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 and Paul-Martin Dontsop Nguezet
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Dieu-Merci Akonkwa Nyamuhirwa: Faculty of Economics and Management, Université Catholique de Bukavu (UCB), Bukavu P.O. Box 285, Democratic Republic of the Congo
Bola Amoke Awotide: Monitoring, Evaluation and Learning, International Institute of Tropical Agriculture (IITA), Bamako P.O. Box 320, Mali
Doux Baraka Kusinza: Faculty of Economics, Social Sciences and Business Administration, Université de Namur, B-5000 Namur, Belgium
Valery Kasereka Bishikwabo: Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Kalemie P.O. Box 570, Democratic Republic of the Congo
Jacob Mignouna: Olusegun Obasanjo Research Campus, International Institute of Tropical Agriculture (IITA), Bukavu P.O. Box 1222, Democratic Republic of the Congo
Zoumana Bamba: Capacity Development Unit, International Institute of Tropical Agriculture (IITA), Kinshasa P.O. Box 4163, Democratic Republic of the Congo
Paul-Martin Dontsop Nguezet: Social Science and Agribusiness, International Institute of Tropical Agriculture (IITA), Kalemie P.O. Box 570, Democratic Republic of the Congo

Sustainability, 2022, vol. 14, issue 14, 1-17

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.

Keywords: agribusiness; technical efficiency; Data Envelopment Analysis; economic profitability; eastern DRC (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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