Factors Affecting the Choice of Agricultural Households’ Participation in Income Diversification Activities in Rural Parts of Mnquma Local Municipality, Eastern Cape Province, South Africa

S. Mvango

doi:10.17159/2413-3221/2025/v53n5a21391

Authors

S. Mvango Eastern Cape Department of Agriculture https://orcid.org/0000-0001-9118-0294

DOI:

https://doi.org/10.17159/2413-3221/2025/v53n5a21391

Keywords:

Income Diversification, Rural Economy, Household, Principal Component Analysis, Multinomial Logistic Regression, Mnquma Local Municipality, South Africa

Abstract

Rural areas remain an integral part of any economy, yet poverty persists, especially in developing countries. Given that agriculture remains the backbone of most rural economies, the sector is plagued by low incomes. The need to transform rural areas into innovation hubs in South Africa has become urgent. This study aims to analyse the factors influencing the participation of agricultural households in income diversification activities in rural areas of Mnquma, Eastern Cape Province. A cross-sectional research design and multi-stage random sampling technique were employed. Structured questionnaires were used to collect data from a sample of 398 households. Descriptive statistics were used to examine socioeconomic characteristics, including age, gender, marital status, employment status, education level, household size, and household income. The study revealed that the most commonly observed income-generating activities were a combination of both farming and non-farming activities, with a representation of 49%, followed by non-farming activities (33%), and farming activities (18%). Principal Component Analysis (PCA) was employed to create the rural constraints and access to infrastructure indices, which are crucial factors in determining the choice of income diversification activity. The Multinomial Logistic Regression was used to investigate the factors affecting the choice of participation in income diversification activities by rural households. The analysis results revealed that rural constraints and the number of years spent in school were significant at 1% probability level in determining the choice of farming activities. Extension services, employment status, and age were highly significant at 1% probability level in determining the choice of non-farm activities. A policy favouring diversified rural income portfolios would result in higher incomes and poverty alleviation.

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Author Biography

S. Mvango, Eastern Cape Department of Agriculture

Senior Agricultural Advisor from the Eastern Cape Department of Agriculture

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