Thursday, September 2, 2010

Shigukulu CED Project Paper, 2009.

THE SOUTHERN NEW HAMPSHIRE UNIVERSITY
&
THE OPEN UNIVERSITY OF TANZANIA



MASTER OF SCIENCE IN COMMUNITY ECONOMIC DEVELOPMENT (2009)



PROMOTION OF INCOME GENERATING ACTIVITIES, SAVINGS AND CREDIT INITIATIVES AT KWAMTORO, LALTA AND OVADA WARDS -
KONDOA DISTRICT IN DODOMA REGION








ZACHARIA FULI SHIGUKULU






&



THE SOUTHERN NEW HAMPSHIRE UNIVERSITY

&

THE OPEN UNIVERSITY OF TANZANIA




MASTER OF SCIENCE IN COMMUNITY ECONOMIC DEVELOPMENT (2009)




PROMOTION OF INCOME GENERATING ACTIVITIES, SAVINGS AND CREDIT
INITIATIVES AT KWAMTORO, LALTA AND OVADA WARDS- KONDOA
DISTRICT IN DODOMA REGION



“A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF REQUIREMENT FOR
THE MASTER OF SCIENCE IN COMMUNITY ECONOMIC DEVELOPMENT”



ZACHARIA FULI SHIGUKULU





SUPERVISOR’S CERTIFICATION
I, Dr Sinda Hussein Sinda, certify that this dissertation entitled “Promotion of income generating activities, Savings and Credit Initiatives at Kwamtoro, Lalta and Ovada Wards Kondoa District Dodoma Region” submitted to The Open University of Tanzania/Southern New Hampshire University for the award of Master of Science in International Community Economic Development is an independent project work carried out by Shigukulu Fuli Zacharia under my supervision and guidance. This study has never been presented for the award of any academic qualification in any institution of higher learning.
Name of supervisor Dr. Sinda Hussein Sinda

Signature…………………………………….

Date …………………………………………







STATEMENT OF COPYRIGHT

“No part of this project paper may be reproduced, stored in any retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the Author or The Open University of Tanzania or Southern New Hampshire University in that Behalf”.















DECLARATION
I declare that this is a result of my original work; its essence is covered and contributed by many ideas from other writers which the researcher has referred. It has not been submitted for the similar degree in any University or Higher Learning Institution.
Signature ………………………….
SHIGUKULU, ZACHARIA FULI















DEDICATION

I dedicate this work to my lovely wife Mrs. Minza Zacharia F Shigukulu who was very close to me at every point as I struggled to come up with this final project. In addition, I also dedicate this work to my lovely children: Maria Fuli, Lucy Fuli, John Fuli and Irene Fuli. May God bless you richly.
















ABSTRACT

After going through the problem identification during the participatory assessment, the community prioritized the problem of income poverty as the main problem. The concentration was to tackle the problem of income poverty by addressing causes which include unreliable markets, insufficient existing businesses and income generating activities or microenterprises, lack of entrepreneurship skills, lack of financial intermediaries, inadequate capital and low per capita income.
The project therefore, focused on mobilizing and creating community awareness on income generating activities, savings and credit initiative, whereby the existing income generating activities and business groups were strengthened, empowered, supported with appropriate facilities and mobilized to form a strong community based and owned savings and credit cooperative society known as LAKWAO TSACCOS (2008) LTD with registration number DOR 707 of 15th June, 2009.
The research methods used included Survey, Participatory Observation, Transect walk Interviews and Documentary review. The research tools applied during the Participatory Assessment included questionnaires, Focus Group Discussion and checklist.
One recommendation is that the community at Kwamtoro needs to be more sensitized on the habit of savings and use of Microfinance Institutions instead of relying on charity for their development and sustainability.
Another recommendation is that the Government should deliberately put more effort to replicate the success story of the Kwamtoro in other District and Region in Tanzania.
ACKNOWLEDGMENT
I would like to recognize and appreciate all people who in one way or another have contributed in making this particular work successful. First of all, I would like to give my cordial thanks to my supervisor Dr.Sinda Hussein Sinda who provided guidance toward accomplishment of this report. Also my appreciation goes to my lovely wife Mrs. Minza Zacharia who always spared her time and prayed for me especially when faced with hard time to balance between my work, family and studies, I will love you forever.
I am also obliged to say a word of appreciation to all instructors who participated in one way or other to enhance my community development skills. It is my promise to become another ambassador to the rest of my fellow Tanzanians. I will use the skills to publicize in different ways so that we can change our societies attitudes for the better.
Many thanks should go to UMAKWA CBO and the Kwamtoro community for acceptance of hosting and co-operation during the period of study. I am also grateful to my employer World Vision Tanzania for granting permission to me to attend classes, and to my fellow workers in particular Central Zone staff for their support and encouragement.





