A paper about community economic analysis in Kanga ward in Mvomero District, Tanzania

CHAPTER ONE: Introduction

1.1 Background
This report is about the Community Economic assessment findings conducted in Kanga ward with cooperation with Village savings and Loans (VS&L) groups (CBOs) in May 2008. The real economical needs were assessed in this study intending to explore and identify the economic gaps and challenges that face the CBOs and findings helped a researcher to identify potential business opportunities in Kanga ward in Mvomero District. The report has five chapters including:- Introduction, Literature review, Findings, Proposal for potential business opportunities and conclusion.

1.2 Community profile
The Kanga ward is located in the South Nguru Mountains in Mvomero district, Morogoro, near to Kanga forest reserve established 1954, with a gazette of 16467 acres (6664ha) at an altitude of between 760 to 2,300 metres above the sea level. The Kanga forest reserve has surrounded by 5 villages (Kanga, Mziha, Bwage, Dihinda and Difinga). According to 2002 census, the population is 14,340 including 7,824 men and 6,516 women and 3187 households. The ward is characterized by the temperatures between 18°C-30°C and rainfall of 600-2000mm. The dominant ethnic groups are the Nguu and Kaguru, who are native to the area, and the Zigua, Luguru, Chagga, Pare, Bena, Sukuma, Kinga, Hehe, Nguni, Nyakyusa and Maasai, who are in-migrants. Agriculture is the principle source of livelihood and the main crops are maize, sugarcane, beans, yam, sorghum, cassava, sweet potato, banana, rice, coffee and cardamom. The small minority of the population (less than 2%) not dependent upon agriculture is engaged in brewing, livestock keeping, casual labour and operating small retail shops.

1.3 Research Design
A cross-sectional research design was adopting as type of technique of social science research that is most suited for the research that provided a room to study community economic problems. The design enabled the researcher to select and collect proper material, plan on how to collect the target information according to the design. It is determines the nature characteristics, to be employed. Therefore, the research design of this report shows the study area, types of data collected, techniques used to collect data, data sources, purpose, sampling, data analysis and interpretation and reporting.

1.3.1 Methodology and types of data collected
The community economics assessment was carried out through collecting mainly the quantitative and qualitative data. In order to obtain qualitative data, a researcher used observation, and focused group discussion methods in a triangulation way. The quantitative data was obtained through library study method, field visit method, and interview method. Also the researcher used participatory research method commonly known as Participatory Rural Appraisal to collect qualitative and quantitative data. The researcher used various participatory tools to collect data such as resource mapping, transect walk, flow chart, seasonal calendars, daily activity charts and Focus Group discussion.

1.3.2 Sampling Methods and sample size
Interviewing all members of the community was not possible; hence the sampling method was used. The sampling was randomly but based on sex, the equal number of female and male, and age (16-20), (21-25), (26-30) above 30. All the targeted community members (the focus group) has equal chance to be selected as sample, regardless their education, positions the selection was randomly to avoid biasness. This method was focused on extrapolating findings from smaller studied units to larger ones, and so enabled generalizations. Six members with equal number of male and female from UMOJA NI NGUVU, TUJIKOMBOE, KIUKIMA, KIUMAKA, KAECO, MWAMKO and MATUMAINI VS&L groups making of total of 20 members involved in focus group discussion, total of 50 questionnaires were developed and distributed randomly to households. The Ward leaders including Ward executive, village leaders, ward community development officer, ward agricultural officer and health providers were involved in interview.

1.3.3 Data processing, Analysis and interpretation
After collecting data, it was systematically classified, tallied, coding and entered into computer programme commonly known as Statistical Package for Social Science. Quantitative Data were sorted, felted and analyzed to obtain frequencies, percentages and averages. Qualitative data were also entered into computer programme commonly known as Micro-soft Excel whereby after sorting and filtering was interpreted to give a narrative part of report.

1.3.4 Community economic stresses Identification
In order to come up with real community economic needs the study analyzed the current situation, constraints, stresses and opportunities with the community members by employing flow chart. The community members were able to analyze cause and effect of problems as well as their impact.
· Kanga ward communities experience inadequate market infrastructure
· Kanga ward communities experience low price of their agricultural products
· Kanga ward communities experience inadequate agricultural inputs i.e. fertilizer, improved seeds, extension services, improved working equipments
· Lack of good infrastructure i.e electricity and supply of clean water, road to reach villages whereby could transport their agricultural products
· The communities around the Kanga Forest reserve experiences inequitable distribution of income due to lack of savings service
· Kanga ward communities experience low diversity of cash crops
Through pair wise ranking the community member prioritized the problem of inadequate of house holds income caused by inadequate savings and loan services which put them to poverty, tackling this will create a room to increase their capital and solve many economic problems they face.

