TY - JOUR
T1 - A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC
AU - Nyamuhirwa, Dieu Merci Akonkwa
AU - Awotide, Bola Amoke
AU - Kusinza, Doux Baraka
AU - Bishikwabo, Valery Kasereka
AU - Mignouna, Jacob
AU - Bamba, Zoumana
AU - Dontsop Nguezet, Paul Martin
N1 - Funding Information:
Acknowledgments: The authors are grateful to the International Institute of Tropical Agriculture (IITA), which provided funding for this study, and the International Fund for Agriculture Development (IFAD) for funding the CARE Project. Finally, the authors would like to sincerely thank all anonymous persons for their very useful insights and helpful suggestions. The views expressed in this paper are those of the authors and should not be attributed to the organizations with which they are affiliated.
Funding Information:
Funding: This study was supported by the International Institute of Tropical Agriculture, under grant 2000001374 of the “Enhance Capacity to Apply Research Evidence (CARE) in Policy for Youth Engagement in Agribusiness and Rural Economic Activities in Africa”, project number PJ 2459, funded by the International Fund for Agriculture Development (IFAD).
Publisher Copyright:
© 2022 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2022/7/1
Y1 - 2022/7/1
N2 - The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable non-agribusiness enterprises in South Kivu province. A Data Envelopment Analysis (DEA), as well as cost–benefit ratios and net monthly revenue, were used to examine technical efficiency and profitability. Our results showed that agribusiness was more competitive than non-agribusiness in terms of technical efficiency and profitability. The cost–benefit ratio shows that every dollar invested in agribusiness earns investors US $2.8, while it earns investors in non-agribusiness US $2.1. Moreover, technical efficiency increases significantly with agribusiness. These results show that agribusiness can compete with other non-agribusiness activities, and it remains a solution to youth unemployment in the region.
AB - The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable non-agribusiness enterprises in South Kivu province. A Data Envelopment Analysis (DEA), as well as cost–benefit ratios and net monthly revenue, were used to examine technical efficiency and profitability. Our results showed that agribusiness was more competitive than non-agribusiness in terms of technical efficiency and profitability. The cost–benefit ratio shows that every dollar invested in agribusiness earns investors US $2.8, while it earns investors in non-agribusiness US $2.1. Moreover, technical efficiency increases significantly with agribusiness. These results show that agribusiness can compete with other non-agribusiness activities, and it remains a solution to youth unemployment in the region.
KW - agribusiness
KW - Data Envelopment Analysis
KW - eastern DRC
KW - economic profitability
KW - technical efficiency
UR - http://www.scopus.com/inward/record.url?scp=85134614825&partnerID=8YFLogxK
U2 - 10.3390/su14148384
DO - 10.3390/su14148384
M3 - Article
AN - SCOPUS:85134614825
SN - 2071-1050
VL - 14
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 14
M1 - 8384
ER -