EXECUTIVE SUMMARY
Promotion of income generating activities, savings and credit initiative is a Project under the host Community Based Organization namely UMAKWA CBO (Umoja wa Maendeleo Kwamtoro), i.e. Kwamtoro Development Association. The project was the outcome of the joint effort done during the participatory assessment by Kwamtoro community, UMAKWA CBO, the researcher and other stakeholders.
The project had two components namely promotion of income generating activities and microenterprises in the area and promotion of Savings and Credit habit among community members.
The project was undertaken in Kwamtoro Division where three Wards of Lalta, Kwamtoro and Ovada were involved with their 17 villages. The target total population was 33,010, whereby 9,283 are female, 8,372 are males, 5,917 are boys and 9,438 are girls. 54 groups of income generating activities were identified and targeted as beneficiaries of the project.
Initially, the participatory assessment was conducted using different research methods and tools namely: Interview, Focus Group Discussion, Documentary review and Observation by using questionnaires and checklist tools.
income poverty was prioritized as the main problem in the community caused by unreliable markets, insufficient existing business and income generating activities or microenterprises, lack of entrepreneurship skills, lack of intermediaries, inadequate capital and low per capita income whereby 93% receive less than 50,000/= Tshs per month. This resulted to poor housing (muddy grass roofed houses), inability to fulfill basic needs like education (only 4% of the population have acquired secondary school education while the about 80% possess only primary level of education).
The initiative of the project expected not only to increase savings, investments and money circulation in the economy but also raise income level, employment and business ownership among community members.
The goal of the project was to strengthen Income Generating Activities (IGAs) and initiate Savings and Credit Cooperative Society (SACCOS) so as to improve socio- economic status of the Kwamtoro, Lalta and Ovada Wards, Kondoa district, Dodoma Region, Tanzania, while the specific objectives of the project was to increase the knowledge and practices of micro-enterprise to 54 groups of income generating activities and to increase savings, shares and deposits to 30 million Tshs by the end of 2009.
The use of Interview, Focus Group Discussion, Documentary review and Observation research methods during monitoring and evaluation disclosed that, 150 from 44 groups of income generating activities participated the training in micro-enterprises. 14 groups out of 25 groups of income generating activities were supported with appropriate facilities. LAKWAO TSACCOS (2008) LTD was formed with registration number DOR 707 of 15th June, 2009. The remaining tasks will be taken care by UMAKWA CBO and SACCOS Board in collaboration with the Kondoa District Co-operative officer.
I recommend that the community at Kwamtoro needs to be more sensitized on the habit of savings and use of Microfinance Institutions instead of relying on charity for their development and sustainability and that the Government should put more effort to replicate the success story of the Kwamtoro in other District and Region in Tanzania.
TABLE OF CONTENT PAGE
SUPERVISOR’S CERTIFICATION iii
STATEMENT OF COPYRIGHT iv
DECLARATION v
DEDICATION vi
ABSTRACT vii
ACKNOWLEDGMENT viii
EXECUTIVE SUMMARY ix
LIST OF TABLES xiv
LIST OF FIGURES xv
LIST OF PHOTOGRAPHS xvi
ACRONYMS & ABBREVIATIONS xvii
CHAPTER ONE: PARTICIPATORY ASSESSMENTS 1
1.1 COMMUNITY PROFILE 1
1.1.1 Location and climatic condition 1
1.1.2 Coverage and demographic status 2
1.1.3 Administration 2
1. 1.4 Socio- economic activities 2
1.2 PARTICIPATORY ASSESSMENT 3
1.2.1 Community Assessment 4
1.2.2 Economic Assessment 15
1.2.3 Environmental Assessment 29
1.2.4 Health Assessment 35
1.3 SUMMARY. 43
CHAPTER TWO: PROBLEM IDENTIFICATION 45
2.1 PROBLEM STATEMENT 47
2.2 TARGET COMMUNITY 48
2.3 STAKEHOLDERS 49
2.4 PROJECT GOALS IN CED TERMS 50
2.5 PROJECT OBJECTIVES 52
2.6 HOST ORGANIZATION 53
2.7 SUMMARY 58
CHAPTER THREE: LITERATURE REVIEW 59
3.1THEORETICAL LITERATURE REVIEW 59
3.1.1Back ground information on small and medium Enterprises 59
Table No 13: Categories of SMEs in Tanzania 60
3.1.2 Importance of small and medium enterprises in Tanzania 61
3.1.3 Need for microfinance 63
3.1.4 Back ground information on Co-operatives 65
3.1.5 Back ground information on SACCOS 66
3.2 EMPIRICAL LITERATURE REVIEW 67
3.2.1PRIDE Tanzania Microfinance Institution Case study 68
3.2.2 NKWERWA Talanta SACCOS LTD case study 73
3.2.3 Development of SACCOS in South Africa. 75
3.2.4 Development of Rural SACCOS in Kenya 77
3.3 POLICY REVIEW 81
3.3.1The Small and Medium enterprise Development Policy (2002) 82
3.3.2 The National Micro Finance Policy (2000) 83
3.3.3The Co-operative Development Policy (2002) 85
3.3.4 Lessons learned from the literature review 88
3.4 SUMMARY 89
CHAPTER FOUR: PROJECT IMPLEMENTATION 91
4.1PRODUCTS AND OUTPUTS 91
4.2 PROJECT PLANNING 96
4.3PROJECT IMPLEMENTATION 103
4.4 SUMMARY 110
CHAPTER FIVE: PARTICIPATORY MONITORING, EVALUATION & 111
SUSTAINABILITY 111
5.2 PARTICIPATORY EVALUATION 119
5.3 PROJECT SUSTAINABILITY PLAN 128
5.3.1Sustainability 128
5.3.2 Sustainability plan and sustainable development 129
5.3.3 Strategic Planning and Management 130
5.4 SUMMARY 133
CHAPTER SIX: CONCLUSION AND RECCOMENDATIONS 134
6.1 CONCLUSION 134
6.2 RECOMMENDATIONS 140
6.3 AREAS FOR FURTHER RESEARCH 142
BIBLIOGRAPHY: 143
APPENDICES OR ANNEXES 146
APPENDIX I: Logical frame work matrix 146
APPENDIX II: Project budget spreadsheet (profoma 153
APPENDIX III: SACCOS Organization Structure 156
APPENDIX IV: Job description for SACCO’s staff 157
APPENDIX V: Coding book for SPSS– Participatory assessment 158
APPENDIX VI: List of photographs 162
APPENDIX VII: Power point Presentation 167















LIST OF TABLES

Table No 1: Income level in the Kwamtoro community.
Table No 2: Summary of community stress, the causes of stress and community Assets.
Table No 3: Respondents accept to form new SACCOS in Kwamtoro.
Table No 4: What should be done to improve financial service in Kwamtoro.
Table No 5: Summary of Economic stress, the causes of stress and Economic Assets.
Table No 6: Condition of the local Natural resources.
Table No 7: Summary of Environmental stress, causes of stress and Environmental Asset
Table No 8: How far is the closest referral or Health facility.
Table No 9: The major Health service provider in the Community.
Table No 10: Summary of Health stress, the causes of stress and Health Assets.
Table No 11: Prioritization of the problems by pair wise ranking.
Table No 12: Stakeholders analysis.
Table No 13: Categories of SMEs Tanzania.
Table No 14: PRIDE Tanzania savings & loan status.
Table NO 15: SACCO Annual Statistics in South Africa.
Table No 16: Project Implementation Plan.
Table No 17: Project Actual Implementation.
Table No 18: Monitoring Framework.
Table No 19: Performance Indicators.
Table No 20: Evaluation framework.
Table No 21: Logical framework matrix.
Table No 22: Project budget spreadsheet (profoma).
Table No 23: Job description for SACCO’s staff.
Table No 24: Coding Book for SPSS in Participatory Assessment.






