Economic evaluation of a transport development programme for small‐scale cane‐growers.

Erasmus, J; Nieuwoudt, WL; Jurgens, FX

The cost‐benefit analysis procedure is used to determine the viability of a programme aimed at improving transport infrastructure for small‐scale cane‐growers. Two mill areas were evaluated, namely Amatikulu and Sezela, situated on KwaZulu‐Natal's north and south coasts respectively. Three models were constructed, as the Sezela area was subdivided into the Kwa‐Hlongwa (labour‐intensive) and Cabhane (plant‐hire) projects. The results reflecting the tangible costs and benefits indicate economic nett present values of R8,18 million, R7,91 million and R1,91 million for Amatikulu, Cabhane and Kwa‐Hlongwa respectively. In view of the results obtained in the base models and sensitivity analyses, indications are that the benefits of the programme will outweigh the costs by a considerable margin, making the programme a viable investment decision.

Development Southern Africa, 1996, Vol 13, Issue 6, p811

0376-835X

Academic Journal

10.1080/03768359608439936