Abenet Belete

Estimating the Supply Response of Maize in South Africa: A Nerlovian Partial Adjustment Model Approach

ABSTRACT Maize is the most important crop in South Africa, being both the major feed grain for livestock and the primary staple food crop for the majority of the population. Farmers’ production decisions regarding maize and their response to policy incentives are critical for national food security and regional trade. The aim of the study was to estimate the supply response of the South African maize sector to price and non-price incentives. A Nerlovian partial adjustment model was applied to historical time series data of area under maize cultivation, measured in hectares spanning from 1980-2012 to determine the supply response. Results indicate a short-run price elasticity of 0.24 and a long-run price elasticity of 0.36, signifying that maize farmers are less sensitive to price changes than non-price incentives. The results confirm that non-price incentives such as rainfall and technology seem to have more effect on maize supply than price incentives in South Africa. Given the findings, the study recommends policies and programmes that focus more on non- price incentives, such as technology and infrastructure development, investment in irrigation and research services, as a means of stabilising maize production in South Africa.

The Character of Emerging Biofuel Value Chains: Focus on the Chisumbanje Sugarcane Bio-ethanol Chain in Zimbabwe

ABSTRACT The investments in large scale sugarcane production for processing into ethanol fuel that have occurred in Zimbabwe have generated debate in the media and the public in general. This paper characterises the typology and key elements of the emerging Chisumbanje sugarcane bio-ethanol value chain using empirical data on supply utilisation accounts (SUA) and value chain governance. It is concluded that the value chain is characterised by the pervasiveness of monopolistic tendencies and dominance of powerful private corporates being supported by government. Legislative changes and involvement of powerful Government and political institutions has created strong opportunities for rent seeking as the investor lobbies powerful players in pursuance of high private economic benefits. The value chain systematically excludes the smallholder farming community from directly participating in the productive aspects of the chain. Production systems have changed for the local communities that have been displaced and there are indications of losses of traditional livelihood sources.

The Impacts of Ethanol Blending and Indigenization Policies on Value Creation and Income Distribution along the Emerging Chisumbanje Sugarcane Bio-Ethanol Value Chain in Zimbabwe

ABSTRACT In Zimbabwe, the Government went into a partnership with a private investor operating as Green Fuels in February 2009 to set up the Chisumbanje Ethanol Project. The Government legislates mandatory blending of petrol with ethanol from Chisumbanje and started from an initial five percent to a planned twenty-five percent. Using input-output (I-O) and counterfactual analysis approaches along the emerging bio-ethanol value chain, this paper analyses impacts of different policies on income generation and distribution along the value chain. The results show that as the blending level increases the private investor gets more and more net financial benefits compared to other economic agents and recommends that changes in shareholding and implementation of community share ownership mechanisms are potential approaches to address the skewed distribution of income along the chain.

Challenges Facing Decentralization and Community Participation in Local Development in Capricorn District Municipality, South Africa

Abstract This study aims to investigate the key challenges facing decentralization and community participation in local development processes in Capricorn District Municipality (CDM). A qualitative case study design was adopted to examine critical factors influencing decentralization and community participation in the two local municipalities under CDM. Primary data was collected through interviews with officials and community representatives using non-probability purposive sampling, and cross-examined along with secondary sources. It was found, inter alia, that poor decision-making, weak institutional capacity, lack of commitment, poor responsiveness, and lack of inclusiveness were the major critical issues facing the local municipalities. In conclusion, if the local government embark on drastic measures to address such deterring factors, the decentralization process, which has taken place through the formation and functioning of the CDM will lead to a comprehensive citizen participation in the design and delivery of services and development.