Document: Participatory Market System Analysis for Matatiele, EC

This study forms part of efforts to provide relevant economic support to poor and vulnerable groups in the Alfred Nzo & Ukhahlamba Municipalities (now Joe Gqabi DM) of the Eastern Cape Province, South Africa. It complements the LEAP programme. SaveAct wishes to acknowledge the Vesper Society of California, USA for the funding for this study. The wider LEAP programme also receives funding from the European Union through Thina Sinako, a programme of the Eastern Cape Government.

A participatory market chain assessment has been conducted in the Alfred Nzo and outer edge of the Ukhahlamba District Municipalities (Matatiele, Mount Fletcher) to augment the work of SaveAct with their savings and credit groups (SCGs) in the area. Around 200 SCGs are being supported in the area, some of which are already well established and moving in a natural progression from consumption‐based savings and credit activities to more productive and business oriented activities. These groups have already received substantial support in the savings and credit process and group building processes. Training in life skills covering basic economic literacy has been provided to most participants and enterprise development training (Isiqalo) has been provided to a further 175 members of SCGs.

A systematic analysis of agricultural potential, marketing processes and options is seen as an important step in designing programmatic interventions that would support the inclusion of agricultural enterprises in the SCGs.

This study covered the diagnostic phase of a PMSA (Participatory Market System Analysis) approach introduced and refined by a number of organisations, including Practical Action and the International Potato Centre. In addition an assessment of resource use and agricultural potential for the area has been made to provide a strong foundation for decisions based on focusing on particular commodities and market chains, and for assessing the overall potential of agricultural enterprises and enterprise development in the area.