List of Acronyms
SACCOS- Savings and Credits Cooperative Society
CEDO- Community Economic Development Organization
CED- Community Economic Development
WEECE- Women Education and Economic Centre
NSGPR- National Strategy for Growth and Poverty Reduction
MKUKUTA- Mkakati wa Kukuza Uchumi na Kuondoa Umaskini Tanzania
VIKOBA- Village Community Bank
TIP-Traditional Irrigation Project
CSOs- Civil Society Organizations
GDP- Gross Domestic Product
GNP- Gross National Product
VEO- Village Executive Officer
LG- Local Government
TPC- Tanganyika Planting Company
Table of Contents Page
1.0 Introduction 4
2.0 Methodology 5
3.0 The
4.0 Data Analysis 8
5.0 Challenges based on the community
economic analysis 13
6.0 Potential Sustainable Investments for
this community 14
7.0 Conclusion 17
References 19
Annexes
Annex 1: Map showing Nganjoni location 20
Annex 2: Some graphs depicting community economy 21
Annex 3:Some photographs displaying the village situation 23
Annex 4: Some Tools used in Community economic assessment 24
1.0 Introduction
A Community Economic Analysis is an analysis which tends to bring out the major economic information which can help communities in developing appropriate strategies for building a strong self reliant local economy. It is a systematic examination of the contents of the wealth in a given community. It is concerned with the forces of demand and supply and their institutional environment. It is an examination of how the community functions economically. It covers the goods and services a community provides for current and future residents of that community. Communities always try to change their local economy and long for new opportunities because they are never satisfied with their local economy. Community Economic analysis apparently makes an analysis of the economic resources and investments in those communities. The information generated, helps to design economic strategies to help in building a strong and sustainable local economy. Although the economic analysis does not produce solutions to problems, it provides useful information for community based decision making for all those interested in the economic future of the target community.
Therefore, community economics seeks to understand the economic activities in a particular community by addressing such issues as the economic structure of a particular community or the indication of what people do to make a living, the sector that dominates for example it could be agriculture, the source of livelihood in that community, the promising sector perhaps some newly introduced businesses, the status of training activities among the business community, the status of employment and the existing economic problems such as infrastructure. It is necessary to be conducted for community economy and it possible to be conducted at micro level for comparative purposes as it is evidenced in this paper, challenges notwithstanding.
Basically, the main objective of this paper is to critically analyze the economic status of the Nganjoni village community where the initial participatory economic assessment was conducted, to explore the status of income poverty and investment opportunities. This is hoped to result in economic enhancement for community recovery and renewal through improvement of economic activities. It is important to know the economic components that have been growing or declining and to identify the community’s options for improving its economic future.
2.0 Methodology
As it is suggested in the New Holstein Business District. Market Analysis (2002), the Participatory Economic Assessment data collection was conducted by use of some economic analysis tools a transect walk of 7 people up and down the main village road where together with some community members we surveyed some economic aspects and shared insights on the plight of the community. The other data collection tools for community economic assessment used were a semi structured interview I which some questions based on different aspects of the economy ere asked and answered and analyzed.
Other tools included the drawing of a resource map and a seasonal calendar (See Annex 4) by groups of community members for triangulation purposes. Data was collected for all retail services, businesses that exist within the village limits. It was based on the demographic trends, the local market, the population and households which consisted of one or more persons living together regardless of their relationship. Housing was according to the number of home owners, and income per household, as a good indicator of spending power. Education levels were also collected as it determines the socio economic status of an area. Income increases with advancing education attainment. Employment was collected per sector Retail trade, groceries and shops. It was also important to collect data on the competition of Nganjoni village with other villages in the ward. Insights were also collected from the local people on what their local economy.
The secondary data for the Nganjoni community economic analysis was gathered from The Village Reports, The WEECE Annual Report of 2007, The Moshi Rural district Office- the Planning Department, the Kilimanjaro Regional Library and the National Bureau of Statistics , Kilimanjaro Regional Office.
