Abstract

Ephias M. Makaudze, Christian Haussner and Tobias Takavarasha

This paper draws on the experience of food price shocks (among other factors) that rocked South Africa during the global financial crisis (2007-08). A post-shock assessment of this nature is insightful given the recurring economic shocks that frequently affect South Africa. The paper is based on a survey of 640 rural households sampled in three municipal districts of Matzikama, Cederberg and Bergriver, in Cape West Coast. A multinomial approach is used to estimate the probability scores underlying vulnerability of different types of rural households to a set of identified economic shocks, including food price hikes. Results show farmworkers/labourers and non-land-reform farmers being the most vulnerable livelihood categories as implied by high probability scores relative to other types. Their vulnerability condition is worsened as a majority of the affected households lack credible mechanisms to cope with the recurring shocks. The paper concludes presenting an array of policy suggestions considered vital for dealing with food price shocks especially during period of inflationary crisis. Key amongst these include, the need to implement regular monitoring and evaluation systems for effective support of the most vulnerable households during turbulent periods and improving databases and registers at district and provincial level.