A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC

Dieu Merci Akonkwa Nyamuhirwa; Bola Amoke Awotide; Doux Baraka Kusinza; Valery Kasereka Bishikwabo; Jacob Mignouna; Zoumana Bamba; Paul Martin Dontsop Nguezet

doi:10.3390/su14148384

A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC

Dieu Merci Akonkwa Nyamuhirwa
, Bola Amoke Awotide
, Doux Baraka Kusinza
, Valery Kasereka Bishikwabo
, Jacob Mignouna
, Zoumana Bamba
, Paul Martin Dontsop Nguezet

Development Finance & Public Policies

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Résumé

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.

langue originale	Anglais
Numéro d'article	8384
journal	Sustainability
Volume	14
Numéro de publication	14
Les DOIs	https://doi.org/10.3390/su14148384
Etat de la publication	Publié - 1 juil. 2022

Financement

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: 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).

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SDG 8 Travail décent et croissance économique
SDG 12 Consommation et production responsables

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title = "A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC",

abstract = "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.",

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author = "Nyamuhirwa, \{Dieu Merci Akonkwa\} and Awotide, \{Bola Amoke\} and Kusinza, \{Doux Baraka\} and Bishikwabo, \{Valery Kasereka\} and Jacob Mignouna and Zoumana Bamba and \{Dontsop Nguezet\}, \{Paul Martin\}",

note = "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: {\textcopyright} 2022 by the authors. Licensee MDPI, Basel, Switzerland.",

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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.

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KW - economic profitability

KW - technical efficiency

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ER -

A Comparative Analysis of Technical Efficiency and Profitability of Agribusiness and Non-Agribusiness Enterprises in Eastern DRC

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