3.0 The
Nganjoni village is made up of 6 sub villages namely, Urenga, Kitumura, Nganjoni Juu, Nganjoni Chini, Sowoko and Muwe. It is bordered by the villages of Masera in the East, Mabung’o in the South, Mrumeni in the North and Kileuwo in the East. Infact it is landlocked between the Villages ( See Map in Annex 1). It is located in Kirua Vunjo East Ward, Moshi Rural District of Kilimanjaro Region about 40 kilometers from Moshi town. The village gets 2 seasons of rainfall namely the long rains: March to June and the short rains: October to December. The cold season is from June to September and the hot season is in December to February. As for the housing characteristics: Owner occupied units are 100% while renter occupied units are 0%. The quality of housing was estimated at low income housing of 75%, moderate income housing at 22% and high income housing at 3%. This is based on Mrema (2007).
Location and history: Nganjoni village community is located in Kirua Vunjo East Ward, Moshi Rural District of Kilimanjaro Region. The Village Registration Number is 143.
The village lies in the agricultural belt on the middle slopes of
Climate and Weather: The village gets 2 seasons of rainfall namely the long rains from March to June and the short rains from October to December. The cold season is from June to September and the hot season is between December and February.
Most of the inhabitants have emigrated from other areas such as Marangu, Kilema, Rombo, Pare, Lushoto, Mbeya and Iringa.
Looking at the Village economy, there are differences between the sub villages. For example Muwe and Nganjoni Chini have better economy compared to the others. Actually, what is clear is that the village in general has a very low economic development reflected in the low productivity indicators. Some of these include a small annual harvest, a small market operating twice a week since September 2007, falling coffee prices, no all weather road transport, distance from the main road and markets. Also the community members have to walk long distances to hospital, market, and other social services. This is coupled by a low education profile of the village, lack of clean and safe water. The village agricultural officer is there but has neither pushed for the completion of the village water supply canal and furrows neither supported by TIP nor sensitized the community on the hazards of continued felling of trees for timber and firewood.
Moreover, a portion of the land is barren thus keeping rainfall away. Besides, the O and OD approach have not reached Moshi Rural District so is the target community. All in all, there is openness to alternative ways of earning a living and economic activity. The community owns a small brick quarry and there is an irrigation system supplying water for many people in the community.
Looking at the education level and social economic indicators. For the number of Schools starting with Primary schools, there is only one built in 1934. The ward secondary school is in the neighbouring village. As for the educational level in the community, 80% are primary school leavers, 10% secondary school and 2% are at university level but they do not live in the village.
The community reported that 60% of village land can be cultivated for 2 seasons a year 25% is suitable for irrigation (also see seasonal calendar, Annex 2). There is a passable mud road to the highway constructed by support of WEECE. Also there is a quarry mine for stone bricks. Here is a potentiality for horticulture: vegetables especially tomatoes and okra and fruit trees especially mangoes. Moreover, there are WEECE supported projects: dairy farming Heifer Project on a revolving system of take a cow pay a cow also (9), beehives (50), a market and 2 milling machines. River Muwe has canals feeding farms in dry season. Also there are other livestock like sheep (20), goats (34), 60% of land suitable for farming.
The village also has a tourism potential for mountain hiking on
The community organizes local economic planning process by using sub village / village level meetings which meet monthly and the Ward Development Committee Meetings which meet quarterly. They motivate people to utilize irrigation farming, the newly opened market, collect a small levy from the brick makers and prepare themselves to join a Vikoba /Village Community Bank as a source of credit.
4.0 Data Analysis
Issues that were considered while conducting a community’s assessment included availability of numbers since each one suggested a different strategy to pursue. Making comparisons among similar communities since numbers are not absolute. Also making comparisons of changes over time to sense the direction of community change and using a variety of information sources and collecting insights form the local people about their local economy.
By use of analytical tools, community economic analysis answers such questions as, ‘What is the major source of local income growth? What changes have been occurring in the trade area? What type of commercial activities might be possible? Basing on the Economic assessment, outstanding issues included low income status because of agricultural underdevelopment, poor accessibility, lack of viable economic activities.
