Income generating projects in the agricultural sector in securing, maintaining and providing sustainable livelihoods : a case study of two projects in the Lukhanji Local Municipality

The province consists of seven district municipalities, which include Nelson Mandela Bay Metropolitan Municipality, Cacadu, Amathole, Chris Hani, Ukhahlamba, OR Tambo, and Alfred Ndzo. It is comprised of seven local municipalities: King Sabata Dalindyebo, Nyanden, Qaukeni, Mbizana, Mhlontlo, Port St John’s, and Ntabankulu. According to Bradshaw et al. (2000:4), the Eastern Cape has the second highest poverty level of all provinces in South Africa. Forty seven percent of households are below the poverty line, a figure based on imputed monthly expenditure of R800 or less (USSA, 2000b). In addition, the province has the highest provincial unemployment rate (55 percent) in the country (SSA, 2003). Inequitable growth and development characterise this province. Due to the high level of poverty, the government has formulated strategies, such as income generating projects (IGPs), to address the need for improved living conditions, better skills and more self-employment opportunities. The income generating project as a concept seems a convincing strategy at first glance. However, there is a need to evaluate the effectiveness of income generating projects in improving living conditions and providing sustainable livelihoods. In light of this, the researcher undertook a study to evaluate these projects in order to determine the extent to which IGPs as mechanisms provide sustainable livelihoods for resource–poor rural people in the Lukhanji Local Municipality. The researcher used a combined method approach; the study includes both quantitative and qualitative research designs in an attempt to gain an in-depth understanding of the problem. The investigator employed questionnaires and interviews to gather information. Participants were project members, project leaders and key informants, as these people were contributing builders and mangers of the project. Findings reveal a lack of sustainability in income generating projects, as numerous project members left the projects studied. A lack of income to sustain project members during their membership was a common complaint. Further, a lack of skills is a crucial contributing factor, as members of another project complained of a lack of training of project member