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Assessment of smallholder's agriculture's contribution to the economy of Zimbabwe: A social accounting matrix multiplier analysis

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  • Juana, James S.
  • Mabugu, Ramos E.

Abstract

The economy of Zimbabwe has been in shambles since 1991. Output has declined in most of the production sectors, leading to many job losses. Current debates on the problems facing the economy have focused on poor government's incentives and excessive interventions as major constraints of economic development. The government of Zimbabwe, on the other hand has emphasized an agriculturally led economic recovery programme. Specifically, the government has undertaken land reform and investment policies aimed at promoting small-holder agriculture in Zimbabwe. Is this a justifiable action taken by the government? The answer to this question necessitated the use of the 1991 micro SAM for Zimbabwe to empirically analyze the impact of small-holder agriculture on the economy of Zimbabwe. The goal of this paper is to quantify small-holder agriculture's true contribution to the economy in general and poverty reduction in particular. However, to make a more detailed analysis, the other sectors are also included in the analytical framework. The study uses the traditional impact analyses to measure the incidence of a sector specific policy on the economy. The results provide evidence that investment in small-holder agriculture should be seen as investment in the entire economy. The study clearly shows that small-holder agriculture promotes sustainable development and the inclusion of rural communities especially the poorest in economic activities.

Suggested Citation

  • Juana, James S. & Mabugu, Ramos E., 2005. "Assessment of smallholder's agriculture's contribution to the economy of Zimbabwe: A social accounting matrix multiplier analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), September.
  • Handle: RePEc:ags:agreko:31724
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    File URL: http://purl.umn.edu/31724
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    References listed on IDEAS

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    1. Tytus, Peter J. & Hastings, Steven E. & Tanjuakio, Rodolfo V., 1996. "The Economic Contribution Of Agriculture In Delaware," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(1), April.
    2. Bautista, Romeo M. & Thomas, Marcelle & Muir-Leresche, Kay & Lofgren, Hans, 2002. "Macroeconomic policy reforms and agriculture: towards equitable growth in Zimbabwe," Research reports 128, International Food Policy Research Institute (IFPRI).
    3. Hassan, Rashid M., 1997. "Trade liberalization and the environment: The case of agriculture in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), December.
    4. Thomas, Marcelle & Bautista, Romeo M., 1999. "A 1991 social accounting matrix (SAM) for Zimbabwe:," TMD discussion papers 36, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Tafadzwanashe Mabhaudhi & Patrick O’Reilly & Sue Walker & Simon Mwale, 2016. "Opportunities for Underutilised Crops in Southern Africa’s Post–2015 Development Agenda," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-16, March.
    2. Nicholas Kilimani, 2014. "Water Taxation and the Double Dividend Hypothesis," Working Papers 201451, University of Pretoria, Department of Economics.
    3. Juana, James S., 2006. "A quantitative analysis of Zimbabwe's land reform policy: An application of Zimbabwe SAM multipliers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(3), September.
    4. John Basera & Clifton Makate & Takesure Tozooneyi, 2016. "Comprehending smallholder maize enterprises` profitability with the current maize marketing system in Zimbabwe: A case of Mazowe district," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(6), pages 90-105, June.
    5. Mukarumbwa, P. & Mushunje, Abbyssinia, 2010. "Potential of Sorghum and Finger Millet to Enhance Household Food Security in Zimbabwe's Semi-arid Regions: A Review," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96430, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
    6. repec:gam:jsusta:v:8:y:2016:i:4:p:302:d:66512 is not listed on IDEAS

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    Keywords

    Agricultural Finance;

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