Economic development in the Eastern Cape: a case study of agricultural projects

This study seeks to evaluate economic development in the Eastern Cape Province, with a special focus on the agricultural sector. It focuses on the role that Development Finance Institutions (DFIs) play in stimulating economic development. To achieve this, the Eastern Cape Development Corporation (ECDC) was considered as a case study in assessing DFI’s support to the agricultural sector in the province. The study will also look into the corporation’s adherence to the Provincial Growth and Development Plan (PGDP) and its strategic programmes. The study examines how the agricultural initiatives financed by ECDC contribute to economic development in the province. It will also assess whether those agricultural projects may impact the local communities through poverty alleviation. In order to address the research problem and to achieve the research objectives, available literature and empirical work related to the relationship between financial system development and economic development was reviewed. The research revealed that the role played by the ECDC with regard to Agricultural Projects has not been entirely effective to add value to economic development in the province, mainly caused by the lack of non – financial support by skilled people from the corporation, after limited funding was made available. From the investigation, the findings indicate that the effective mplementation of these projects require strengthened capacity, which requires more skilled officials from the corporation to assist the agricultural enterprises in managing the projects; and more funding that will assist the projects to reach sustainability