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Tuesday 8 February, 2011


Sold 1%

US $40m tractors still gathering dust


Tuesday 8 February, 2011




Tuesday 8 February, 2011



US $40m tractors still gathering dust and rust


Tanzania’s agriculture cries out for attention

S global experts meet in New Delhi to discuss linkages between agriculture, health and nutrition, it is disheartening to hear that Tanzanian farmers have failed to acquire the tractors they need to plough away poverty. While good nutrition forms the foundation of a strong and healthy nation, poverty levels estimated by some to be close to 30 per cent condemn many families in Tanzania to survival on a single meal a day. Furthermore, an unacceptably huge number of young Tanzanian children succumb each year to malnutrition, which also causes a third of all maternal deaths in the country. There are also linkages between agriculture and levels of education. One in three Tanzanian children fails to reach physical and mental potential chiefly owing to malnutrition. With these grim facts, wouldn’t one see a link between poor nutrition and the recent poor final examination results in primary and secondary schools? Agriculture is the primary source of livelihood for close to nine out of every 10 Tanzanians. As such, proper investment in and better management of the sector would play a key role in preventing these infant deaths. It is because it acknowledges and appreciates the central role of agriculture in the development of the country that the government has engaged in Kilimo Kwanza, a green revolution initiative aimed at commercialising agriculture, improving livelihoods and eliminating poverty, all of which go hand in hand with improving nutrition. However, even as the country seemingly plunges head first into the agrarian revolution, some cracks have started to appear in the strategy. It is reported on authority in this Kilimo Kwanza Supplement that although staggering amounts of taxpayers’ money was risked in importing tractors and an assortment of other farm implements, many farmers across the country are still unable to access the credit facilities most need to purchase the tools. Indeed, hundreds of tractors are now stuck in different parts of the country while farmers continue to burst their backs endlessly as they scratch the soil with hoes in the hope of ensuring that they will not also succumb to malnutrition and the other problems grinding poverty can trigger, precipitate or aggravate. But even as some local financial banks and other fi-


& Design: KN Mayunga

nancial institutions continue to turn their backs on agricultural lending, the country now risks losing billions in taxpayer money to repay a massive tractor loan that has thus far been of little benefit to Tanzanians. Could these “unforeseen” challenges in accessing credit have resulted from indecision or the making of hasty decisions? What effect will the current failure to translate available tractors into increased acreage under cultivation have on the long-term goals of Kilimo Kwanza and nutrition and education levels in the country? At the grassroots level there are efforts being made by the Village Community Banks Association (VICOBA) to address the gnawing challenges posed by lack of access to credit facilities. But unless supported by awareness, proper legislation and “big-muscle” financial institutions, these efforts will remain akin to the proverbial drop in the ocean.

This throws a challenge to all agriculture stakeholders, definitely not just the likes of the Agriculture, Food Security and Cooperatives Ministry. One wonders how, given the sad and cruel facts that characterise Tanzania’s agriculture, the relevant shakers and movers will chip in with whatever input that can help the sector register steady enough growth to meet rising domestic and foreign demand for farm produce and the like.

Community Banks: Partners in rural development

Vicoba: Stimulating rural economy



Wallace Mauggo Editor

6 To have your organisation promoted in Kilimo Kwanza, Call: 0787 571308, 0655 571308 0754 571308


By Makuna Chirimi

NLY 20 of the almost two thousand tractors that were acquired by the Tanzania People’s Defence Force – National Service Economic Wing (SUMA JKT) to support the country’s efforts in Kilimo Kwanza have been sold. Furthermore, the cost of each of the unsold tractors has now increased by over 30%, from TSH 19m for the lowest priced tractor to TSH 25m! This even though some of the tractors have remained parked at the JKT yard in Lugalo, Dar es Salaam for over four months! But even as the Tanzania Revenue Authority (TRA) and the JKT wrangle over contentious import duties and taxes, hundreds more tractors, ploughs, water pumps and planters remain stuck at the port. It remains unclear when this latest consignment they will join the ever growing queue of farm implements lined up at the military base. In the US Dollar 40 million loan deal; that remains the single largest order of tractors in Indian and Tanzanian history; a total of 1,860 tractors, 400 power tillers and other farming implements were expected to be delivered to Tanzania by the end of last month (January 2011). The loan will be repaid using Tanzanian tax-payers money. Currently the over TSH 56bn/tractor investment purchased on loan on behalf of the people of Tanzania remains exposed to the whims of the harsh coastal weather. Most times the tractors and ploughs roast and bake under the direct and oppressive midday sun. Occasional rains add a temporarily if ironical “relief” from the heat and dust. How long it is before the tractors loose their luster and experience the wear, tear and rot associated with exposure to the elements is anyone’s guess. Perhaps the gleaming blue and white coat of paint and worn out seats can easily be replaced. Tractor tyres are expensive, so are rusty engine parts, but these too can be replaced, with taxpayers money. Heeding the call to revamp the country’s agriculture, the importation of tractors increased, with a total of 2,364 tractors and 3,214 power tillers

US $40m tractors still gathering dust and rust imported by private firms between 2006/07 and 2009/10 seasons. A total of 627 tractors and 2,219 power tillers were imported by private firms in 2009/10 alone, these destined for distribution to farmers through their district councils and cooperatives. However most of these privately imported tractors, alongside the government purchased ones still remain unsold, unused and are now lined up in private yards, regional headquarters, and district council offices across the country. Difficult lending conditions imposed by banks and other financial institutions have severely curtailed uptake of the mechanization, resulting in negligible sales across the board. Even as the unused tractors bask in the sweltering sun, millions of farmers across the length and breadth of the country are bent over, using hand hoes to prepare for the impending planting season. The sorry state of affairs underscores the serious challenges facing the green revolution which has been touted as the surest way to pull majority of Tanzanians out of poverty. Upwards of 85% of the nation’s population dwells in the rural areas and as such directly depends on agriculture for their livelihood. The switch from the hand hoe to mechanized agriculture is one of the pillars of Kilimo Kwanza. At the moment, about 70 percent of Tanzania’s total crop area is cultivated by hand hoe, 20 percent by ox plough and only 10 percent by tractor. The country needs at least 20,000 working tractors to achieve the goals of agricultural self sufficiency stated under Kilimo Kwanza. However where there were 17,000 working tractors in the 1970’s, only 8,000 remain. To fill this gap, the country aims to import

over 2,000 tractors every year for the next ten years. But it now seems unlikely that a bulk of these imports will ever reach the farmers. Whilst unveiling the first consignment of JKT tractors in October of last year, the Prime Minister Hon Mizengo Pinda urged the national service to utilize the available credit opportunities for the benefit of the nation and to ensure that the procured tractors reach the farmers on time and in good condition. More recently, the premier urged a meeting of leaders of SACCOS and microfinance institutions aiming to develop Village Community Banks (VICOBA) to actively support Kilimo Kwanza. Late last year, the Suma JKT Project Manager, Lt Col. Felix Samillan also sent out an earnest media appeal to local banks and other financial institutions to offer loan facilities to those interested in purchasing the tractors and other farm implements. In his appeal, the project manager called for a cut in bureaucracy and an easing of lending conditions to those looking to purchase the farm machinery. However despite all this lobbying for financial assistance, thus far only the Tanzania Investment Bank through its agricultural finance window is offering any “serious loans” for Kilimo Kwanza. Moreover the bank has raised concerns that it is failing to issue loans to farmers because a majority of them are unable to meet the loan conditions. Most farmers lack the necessary documentation and collaterals for acquiring the loans. The country has some large scale farms owned by experienced and skilled farmers, but the vast majority of the new emerging class of ‘mechanized