LIST OF FIGURES
Figure No 1: Income level in the Kwamtoro community.
Figure No 2: Financial Institutions with easy system of getting services.
Figure No 3: Respondents accept the initiative to form new SACCOS in Kwamtoro.
Figure No 4: Population involved in informal business.
Figure No 5: What should be done to improve financial service in Kwamtoro.
Figure No 6: Are there ways of exhausting resources through unsustainable practices.
Figure No 7: How far is the closest referral or Health facility.
Figure No 8: UMAKWA CBO Organization structure.







LIST OF PHOTOGRAPHS
Photograph No 1: IGA group members in class session.
Photograph No 2: IGA group members in group discussion.
Photograph No 3: Tailoring group members receiving facilities.
Photograph No 4: Inauguration of LAKWAO TSACCOS (2008) LTD.
Photograph No 5: Passbook handing over ceremony.
Photograph No 6: Stakeholders discussion during Project Monitoring.


















ACRONYMS & ABBREVIATIONS
ADP Area Development Programme
AIDS Acquired Immunodeficiency Syndrome
CBO Community Based Organization
CED Community Economic Development
CFP Central Finance Programme
CI Confidence Interval
CNA Community Needs Assessment
CRDB Community and Rural Development Bank
DCDO District Community Development Officer
DED District Executive Director
DPLO District Planning Officer
FBO Faith Based Organization
FINCA Foundation for International Community Assistance
GDP Gross Domestic Products
HIV Human Immunodeficiency Virus
IGA Income Generating Activities
LAKWAO Lalta, Kwamtoro and Ovada SACCOS
MEC Market Enterprise Committee
MKUKUTA “Mpango wa Kuondoa Umasikini na Kukuza Uchumi Tanzania”
MKURABITA “Mpango wa Kurasmisha Biashara Tanzania”
NBC National Bank of Commerce
NGO Non Government Organization
NMB National Microfinance Bank
NSGRP National Strategy for Growth and Reduction of Poverty
OUT Open University of Tanzania
PEG Premium Enterprise Group Loans
PRIDE Promotion of Rural Initiatives and Development
Enterprises
REPOA Research on Poverty Allocation Programme
SACAS Savings and Credit Associations
SACCOS Savings and Credit Cooperative Society
SCULT Credit Union League of Tanganyika
SIDO Small Industries Development Organization
SME Small and Medium Enterprises Development
SPSS Statistical Package for Social Scientists
TPBFP Tanzania Property and Business Formalization Programme
TSACCOS Talanta Savings and Credit Co-operative Society
UMAKWA “Umoja wa Maendeleo Kwamtoro” (Kwamtoro Development
Association)
UNDP United Nations Development Programmes
UNRISD United Nations Research Institute for Social Development
VETA Vocational Education Training Authority
WCARRD World Conference on Agrarian Reform & Rural Development

CHAPTER ONE: PARTICIPATORY ASSESSMENTS
This chapter describes participatory assessment whereby findings obtained through the exercise were used to determine the project that was undertaken in the community. Participatory assessment determines from the insiders point of view; what activities are needed and can be supported, whether the activities are reasonable and practical. The chapter will examine the four areas of Community Assessment, Economic Assessment, Environmental Assessment and Health Assessment.
Moreover, the research methodology including, research design, methods, tools or instruments, sampling techniques, research questions, analysis of research findings, data validity and reliability will be described clearly in every assessment.
1.1 COMMUNITY PROFILE
1.1.1 Location and climatic condition

Kwamtoro division is one of the 8 divisions of Kondoa District that is in Dodoma Region. It is located in Southern Kondoa, lying between latitude 30o to 37o East at an altitude ranging from 1056m to 1300m above sea level. The area has 2 major seasons, wet season from December to April and dry season from May to November. An annual rainfall ranges from 500mm to 800mm per annum. Temperature ranges between 20oc and 25oc with an annual average of 22o c; Annual average humidity is 67%. The, mean annual wind velocity is 130 kms blowing from South- East West to Northwest.


1.1.2 Coverage and demographic status
The area covers 950 Square Kilometers that is about 7% of the total district area.
The total population is about 33,010 whereby 9,283 are females, 8,372 males, and 5,917 are boys and 9,438 girls with the average growth rate of 2.9% per annum, as per 2002 census report. Dominant tribes in the area are Sandawe, Gogo, Nyaturu and Barbeig who are basically pastoralists. More than 50% are Christians, 30% Muslims and about 20% Animists.
1.1.3 Administration
Kwamtoro Division is statutorily divided into five (5) Wards, namely Lalta, Kwamtoro and Ovada; others are Sanzawa and Mpendo.
Nevertheless, UMAKWA CBO covers three wards, these being Lalta, Kwamtoro and Ovada. It encompasses a total of 17 villages.
1. 1.4 Socio- economic activities
In comparison with other parts of the United Republic of Tanzania, this area is estimated to have lower per-capita income of less than 100,000/= Tshs as per Kondoa District Profile. Arable farming, livestock husbandry and beekeeping are the major economic activities. Mixed farming is being practiced in this area i.e. crop-livestock integration and 30% of the total population is agro-pastoralists and the rest are peasants.
Crops grown include: millet, sorghum, bulrush millet, groundnuts, cassava, sesame, sweet potatoes, sunflower, pigeon peas and cowpeas.

