Original Research

The challenges faced by rural agricultural cooperatives in South Africa: A case of KwaZulu-Natal

Julius Chiwawa, Vannie Naidoo
The Southern African Journal of Entrepreneurship and Small Business Management | Vol 18, No 1 | a1457 | DOI: https://doi.org/10.4102/sajesbm.v18i1.1457 | © 2026 Julius Chiwawa, Vannie Naidoo | This work is licensed under CC Attribution 4.0
Submitted: 11 March 2026 | Published: 30 September 2026

About the author(s)

Julius Chiwawa, School of Commerce, College of Law and Management Studies, University of KwaZulu-Natal, Durban, South Africa
Vannie Naidoo, Discipline of Management, School of Commerce, College of Law and Management Studies, University of KwaZulu-Natal, Durban, South Africa

Abstract

Background: Food security in rural South Africa is constrained by climate variability, population pressure, and agrarian inequalities, limiting agricultural cooperatives and small-scale farmers’ livelihoods, market access, and value-chain participation.
Aim: This study examines the challenges constraining the development and sustainability of agricultural cooperatives and small-scale farming in rural South Africa.
Setting: The study was conducted in rural KwaZulu-Natal, South Africa, where agricultural cooperatives and small-scale farming are vital to household livelihoods and local food security.
Methods: A qualitative interpretivist design was employed. Data were collected from 47 cooperative leaders through 15 semi-structured interviews and four focus groups. Participants were purposively selected, and transcripts were thematically analysed.
Results: Findings show that cooperative underperformance results from interconnected livelihood and institutional constraints rather than isolated weaknesses. Key barriers include mechanisation and irrigation deficits, ageing membership, financial exclusion, membership instability, fragmented government support, and market exclusion. These constraints weaken productivity, resilience, and cooperatives’ ability to support viable small-scale farming.
Conclusion: Agricultural cooperatives and small-scale farmers face compounded structural, institutional, financial, and market-related barriers that undermine sustainable rural development.
Contribution: The study contributes theoretically by extending the Sustainable Livelihoods Approach to cooperative development, demonstrating how asset deficits and institutional fragmentation interact to constrain small-scale farming sustainability.


Keywords

agricultural cooperatives; food security; institutional barriers; market access; rural livelihoods

JEL Codes

I38: Government Policy • Provision and Effects of Welfare Programs; L26: Entrepreneurship; L66: Food • Beverages • Cosmetics • Tobacco • Wine and Spirits; P32: Collectives • Communes • Agriculture; Q13: Agricultural Markets and Marketing • Cooperatives • Agribusiness

Sustainable Development Goal

Goal 2: Zero hunger

Metrics

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