farmers’ are in fact peasant class subsistence farmers who are evolving out of subsistence existence into commercial farming. These hope to produce more than they need with the expectation that they will find markets and sell the surplus. Tanzania’s agriculture is still dominated by smallholder farmers (peasants) cultivating small plots ranging between 0.9 hectares to 3 hectares. This is often hardly enough to feed the farmers family for a year. Most peasants claim that they cannot step up their scale of agricultural operations because they lack capital. Yet they possess the most important capital input for farming – land. However with low levels of land registration, surveying and titling, the farmers lack collateral for loans and therefore remain caught in the poverty trap. The (Central) Bank of Tanzania has also taken a bold step and set up guarantee schemes with banks that are involved in financing farmers, but the fruits of this move are yet to be reaped as commercial banks remain wary of agricultural lending which is deemed as a high risk, low return endeavor. The status quo indicates that it will be a while yet before the tractors get a real taste Tanzanian soil. However the current negligible rate of tractor purchases may also be a blessing in disguise. The blessings however can only be realized if this period is also used to offer financial education and to put in place proper support mechanisms for Kilimo Kwanza. This may ensure that once purchased, the tractors are effectively and profitably utilized. The time to improve and expand infrastructure and put in place mechanisms to manage post harvest losses is now. Commercial systems


should also be put in place to effectively handle the expected increased harvest resulting from Kilimo Kwanza. Furthermore farmers should realize that a tractor is simply an engine that can and should be attached to a host of other equipment like ploughs, sprinklers, planters, mechanical weeders, water pumps, hullers or even used to generate electricity. According to a veteran agricultural investor and supplier of farm implements, it appears that most farmers have either chosen or been advised to buy only a tractor and plough. Lending banks have also stood back and agreed to this on the noble principal that we are in a free market economy and the borrower knows his own business best. Unfortunately both the borrowers and the lenders are new to the business of commercial agriculture. “The learning curve needs to be shortened if we are to avoid failure and disillusionment, ” Jonathan Lane says. He adds that the common scenario in the current spate of new Kilimo Kwanza start ups is that a farmer is typically equipped with only a plough and tractor. Many forget however that by purchasing the tractor, the farmer also “acquires” a debt that they have to repay in 3 to 4 years, whilst at the same time sustaining their business and daily livelihood. Banks that lend to finance a tractor and plough may get their money back if their client is a contractor providing ploughing services. However if the farmer is just relying on hand labour for the other duties, then the cost of production will exceed the market price of harvests and the business will fold quickly. The farmers would still have to pay for labour, seeds, fertilizer and finally storage and transportation of this expanded area. “There is no half way house on the road to mechanization. Commercial farming is a competitive business and anyone venturing to grow for profit must be advised accordingly. It’s now very urgent for the planners, lenders and borrowers to put their heads together and decide what is the minimum package of equipment necessary to produce maize and rice competitively so that we can supply our domestic market, export our surplus profitably and raise our farmers’ standard of living to well above the present poverty line,’ he adds. His suggestion is that while farmers and district councils continue to buy tractors and ploughs through loans and SACCOS, the SACCOS and district councils should also be enabled to invest in a pool of cultivation, planting, weeding and harvesting equipment that could be hired out to the members so that they can utilize the tractors fully throughout the year without the excessive burden of financing the same. The total planted area in the country has been stable for several years so land expansion through mechanization could be a major source of agricultural growth. Of the 44 million hectares of arable, available and suitable land for farming in Tanzania, only 23% is currently under cultivation. The average food crop productivity in the country is 1.7 tonnes per hectare, whereas good management, irrigation and optimal fertilizer use should result in yields of 3.5 - 4 tonnes per hectare. Proper management of all commercial and non-commercial systems that support and add value to agriculture is critical for the country to reap the full rewards of Kilimo Kwanza.



Tuesday 8 February, 2011



Tuesday 8 February, 2011




Bwana Sylivesta Katemana, Mwenyekiti wa Community Banks Association – CBA Mheshimiwa Kaimu Mkuu wa Mkoa; Bibi Dorothy Nduku Kipsang, Mwakilishi wa Swedish Cooperative Centre, Nairobi; Viongozi wa Serikali na Vyama vya Siasa Mliohudhuria Ufunguzi huu; Wadau wa CBA; Wageni Waalikwa; Mabibi na Mabwana. Nitumie nafasi hii kumshukuru Mwenyekiti na Afisa Mtendaji wa Jumuiya ya Benki za Jamii (Community Banks Association – CBA) kwa kunialika nijumuike nanyi katika hafla hii. Ninaelewa kwamba juhudi kubwa imefanyika katika maandalizi hadi kutuwezesha kuwepo katika Ukumbi huu siku ya leo. Nampongeza Mwenyekiti wa Jumuiya hii, Kamati ya Maandalizi na Wajumbe wake pamoja na Wanachama wote wa Jumuiya hii kwa ujumla kwa kufanikisha maandalizi na hadi kufanyika kwa Mkutano wa Wadau. Nimedokezwa kwamba Mkutano huu ni wa kwanza wa Wadau wa Benki hizi za Jamii. Nimeelezwa pia kwamba baadhi yenu mmetoka mbali, wengine kule Tandahimba (Mtwara), wengine Mbinga (Ruvuma), wengine Kagera, Iringa na Kilimanjaro. Wapo pia Wajumbe toka Arusha na Kigoma ambao nimeelezwa kwamba wote wako kwenye mchakato wa kuanzisha Benki zao. Ni furaha pia kusikia kwamba wapo jirani zetu kutoka Kenya ambao wamejumuika nasi ili kubadilishana uzoefu na utaalam kuhusu mikakati ya kuboresha Chombo hiki cha Benki za Jamii. Wote nasema Karibuni Sana Dar es Salaam! Kwa wale wanaotoka nje ya Nchi, Karibuni Tanzania! Tumieni nafasi hii kuona vivutio mbalimbali vya Utalii vilivyoko hapa Dar es Salaam japo kwa muda mfupi mtakaokuwa hapa. Tunazo fukwe nzuri zinazovutia ambazo mnaweza kukaa na kuburudika baada ya kazi ngumu hata leo jioni. Hali ya hewa ni nzuri na inavutia. Nawaomba mjisikie mko nyumbani!

