International development projects that support entrepreneurship face a number of challenges, not least because they need to integrate different paradigms. Based on the case study of a Canadian non-governmental organisation in South Africa, this paper provides an exploratory assessment of these challenges and highlights four major factors that affect the success of such international projects: transposing a northern business model to the south; developing local roots and adapting to the local context; balancing the allocation of resources between managing the project and providing services to entrepreneurs; and aligning the cultures of the private sector and international development agencies. In practical terms, the findings provide benchmarks for the success of these projects and could help improve interventions that encourage entrepreneurship in developing countries.     

Irrigation: Research and development∗

Some main features of proceedings of a 1985 workshop are presented. In Africa, irrigation has had limited success, and there have been many costly failures. Bureaucratic ineptitude, inadequate farmer incentives and participation, and gigantism are important causes. Technical, institutional and socio‐economic constraints complicate irrigation planning and development. Hydro‐agricultural projects have political, social, economic and ‘grey area’ objectives. Various ecological effects have in the past received insufficient attention. Crop and input selection should be based on the marginal principles of scarcity. In the long run, farmer settlement should veer towards individual tenure, although mixed modes can play a useful role. Water pricing systems should be adjusted to local conditions. Research should increasingly involve existing dynamic models as well as models still to be developed.     

Access to the agricultural market for small farmers in Southern Africa: The farmer support programme

Two recent events have led to a re‐evaluation of the appropriate approach to agricultural development in the self‐governing and independent national states in Southern Africa. First, the support and establishment of private farmers is generally emphasized in the agricultural development policies of these states. Although no clear‐cut strategies for implementation have emerged, greater attention is being given to research on the small farmer approach which is prominent in the literature on agricultural development. Second, an investigation into the financing of agriculture in the self‐governing and independent national states has recently been concluded within the system for multilateral co‐operation between the SATBVC states. The proposals emanating from this investigation also conform with the principles of the small farmer approach. The purpose of this paper is to motivate the need for a small farmer approach, and to show how the principles of this approach can be transformed into operational policy. In this regard the design of a farmer support programme is discussed.     

Tenure security and productivity in small‐scale agriculture in Zimbabwe: Implications for South Africa

This article tests empirically the interaction between land tenure security and agricultural productivity in small‐scale agriculture in Zimbabwe. Data for the analysis were gathered during April and August of 1995 by means of an interview survey of farmers in the small‐scale commercial sector, communal area and Model A resettlement area of Zimbabwe. Two‐stage least squares regression estimates reveal that land tenure security has a positive and significant influence on investment incentives and agricultural productivity in the sample. This result has two important implications for proposed land reforms in South .. Africa. Firstly, the result lends support to the notion that indigenous tenure institutions in communal areas of South Africa are a constraint on agricultural development. Secondly, it is clear that a national land redistribution policy must be accompanied by innovative tenure institutions which facilitate economic interaction and internalise externalities on land resettled by individuals and groups. This is particularly important in South Africa where groups of up to 300 families are being settled on commercial farms under a group ownership model.     

Russian Projects and Energy Cooperation in South Africa

The article discusses the problems and prospects for the development of a Russian nuclear power plants in South Africa, as well as other innovative energy projects in this country. Acute energy shortages in South Africa give Russia a unique chance to enter the African market and create a technological link between African countries and Russian innovations. An analysis of the political and economic situation in South Africa, as well as an assessment of the prospects for Russian business participation in the development of the South African energy sector were carried out using research conducted by the authors in South Africa in 2016, and interviews with Russian and South African civil servants and businesmen.     

Participation in research and development at the Tshikonelo agricultural project,Northern province

This article takes to task certain assumptions about participation in research and development, and criticises them for being decontextualised and ethnographically uninformed. Results of social scientific research at an existing agricultural project in the Northern Province of South Africa are brought to bear on the theory and assumptions of participatory research and development. The study starts with a theoretical account of participatory research. The point is made that there is not necessarily any connection between participatory research and participatory development. It is concluded from the subsequent case study that participation in research and development could be negatively influenced by local power dynamics, by institutional reluctance to experiment with participation, and by policy decisions and circumstances that do not lend themselves to social change. The significance of participation cannot be deduced in isolation from its context of implementation. It is concluded that participation by itself would not necessarily lead to these changes.     

Reflections on per diems in international development projects: Barriers to and enablers of the project cycle

The concept of what a per diem is and who should receive one is a complex idea that, within the development context, can either support or hinder the achievement of development projects’ goals. This paper seeks to explain the evolving nature of per diems and their use within the development context; explore how they serve as barriers or enablers in achieving project goals; and touch on their impact on the development project cycle. Through a 3-year-long internationally funded development programme in Malawi and South Africa, the authors compare lessons drawn from their experience with existing literature to determine the practicalities of paying per diems and address the question: To what extent do per diems support or hinder international development projects?     