Starting with Population/Demography: The total population is 2,336 with the total adult population of 1,800 and the total 0-18 years being 536. The total male is 923 and total female is 1,413. The medium age in 2002 was 16.2. The total Orphans and Vulnerable Children is estimated at 74. The total households are 529 and the total widow’s estimate is 30% and the total widowers are estimated at 20% of the village population. The Estimated house leader type is men being 35%, women form 40%, grandparents being 23% and children form 2%. The estimated size of household is 1-3 members 5%, 3 – 5 members 20% and > 5 members are more than 75%. This can be compared with the 2002, Moshi rural District population which was 402,431 and Kirua Vunjo East Ward had 8,295 with 4,068 male and 4,227 female, 1712 households and an average size of 4.8.
Next is Land Use and Natural Resources, there is Agriculture: Average Farm size: I hectare Acreage on crops: 60%. Acreage irrigated: 25%. Livestock: 2%- cattle: 9 Heifer project, 50 local breed. Goats: 34 Sheep: 20, Beekeeping: 50 Beehives Acreage- Barren land: 3.5%.
Hustedde etal. Suggests some tools which could be used to analyze community economy and some of them have been used in this analysis.
The Local Income: This is income that comes from local wages/ salaries, profits, and interests. The per capita income for the village defined by Mutasa (2003) as the total village income divided per head of population, is estimated at 35,000/= as per village verbal reports. This is well below the Moshi Rural capita income which was 147,015/= or 183.6
Wage and Salary Employment: Wage and salary as percent of total adult population, 0.8% (14 teachers and 1 VEO and 1 Village Agricultural Officer)
Micro enterprise engagement as % of adult population: is 3%)
Micro enterprise by type include Market sales of agricultural produce, clothing, and glossaries, twice a week, making bricks using locally available and very strong rock blocks, dairy cattle – Heifer project and Beekeeping. Therefore larger percentages are neither employed nor engaged in micro enterprise and have to be captured urgently to revive the community. (See Annex 2 ) The state of unemployment in
As for Transportation and Access, The Moshi Dar es salaam highway is 9 kilometres away and the rail 14 kilometres away (paralyzed), Bus(es) 9 kilometers away. Lorries and pickups: Negligible mostly private Sector collecting bricks and agricultural produce. Self drive: 0.02, Walking: 99%. As for utilities Electricity connected to 3% of houses. There is no borehole for clean water supply and 5% have mobile phones. The village has 2 cereal milling machines. Medical/ Hospital: Kilema- 18 kilometres away. This proves the way this community has several economic development gaps and thus a need to plan for potential investments.
The geographic size of the community in terms of population is 2,336. This determines the ability of the area to supply and consume the goods and services required. It is a small community with a low purchasing power so they cannot profitably produce or sell all the goods and services due to insufficient market.
Business that brings income into the community: This include selling agricultural products such as vegetables like tomatoes, okra, sunflower, cucumber, fruits and coffee and also selling by retail trade, manufacturing of stone bricks. However, these do not promote competition with the neighbouring villages which enjoy easy transport and are more productive in terms of cash crops.
Non- traditional activities include income received by about 13 retirees through their social security, medicate, private retirement programs. 4 of them live in the village and 7 live outside the village.
Reilly’s Law gives an estimate of the maximum distance customers travel to shop in a certain community showing how far trade area extends to nearby towns. The community of Nganjoni has to travel 12 kilometres to Himo which is a nearby township to get basic supplies other than those found in their village. Therefore, the size and shape of a community’s Trade Area that is a geographic area from which the community draws the majority of its retail trade customers has extended beyond the village boundaries. Most of the purchased goods include wholesale products, clothing, and food items.
Transportation networks for easy access. Only one passable road leads to Nganjoni throughout the year. There is no road network. This is a remote area and not well served by transport and this contributes to lack of motivation for buses to operate in the village. Many people are used to walking long distances. This means that there are no viable economic activities to attract a reasonable road network and travel services.
Keeping local money in community by focusing efforts on trade and services sector, by activating the business dealers to expand their products for better marketing. There are 2 village shops, 1 market and 2 cereal milling machines. Coffee is sold at a Cooperative Union branch in the ward from there. There are also recreation places where local brew is sold at several places in the village. Related to this is the concept of money leakage. As it can be seen, there is very little money in circulation. Apparently, some people buy things from
Location quotient- the Nganjoni community produces more bricks in the south end of the village than is needed for its own use and is selling some to non local markets. In this case there is self sufficiency in this particular trade sector. Therefore this community is getting extra trade money from non local markets, by selling excess product to non local markets. Also there are forces affecting the growth of this business, forces of change like local growth stimulated by the growing demand of bricks for construction purposes in the area and in the district in general.