Ndugu Mwenyekiti, Tumejumuika hapa na baadhi yenu mkiwa kama Wataalamu wa kuanzisha Benki za Jamii. Katika masuala ya uanzishaji wa Benki za Jamii, bila shaka mtakumbuka kisa cha kweli cha Mhadhiri wa Chuo Kikuu cha Chittagong - Bangladesh ambaye ni Mwanzilishi wa Benki ya Grameen ya Bangladesh, Profesa Yunus Mohamed. Siyo kusudio langu kuelezea kisa chote cha Mwanazuoni huyu. Lakini kwa kifupi tu ni kwamba yeye alibaini umaskini mkubwa wa Wanakijiji jirani na Chuo hicho cha Chittagong uliotokana na madeni ya mikopo kutoka kwa Wakopeshaji na Madalali wa Vyombo vya Fedha. Madalali hao wa-

likuwa wanawatoza Wanakijiji Riba kubwa na kuwafanya Wanakijiji washindwe kulipa madeni ya fedha walizokopeshwa. Hali hiyo ilisababisha Wanakijiji hao kuendelea kuwa maskini wakati wote. Alichofanya Profesa Yunus, ni kutafuta njia ya kuwasaidia Wanakijiji wale kwa kujitolea fedha zake za mfukoni kuwapa Wanakijiji bila ya kuwadai Riba. Lengo lilikuwa ni kuwawezesha kulipa madeni waliyokuwa nayo. Profesa Yunus alidhani kuwa msaada ule wa bure kwa Wanakijiji utaweza kuwanasua katika umaskini waliokuwa nao. Jambo la kushangaza, Wanakijiji wale baada ya muda fulani waliweza kurejesha kiasi chote cha fedha walichopewa na Profesa Yunus. Kitendo hicho kilimfanya Mhadhiri huyu kugundua kuwa, “kumbe maskini wenye kipato cha chini ni wakopaji na warejeshaji wazuri wa mkopo kama mkopo unaotolewa ni wa masharti nafuu na usiohitaji dhamana”. Tatizo lililomsumbua Profesa Yunus, ni jinsi atakavyowashawishi Wamiliki na Watendaji wa Benki kwa kutumia mfano huo wa Wanakijiji wa Chittagong kuwakopesha watu maskini kwa masharti nafuu. Hii ndiyo changamoto kubwa tuliyonayo hapa kwetu. Kukopesha watu wa kipato cha chini kwa masharti nafuu. Kisa hiki kinaendelea kwa kirefu na kinaonyesha kwamba Profesa Yunus alifikiria njia nyingi ambazo nikizielezea hapa ni historia ndefu. Lakini mwishoni alifanikiwa na Benki yake ya Grameen ikawa ni mfano wa kuigwa Duniani. Benki hiyo sasa ni moja ya Benki kubwa inayotoa mikopo kwenye Mashule, Mahospitali na kwenye miradi mingi kwa Wananchi Maskini wa Vijijini. Mtandao wao ni mkubwa na unazisadia Serikali mbalimbali kuleta maendeleo. Katika Tovuti ya Kituo Profesa Yunus kinachojulikana kama “Yunus Centre” na ambacho lengo lake ni kuanzisha “Dunia Isiyo na Umaskini” “A Poverty Free World” anawakaribisha Watu wote Dunuani kumuunga mkono katika “Safari ya Kufurahisha ya Kuondoa Umaskini Duniani”. Profesa Yunus anatuhimiza kwa kusema: “If we take the first step today, and continue to take more steps, we’ll get there”. Let’s take the first step now”. Anatukumbusha kwamba kama tukichukua hatua ya kwanza leo, na kuendelea kuchukua hatua, ni dhahiri tutafika tunakolenga kufika katika kuondoa umaskini Duniani. Anahimiza tuchukue hatua sasa. Dhana ya Benki za Jamii Ndugu Mwenyekiti, Kisa hiki cha kweli cha Profesa Yunus kinaturejesha katika dhana nzima ya kuanzisha Benki za Jamii. Benki ambazo ziko karibu na Wananchi. Kwangu mimi, kuanzishwa kwa Benki hizi sitofautishi na juhudi

za Serikali za kugatua Madaraka kwa Wananchi (D by D) kwa sababu, malengo makubwa ya kuanzisha Benki hizi ni: Moja: Kuwajengea Wananchi uwezo wa kiuchumi na kuanzisha shughuli mbalimbali za biashara ambazo zinafanywa na wao wenyewe; Pili: Kuwawekea Wananchi mazingira mazuri ya kupata mikopo; Tatu: Kushirikisha Jamii, hususan Wananchi Vijijini wengi wao wakiwa maskini na wasio na kipato kuwa na kipato, na kupata ajira ili kuondokana na umaskini na kujiletea maendeleo; na Nne: Kuhamasisha Wananchi kuanzisha shughuli za kiuchumi ikiwa ni pamoja na Viwanda Vidogo Vidogo. Upo ushahidi kwamba, Watanzania wengi wanao uwezo, maarifa na dhamira ya kujitegemea kiuchumi. Mipango mizuri ya mikopo yenye masharti nafuu inaweza kumuinua Mtanzania akapiga hatua katika kujiletea maendeleo. Changamoto iliyoko mbele yetu ni jinsi ya kumuwezesha kutimiza Azma hiyo. Kilimo Kwanza Ndugu Mwenyekiti, Mwaka juzi tulizindua Mpango unaojulikana kama Kilimo Kwanza. Hii ni Azma ambayo inawahusisha Watanzania wote kama wazalishaji na watumiaji wa bidhaa za Kilimo. Azma ya Kilimo Kwanza ikitekelezwa kama ilivyokusudiwa tunategemea italeta Mapinduzi thabiti ya Kilimo Nchini ambayo yatawasaidia Watanzania wengi kubadili maisha yao. Mapinduzi haya yatatokea kwa kuwahusisha Wakulima katika ngazi mbalimbali za uzalishaji kuanzia uzalishaji shambani, ufungashaji wa mazao, usafirishaji, usindikaji na hadi bidhaa inapomfikia mlaji. Huu ni mtiririko muhimu katika Kilimo unaohitaji kuboreshwa hatua kwa hatua. Hata hivyo, matatizo ya Mtaji kati-

ka kila hatua yanahitaji kuhakikisha kwamba uzalishaji unaongezeka. Vinginevyo, iko hatari ya kuboresha ngazi moja, lakini thamani iliyoongezeka ikamezwa yote katika hatua inayofuata. Tunao mfano wa Wakulima wanavyojitahidi sana kuongeza uzalishaji wa mazao lakini tafiti mbalimbali zinaonyesha kuwa kiasi cha Asilimia 40 ya mazao yaliyopatikana Nchini hupotea baada ya kuvunwa! Hili ni tatizo ambalo linapunguza kasi ya maendeleo ya Wakulima katika Nchi yetu. Tunahitaji mikakati zaidi ya kujinasua katika matatizo kama hili. VICOBA na Wananchi Ndugu Mwenyekiti, Moja ya Mikakati ya kujinasua katika matatizo mbalimbali ya Wananchi kiuchumi ni kuanzishwa kwa utaratibu wa Benki za Vijiji (Village Community Banks – VICOBA). Huu ni utaratibu ambao Wanakijiji hukutana kila wiki kuchanga, kukopeshana na kupata Mafunzo ya Ujasiriamali katika maeneo yao. Yapo mafanikio makubwa ambayo yameanza kuonekana katika baadhi ya maeneo Nchini ikiwa ni pamoja na kule Songea, Kahama, Nzega, Kitwilu Iringa na Musoga Chalinze. Mafanikio yameonekana pia kule Mpanda, Urambo, Vunjo na Machame Kilimanjaro. Haya ni maeneo machache kwa kuyataja ambayo Wanavijiji wanakaribia kutoka kwenye VICOBA na kuanzisha “Microfinance Company”. Aidha, kule Mafia wao wanakaribia kuanzisha Benki ya Wananchi kupitia utaratibu wa VICOBA. Nimeambiwa mzunguko wa fedha hizo za VICOBA zinakadiriwa kufikia Shilingi Bilioni Nne Kitaifa. Huu ni mwanzo mzuri. Ninajua bado kuna changamoto ambazo zinakabili utaratibu huu. Kwa mfano, tunaambiwa Halmashauri nyingi hazijajua umuhimu wake. Lakini baadhi ya Mabenki Nchini

yameanza kujitokeza kuunga mkono utaratibu huu kwa kutoa “Matching Fund” kwa ajili ya VICOBA. Wito wangu kwa Taasisi za Fedha ziangalie utaratibu unaofaa wa kusaidia VICOBA kufanya kazi kwa kuvipatia Mtaji. Vilevile, Halmashauri ziingize katika mifumo yao, suala la kusaidia VICOBA na SACCOS ili ziweze kufanya kazi kwa ufanisi zaidi. Watu wengi wa Vijijini Wakijiunga na kuwezeshwa, kasi ya kupunguza umaskini itaongezeka na Watu wengi zaidi watanufaika. Serikali itaendelea kusimamia utaratibu huu kwa kuhakikisha Utaratibu wa Mitaji Vijijini inaendelezwa.