1.2 PARTICIPATORY ASSESSMENT
On 20th October, 2007 a meeting was conveyed whereby Board members of the host UMAKWA Community Based Organization, CBO representative members, staff, other NGOs, FBOs, community influential people, Government leaders at village, Ward, Division and District level met to discuss development issues within the UMAKWA CBO operation area. This followed the acceptance of UMAKWA CBO to host the project so as to work together as the best approach to solve some of the problems in the community. More than fifty (50) people attended the meeting including the representatives and leaders of the Income Generating Activities and Small Microenterprises. The gathering was not only helpful to know each other but also many development challenges were highlighted together with Participatory approach to find the solution. Finally the meeting agreed to conduct participatory assessment including Community Assessment, Economic Assessment, Health Assessment and Environmental Assessment so as to identify one problem to deal with based on community priority, researcher’s aspiration, education background and experience.
The aim and objectives of the Participatory assessment including Community Assessment, Economic Assessment, Health Assessment and Environment Assessment were as outlined below;
1. To understand the Kwamtoro Community and the operation of UMAKWA CBO.
2. To learn more about NGOs and other stake holders working in the community.
3. To identify problem and stresses, the causes of stresses, and community assets and other best practices.
4. To collect information from the community in a participatory and joint manner.
5. To analyze the information and identify the problems or needs, capacities and strengths available in the community, and ultimately prioritize the community needs.
6. Use findings to develop and formulate a statement of a problem.
7. Develop project or programme proposal as an attempt to solve the jointly identified problem.
1.2.1 Community Assessment
(a) Importance of Community Assessment
Community assessment was conducted to identify community stress, the source of stress and community assets.
(b) Research Methodology
(i) Research objective
The main objective was to identify what are not working well in the community i.e. community stresses and what are working well in the community i.e. community assets. The exercise intended to point out the causes of community stresses that were recognized as priority in the community and the local assets that may help or solve the existing stresses or problems.
(ii) Research questions
Despite the common question of knowing gender, age, marital status, education level, occupation and income level, there were other main questions. The main research questions in Community Assessment included the following:
Is volunteerism increasing? Is community decision making open minded processes?
Are all kinds of people involved? What is the level of education of local leaders? Is community dealing adequately with poverty? What are the causes of poverty? What opportunity available in the community can be used to reduce poverty?
Are there essential human needs remain unfulfilled? Is health care accessible by all residents? What is the level of the cost of living compared among region’s communities? How do costs compared to districts, regions, and national figures? What effects do the various local cultural traditions have on the community’s quality life? Are education facilities sufficient? Are artistic and cultural activities sufficient in the community?
Are there any pending plans or proposals damage the community?
(iii) Research design
The research design focused on what will be done in the community assessment aiming at collecting quantitative and qualitative data regarding the volunteerism spirit in the community, decision making, education, and health, community participation in development activities, gender involvement and participation in community matters. The community assessment was designed to take place in the sampled villages, households and socio-economic groups existing within the 17 villages. The aim was to utilize the collected, analyzed and interpreted qualitative and quantitative data to get the main problem, and eventually prioritize the problem to be solved in a participatory manner. The data from household’s survey were to be analyzed by using Statistical Package for Social Scientists (SPSS) soft ware.