Population employment ratio- measures the number of people in the local market who support each trade or service job or sector to make intercommunity comparisons of trade and service sectors.
The efficiency of local firms: A key mechanism for community economic development is to work with existing businesses to improve their efficiency and competitiveness to make them become more viable and generate employment opportunities. Most businesses in Nganjoni are in their infancy stage. These include the heifer project which started in 2007 whereby 38 people are engaged in this project (9 male and 29 female and 26 people are engaged in beekeeping (both male and female). The heifers are expected to start generating income through sales of milk and bulls from end of 2008 and production and sale of honey from 2009. This is likely to attract new job creation and new comers in the village to distribute the products and new stores or small processors might be established and improve the industrial mix due top a shift in markets. (See Annex 2). Unfortunately the first 5 calves are all bulls!
5.0 Challenges based on the community economic analysis of Nganjoni Community
The situation above shows that there are some Economic Stresses in this community based on inadequacies in the availability of factors of production, namely land, labour, capital and technology. Some of these include, poor agricultural output coupled by the village market not functioning properly due to late opening hours and lack of buyers. Secondly, is low income from s brick making project and as such there is no viable business in the community. Thirdly, there is lack of micro credit facilities to provide capital for establishing business. Fourthly, poor access into the village is another constraint as there is no reliable road to facilitate movement of products from the community. Fifthly, there is inadequate water source another basic requirement for many economic activities. Sixthly, there is a reflection of low education in the community, inadequate skills in Business Planning which could support the management capacity improved technology of existing businesses both primary and secondary processing. Another one is unemployment due to lack of active civil society in the area, lack of industries and lack of access to loans associated with collateral.
Furthermore, there is lack of all weather road and transportation network as well as lack of market for some of the products in the village such as mangoes and tomatoes when they are in season. It is also. Moreover, there is a continuing need for new businesses to meet changing needs like the introduction of dairy industry which will need new approaches for processing and storage. The leading sources of the stresses include monoculture associated with a fall in World Coffee Prices, insufficient rainfall partially due to deforestation. Also there is poor awareness of economic resource utilization. The remoteness of the village (See map in Annex 1) and lack of all weather roads to move products in and of village also contribute. Furthermore, even the few village products have no market among the villagers. It is also good to mention that data collection at village level is extremely difficult since there is no habit of record keeping both at household and village levels.
6.0 Potential Sustainable Investments for this community
Promotion of enterprise: Tools and techniques for Community Recovery and Renewal (2000) suggests that job creation is a central focus of any CEDO through self employment services become self employment. Taking advantage of the natural environment and if the suggested strategies are adopted enterprise development will be encouraged in the community. Agro based industries such as fruit and vegetable processing, edible oils mills, animal feed mills and milk processing including making cheese and yoghurt could be established.
6.1.1 Expand and search for market of Cash crop farming: tomatoes (2 seasons with irrigation), sunflower, cucumber, mangoes and coffee. This could be achieved by the community forming farmers groups which could attract capacity building in business creation and management. The opportunity is the availability of 60% of village land which can be cultivated for 2 seasons a year. Furthermore, there is a village Agricultural Officer to advise on land use. Also there is a forestation in progress and it is beginning to regulate the weather for sustainable livelihood.
6.1.2 Poultry keeping-There is potentiality of keeping chicken because even if there is no market in the village, the products could be sold outside the village boundaries. Even if there will be no sales people will save their money for other purchases.
6.1.3 Expand and train in community on Forestry: The opportunity is the current small sale of seedlings to the citizens for land conservation. Once the local market is satisfied the trade area could shift across the village boundaries in order to sustain the business.
6.1.4 Modernize Mining / quarrying: Brick making is highly marketable due to
the growing construction industry. With improved technology and efficient marketing
6.1.5Increase investment in Animal husbandry- dairy cattle, beehives and others for sale of products such as milk, meat, honey in the village but also for non local markets.