SACCOS na Wakulima Ndugu Mwenyekiti, Mkakati mwingine wa Kitaifa ya kumuwezesha Mkulima na Mtanzania kujikomboa kiuchumi ni kutekeleza Azma ya Kilimo Kwanza. Ili kufanikisha Azma hii ni vizuri kuhakikisha kuwa, Wakulima Wadogo wanafikiwa kwa urahisi katika kupata huduma za Mikopo kutoka Benki. Aidha, ili kupata huduma za Kibenki kwa unafuu ni muhimu Wakulima kujiunga katika Vikundi au Vyama vya Kuweka na Kukopa (SACCOS) ambavyo vitatambulika kirahisi katika Benki zetu. Vilevile, ili Wananchi wawe na imani na SACCOS zao, inabidi mfumo wa usimamizi uimarishwe ili SACCOS hizo ziendeshwe kwa Misingi ya Utawala Bora. Ninakubaliana kwamba, SACCOS zikikosa Benki ya kuwaunganisha kwenye ngazi kwa mfano ya Wilaya na Mkoa, zinashindwa kuwa na uhakika wa mipango ya muda mrefu ya kuendeleza shughuli zake, hususan za kilimo. Kwa maana hiyo, Halmashauri za Wilaya, kwa niaba ya Wananchi zisaidie na kuziwezesha SACCOS hizo ziwe Wadau muhimu katika Benki za Wananchi kwenye maeneo yao. Wataalam wanasema hili

Participants of Community Banks Association stakeholder meeting in a group photo with the Prime Minister Hon. Mizengo Pinda (seated center). Also seated from left: Mrs Dorothy Kipsang (Head Financial Services-Swedish Cooperative Centre Regional Office E.A Nairobi), Fuhanael Kihunrwa (CEO of Community Banks Association), Sylvester Katemana (MD Kagera Farmers Coop Bank) and Edmund Mkwawa (MD Dar es Salaam Community Bank)

litawezekana kama Halmashauri zitanunua hisa katika Benki za Wananchi. Vilevile, Halmashauri zifanye utaratibu unaofaa wa kutumia Benki hizi kupitisha malipo yote ya Halmashauri pale ambapo kuna Benki ya Wananchi. Kwa njia hiyo Benki hizi zitakuwa na vyanzo vingi zaidi vya mapato vitakavyoongeza fungu la fedha ambalo litatumika kwa kukopesha Wakulima wengi zaidi.

Wakulima Kuweka Akiba Ndugu Mwenyekiti, Katika kwenda sambamba na kuanzisha SACCOS, kuna haja ya Wananchi kutumia Benki kama mahali salama pa kujiwekea akiba na amana, kusafirisha fedha na kupokelea malipo. Hatua hiyo itazifanya Benki za Wananchi zilizoanzishwa ziendelee kupanuka na kuboresha huduma zao. Uboreshaji wa huduma katika Benki ni pamoja na Vituo vya kulipia Wananchi huko Vijijini, ili kuwapunguzia Wanavijiji gharama za kusafiri kwenda Mijini kupata huduma za Kibenki. Ni muhimu vilevile, kwa Mabenki kuwa na mashine za kutolea fedha kama vile ATM na Mtandao wa uhakika. Hatua kama hizi zote kwa pamoja zikitekelezwa zitachangia kuboresha utekelezaji wa Kilimo Kwanza kwa njia ya mikopo mbalimbali inayolenga mahitaji yote ya Wakulima Wadogo. Vilevile, itasaidia kuhakikisha kwamba Mikopo hiyo inapatikana katika muda muafaka. Jambo muhimu la kufanya Mabenki yabadilike, yawe yanamsikiliza Mkulima na kumwelewa ikiwa ni pamoja na kutoa huduma nzuri kwa Wateja ili wavutiwe kutumia huduma za ki-Benki. Ni muhimu pia Benki za Wananchi kutumia muda mwingi kuelimisha jamii kuhusu huduma za kifedha kama vile; faida za kuweka akiba, aina za mikopo na taratibu za urejeshaji. Aidha, Benki zifundishe masuala ya usafirishaji wa fedha, bima ya mkopo,

na mambo ya ujasiriamali.

Umuhimu wa Kuanzisha Benki za Wananchi Ndugu Mwenyekiti, Wakati wa ufunguzi wa jengo la Benki ya Wananchi wa Dar es Salaam tarehe 13 Januari, 2011, nilieleza umuhimu wa kuanzisha Benki za Wananchi katika kila Mkoa. Wataalam wanasema zipo njia nyingi na tofauti katika kuanzisha Benki hizi. Mojawapo ni Wananchi, kwa kushirikiana na Halmashauri zao kuanzisha Benki zao za Jamii katika Mikoa na Wilaya zao. Tunajivunia kwamba, Utaalam wa kuanzisha Benki sasa unapatikana katika Jumuiya hii ya Benki za Jamii (CBA). Kwa maana hiyo tunaweza kuanzisha Benki za Jamii Nchi nzima kama tukidhamiria kwa kutumia Wataalam waliopo. Ni juu ya kila Halmashauri kuchangamkia fursa hii kwa kuwasiliana na Uongozi wa Jumuiya hii ya Benki za Wananchi kwa ajili ya kuweka utaratibu na Mpango Kazi utakaowezesha kufikia Azma hiyo mapema.

Ndugu Mwenyekiti, Serikali inafahamu umuhimu wa kuwa na Benki za Jamii. Kama Serikali tutaangalia uwezekano wa kuziwezesha Halmashauri ambazo zina ari ya kuanzisha Benki zao na kuharakisha uanzishaji wa Benki hizo. Mimi ninaamini Halmashauri zetu zote zinaweza kama zikidhamiria. Kwa maana hiyo, naomba kila Halmashauri iweke mkakati wa kusaidia Wananchi wake kuanzisha Benki za Jamii. Inawezekana kabisa kuanza kwa kukusanya Hisa kutoka kwa Wananchi. Serikali itatazama juhudi za Halmashauri au Wilaya husika katika kukusanya Hisa hizo. Kwa mantiki hiyo, tunaweza kwa makusudi kabisa kuweka masharti kwamba Halmashauri haitapewa fedha nyingi kuliko kiwango cha Hisa walichokusanya kutoka kwa Wananchi. Kwa njia hii ya ushindani kila Halmashauri yenye nia thabiti itaandaa mikakati ya kuhamasisha Wananchi ili wakusanye mtaji wa kutosha kuanzisha Benki yao. Elimu ya Masuala ya Kifedha Ndugu Mwenyekiti, Hapa mmeongelea Mpango wa Elimu ya Mambo ya Kifedha (Financial Education) kwa ajili ya Umma. Sisi kama Serikali tutaangalia namna tunavyoweza kushirikiana na Jumuiya hii ya Benki za Wananchi katika kutekeleza Mpango huu. Aidha, dhana ya Mduara wa Mafunzo (Study Circle) pia ni utaratibu mzuri ambao wenzetu wa Sweden wameonyesha kwamba unaweza kutumika kuhamasisha Wananchi kujadili namna ya kuboresha huduma za kifedha hususan, katika vikundi vidogo. Niungane na Mwenyekiti kuwashukuru wenzetu wa

Swedish Cooperative Centre kwa msaada wao wa vifaa vya mafunzo. Ninaamini tukizingatia Mpango huu shirikishi, utachangia kwenye mafanikio ya Azma yetu ya Kilimo Kwanza.

