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Factors Influencing the Success Potential in Smallholder Irrigation Projects of South Africa: A Principal Component Regression

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  • Magingxa, Litha Light
  • Alemu, Zerihun Gudeta
  • van Schalkwyk, Herman D.

Abstract

The objective of this paper is to examine the role of the factors expected to influence the success potential of small holder irrigation projects as they apply in the South African context. The study was conducted in six smallholder irrigation schemes in three provinces namely: Eastern Cape, Limpopo and Mpumalanga. To determine the farmers' potential success (dependent variable), a cluster analysis was conducted yielding two groups of farmers - the less successful and more successful. The principal component regression (PCR) tool was used to analyse the data and deal with the problem of multicollinearity, transforming the explanatory variables into principal component estimators. There were fourteen explanatory variables. Out of the nine statistically significant variables, seven have the expected sign. These are infrastructure, market access, research & development, off-farm income and extension (significant at the 1% level) while planning and transport are significant at the 5% level. The study has shown which areas should receive specific attention to improve the success potential in South African smallholder irrigation projects.

Suggested Citation

  • Magingxa, Litha Light & Alemu, Zerihun Gudeta & van Schalkwyk, Herman D., 2006. "Factors Influencing the Success Potential in Smallholder Irrigation Projects of South Africa: A Principal Component Regression," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25348, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25348
    DOI: 10.22004/ag.econ.25348
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    Cited by:

    1. Edgar Muhoyi & Josue Mbonigaba, 2022. "Stakeholder consultations on small-scale irrigation schemes’ constraints in Zimbabwe," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13198-13217, November.
    2. Shiimi, T. & Taljaard, Pieter R. & Jordaan, Henry, 2010. "Transaction Costs and Cattle Farmers' Choice of Marketing Channels in North-Central Namibia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96641, African Association of Agricultural Economists (AAAE).
    3. Mutambara, Solomon & Darkoh, Michael B.K. & Atlhopheng, Julius R., 2016. "A comparative review of water management sustainability challenges in smallholder irrigation schemes in Africa and Asia," Agricultural Water Management, Elsevier, vol. 171(C), pages 63-72.
    4. Strydom, D.B. & Zyl, H. van & Willemse, B.J., 2014. "Characteristics of potato contract producers in the South African potato processing industry," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 53(2), June.

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    Keywords

    Resource /Energy Economics and Policy;

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