An Index‐Based Model for Determining the Investment Benchmark of Renewable Energy Projects in South Africa

In a globalised world, financial markets observe the optimal level of asset allocation and returns based on risk inherent in the economies. Whether public or private investors, they need to have an optimal return on their investment given the finite resources. In relatively new sectors like grid‐connected renewable energy, many investors face difficulty in assessing proper return, making them more averse to financing such projects, affecting transborder project development opportunities. In developing countries like South Africa, which has tremendous potential for renewable energy projects, an arbitrary choice of the required rate of return for project evaluations can negatively affect funding decisions. This paper explores an index‐based model to make fair estimates of the required equity benchmark internal rate of return (IRR) using financial markets observation for renewable energy projects in South Africa. The index‐based model is parsimonious and captures common macroeconomic factors. More specifically, it provides a simple and effective mechanism to calculate IRR for renewable energy projects given different gestation periods.     

Improving food security in the rural areas of KwaZulu-Natal province,South Africa: Too little,too slow

Food insecurity is still remarkably high in the poorest areas of the KwaZulu-Natal province of South Africa. Many rural households struggle to have sufficient access to the food they need or prefer. This article explores the extent of food access insecurity and assesses the perceived impact on food security of an Empowerment for Food Security Programme that was launched in the Province in 2007. One of the programme aims was to improve agricultural practices in community gardens, home gardens and broiler production. Data were collected among 390 beneficiary households involved in these agricultural projects in 2010. Findings confirmed that experience-based food insecurity levels were still high, despite the agricultural support programme and the government income transfers. Nevertheless, respondents attribute an improved dietary diversity and better access to resources to the programme.     

Community projects: The possibilities in South Africa

The increasing emphasis being accorded by development agents to community participation and involvement in projects highlights the need for a dear conceptual and operational framework if success is to be obtained given the high levels of alienation and suspicion which occur among many ‘communities’. The first part of this paper provides a brief review of community development theory and practice. The second part outlines the key concepts pertaining to community development, while in the last part (the focus of the paper) a strategy is offered for the introduction of community projects in South Africa. It is argued that until more control is devolved to representative and democratic communities the prospects for introducing community projects will be slight, particularly in the more politicized townships and urban environments.     

Financing municipal BOOTs in South Africa: The lenders' perspective

South Africa's first build‐own‐operate‐transfer (BOOT) project for municipal services was signed in late December 1998 by the city of Durban and a private project company associated with French conglomerate Vivendi. The project will treat waste water for sale to industrial customers who would otherwise use more expensive potable water in their manufacturing processes. The project structure, with its multiple contracts and supporting agreements, guarantees and complex shareholding relationships, represents a sophisticated analytical challenge for lenders, whose financing will ultimately be at risk in the deal. Development finance institutions, such as the Development Bank of Southern Africa (DBSA), must review such projects in even greater detail because of their mandate to promote sustainable infrastructure development in the region. This article presents the DBSA ‘s analytical perspective on the Durban BOOT project in an effort to capture the complex, innovative and strongly developmental character of what, for South Africa, is a ground‐breaking public‐private partnership project.     

The mini farmer approach: A case study of the South African tea industry

This article analyses the concept of mini farming on tea estates in South Africa from the point of view of the farmer and the estate. Although mint farmers who participate in these schemes are subjected to strict controls, they enjoy more freedom than labourers. The article shows the relative merit of the mini farming concept in the tea industry, and thereby contributes to the current debate on agricultural restructuring in South Africa.     

紧密垂直协作与农产品质量安全控制的机理分析

本文在阐述垂直协作内涵及相关理论的基础上,深入分析了紧密垂直协作（如生产合同、合作社等）对农产品质量安全控制的作用机理：紧密垂直协作形成保障农产品质量安全的动力源泉,利益攸关与品牌共享需要农产品供应链各利益相关者共同维护农产品的质量安全;紧密垂直协作提供保障农产品质量安全的制度因素,资产专用性促使农产品供应链各利益相关者必须保证质量安全,制度条款帮助农产品供应链各利益相关者规避了质量安全问题。应进一步鼓励农民合作经济组织的发展,进一步支持“公司＋农户”模式的创新,进一步加强对紧密垂直协作形式的监管,从而通过发展完善紧密垂直协作形式来保证农产品质量安全。     

Assessing opportunities and constraints related to different models for supplying wind turbines to the South African wind energy industry

We explore the opportunities and constraints in the development of a localised wind energy industry in South Africa by analysing four wind energy projects representing different models of wind turbine production as suggested by Lewis and Wiser. We find that each model has strategic challenges and opportunities, and that particularly in the early growth stage of the industry the ‘turbine assembly’ model (with low levels of local content) has important risk and financing advantages. With regard to broader socio-economic impacts, however, we confirm the expectation that the ‘full turbine manufacturing’ model (with high levels of local content) has a significantly higher job creation potential. In terms of resulting policy implications, we support local content requirements, but emphasise the need for a strategic, phased approach to the development of industry clusters, with support not only to power producers and manufacturers, but also their domestic suppliers.     