Hitimisho Ndugu Mwenyekiti, Ilani ya Chama Cha Mapinduzi 2010-2015 inasisitiza kuimarisha Sekta ya Fedha kwa “kuendelea kuwaelimisha Wananchi kuhusu umuhimu wa kuweka akiba na kutumia huduma za Benki katika Shughuli zao za kila siku za kifedha”. Inasisitiza vilevile “kuendelea kupanua huduma za Benki ili kuwafikia Wananchi wengi zaidi”. Serikali imebaini uwezo mkubwa wa Jumuiya hii ya Benki za Jamii (CBA) katika kutekeleza majukumu ya kuanzisha Benki hizi hapa Nchini. Ni matumaini yangu kwamba nyote mliokusanyika hapa mkiweka mawazo yenu kwa pamoja mtapata mikakati na mbinu bora zaidi katika kuboresha huduma za Benki za Wananchi katika Nchi yetu. Kwa kufanya hivyo mtakuwa mmetekeleza Ilani ya Chama Cha Mapinduzi. Tumeona mafanikio katika maeneo ambayo Benki hizi zipo. Kwa mfano, maeneo ya Mkoa wa Kilimanjaro, kule Kagera, Mbinga, Tandahimba na hapa Dar es Salaam. Maisha ya Wananchi katika maeneo haya yameanza kubadilika. Wananchi wenye Akaunti katika Benki hizo wameanza kufahamu manufaa na faida za kuweka akiba, kupata mikopo na kurejesha kwa wakati. Wale waliojiunga kupitia SACCOS, wameanza kuona matunda ya fedha zao walizowekeza. Nanyi kama Wataalam ambao tayari mnajua umuhimu wa Benki za Wananchi, wasaidieni Wananchi kuelewa dhana ya Benki hizi ili waweze kujumuika katika kuzianzisha. Hivi sasa tunazo Benki za Jamii Kumi katika Mikoa Saba. Kwa maana hiyo, bado tuna kazi kubwa ya kufanya ili zisambae katika Mikoa mingine na hatimaye Nchi nzima. Lakini Waswahili wanasema “Utamu wa Muwa ni Kifundo”, ambacho kwa kawaida huchukua muda kutafunika. Lakini tukidhamiria hatimaye tutafurahia matunda yake. Nimalizie kwa kuwashukuru tena kujumuika nanyi siku ya leo. Nawatakieni mafanikio katika majadiliano yenu na Mkutano mwema wa siku ya leo. Mwisho nitafurahi kupata mapendekezo ya Mkutano huu kuhusu kuboresha huduma za Benki za Jamii Nchini kama Mkakati wa Kujadili Uchumi wa Jamii. Baada ya kusema haya machache, napenda kutangaza sasa kwamba Mkutano wa Wadau wa Benki za Jamii umefunguliwa rasmi. Asanteni kwa kunisikiliza.


1. Back ground The Community Banks Association was founded by Tanzania Gatsby Trust (TGT) in liaison with all Community Banks in the year 2005. The Association was registered under the Societies Ordinance of 1954 (rule 5) with Registration number SO 14198 issued on 1st day of February 2006. 2. Mission Statement of CBA CBA mission is ‘To mobilize resources so as to maximize value and economically empower Community Banks in Tanzania by offering financial and non-financial resources efficiently and effectively for mutual benefit of all parties.’ 3. Vision of CBA The vision of CBA is ‘To be a leading and preferred provider of resources for development as well as an advocate of community banks in Tanzania.’ 4. Membership Status The current number of members of community banks association is ten, which include all operating Community Banks and Cooperative Banks in Tanzania, and these are: • Dar es Salaam Community Bank (DCB) in Dar es Salaam Region, • Mufindi Community Bank (MuCoBa) in Iringa Region, • Mbinga Community Bank (MCB) in Ruvuma Region, • Kilimanjaro Co operative bank (KCB) in Kilimanjaro Region, • Uchumi Commercial Bank (UCB) in Kilimanjaro Region, • Mwanga Rural Community Bank (MRCB) Kilimanjaro Region, • Kagera Farmers Co operative Bank (KFCB) in Kagera Region, • Njombe Community Bank (NCB), in Iringa Region, • Tandahimba Community Bank (TaCoBa) in Mtwara Region, • Ephata Bank in Dar es Salaam Region. 5. Services that the Association offers to its Members

and promoters of Community Banks

• Build capacity to banks’ staff and clients, • Create a network between existing Community Banks and organize exchange programs for broader benefits in and outside the country, • Review policy documents and other operating systems on behalf of Community Banks, • Advocate and lobby for a well balanced conducive operational environment to relevant authorities, • Reduce set-up costs for new community banks projects (support with feasibility studies, business plan preparation, preparation of necessary documents needed by the Bank of Tanzania, recruit senior staff of the banks, acquire bank software on behalf of the banks, and other services needed by the banks), • Integrate newly-established Community Banks into an established network of Community Banks.

Member banks of CBA are the leading supporters of small farmers, as well as small and medium size enterprises in Tanzania – including the remotest rural localities - lending to: • Growing of crops (coffee, tea, cashew nuts, pyrethrum, maize, wheat, barley, bananas, sugarcane, rice, legumes, potatoes, sunflower, and vegetables; • Raising of dairy cattle, beef cattle, goats, sheep, pigs, poultry; • Fishing; • Beekeeping; • Development of small scale industries; • Transportation; • Storage; • Warehousing; • Agro-processing; • Trade: • Education development; • Improvement of family dwellings; • Health needs of families; and • Community infrastructure development.

Bagamoyo Road, Kawe Bus Stand P.O. Box 1875, Dar es Salaam, TANZANIA Tel: +255 22 261 7818 Fax: +255 22 211 2899 Mobile: +255 754 39 11 00 Email: info@, Website:



Tuesday 8 February, 2011


Community Banks world over have undergone several transformations that have made them models in the world. Likewise they have contributed a lot to both micro and macro levels hence stimulating national economies. The Guardian correspondent Milton Byemerwa interviewed the Chief Executive Officer for CBA, F. Kihunrwa on the role of community banks in rural development among others; here are excerpts.