6.1.6 Establish Tourism: There is an opportunity of Hiking on Mt Sowoko which could attract funding through tourists. This also is dependent on the reliability of transport and quality of housing. WEECE could negotiate for funding for road repair and organize for a visitor’s lodge by collaborating with the village government
6.2. Make use of irrigation for horticulture. The economic analysis indicated that 25% of village land was suitable for is suitable for irrigation as a modern faming technology. There is an opportunity of the Traditional Irrigation Project (TIP) which has laid down infrastructure for providing water as a service to farmers through water user groups in Nganjoni village to achieve the improvement of traditional and small holder irrigation based on sustainable use of land and water resources. Another objective is to improve the standard of living of the target population which are the small scale farmers (male and female) living in their catchments area. The project seems incomplete. However, there are potentialities for another opportunity for TIP to visit the village and complete the work.
6.3 Initiate micro credit facilities and revolving services in the community to make credit and purchasing power available.
6.3.1 The Services offered by WEECE include, Micro lending by Empowering young women in business skills and linking them with SACCOS. For sustainability purposes, the organization has supported the village with group revolving enterprises like the Heifer, and the Beehive. It is the responsibility of the community to come up with the need for access to credit as a source of capital because they are aware of the capacity of WEECE. WEECE already has initiated the heifer and beekeeping projects in the village on revolving basis.
6.3.2 Another opportunity for creation of new firms by the community is the Village Community Banking, another source of capital which is already active 3 villages away in Marangu. The village leadership could send a team of people to learn how this works and transfer the facility into their community. It could also be introduced alongside self employment counseling so that people start thinking in that line. This could encourage business growth through identification of capital sources like access to loans through this micro credit institutions popularly known as VICOBA before embarking into SACCOS which is not poor friendly.
This will lead to multiplication of existing business and stimulate new business in the community.
6.4 Take advantage of abundant sunshine and the power of Knowledge on use of solar power to establish solar driven appliances. The scarcity of industries could be offset by having cheap source of power. Talking to some community members, they regretted not having access to electricity. With micro credit available, the community members could start small and micro industries in the community using solar power.
6.5 Work on the roads. This is one of the leading snags. The analysis showed that 99% of the community members were walking! How can we expect economic development for this community to have some movement? The question of infrastructural development in terms of having a passable road is very serious for Nganjoni and it is perpetuating economic backwardness. The opportunity here is the presence of the local government and the initiative by WEECE for facilitating a passable rough road to the community. The same organization had an initial infrastructural project of promoting accessibility of the community by constructing a passable mud road which shortened the distance to the community by 15 kilometers from 45.
6.6 Lobby for increased support from the Local Government. The Local Government is the main employer for teachers, Village Agricultural Officer and Village Executive Secretary, It operates a Clean Water Project (expected completion in 2009) and runs a
6.7 Invest in Education or Human Resources - Most of the backwardness is caused by low education and inadequate skills to manage economic activities. This village has one primary school no pre school, no secondary school, no vocational training school. Education is the most sustainable investment for community economic development. All the mentioned opportunities will be applicable if the standard of education in the community improves. Skills building in masonry, mechanics, welding, carpentry, and tailoring could be introduced and provide space for sustainable job creation. The local government will have to be approached with strong lobbying messages. Some village leaders have been trained in the subject. Educated people are assured of purchasing power and sustainability.
6.8 Sensistise the Faith Based Organisations they have great influence. The Faith Based Organisations are not very active in this community. The ELCT has a small church in the village and a small congregation. The village government has never approached them for collaboration although there could be opportunities of using them to identify some donors for supporting infrastructure or education facilities and create jobs at the same time.
6.9 Form Collaboration between the CSOs the Village Government and the Private Sector to accelerate community economic development. The village government runs some economic projects using committees. The Private businesses bring their trucks to collect agricultural products and bricks. The CSOs normally offer skills building and promote the voice of the poor. With a memorandum of understanding, the trio could come up with a loose coalition whereby the private sector could be convinced to introduce bus services into the village, to purchase more products form the village besides tomatoes and bricks and to facilitate access, the Village government could push for road construction by the local government while the CSOs particularly WEECE and TIP could do capacity building by introducing knowledge of new technology through educational programmes. It is the role of the Local Government to create an environment where competition can apply by encouraging more enterprise. They could conduct crop purchases in rural areas, work on taxation and invest in public goods like infrastructure.