(iv) Research methods.
The research methods used during the community assessment includes: Documentary review, transect walk, Survey and Participatory observation. Documentary reviews were used to get other secondary data and information such as demographic information. Information and data were collected from government reports at village, Ward, Division and District level. Other documents reviewed were from previous report of previous base line and evaluation reports from Non Governmental Organizations working in the area.
Participatory Observation and transect walk methods enabled to observe physical things such as infrastructures, natural resources and other socio-economic activities going on and was recorded using prepared checklist tool. All these methods enabled the researcher and the CBO officials to record the information in the sites, meetings, gatherings and discussion and identify what is not working well, which are community stress and the causes of stress, what are the community assets that can be used to alleviate the existing stress.
(v)Research tools used
The research tools used to collect data and information was interviews by Focus Group Discussion, checklist and questionnaires. Focus Group Discussion was conducted to three social groups with 7 to 10 participants whereby interview guide as a tool was prepared in advance before the day of discussion. In the Household Survey, Questionnaires as tools were used for 100 households sampled randomly from the 10 villages.
Other tools used were key informant interview whereby 20 individuals were selected for their knowledge. In-depth and semi structured interviews were used to interview the selected individuals. Interview guides listing topics were used.
However, questions were framed during the interview using probing techniques.
In the Community interview, public meetings were conducted where by questions from the prepared interview guide were asked by the team of interviewers and answered by the participants.
(vi) Sampling and sample size
The total population of ten villages where the study was done is approximately nineteen thousand four hundred and seventeen (19,417) with total number of household ranging to five thousand and forty seven (5,047). Due to limited budget for the study, we only sampled (100) one hundred households within ten villages out of seventeen existing villages in the UMAKWA operation area.
Small groups of common interest like income generating activities groups, cultural groups, and business men or women were also involved. Another group of 20 people comprising NGOs like World Vision, Faith Based Organizations like mosques and churches were represented by their respective leaders, UMAKWA Board members, technical staff such as Rural Extension Officers, Ward Education Officers, Medical Doctors, Nurses and Teachers were involved and consulted on technical issues and information. Non random sampling was used to those villages where income generating activities and small enterprises are predominant out of the 10 villages. Random sampling used to pick households within the sampled villages. The villages involved in the exercise were Kwamtoro, Msera, Ilasee, Magambua, Ovada, Mengu, Baaba, Jogolo, Takwa, and Kinyamsindo. The group size ranged from 7 to 10 participants whereby interview guide was prepared in advance before the day of discussion.
(vii) Findings, Data analysis and presentation
(a)Qualitative data
Focus Group Discussion was used to different socio-economic groups comprising all gender, different age and ethnic groups. The questions were pre-determined, pre-planned and reframed on the basis of the pre-determined or pre-studied situation. The social and psychological reactions were tested. A recorder had a task of recording all matters raised out of that discussion. After the discussion, facilitator and recorder discussed together and summarized the results. Through this method, the collected and selected data were summarized and analyzed for interpretation as summarized here under.
The communities in the three Wards of Ovada, Lalta, and Kwamtoro have high awareness on development issues due to the presence of World Vision Tanzania in the area for almost 16 years. However, it was noted that the community voluntarism is declining as time goes compared to when World Vision entered in the area in 1992. The reasons behind the voluntarism decline are poor supervision of the planned activities, egoism, lack of social capital and misuse or misinterpretation of political freedom and democracy.
The community decision-making in the area is an open-minded process as the whole community involved in planning and other community issues. The area is dominated by the tribes of Sandawe, Gogo, Nyaturu, and Barbeig, and all are involved in community activities. All genders, age groups, ethnic groups, traditional believers (animists) are involved to reach the community decisions.
New ideas and alternative points are encouraged and accepted. However, women and children participation in decision making is still low compared to men. There are gender imbalances in leadership position, for example there is no women leader at Division and Ward level, while there are only three women leaders at village level among the 17 villages.
Most of the Wards, Village, and Sub-village leaders have not received enough training to enable them to perform their duties well. Village Governments are not competent enough to manage their affairs. Village leaders, Extension workers and Ward Education Officers have no transport and other walking facilities to enable them to reach the target group and perform their respective duties effectively.
The community seems to be a good place to raise children as good tradition values are maintained and bad traditional values are removed and discouraged such as female genital mutilation. However, there are some basic needs for children remain unfulfilled or inadequate such as Education, health care and balanced diet.
The community is not dealing adequately with poverty due to lack of capital, human capacity, social capital as a result other basic needs termed as luxury such as balanced diet, education, and other human rights especially women and children rights. Most of the community members are not accessing health care due to low income. The cost of living compared among community members differs, but majority of them are low income earners and there cost of living is very high compared to District, Region and National figures due to lack of small scale industries. Most of industrial and semi finished goods come from the District and Region of which includes transport costs from manufacturing place or plant to the community.
The community per capita income is 100,000/= Tshs per annum compared to 135,000/= Tshs per annum of the District figure, while the average walking distance to access basic needs and services is 2 to 10 kms. The basic needs include water, fuel, markets, shops, Dispensary, Rural Health Clinics, Primary Schools, Secondary Schools, Traditional Birth Attendants, milling machines and Co-operatives.
Most labour is carried out by women in the community. This means women in the community have to walk long distances to fetch water, collect firewood, take children to health centers, attend farm activities and get to markets, milling machines, shops and other essential service centers. There are no financial Institutions in the area, and the nearest are 85 km long in Kondoa town. The housing in the community is not adequate. More than 70% of the population live in the muddy grass roofed houses or not improved houses.
There are some community assets and traditional values declined such as admiration that is relation between children and adults. Formerly, the children were treated as children of the community. Any parent could warn or advise any child irrespective of child- parent relationship, but today it is not acceptable to punish children who are not their own sons or daughters. This decline of traditional values resulted into decline of respect among community members, absence of social capital and ultimately increases of labor outflows as youth are moving to town for job search to become house girls or boys and barmaids. Some cultural differences resulting in conflict for example, Barbeig tribes are animal keepers while Sandawe tribes are hunters and farmers traditionally. Therefore, sometimes animals feed on farmers crops hence conflict arises between animal keepers and farmers. Education facilities in the community are not sufficient. Some villages have no primary schools e.g. Kisande Village. Even those with schools, the classrooms, desks and text books are not sufficient and therefore not helpful to business and labour in the community. However, the artistic and cultural activities in the community are sufficient. Traditional dances and entertainments are still respected and highly valued hence entertain the community, unite, and bring self-esteem, personality and community identity.
(b)Quantitative data
A household survey technique was applied, whereby ten villages out of seventeen villages are within Lalta, Kwamtoro and Ovada Wards were purposely sampled with criterion established. The criterion established was based on the accessibility of the village and making sure that each ward is involved in the exercise. This purposive selection gives chance for those sampled villages to represent and present the real picture of the whole community in seventeen villages. Within the villages, the sub-villages and the households for survey were randomly sampled. Structured questionnaires were used to collect data from those sampled households. The interview group was supervised by a facilitator who had a task of leading the whole exercise. There was one recorder to document all answers from respondents.
In the households survey, the composition of respondents was 65 males and 35 females, where by 75% of the respondents were married, 8% not married, 16% widows and 2% divorced.
The result from the assessment shows that, the income level in the Kwamtoro community is very low where by 93% of the community members receive 10,000 to 50,000/= Tshs per month. About 90% of the people are self-employed while only 9% are employed in government and private sector.
From the research, the causes of poverty are lack of capital by 72%, illiteracy by 23%, poor governance by 3% and climatic condition accounted 2%. The cost of living in Kwamtoro community is moderate by 47%, while housing in the community is not adequate by 79%, while education facilities are not adequate

Table No1: Income level in the Kwamtoro community

Frequency Percent Valid Percent Cumulative Percent
Valid 10,000-50,000 93 93.0 93.0 93.0
50,001-100,000 3 3.0 3.0 96.0
100,001- 150,000 3 3.0 3.0 99.0
above 200,000 1 1.0 1.0 100.0
Total 100 100.0 100.0

Source: Field Survey, December 2007
Source: Field Survey, December 2007.

