An Analysis of the Effects of Aid in Terms of Farming as a Business in Zambia

Examensarbete för kandidatexamen
Bachelor Thesis
Berntsson, Fredrik
Malmqvist, Jacob
Nilsson, Elisabeth
Regnander Bergh, Joel
Reiman, Carl
Stenriker, Oskar Ingvar
The Swedish International Development Cooperation Agency (Sida) has had several initiatives within the Zambian agricultural sector. One such initiative is the Agriculture Support Programme (ASP) that ran between 2003 and 2008. The programme had its roots in business and entrepreneurship with the short-term goal to improve food security and increase income among participating farmers. In the long- term perspective, the goal was to contribute to poverty reduction on a national level. The purpose of the thesis is to analyse how aid programmes similar to ASP and the concept farming as a business can contribute to poverty reduction and generate economic growth in Zambia. The effects of farming as a business and the causes behind them were charted through a field study in Zambia which involved extensive interviews with the main stakeholders of the programme. The research was conducted as a qualitative methodology where interviews were supplemented by studies of consultancy reports as well as theories from various literatures. The thesis will be conducted through a qualitative methodology, since it is difficult to obtain this understanding through measurable data and statistics. The thesis discusses the impact of ASP and different aspects of the farming as a business concept. This includes the effects for the individual farmer adopting the concept as well as prerequisites for effects on a national level. Implementation and management strategies of these kinds of aid programmes are also two important issues that are discussed. Furthermore, the sustainability is analysed in terms of long-lasting effects. The result identifies that improved agricultural skills in combination with increased business skills generates synergies that facilitated farmers to break out from the poverty trap and instead enter a positive development spiral. The household approach and the facilitation cycle are two important factors behind this. ASP also tends to be an aid programme of a sustainable character since farmers have continued to develop their farming even after the programme ended. However, if there was to be a new programme similar to ASP, the market linkages need to be improved in order to facilitate the farmers’ sales.
Industriell teknik och ekonomi , Industrial engineering and economy
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