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Economics, Finance, & Information Systems

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Production of high value agriculture and natural products has become a key instrument in economic development programs to accomplish the dual objectives of raising rural incomes and conserving valuable environmental resources. Rapid growth in global demand for organic and natural products has provided a strong economic incentive for small scale aid agencies to expand into this niche market. Through this analysis we investigate the economic impact that aid funded agricultural production has had on rural residents of Zambia and how this development strategy allows small scale aid donors to capitalize on the business and export opportunities in the Central African region. We want to determine what practices, if any, can be applied to other small development organizations working in economically deprived countries. The case for this analysis is Enright Flight Ministries, Inc. (EFM), a 501(c)3 not-for-profit organization with the dual objectives of promoting economic development and evangelism in Zambia. EFM has over 20 years experience in establishing agricultural production programs to support economic development in the Democratic Republic of the Congo and Zambia. Our focus will be on 5 major EFM agribusiness ventures: African hardwood products, organic honey, aloe vera, bananas, and fisheries. Analysis of the financial statements of EFM will be relied on to provide an accurate view of total investment into the various agricultural projects. Levels of investment will be discussed in light of the current global demand for each particular product. We break down project reports to determine what benefits accrue to both farm and non-farm rural Zambians. This financial analysis will be supplemented with semi-structured interviews performed with EFM administrative staff and aid recipients during the period August - December 2011. Special attention is paid to how aid recipients perceive the program benefits.

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International Business & Economics Research Journal (IBER)



Clute Institute