Assessing the Role of Agriculture on Rural Poverty Alleviation in South Sudan. A case Study Renk County, Upper Nile State

Abstract

This study aimed to assess the role of agriculture on rural poverty Alleviation and evaluate the role of Norwegian People Aid (NPA) organization, microfinance institutions, government and local communities in reducing rural poverty levels in South Sudan. The study examined the extended support to Agriculture and Forestry Development Project (SAFDP) small grant management (SGM), which contributed to poverty reduction in Renk County. Agriculture is the source of livelihood and employment for the vast majority of the population of South Sudan where it operates more than 78% of the citizens. Primary data were collected from 120 small farmers (six focus discussion groups) using purposive sample technique. Secondary data were collected from both SGM office and their clients and other relevant sources such as previous studies, theses, reports, papers, articles, books and internet. The study used many analytical methods such as cross tabulation, excel, budget analysis and Cobb-Douglas production function for descriptive and inferential statistical analysis. Results of the study revealed that 68.43% of the required total budget was offered by small SGM, and (31.57%) by farmers' groups. The field survey depicted that 85% of the farmers have experienced positive economic and social changes in their life activities, and 75% of them felt that without this grant it would have not been possible for them to undertake business activities and to generate employment and income. Despite these achievements, it was further observed that some factors constrain the program of rural poverty alleviation like climate changes, fluctuating rainfall, spread of agricultural pests, lack of production inputs and agricultural extension services; high production costs and poor infrastructure, lack of experience and skilled labour, absence of qualified staff and lack of small grants were being faced by the project. Findings of this study showed that most of the population was males (61%) and 39% women. Harvesting and planting costs constituted 39% and transportation costs constituted 15% of crop production total costs. The crop productivity ranged between one to two sacks per feddan (90-180 Kg/feddan).The average cost per feddan in Renk County is 92 and an average of productivity is 1.38 sack/fed and an average return per feddan is 158.7. The estimated Cobb-Douglas production function showed that the elasticity of production to labour is -3.25; it means output is not positively response to human resource usage in Renk County, and the output/capital elasticity is about 4.07 it means capital is positively related to output. This research work recommends that alleviation of rural poverty in Renk County requires policies that support the poorer to work and competitive in the labour market with the productive sectors and service, and an integrated agricultural sector with other sectors, giving more attention to women development programs which enable them to contribute effectively in improving the standard of living for their families, establishment of microfinance institutions in urban and rural areas to provide all micro-finance services such as loans, saving and insurance to meet the demand for microfinance, and increasing the amount of grants to 20 thousand South Sudanese Pounds and expand the cultivated area to 500 feddans and links microfinance (SGM) with agricultural extensions services. Also the study recommends encouragement of income-generating projects among low-income groups through cooperative groups to encourage micro-enterprises.