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Title: Government grants towards sustainability of agribusiness in local economic development

Authors: Margaret Katlego Makunyane; Marinda Pretorius; Marius Venter; Chané De Bruyn; Andrzej Sztando

Addresses: Centre for Local Economic Development (CENLED), School of Economics, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa ' School of Economics, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa ' Centre for Local Economic Development (CENLED), School of Economics, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa; University of Extremadura, Badajoz, 06006, Spain ' Centre for Local Economic Development (CENLED), School of Economics, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa ' Department of Spatial Economy and Self-Governed Administration, Wroclaw University of Economics and Business, Komandorska 118/120, 53-345 Wrocław, Poland

Abstract: In South Africa, agriculture plays a critical role in promoting local economic development (LED). As a result, the South African government introduced grants to support agribusinesses to enhance growth and sustainable operations. Despite government grant support, agribusinesses are facing difficulties that lead to failure and unsustainability. For this reason, this study investigated how government incentives affect the long-term viability of agribusinesses in the Limpopo Provinces Waterberg District Municipality. A cross-sectional quantitative survey was conducted using a structured closed-ended questionnaire, and 101 respondents were interviewed. An analysis using SPSS was done using descriptive and inferential statistics to determine the impact of government grants on the operations of agribusinesses. The analysis was also used to identify the challenges agribusiness encountered that hinder sustainability. The results revealed that government grants contribute positively to the sustainability of agribusinesses in the Waterberg District Municipality; however, the support has created dependence. It was also found that respondents face several challenges, causing their businesses to operate at a loss and forcing them to step out of business. Various policy and investment recommendations are made.

Keywords: government grants; sustainability; agribusiness; local economic development; LED; South Africa.

DOI: 10.1504/IJSAMI.2025.150276

International Journal of Sustainable Agricultural Management and Informatics, 2025 Vol.11 No.5, pp.1 - 15

Received: 11 Apr 2025
Accepted: 18 Aug 2025
Published online: 06 Dec 2025 *