Q: What is the mandate of financial institutions in fostering rural economies and how supportive are they to the community? A: Financial Sector Reform in Tanzania was meant to develop a sustainable, efficient and effective financial system in the country for people to have access to financial services for economic growth and reduction of poverty. The reforms brought efficiency and competition in the banking sector but unfortunately failed to satisfy the financial needs of farmers and rural enterprises who constitute about 80% of the entire population in the country. Further efforts were made by the government by enacting the National Microfinance Policy in 2000 with the aim to create a formal financial system based on rural community and to help promote accelerated growth of the economy and improve the living standards for the majority of the people. As a result, community banks started to emerge; by 2010, there were ten community banks, namely Dar es salaam Community Bank, Mufindi Community Bank, Mwanga Community Bank, Kilimanjaro Cooperative Bank, Uchumi Commecial Bank, Mbinga Community Bank, Tandahimba Community Bank, Kagera Farmers Cooperative Bank, Njombe Community Bank and Ephata Bank. These banks are established specifically to cater for the financial needs of the respective communities. Having developed from the grassroots, community banks give people a sense of ownership and a belief that banks represent the local community interests. By Angel Navuri, New Delhi, India

Agriculture experts and government leaders from around the world are gathered in India to discuss linkages between agriculture, nutrition and health. The aim is to come up with ways to improve the ailing health and nutrition status of many developing countries. The conference has been organized by the International Food Policy Research Institute (IFPRI). According to IFPRI Head of Media Relations, Michael Rubinstein, the conference brings together leaders in agriculture, nutrition, and health from around the world to deliberate how to create a more integrated system that

Vicoba: Stimulating Economy

CBA Chief Executive Officer Fuhanael Kihunrwa explains a point to the PM Pinda. Q: How do you assess the performance of community banks in Tanzania? A: Growth of community banks have been accompanied by a number of problems, some of which are a result of external environment in which they operate while others are originating from internal factors. Some of these problems include Low capital base, which makes it difficult for community banks to make necessary investments such as new technologies and therefore cannot compete effectively with other institutions in the market. Community banks are critically facing liquidity problems; this has been due to low level of incomes in rural communities coupled with seasonality of income. In addition, savings mobilization is very difficult as the awareness of clients on using banks is very little and deposit mobilization is limited by the cost of doing the same because the clientele is scattered with very small amounts of money individually. This forces community banks to borrow from other sources at high interest rates for lending to their customers. Q: Any other challenges that hinder the performance of the community banks? A: Other challenges are difficulties in recruiting and retaining qualified staff, poor infrastructure and high transaction costs. Most of the community banks are located in remote areas and they normally offer low salaries

compared to their competitors. Poor road networks and transport facilities make it difficult for the banks to reach the clients in remote areas, and also people in remote areas cannot access services offered by these banks. Due to the nature of community banks’ clientele, the transaction costs are very high resulting in very small margins on profit. Sometimes these banks end up having a lot of bad debts due to the fact that most clients lack reliable collateral to cover their loans dragging these banks into deep liquidity problem. Sometimes regulations imposed by the Central Bank are too strict to the extent of affecting community banks operations. For example Loan to Deposit Ratio; this ratio is constant. Community banks liquidity fluctuates; it tends to be higher during harvesting seasons and lower during planting seasons. This regulation affects the banks’ trend in offering loans to the needy, especially during planting seasons. The above factors in turn, affect the performance of community banks in Tanzania making it difficult to serve the community effectively.

Q: What have community banks done so far to overcome these challenges? A: In order to overcome such organization limits highlighted above, community banks in collaboration with Tanzania Gatsby Trust founded The Community Banks Association (CBA) in November 2005 in order to build a network of all community or co-opera-

tive banks in Tanzania as well as use the association as a tool to facilitate and promote community banking business in Tanzania for the benefit of rural communities in the country. The association is a lobbying and advocacy body as well as an instrument that supports community banks with respect to capacity building (by training their staff on banking operations) and other support such as organizing study tours and other consultancy services. The association also supports settingup of new community banks by conducting feasibility studies, preparation of business plans, development of policy documents needed by the Bank of Tanzania, acquiring of bank software for community banks and integration of new banks into the established network. Formation of the Association has been one of the achievements by the community banks. Q: The government has been implementing a number of strategies to improve the lives of its people and streamlining social-economic development in the country. In the ongoing Kilimo kwanza initiative, where do you see CBA chiping in? A: Of recent, the government has been engaged in a project of establishing a ‘Tanzania Agricultural Development Bank’ which they say will function as part of the larger project of Kilimo Kwanza. The task force has been established that will comprise officials from BOT, relevant min-

Global experts to discuss health and nutrition

mobilizes agriculture to improve people's nutrition and health. The conference will examine linkages between agriculture, nutrition, and health and explore opportunities for improving nutrition and reducing health risks along the whole value chain. It will also draw lessons from country experiences and program interventions and identify key levels to make agriculture, nutrition and health work better together. Nearly a billion people in the world go hungry every day and others

survive on one meal per day, something that in turn affects their health. Tanzania like many other developing countries is affected by poor nutrition whereby many families survive on a single meal a day. Over 40,000 Tanzanian children under five died in 2010 from causes related to malnutrition. The most damage is inflicted during pregnancy and in the first two years of a child’s life, according to health experts. They argue that action to reverse the trend must therefore focus on this period of life.

Good nutrition for children and women is essential for a strong economy. Therefore the country’s new focus on agricultural development has opened an opportunity for nutrition to be placed at the heart of Tanzania’s progress. Inexpensive fortified foods must become widely available in the country. The relevant legislation, regulations and standards must be urgently completed and enacted. Every health facility should provide essential nutrition services for children and women, introducing Vitamin A and

istries and commercial banks to oversee the whole process towards the banks’ creation. Community banks are there and there are few more which are in the process of being established. These banks are important tools in the implementation of Kilimo Kwanza in Tanzania. Community and cooperative banks are well placed to participate actively in implementing the project as they operate nearer to the target group. Their bank services are both convenient, affordable and communities have a sense of ownership, which is essential for sustainability. The government as well as key stakeholders need to recognize these banks and roles they play in rural community development. There is no doubt that these banks have been helping farmers and rural enterprises access credit and other bank services though in many cases demand for loans has been higher than what the banks have in deposits. Q: Where do you see CBA in the next five years? A: Taking cognizance of the positive cooperation indicated by the government we are convinced that in the next few years the CBA will be the major link of building financial stability in the country. We are encouraging everyone to use the community banks in order to build strong and progressive community banks. Together with the main functions of the association we institute other cross-cutting issues such as gender relations that we believe are potential in order to effectively manage the family resources, improve labour division, enhanced health services, education and infrastructure. We are also insisting on environmental awareness so as to make sure that the loans issued are not the catalysts to environmental degradation.

Q What is your call to government and the public at large? A: We request the government and other key stakeholders to help community banks address the above mentioned challenges so that they can effectively serve the community for improved living standards. Community banks should also be viewed as key instruments in implementing Kilimo Kwanza alongside the Tanzania Agricultural Development Bank. District councils should be committed to offer direct support to community banks in order to make the banks’ impact be realized by the whole community as the owners of these banks are the ‘Wananchi’ themselves. We need to reach a point where every district in Tanzania has its community-owned bank. iron supplements, counseling on how best to feed young children and other family members, and treatment for malnutrition. A case in hand is sometime last year when teachers at a school in Dar es Salaam rushed a pupil to a nearby hospital after he had fainted. They had assumed the boy was sick but it transpired upon examination that hunger was the cause. The pupil had gone to bed on a hungry stomach the previous night and hadn’t taken breakfast that morning. The story would have been different had the school had a porridge for pupils’ feedContinues on page 8


Tuesday 8 February, 2011


Where do you find a tractor without wheels? • Reflecting on the second pillar - Finance


By Makuna Chirimi

story is told about the unique challenges that governments face in implementing new socialeconomic programs.