6.10 Establish Community Economic Development Programmes. Although this is a new approach to community revival and recovery, it is highly recommended for poor communities like this one which could be empowered to identify and utilize the resources in their community through using their own leadership and initiative. The basic principles to facilitate the process include the people themselves leading the process, including all community members, social organizing, building coalitions, and participatory decisions. For example the men demarcated and area for a fish pond if they could capture the rain water during the rainy season. The village government has been sensitized on the issues raised and they are ready and willing to accept further input into this and eventually identify possible options for initiating joint as well as household level economic activities.
7.0 Conclusion
It is apparent that the identified community has several economic development gaps. The same picture is reflected at a district level whereby only one large scale industry of Tanganyika Planting Company ( TPC) is recorded. The others are small and medium size industries engaged in edible oil extraction, furniture, lumbering, food processing, milk and milk products, welding and the like. The Community Economic Analysis for Nganjoni has proved that although the per capita income in
After staying with this community for nine months now, there are already some indicators of change. The local brew for hard liquor popularly known as pure has finally been closed. This is where most villagers spent their time for several years after losing hope in life. The way they talk today is different to how they did in October. They are ready to move forward. After conducting the economic assessment they actively worked on the problem tree and the objective tree and worked on the goals and objectives for the future of Nganjoni. Most of the activities identified are leading to enhancing economic activities in the village and they are quite committed to continue with the journey.
All in all, a community economic development program should encourage entrepreneurs to establish businesses that have good chances of success. Assistance can be provided through the support of civil society organizations operating in the community. The realization of the Millennium Development Goals, The Tanzanian Vision of 2025 and the NSGPR or MKUKUTA will be made possible only if grassroots communities are analyzed economically to determine the gaps in economic development in that particular community and eventually come up with potential investment opportunities and suitable options for building resilient communities. Therefore, instead of communities sitting idly or becoming alcoholic due to losing hope in life, it is good to be facilitated to make optimal choices for their own survival. The process of community recovery and revival has started in Nganjoni and hopefully the vision of establishing a Community Economic Development Organisation (CEDO) will be attained come 2010. That is the feasible way forward for the Tanzanian communities where community economics is still in infancy stage. It can be done!
References
- Mrema V.( 2007) WEECE Annual Report.
- Mutasa, F.L (2003) Principles of Economics. Tanzania Institute of bankers.
- Hustedde , R J, Shaffer, R and Pulver, G (1984) Community Economic Analysis: A How To Manual.
- Tools and Techniques for Community Recovery and Renewal (2000). The Centre for Community
- The Guardian(25/11/2005)
- The Economic Survey (2002)www.tanzania.go.tz/economicsurvey/part1/humanresources
Annex1: The Map showing the location of Nganjoni community
Annex 2: Nganjoni Economy in graphs
National Level: 540,000/=
Annex No. 3: Picture from Nganjoni community
A truck visits the community once in a while to collect tomatoes
River Muwe in January: The only source of water for irrigation
Annex 4 Some Tools used to assess the village economy
Women and men’s Resource maps
A Seasonal Calendar for
| No | Crop | January | February | March | April | May | June |
| 1 | maize | farm preparation | cultivation | planting | weeding /fertilizer | second weeding | |
| 2 | sunflower | farm preparation | cultivation | cultivation | weeding | second weeding | |
| 3 | beans | farm preparation | cultivation | cultivation | weeding | weeding | |
| 4 | groundnuts | farm preparation | cultivation | cultivation | weeding | weeding | |
| 5 | coffee | pruning | | | pruning | pesticide | |
| No | Crop | July | August | September | October | Nov. | December |
| 1 | maize | | harvesting | preparation for second crop | planting | weeding /fertilizer | second weeding |
| 2 | sunflower | harvesting | harvesting | preparation for second crop | planting | weeding | harvesting |
| 3 | beans | harvesting | | preparation for second crop | planting | weeding | harvesting |
| 4 | groundnuts | harvesting | | cultivation | planting | weeding | harvesting |
| 5 | coffee | harvesting | | cultivation | weeding | pruning | pruning |
| 6 | bananas | | | | weeding | | |
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