Regarding business, the survey showed that it is very difficult to get loan in the community (75%) while private investors shun away to invest in the area by 55% although the current community expansion seems to help business by 93%. Business practitioners have no skills to success and are not able to get capital for business as affirmed by74% and 88% of the respondents respectively.
(viii)Validity and reliability
The questionnaires were tested in a pilot village called Ovada that is one among the sampled villages. 2 Households and one Focus group were used for testing. The aim was to test our tools so as to get practical view of the tools before the actual exercise. This was done in both household survey and interview by Focus Group Discussion. The process was very participatory with other stakeholders, whereby the tools were amended and adjusted accordingly. All respondents were assured about confidentiality of the information they offered and that were for research and academic purpose, hence this motivated them to feel free to speak their truly inner heart feelings to enrich the survey.
Data collectors encompassed natives who had limited education but could speak native (vernacular) language and one skilled enumerator who assured consistent and accuracy of question asked vis-à-vis response from interviewee. This enhanced validity and reliability of data collected because the native could probe more about the matter even using vernacular language so as to get right answers.
Table No 2: Summary of Community stress, causes of stress and Assets
S/N Community stress Sources of stress Community Assets
1 Decrease of voluntarism. Leader’s Inefficiency and low level of education Presence of retired and experienced people.
2 Gender imbalance in position and decision making. Low level of education. Presence of other NGOs like World Vision and RFSP.
3 Poor housing. Ignorance Presence of Natural resources like burnt bricks.
4 High labour out flow for job search in town. Little business & economic activities. Presence of labour force and opportunity for investments
5 Poor education facilities and other basic needs. Ignorance. Availability of education buildings.
Source: Field Survey, December 2007.
1.2.2 Economic Assessment
(a) Importance of Economic Assessment
Economic Assessment was conducted to identify economic stress, the source of stress and community assets.
(b) Research Methodology
(i)Research objective
The main objectives of undergoing economic assessment were to find out what are doing well in the local economy and what needs improvements. It involved looking on what business and economic activities being undertaken and their contribution to the local economy, the existence of informal sector, private investors, public investments in terms of business and infrastructures, financial facilities and services and their impact in employment and income in the community. Economic assessment will ultimately lead to the summarized economic stresses, the causes of stresses, and economic local assets that may help to solve the priority economic stresses.


(ii) Research questions
Despite the common question of knowing gender, age, marital status, education level, occupation and income level, there were other main questions. The main research questions included the following:
What kind of businesses and economic activities exist in the community? Which of them are doing well or not doing well? Does local economy success make housing more or less affordable in certain areas? Is it difficult to get a business or home loan in this area? Do private investors tend to invest or shun the community? Are current pattern of community expansion helping or hurting the businesses? Are certain jobs being paid less than living wages? Does business provide adequate employee benefits? Given the current trends, will employment prospects improve or diminish for the next generation? Are employed people receiving adequate job training? How good is to match job skills and job opportunities? Do business people in community feel they are operating in a supportive business environment? Do business people buy goods locally or import?
Does much money leak from the economy? Does business have the skill to succeed? Are all business people able to get capital for businesses? Which financial Institution available in the area that you know? Which one among them is easy to get financial services and why do you think so? What is the size of informal business in the community? What percentage of the active population is involved in informal business? Are public services and infrastructure adequate? Are they attracting new growth that will require the expansion of existing services and facilities, or creation of new facilities? If so who will pay the costs? Do you see the importance of forming and starting SACCOS in your area? What should be done to improve financial services in your area?
(iii)Research design
A research design in economic assessment aimed to make an overview on economic aspects. It was designed to collect both quantitative and qualitative data related to economic activities undertaken and their status, access to loan and business opportunities, access to job and employment with sufficient package. The research design also looked at the availability of financial institutions and the size of informal sector in the community and the beneficiaries of the informal sector. The research also looked on the availability of public facilities or services and infrastructures.
(iv)Research methods
In Economic assessment, participatory methods were applied to collect data and information. The methods used were Interview by Focus Group Discussion, Documentary review, Survey and Participatory observation. Interview by Focus Group Discussion was used whereby focused or controlled interview was used to test some particular practices. The questions are pre-determined, pre-planned and reframed on the basis of the pre-determined or pre-studied situation. The social and psychological reactions were tested. The method was used because it enabled to study the events that are not open to observation, also to study abstract factors like attitudes, back emotion reactions. It enabled to study the phenomena in its historical background. These were done by asking probing questions as well as conversation.
(v)Research tools used.
Focus Group Discussion tool used to collect information from 7 groups of people with common interest e.g. IGAs groups, cultural groups, and business men or women were used. Through this method, the selected data using other techniques were cross-checked. The group size ranged from 7 to 10 participants. Interview guides as tools were prepared in advance before the day of discussion.
The selected participants were informed in advance on the date, time and venue for discussion. Information on the economic status about financial institutions, business opportunities, markets, money circulation, entrepreneurship skills, employment and informal sector were collected.
In the Household Survey, questionnaires as tools were used to collect quantitative data and information from 100 households sampled randomly from the 10 villages. Participatory Observation and transect walk method enabled to observe physical things such as infrastructures, natural resources and other socio-economic activities going on and was recorded using prepared checklist tool.
Documentary reviews were also used to get other secondary data and information such as demographic information. The tools used in this research were checklist and questionnaires. Information and data were collected from government reports at village, Ward, Division and District level. Other documents reviewed were from previous report of previous base line and evaluation reports from Non Governmental Organizations working in the area.

