Evaluation of income generating projects

The study is conducted in the Eastern Cape Province of South Africa in Lukhanji Local Municipality. Eastern Cape has a population of 1 676 470. Source: Demarcation Board (www.demarcation.org.za),03 April 2009. The Province is made up of seven district municipalities which includes the following; Nelson Mandela Bay Metropolitan Municipality, Cacadu, Amathole, Chris Hani, Ukhahlamba, OR Tambo, Alfred Ndzo. It is comprised of seven local municipalities which are King Sabata Dalindyebo, Nyandeni, Qaukeni, Mbizana, Mhlontlo, Port St John’s, and Ntabankulu. Eastern Cape, according to Bradshaw Debbie et al (2000;4) has the second highest poverty levels in South Africa (47percent of households below the poverty line, which is based on imputed monthly expenditure of R800 or less) (SSA, 2000b), combined with the highest provincial unemployment rate (55 percent) in the country (SSA, 2003). This province is characterised by inequitable growth and development. As mentioned above, it has a high level of poverty. For this reason, strategies like Income generating projects (IGPs) have been formulated to address the need for improved livelihoods, better skills and self employment opportunities. Income generating project as a concept is a convincing strategy when looked at a distance however there is a need to evaluate the impact of Income generating projects (IGPs) through a scientific study to determine the evidence of speculations that Income generating projects are claimed to improve and sustain livelihoods of our people. In the light of the aforesaid, the researcher has endeavoured and undertaken a study on the evaluation of income generating projects. This was done to determine the extent to which income generating projects (IGPs) as a mechanism to alleviate poverty address this problem of poverty. Due to the broadness of the concept of the problem and the extensive nature of the geographical area of the Eastern Cape, the study was exclusively focused on the agricultural projects of Ilinge and Machibini Project in Lukhanji Local Municipality. For the purpose of this study, a combined method approach was used. In other words, the study applied both quantitative and qualitative research design in an attempt to gain an indepth understanding of the problem investigated. Both questionnaire and interviews were employed during gathering of data of the study and participants were project members, project leader and key informants as contributing builders and mangers of the projects. Findings revealed that there is lack of sustainability on income generating projects as the projects studied lost a high number of project members with a common complaint of lack of income to sustain project members during their membership on the income generating projects (IGPs). Lack of skills is considered to be a crucial contributing factor as one other project complained of total lack of training of project members