Officials from the “Ministry of Propaganda” of a certain government went out into the field, taking “the Revolution" to the people. Explaining the fundamentals of the revolution to bolster popularity, an official was out talking to a farmer. Official: So you see comrade, the basic principle of the revolution is this; ‘Each should give according to his abilities, and each should receive according to his needs." Do you understand? Farmer: (confused) Not yet... Official: OK. It’s like this. Say a fellow comrade has two tractors. We take one tractor from him and give it to the comrade that has no tractor. That is the revolution. You see? Farmer: Yeah! Yeah! That is very good! Official: And if a comrade has two chickens, we give one chicken to the man who has no chickens. Yeah? Farmer: No! That is not good! Official: Why? Farmer: Because I have two chickens... Revolutionizing agriculture has been the focus of the Tanzanian government’s policies and the actions of all administrations, past and present. At different times in the country’s history, several agricultural policy initiatives

and programs have been put in place and implemented. One such landmark policy initiative made under the nation’s founding father was the “ujamaa” village-nization policy. This revolution however faced several challenges that were not altogether different from the ones faced by the officials in the aforementioned story. The second revolution, the Iringa Declaration hinged mostly on irrigation as the way to achieving agricultural self sufficiency and poverty eradication. With varied levels of success, these two policy documents shaped later policy measures through the second, third and now the fourth phase governments. Financing enables agricultural development in much the same way that wheels enable a tractor to move. Where do you find a tractor without wheels? The answer to this question is: where you parked it! Not very funny you might say - but not all tractor stories are interesting. In Tanzania for example, hundreds of brand new, blue and white coloured tractors, with working engines, new wheels and all are parked and gathering dust and rust at the SUMA-JKT yard in the country’s commercial capital of Dar es Salaam. Several months ago the government institution acquired hundreds of tractors on credit from the government of India to support the country’s efforts in Kilimo Kwanza. However, many months after the first batch of tractors arrived in Tanzania, few units have been sold and no knows for sure when and if the rest will be bought. The JKT

is reportedly now in a quandary; not only about finding extra parking space for more farm equipment that is still stuck at the port, but also about lobbying and begging for finance on behalf of its “customers”, the farmers. Meanwhile, millions of farmers across the country are bent over like chickens, scratching the soil with their hand hoes as they prepare for the next planting season. At the same time, government officials are traversing the length and breadth of the country in air conditioned, fuel guzzling landcruisers, preaching Kilimo Kwanza with the promises of “messianic tractors” to ease the burdens of sweat drenched farmers. That is the revolution. You see? Tanzania is at risk of failing to translate its need for working tractors into a reality. Bottlenecks in accessing credit facilities from local banks are hampering the purchase and transportation of the tractors to needy farmers across the country. Only a few banks are lending to agriculture in any significant way, and when local banks do lend, it is usually on a short-term basis to fund working capital and at rates of interest that are often too high to be commercially affordable. Due to high perceived and actual risks, local commercial banks require some form of loan guarantee in almost all situations where they lend to the agriculture sector, regardless of the strength of the project. Land is the only collateral that majority of the farmers can offer, but over 95% of land in Tanzania is un-surveyed, untitled and

therefore of little or no value. Thus commercial finance for Tanzanian agribusiness is mainly restricted to large operators with established track records who typically already have equity from international sponsors. Apart from exceptional cases, start-ups and early-stage agriculture businesses operating above the microfinance level (those requiring more than US$500,000 of finance) can rarely find debt and equity finance in the local capital markets. According to the Tanzania National Business Council (TNBC), in 2008 the total domestic lending to agriculture was TZS540 billion (approximately US$360 million), of which 92 per cent went to agricultural trading. In all cases working capital and trade finance is only available at high rates of interest (20% to 25% or more) on short tenors and with onerous collateral requirements, often more than 100 per cent of the local value. Furthermore, although there have been large sums of money raised for investment in African agriculture by “social impact” investors, it is highly unlikely that these investors will be willing to invest in startup and early-stage businesses involving primary production because of the risks and costs. In fact many of the private equity funds targeting African agriculture explicitly rule out investment in primary production of food crops because it is perceived to be low return and high risk. The TNBC notes that there is a yawning gap in the financial system. There is no credit institution lending to


farmers who are establishing new ventures or those farmers who require long-term finance to expand their acreage or to install machinery or equipment of a permanent or durable nature. The government has made commendable, albeit belated first steps towards establishing a farmer’s bank. The truth however remains that actual realization of a farmers bank is still a long way off. Challenges notwithstanding, impressive development plans need to leave the paper folders on which they are written and to be implemented on time and to the full. Reports indicate that unused new tractors and power tillers are also lining up in some of the regional and district offices. Exactly why the decision to borrow tractors was made without first ironing out the so called ”unforeseen circumstances” that now prevent farmers from purchasing the trractors is a question for another day. The media is rife with news of the government receiving billions in aid and other incentives for Kilimo Kwanza from donors and development partners. Could some of this money be diverted and channeled to ensuring that the already available mechanization reaches the farmers? The JKT, district councils, farmer’s associations and SACCOS can be enabled to purchase the tractors and set up appropriate tractor lending schemes perhaps? As part of the much touted Kilimo Kwanza (agriculture first) revolution, the fourth phase government and its development partners last week unveiled the ambitious Southern Agriculture Growth Corridor of Tanzania (SAGCOT) project. Tanzania’s southern corridor links the port of Dar es Salaam to Malawi, Zambia and the Democratic Republic of Congo. It covers the wider Dar es Salaam, Morogoro, Dodoma, Mbeya, Rufiji and Sumbawanga areas. The SAGCOT Investment Blueprint describes how $2.1 billion of private investment will be catalyzed over a twenty year period, alongside public sector grants and loans of $1.3 billion. The final result, it is hoped, will be a tripling of the area’s agricultural output by bringing approximately 350,000 hectares under profitable production, much of it farmed by smallholder farmers and with a significant area under irrigation. A foreword by President Jakaya Kikwete restates that ‘Kilimo Kwanza’ properly anchors the involvement of the private sector in the development of agriculture. It underscores the critical importance of the private sector participating actively in agricultural production, provision of agricultural inputs, crop marketing and in the agricultural value chain so that Tanzania can realize her aspirations of a modernized and highly productive agriculture. Indeed the SAGCOT project could not come at a more opportune time. As the project blueprint notes, despite its huge agricultural potential, there is very limited large-scale farming in the southern corridor. Large-scale commercial farming in the corridor is restricted to sugar and tea, except for a few medium-sized farms that produce a mix of dairy, meat, sisal cereals, flowers and high-value horticulture crops. There is limited use of specialist knowledge and modern farming methods and the use of improved seeds, Continues on page 8