CHAPTER TWO: Literature review
2.1 Understanding terminologies used in Community Economic
Community is defined as people of the same origin living in the same area or people with similar occupation, people who are joined by some or all of these elements. For instance, in Tanzania, communities may be categorized in the following criteria:-A community based on similar occupation such as farmers, pastoralists, fishermen, employee, and self employed, small and big business people.A community based on ethnic origin, such as Europeans, Asians and our African ethnic groups composed of more than 120 tribes. A community based on geographical location such as rural and urban communities(United Republic of Tanzania, 1996)

Community development is a broad term applied to the practices and academic disciplines of civic leaders, activists, involved citizens and professionals to improve various aspects of local communities. Community development seeks to empower individuals and groups of people by providing these groups with the skills they need to effect change in their own communities (United Republic of Tanzania, 1996).

Economic development is the development of economic wealth of countries or regions for the well being of their inhabitants. Thus to say economic development is a sustainable increase in living standards that implies increased per capita income, better education and health as well as environmental protection (http://www.sfu.ca/cscd). Community Economic Development (CED) is action taken locally by a community to provide economic opportunities and improve social conditions in a sustainable way. Often CED initiatives aim to improve the lot of those who are disadvantaged. CED is a community-centred process that blends social and economic development to foster the economic, social, ecological and cultural well being of communities. Its central tenet is that, problems facing communities such as unemployment, poverty, job loss, environmental degradation and loss of community control need to be addressed in a holistic and participatory way (http://www.britainnica.com/eb/article-9106199/economic-development).

McRobie and Ross, (1987) define Community Economic Development as a process by which communities can initiate and generate their own solutions to their common economic problems and thereby build long-term community capacity and foster the integration of economic, social and environmental objectives. It focuses on improvement through economic activity – generally, by expanding the number of locally owned and social venture economic enterprises, and by demanding that economic bottom-lines take into account environmental sustainability and social justice.

According to Chaland N. and Doning R, (2003), Community Economic Development is an action by people locally to create economic opportunities and enhance social conditions, particularly for those who are most disadvantaged, on an inclusive and sustainable basis. It is a comprehensive, multi-faceted strategy, conceived and directed locally, for the revitalization and renewal of community economies. Its abiding interest is the local development, management, and strengthening of community resources for community benefit. It is a way of creating economic development, which is responsive to locally defined priorities. It strives to increase the self-reliance of local communities. It focuses on local control and local ownership of resources, and aims to locate assets in the hands of low-income residents. It seeks to ensure that the benefits of economic development flow equitably to those who are frequently left out. It is an approach to development, which integrates the social, cultural, economic and ecological goals of the local community. http://www.ccednet-rcde.ca/, has defined Community Economic Development as an alternative to conventional economic development. Its central tenet is that: “... problems facing communities—unemployment, poverty, job loss, environmental degradation and loss of community control—need to be addressed in a holistic and participatory way.”


CHAPTER THREE: Findings
3.1 Community Economic assessment findings
3.1.1 Agricultural income Generating Activities
Since Mvomero District economy depends heavily on Agriculture, mainly from crop production, the assessment revealed that also the communities in Kanga ward depend on food crops such as maize, paddy, cassava and sorghum as food crops. While cash crop produced is sugarcane. More than 80% of adult population in Kanga ward earns their livelihood from Agriculture though mainly at subsistence production. According to Mvomero District Council (2005), an average individual annual income (Per Capita Income) in 2003/2004 for Kanga ward is approximately Tshs. 337,000. The following are crops which contribute much to the people’s income in the ward.

Sugar cane: This is the main cash generating crop for most of the lowland households, it is estimated that about 50 households get most of their cash from sugar cane sold to Mtibwa Sugar. Normally farmers use fertiliser to improve sugar cane yield, a smallholder farmer will use 2 – 50kg bags per acre to improve output from around 20mt/hectare to 50mt/hectare that is about (250%). The fertilizer is provided on credit by Mtibwa Out grower Association (MOA), repayment is affected through deductions. On sales a tonne of sugar cane in 2006/07 season fetched Tshs. 18,000, the 2007/08 price has increased to Tshs. 30,000.
Maize: Is one of the main staple in the communities in Kanga ward, according to the FGD, output falls short of demand as a result the village has to buy maize from other areas in certain months of the year. Productivity is very low, four villagers at the meeting had an average of 5 bags per acre whereas with good crop husbandry it should be possible to increase output to more than 20 bags i.e. by 400%. Maize price ranges between Tshs. 2,000 during harvest season to Tshs. 7,000/= during off peak per 20ltr plastic.