(vi) Sampling and sample size
The sampling and sample size for Economic Assessment was the same as the one used in the previous Community Assessment. The changes were the sample of 7 income generating activity groups sampled for Focus Group Discussion.
(vii) Findings, Data analysis and presentation.
(a)Qualitative data
The use of interview by Focus Group Discussion methods to 7 socio-economic groups and one group comprising representatives from NGOs such as World Vision, Faith Based Organizations like mosques and churches, UMAKWA Board members, Technical staff including Rural Extension Officers, Division Executive officer, influential people in the community, Community development workers and Co-operative officers revealed the findings as outlined below.
Kwamtoro community is one among the community in Tanzania with little Business and Economic activities. Even these little existing business are not doing well these include; transportation, petty business like women cafes, milling machines etc. these businesses and economic activities are not doing well due to lack of reliable markets, low per capita income among the community members, low savings, lack of source of capital, lack of entrepreneurship skill, lack of financial institution and services until 85km long in Kondoa or 165 km in Dodoma, hence low money circulation in the local economy. Moreover, transportation sector is hurting more than other sector due to poor infrastructures and poor economic growth. Although it is usually difficult to get a business or home loan in the area, in some locality like Msera Village, local economy success make housing more affordable to the community members due to small scale irrigation activities and vegetable production.
Private investors tend to shun the community due to lack of markets, low economic growth and poor infrastructures. The community expansion through influx of Barbeig, Nyaturu and Gogo from the neighbor Districts helps business, although in some places cause environmental degradation.
There are certain types of jobs paid less than living wage. These include; labor employed in domestic works as house girls or boys, labor employed in agriculture and labor employed to look after cattle. Business and other economic activities do not provide adequate benefits to employees. However there are prospects of employments to improve for the next generation due to expansion of agriculture sector, improvement of education and opening of more Secondary Schools and other civil services in the community.
The challenge of today is inadequate job training being received by employees and the job opportunities are not matching with the job skills in the community. Some of the jobs such as computer operator, Health or medical staff and Secondary Teachers are very hard to fill, whereby the community residents can not fill them. Business people feel to operate in a hard business environment due to lack of reliable markets, Poor infrastructures and lack of reliable source of capital or financial institutions. There is only one weak Savings and Credit Co-operative society stationed its head quarter at Kwamtoro Village. The SACCOS failed to mobilize more members to join it due to long distance from some of the villages to the SACCOS office, poor knowledge on saving and entrepreneurship.
Industrial goods and other semi-processed items are bought from outside the community because there are no small scale industries. Agricultural products and other animal products are purchased from within the community, though are not produced at optimum point. Much money and other resources leak from the local economy because the local economy promote more out flows than inflows, that is industrial goods and other services like transportation, banking etc take a large amount of resources received through selling of agriculture and animal products. However, economic development tends to emphasize business retention and expansion.
Agricultural sector is the most beneficial in the community as it employ almost 95% of the population and is the only main reliable source of income in the community though there is about 25% disguised unemployment in the local economy. There are very few people employed in other business apart from agriculture and animal husbandry, despite the fact that they have no appropriate business skills necessary to succeed.
The size of informal business is very small which benefits less than 25% of the population. The public service and infrastructure are not adequate to promote informal business, for example there is only one rural health centre, one Police station, no fire station, only three Secondary schools, no tarmac roads and no passable feeder roads to join the villages scattered over the area of 950 sq kms.
Despite the inadequate public services in the area, the community attracting new growth that will require expansion of existing services or facilities and the creation of new facilities and they are ready to pay or contribute for the services.
(b)Quantitative data
A household survey technique was applied, whereby ten villages out of seventeen villages are within Lalta, Kwamtoro and Ovada Wards were purposely sampled with criterion established. The criteria established based on the accessibility of the village and making sure that each ward is involved in the exercise. This purpose selection gives chance for those sampled villages to represent and present the real picture of the whole community in seventeen villages. Within the villages, the sub-villages and the households for survey were randomly sampled. Structured questionnaires were used to collect data from those sampled households. The interview group was supervised by a facilitator who had a task of leading the whole exercise. There was one recorder to document all answers from respondents.
In the households survey, the composition of respondents was 65 males and 35 females, where by 75% of the respondents were married, 8% not married, 16% widows and 2% divorced.
The result from the assessment shows that, the only financial institutions known in the community, is Savings and Credit Co-operative Societies. This affirmed by 98% of the respondents. In addition, 97% of the respondents acknowledged the uncomplicated ways of getting financial services from Savings and Credit Co-operative Societies as depicted bellow on figure No 2.

Source: Field Survey, December 2007
The above figure shows 97% of the respondents acknowledged that, Savings and Credit Co-operative Societies have simple ways and systems of getting loans.

Moreover, 81% of the respondents acknowledged the importance of SACCOS in the area, while 87% of the respondents supported the initiative of forming new SACCOS as shown in figure No 3 bellow.


Table No 3: Respondents accept to form new SACCOS in the area

Frequency Percent Valid Percent Cumulative Percent
Valid yes 87 87.0 87.0 87.0
no 13 13.0 13.0 100.0
Total 100 100.0 100.0

Source: Field Survey, December 2007

Table No 3 above shows that 87% of the respondent supported the initiative of forming new SACCOS while 13% of them wanted to strengthen the existing SACCOS in the area which is at Kwamtoro Village.


Source: Field Survey, December 2007.
The above figure No 3 depicts 87% of the respondents who supported the initiative of forming new SACCOS in the community while 13% of them wanted to strengthen the existing Kwamtoro SACCOS.


Source: Field Survey, December 2007.

The research also revealed that informal sector in the community is very small benefiting not more than 25%. This confirmed by 85% of the respondents as shown by figure No 4 above.

Table No 4: What should be done to improve financial service in Kwamtoro

Frequency Percent Valid Percent Cumulative Percent
Valid Start &form new SACCOS 81 81.0 81.0 81.0
Strengthen the Kwamtoro SACCOS 19 19.0 19.0 100.0
Total 100 100.0 100.0

Source: Field Survey, December 2007
Source: Field Survey, December 2007.
Both table No 4 and figure No 5 shows that 81% of the respondents suggested forming new SACCOS as the best way to improve financial services in the community.
(viii)Validity and reliability
The validity and reliability criteria in Economic Assessment were the same as those appearing in the previous Community Assessment.
(x) Economic stress, causes of stress and Assets
Table No 5: Summary of Economic stress, causes of stress and Assets
S/N Economic stress Sources of stress Economic Assets
1 Low per capita income Lack of capita and reliable markets, sluggishness. Presence of Natural resources i.e. land, water, stones, forests, game reserves.
2 Lack of entrepreneurship skills Ignorance, Presence of District Council technical people in various disciplines.
3 Lack of financial institutions and service. Low savings Availability of cash crops and livestock and its products.
4 High level of unemployment. Inadequate practices of informal sector. Disguised unemployment.