Participatory multi-criteria decision analysis: a new tool for integrated development planning

This article proposes a new method for implementing integrated development planning as envisioned by the Local Government Municipal Systems Act of South Africa (2000). The method draws together stakeholders who fall into three broad groups: the communities who live in the municipal area, municipal officials and the elected local politicians. It is grounded in the principles of participatory action research, in which the participation of all interested and affected parties is valued. Within this participatory framework, tools of multicriteria decision analysis (MCDA) are used to support the decision-making process by structuring and quantifying difficult decisions that need to be addressed. Community development measurement scales are formulated by communities, and form the basis for evaluations of proposed projects and ongoing monitoring of these communities' progress.     

Renewable energy and local development: Seven lessons from the mining industry

Having long depended on fossil fuels for energy generation, South Africa is now investing in renewable energy. Like its mining operations, its renewable energy plants will have local implications. Renewable energy companies are therefore required by government to engage with communities to contribute to socio-economic development. We present seven lessons we believe the renewable energy sector can learn from the mining industry. We argue that the new industry must: manage social disruption, understand community complexities, create responsive institutions and the capacity to support industry practice, employ trained community practitioners, be clear about the aims of local development, encourage economic diversification in remote areas and, importantly, in view of problems caused by downscaling in the mining industry, plan for the possible closure of projects. Renewable energy projects could then serve and shape local development.     

Social capital and self-organised collective action: Lessons and insights from a South African community project

ABSTRACT

Through the lens of new institutional economics, this paper provides exploratory analysis of the elements of social capital behind the success of self-organised collective action in a longstanding and effective community-based conservation and development project. Our qualitative institutional analysis suggests that critical elements of project-level structural social capital in the Umgano project case study include: forward-thinking and capable leadership; long-standing partnerships with external agencies; sound operational structures and management; and legitimate participation facilitated by forms of representation that are transparent and accountable to constituents. In accordance with the theory, insights from the study also indicate that successful collective action relies on processes of long-term and earnest trust building, within and across communities, and between communities and external agents. Such insights serve as a point of reference for role-players in similar community-based projects and have the potential to inform future research on resource governance in South Africa.     

Localisation barriers to trade: The case of South Africa’s renewable energy independent power program

South Africa’s Renewable Energy Independent Power Projects Procurement Program (REIPPPP) has been hailed as one of the most successful programmes of its kind, contracting 92 renewable energy projects totalling 6 328 MW and US$20.5 billion since its inception in 2011. Despite this success, the programme’s use of non-price factors such as local jobs, local black ownership, local content, and local community ownership in bid evaluation has generated criticism and controversy. Lessons learned in other countries about how and when to use policies like import substitution to promote sustainable economic development seem not to have been fully incorporated by the REIPPPP. We therefore offer a cautionary note that dramatic and impressive localisation results are not inevitable – especially considering the size of the South African market and accompanying investment uncertainties – and that there is bound to be a trade-off between price and non-price factors in these kinds of competitive procurement programmes.     

Exchange rate volatility and agricultural trade under policy reforms in South Africa

Decades of government intervention have helped develop the South African agriculture sector to its present state. Policy reforms have included trade and exchange rate policies to increase the country's international competitiveness, reduce poverty and promote economic growth. These reforms are facilitating the growth in agricultural trade and South Africa's reintegration into the global economy. Annual agricultural exports and imports have increased. This paper uses annual data and a vector error-correction model to investigate the supply and demand relationships for agricultural trade flows in South Africa during the past four decades. The results show that prices, real exchange rates, domestic production capacity and real incomes have significant impacts on the country's agricultural trade. In particular, exchange rate volatility has negative impacts. This cannot be viewed solely as an exogenous source of macroeconomic instability in South Africa, as domestic policies play a crucial role in influencing the movement of exchange rates.     

SOUTH AFRICA AND THE NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT: ECONOMIC SPIN-OFFS AND LINKAGES

The New Partnership for Africa's Development (NEPAD) is a concerted effort by Africa's political leaders to develop a comprehensive and integrated strategic policy framework to raise current levels of socio‐economic development and reduce high levels of poverty across the African continent. The NEPAD framework recognises the need for African countries to pool their resources together in order to enhance regional development and economic integration. To this end, NEPAD emphasises capacity building and also seeks to solicit and disburse funds towards infrastructural development programmes and poverty alleviation projects, among others. South Africa's involvement with the rest of Africa has increased significantly since 1994. Trade exports, foreign direct investment (both market and resource‐seeking in nature) and public‐private partnerships have mushroomed in many parts of the continent. Many South African firms are providing the financial impetus for the infrastructural development and rehabilitation of African economies. This paper discusses salient economic linkages between South Africa and the rest of Africa within the framework of NEPAD. South Africa is the economic hub of sub‐Saharan Africa (and indeed of the African continent), with significant agricultural, manufacturing and services capacity. South African firms have invested in the development of a number of sectors in the rest of Africa, taking advantage of the new investment incentives offered by the NEPAD framework. The target sectors range from mining, the hospitality industry, engineering and construction, finance to telecommunications. These investments and economic involvements are crucial to the development of African countries and the relevant sectors that are important for the realisation of some of the objectives of NEPAD.