An Assessment of the Contributions and Challenges of Rural Non-Farm (RNF) Activities in Doba wereda, W/Hararghe Zone
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Date
2009-06
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Addis Ababa University
Abstract
A blend of qualitative and quantitative methods was employed to gather data from
sample households.
The result of these findings points out that the younger household members engage in
non-fann income-earning opportunities and found out age is a factor to move into the
non-fann sector more broadly. While there is no one that cannot read and write in the
participants, the number of illiterate in non-participants is high and it increase, as agroecology
is getting unfavorable. It is also observed that family size and structure affect the
ability of a household to supply labor to the non-fann sector. Larger families supply more
labor to the RNF sector, as sufficient family members remain in the home or on-the fann
activities to meet labor needs on agriculture. Regarding gender distribution, majority of
business operators in the study wereda are male households that shows the dominance of
male over female in rural non-fann activities.
The study also revealed the non-availability of government supportive structures such as
credit and training programs to start and expand RNF activities. Lack of capital and
market, business awareness and poor infrastructure were also among the constraining
factors. RNF diversification, while generally limited, was dominated by chat and
fattening ox and selling with equib and own saving as initial source of capital.
The study also showed business partlclpants in the study kebeles exceed the nonparticipants
by their annual income, food security, type of food stuff consumed, housing
condition and source of light, hence the study conclude RNF activities are important.
Generally, the main conclusion to be drawn is the importance of helping the poor to
overcome the constraints and thus enable them to participate in RNF activities. This
entails diagnosing the kinds of asset constraining the poor with respect to entrance into
the more dynamic and remunerative RNF activities.
The policy implications forwarded are, promoting different RNF income generating
activities, improving the asset bases of the poor and Social capital are important in
addition to education, health and financial services that facilitate access to RNF income
sources.
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Keywords
Challenges of Rural Non-Farm (RNF)