The direct and indirect economic contribution of small-scale black agriculture in South Africa

This paper develops and applies a simple non-parametric methodology for estimating the direct and indirect economic contribution of small-scale black agriculture in South Africa. The direct contribution is understood as the per capita food expenditure savings of agriculturally-active households relative to other households. Meanwhile, the indirect contribution is understood as the expenditure savings enjoyed by rural households by virtue of residing in areas characterised by widespread, albeit modest local production. The analysis is based on the Income and Expenditure Survey of 2010/11. Further to estimating the magnitude of the direct and indirect contribution of small-scale agriculture, the paper seeks to provide econometric evidence for the economic logic underpinning the indirect economic contribution of small-scale black agriculture.