Tuesday 8 February, 2011


Global experts to discuss health From page 6

ing program. This dramatically captures the one meal day tragedy that strikes many poor families in rural and urban areas alike. Poor nutrition is caused either by drought or low income which is a problem for many families that depend on agriculture. The sector has not been doing well in the country despite the government having recently put all its efforts in agriculture for increased food production. Experts have it that there is a need to invest in good nutrition as more than a third of Tanzanian children do not reach physical and mental potential because of malnutrition, which is the cause of more than one third of child deaths in Tanzania. Every district should budget for and recruit a nutrition focal person who has overall responsibility for the delivery of nutrition services for children and women. At the same time, safety nets and social cash transfers must reach vulnerable pregnant women and children under the age of two so that resources reach children at the most critical age for ensuring good nutrition and health

development. Investing in early childhood development is another important matter as children from the poorest communities are at greater risk of diseases and malnutrition and perform poorly in school. Some of the challenges that are highlighted for the conference are the linkages between agriculture, nutrition, and health. Adequate levels and qualities of food produced and consumed promote good nutrition and robust health. The reality, however, is that patterns of food production and consumption vary widely around the world and the positive linkages between agriculture, nutrition, and health are not realized. Despite the large role that agriculture has played in the past, a number of pressing problems in the areas of agriculture, nutrition, and health are evident. According to the way forward draft prepared by IFPRI nearly a billion people now go hungry every day, unable to access the food they need for energy and growth. Several billion suffer from deficiencies in micronutrients like iron, vitamin A, and zinc. Hunger and poor nutrition have severe and sometimes

fatal consequences for people’s health, especially of women and children. These consequences can include significantly enhanced susceptibility to a range of infectious diseases. At the same time, problems related to “overnutrition” are burgeoning in many parts of the world. Obesity and chronic diseases like heart disease and diabetes are on the rise, even in settings where hunger is also common. The draft further explains that agriculture is dominated by smallholders, many of whom face poverty, malnutrition, and health, and environmental challenges. In some regions, smallholder agriculture is not growing fast enough to keep up with rising demand for food and to provide farmers with adequate incomes. ntensification of agriculture is a must to feed an increased world population, yet agricultural intensification brings its own risks for people’s health, including zoonotic diseases, food- and water-borne diseases, occupational hazards, and environmental damage that puts people and the planet at risk. Zoonotic diseases are diseases caused by infectious agents that can be transmitted between (or are shared by) ani-

Where do you find a tractor without wheels?


From page 7

Nane Nane 2010: Kilimo Kwanza, Mapinduzi ya Kijani, Uhakika wa Chakula na Kipato.


PASS TRUST and BANKS working together to develop Commercial Agriculture in Tanzania

PASS TRUST and BANKS are working together to grow Agribusiness in Tanzania by helping YOU get a loan. If you have a Viable Investment Idea and Collateral, PASS TRUST will help YOU make a Business Plan and assist you get a loan from the Bank.


Private Agricultural Sector Support Uhuru Street, the NMB Building, 1St Floor P.O. Box 146, Morogoro, Tanzania Telephone: 023-3752/3758/3765 • e-mail: • Website:

mals and humans. Women, who make up the majority of workers in smallholder farms, are particularly vulnerable, because they are also responsible for food and nutrition security and care for the family. Stress on natural resources, especially water resources exacerbated by climate change and rising costs of inputs such as fertilizers and pesticides may cause farmers to adopt farming practices that are harmful to their own health and to the health of consumers, and that are ultimately not sustainable. Addressing these problems will require solutions to be developed at the intersection of the agriculture, health, and nutrition sectors. Much has been learnt in recent years about how the three sectors are connected with important implications for people’s well-being and overall economic development. Nonetheless, significant information and knowledge gaps remain. Many policymakers and practitioners in agriculture, nutrition, and health sectors continue to work in isolation despite the potentially strong synergies among initiatives to improve nutrition and health through agriculture.

chemical and mineral fertilizer applications is one of the lowest in the world. Of the 7.5 million hectares of arable land available in this region, less than two per cent is farmed under irrigation; and this mainly in public irrigation schemes for smallholder rice production. Excluding two large sugar and tea estates, the total area under year round irrigation for food and horticulture crops is below 2,000 hectares. Also of the 2.1 million hectares that are under production, 95 per cent are farmed by smallholders using traditional methods, primarily for subsistence. Only 110,000 hectares of this SAGCOT region is commercially farmed with 20,000ha of the commercial farms using modern irrigation. Furthermore less than 2,000 hectares of the commercial farming is undertaken using modern agricultural methods. But perhaps more importantly, the hand hoe remains the main tool of production in close to 95% of all farmed land in the region. Sadly this low level of mechanization is not limited to the SAGCOT region alone. Seven of every ten farmers in the country are unequally yoked to the hand hoe and seed the land manually. About 70 percent of Tanzania’s total crop area is cultivated by hand hoe, 20 percent by ox plough and only 10 percent by tractor. Where there were 17,000 working tractors in the 1970’s, only 8,000 remain. The country needs at least 20,000 working tractors to achieve the goals of agricultural self sufficiency stated under Kilimo Kwanza. To fill this gap, the country is importing over 2,000 tractors every year for the next ten years, all useless if farmers never get to use the tractors. The time to wake up is now. Chewing gum at an examination does not answer questions any more than moaning about difficulties in accessing credit from mainstream financial institutions cultivates fields. The current outlook and forecasts in financing for agriculture indicate that it will be a while yet before local financiers change their attitude towards agricultural lending. If the relevant authorities continue to hinge their hopes on financial institutions, it will take nothing short of a miracle for the tractors to reach the farms on time. Did you not hear about the magic tractor? It gathered rust and turned into a field!



Dar es Salaam Water and Sewerage Authority (DAWASA) – Tel: +255 22 276 0006

Dar es Salaam Water and Sewarage Corporation (DAWASCO) Tel: +255 22-2131191/4 Drilling and Dam Construction Agency (DDCA) Tel: +255 22 2410430/2410299 Energy and Water Utilities Regulatory Authority Tel: +255 22 2123850, 22 2123853 Water and Environmental Sanitation Projects Maintenance Organization (WEPMO) Tel: +255 22 2410738, 716 099959 Ministry of Water Tel: +255 22 245 1448


Small Industries Development Organization (SIDO) – Email:, ANSAF - P.O. Box 6370, Dar es Salaam CNFA -

Tractors Limited Cells: +255 784 421606, 786 150213

Consolidated Holdings Corporation (CHC) Tel: 255 (022) 2117988/9 Vocational Education and Training Authority (VETA) – Tel: +255 22 2863683/2863409 Export Processing Zones in Tanzania (EPZ) Tel: +255 22 2451827-9 Agricultural Economics Society of Tanzania (AGREST) – Tel. +255-23 260 3415

Tanzania National Business Council (TNBC) Tel: +255 22 2122984-6 Tanzania Agriculture Partnership (TAP) Tel: +255 22 2124851

Tanzania Milk Processors Association (TAMPA) Tel: +255 222 450 426

Rural Livelihood Development Company (RLDC) Tel: +255 26 2321455 Tanzania Cotton Board Tel: +255 22 2122564, 2128347

Horticultural Development Council of Tanzania (HODECT) Cell: +255 789 222 344; Fax: +255 27254 4568 TATEECO Ltd – Tel: +255 784 427817 AGRO-PROCESSING ERTH Food - Tel: +255 22 2862040 MUKPAR Tanzania Ltd Tel: +255 28 250038/184

ASAS Diaries Limited - Tel: +255 26 2725200 Tanga Fresh – Tel +255 27 2644238 NatureRipe Kilimanjaro Limited Tel: +255 22 21 51457 EQUIPMENT Gurudumu Tatu Limited Tel: +255 22 2865632 / 2863699

National Service Corporation Sole (SUMAJKT) Cell: +255 717 993 874, 715 787 887 FINANCE Private Agricultural Sector Support (PASS) Tel: 023-3752/3758/3765 Community Bank Association Tel: +255 22 2123245

Bank of Tanzania P.O. Box 2939, Dar es Slaam, Tanzania AGRO-INPUTS Minjingu Mines & Fertilizers Ltd Tel: +255 27 253 9259 250 4679

Kilimo Kwanza Issue 29  

Kilimo Kwanza Issue 29

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