3.1.2 Non-Agricultural Income Generating Activities
There are few villagers are employed permanently within and outside the villages counting to 3% of which 8% are from the Better Offs and 1% from the Less Poor while the Poor not represented on the assessment. Lack of entrepreneurship skills has resulted to poor participation in efficiency petty trade activities.

3.1.3 Handicrafts, Sewing, Carpentry and Masonry
Assessment revealed that about 6.5% of the respondents engage in handicrafts, sewing, carpentry and masonry. Also assessment revealed that those who are the Better Off category make 62% of the 6.5%. The Less Poor make 27% while the Poor make only 11%. This confirms that involvement in non-agricultural income generating activities has higher tendency to increase household incomes.

3.1.4 Local Brew
Brewing and selling of local brew is an important economic activity in Kanga ward communities, it involves 12% of households. It can be noted that local brew business is practiced largely by Better Offs (47%) and Less Poor (38%). While the business is widely found, it is not very clear as to the extent of the overall negative impact on the communities’ economies since beer drinking takes place even during working hours of the day. This could be an area for further investigation.

3.1.5 Shops, Bar and Clinic Businesses
About 5% of respondents reported to operate businesses under this category. None of the Poor was found to have the kind of business; the Less Poor were (26%) while the Better Offs was (76%). There is therefore a very strong relationship between Income Generating Activities under this category with household economy. It is important therefore for community members to put more effort that will increase the number and quality of micro-enterprises.

3.1.6 Livestock keeping
Communities in Kanga ward are less involved in livestock keeping, 55% of the respondents reported to have no any livestock. On average 45% reported to domesticate poultry, Pigs, Sheep, Goats and Cattle. Of these, 25% of households involved in poultry production, 10% pigs rearing, 7% Sheep and goats, there are only 2% cattle keepers.

3.1.7 Community Economic Institutions
Community economic institutions are vital for household income rising, Mvomero district has several financial institutions which serve rural people including Kanga ward. But in Kanga ward is specifically served by unregistered groups engaging in saving and loan services called Village Saving and loan (VS&L) groups which started savings and loan services in September, 2007.


CHAPTER FOUR: Proposal for potential business opportunities
4.1 Income rising through in formal Savings and Loan method
Community member are encouraged to organize themselves in small self-help groups so that they can mobilize their internal fund. This will help community members to gain income, which can be used to invest in agricultural inputs; cover crops transportation cost and starts small non-agriculture business. Therefore, the study is suggesting to community to employ Village savings and Loan (VSL) approach, since it is not an external fund scheme.

4.2 Diversifying community economic businesses
Cash crops: Kanga ward is rich with land, which is good in agriculture, hence the study recommend that cash crops should be encouraged in order to gain more money. The study revealed that in Mvomero District there is a great potential in the following cash crops also have great market price:- Sugar cane(Mtibwa Sugar Co. Ltd absorb the product), Cocoa, Coffee and Paprika. As it has been suggested through this study, community members should join hands by saving their own money by employing VSL approach so that they can get opportunity to borrow money for investing in above-mentioned crops.

Food crops: The study area proved to be potential in growing many food crops; hence the study found that the area is facing shortage of vegetable and species products. For instance, most of onions, Irish potatoes etc, are exported from other areas. Therefore, the study is suggesting for community members to engage in horticultural products, which proven to have good price in market due to its scarcity in the study area.

Livestock keeping: The study found that the area is good for livestock keeping such as local chicken, goats, cattle etc, but community members are not doing well. The study is suggesting much emphasis should be put to local chicken production, since they can do well, and are capturing good market now days.

Bee keeping: Since Kanga ward communities are near to Forest natural reserve, the study found that the area is potential for bee keeping. Therefore, the study is recommending for community members to make use of this opportunity, since modern beekeeping industry is an environmental friendly and bee products have good price in the market.
Tree planting: The study also revealed that the area is potential in tree planting for timber. The study found that there is a government teak plantation, which is doing good, therefore the study is suggesting for community to take advantage of this opportunity, since the industry is doing good in the area and have good market price.

Eco tourism: Lastly, the study is suggesting for community members to get organized and take advantage of eco-tourism opportunity in this area. The study found that the area is characterized with beautiful mountainous feature and attractive forest rich with biodiversity, which are very attractive for tourism. Since the study found that community members are not full recognizing this opportunity, therefore the study is encouraging them to take advantage of this opportunity.


CHAPTER FIVE: Conclusion
The study concentrated on community economic analysis in Kanga ward in Mvomero District. The purpose was to come out with community economic stress and suggest interventions that solve those stresses and improve livelihoods in Kanga ward, Tanzania. The study revealed that the community experience inadequate market infrastructure, low price of agricultural products, inadequate agricultural inputs, Lack of good infrastructure, inequitable distribution of income, lack of savings service and low diversity of cash crops