Abstract

Creating sustainable jobs in the agricultural sector is an important aspect of rural development. Agriculture is often viewed as a sine qua non for rural development, because it provides the necessary economic stimulus for rural households to participate in productive economic activities. Yet, identifying viable agricultural projects that have the potential to create jobs in rural areas has continued to overwhelm policymakers. In this paper, the economic feasibility of sisal production and processing in Limpopo province is analysed. The study was motivated by the sisal crop’s proven abilities to create many jobs and the growing appeal that natural fibres are currently receiving globally. Using both a deterministic and stochastic budget, this paper shows that sisal production and processing could be a viable investment in Limpopo. However, given the high costs of labour, investors are cautioned to look for community partnerships in order to spread the economic costs and benefits of sisal production and processing in Limpopo.

Key words: Sisal production, processing, stochastic, GRKS, simetar.