Source: Field Survey, December 2007.
1.2.3 Environmental Assessment
(a)The Importance of Environmental Assessment
Environmental Assessment was conducted to identify environmental stress, the source of stress and community assets.
(b) Research Methodology
(i)Research objective
The main objectives of undergoing environmental assessment were to find out what are the environmental stresses i.e. not doing well in the community and the causes of environmental stresses that recognized as priority. The assessment also intended to identify the local assets that can help to solve or alleviate environmental stresses in the community.
(ii)Research questions
Despite the common question of knowing gender, age, marital status, education level, occupation and income level, there were other main questions. The main research questions included the following:
What are conditions of the local natural resources (wood, water?) What are conditions of local ecosystem services being used up faster than the being replenished? Are there any problem sources of pollution? Is waste being handled responsibly? Are there ways which resources been exhausted through unsustainable practice? What should be done to avoid environmental degradation economic activities such as charcoal burning, and overgrazing? Given the current trend are your children likely to find the community’s natural resources and ecosystem?
(iii)Research design
The assessment designed to collect the quantitative and qualitative data on the environmental aspects. The main focus here was to understand the real environmental situation in the community, utilization of natural resources (wood, water, soil and ecosystem), pollution and ways or recreational activities in the community. The research designed to see if there are any natural resources being exhausted through unsustainable practices.
(iv)Research methods
The research methods applied in Environmental Assessment to collect information were interview by Focus Group Discussion, Documentary review, Household survey and Transect walk. The interview was carried out during the Focus Group Discussion using prepared questionnaires. Other groups like livestock keepers, farmers, beekeepers and charcoal business were interviewed through Focus Group Discussion. Influential peoples, socio-economic groups and government leaders were interviewed on their involvement in environmental aspects such as soil fertility, pollution, tree falling and fire outbreaks.
Documentary reviews were also used to get other secondary data and information such as demographic information.


(v) Research tools used
The tool used in Documentary review was checklist while in Households Survey is questionnaires. Information and data were collected from government reports at village, Ward, Division, District level and Game reserve offices. Other documents reviewed were from previous report of previous base line and evaluation reports from Non Governmental Organizations working in the area.
In the Households Survey, questionnaires as tools were used to collect quantitative data and information from 100 households sampled randomly from the 10 villages
Transect walk was used to see the waste disposal at Kwamtoro and in the house hold survey, the water sources at Ovada. The availability and use of toilets were also investigated in the house hold survey. The answers and observations were recorded and summarize for further interpretation and analysis.
(vi) Sampling and sample size
The sampling and sample size for Environmental Assessment was the same as the one used in the previous Community Assessment. The changes were the sample of
4 groups working closer or in touch with environmental related activities like bee keeping groups, farmers, livestock keepers and game reserve officers was interviewed. Non random sampling was used to those villages where groups working closer or in touch with environmental related activities like bee keeping groups which are predominant out of the 10 villages. Random sampling used to pick households within the sampled villages for Households Survey. The villages involved in the exercise were Kwamtoro, Msera, Ilasee, Magambua, Ovada, Ndoroboni, Baaba, Jogolo, Takwa, and Kinyamsindo.
(vii) Findings, Data analysis and presentation
Through the use of interview by Focus Group Discussion, Household Survey and Transect walk methods; the collected observation and data were summarized and analyzed for interpretation as here under.
(a)Qualitative data
There is an indiscriminate cutting down of trees in various places of the area due to lack of alternative sources of energy. Falling of trees is done for firewood and charcoal burning that is used in urban area particularly Kondoa, Singida and Dodoma towns.
The continued reduced forest cover which has being caused by reduced size of forest area, caused by uncontrolled livestock grazing, shifting cultivation, high frequency of wild fires caused by honey collector, hunters, poachers, shifting cultivation, pastoralist for the aim of getting fresh pasture and eradication of ticks and tsetse fly. These are hampering natural regeneration resulting in eventual deforestation.
The continued rate of farm expansion, which is caused by population increase and low production per unit, leads to the increased demand of more land for farming, hence increases the depletion of trees and accelerated deforestation with intensive tree cutting. These unsustainable uses of natural resources lead to depletion of ecosystems and affect other resources such as water sources of Mala and Totose at Ovada village. Hard woods as “Mininga” and “Mipingo” for furniture are being used faster than they are replenished. Given the current trend, the community children are likely to find community’s natural resources and ecosystem services in a very bad condition. There are no recreational places or activities essential to business in the community except the public holidays.
(b) Quantitative data
The data collected from 100 sampled households during the survey indicated the bad condition of the local natural resources as affirmed by 56% of the respondents. In addition, 63% of the respondents supported the existence of ways that exhausts resources through unsustainable practices such as falling of trees done for firewood and charcoal burning which are used in urban area particularly Kondoa, Singida and Dodoma towns.
Table No 6: Condition of the local Natural resources

Frequency Percent Valid Percent Cumulative Percent
Valid good 44 44.0 44.0 44.0
bad 56 56.0 56.0 100.0
Total 100 100.0 100.0


Source: Field Survey, December 2007.
Table No 6 above explains the bad situation of Kwamtoro natural resources as 56% of the respondents confirmed the bad situation while 44% supported good situation of natural resources.
Source: Field Survey, December 2007.

Figure No 6 above shows 64% of the respondents revealed the existence of ways exhausting resources through unsustainable practices, while 36% of them didn’t support the existence of ways exhausting resources through unsustainable practices.
(viii)Validity and reliability
The validity and reliability criteria in Environmental Assessment were the same as those appearing in the previous Community Assessment.
(x) Environmental stress, causes of stress and Assets
Table No 7: Summary of Environmental stress, causes of stress and Assets
S/N Environmental stress Sources of stress Environmental Assets
1 Deforestation. Fire wood & charcoal business. Presence of Natural resource like forest and game reserves.
2 Poor soil fertility. Soil erosion, shifting cultivation. High frequency of wild fires Plenty of land
3 Overgrazing. Uncontrolled livestock grazing, Plenty of land
Source: Field Survey, December 2007.
1.2.4 Health Assessment
(a) The Importance of Health Assessment
Health Assessment was conducted to identify environmental stress, the source of stress and community assets.
(b) Research methodology
(i)Research objective
The main objectives of undergoing health assessment were to find out what are doing well in the community and what needs improvements. It involved also looking on the causes of health stresses recognized as priority. Things which are doing well in the community were to be identified together with the reasons for doing well. The local assets can help or serve the priority and sources should be identified and highlighted.
(ii)Research questions
Despite the common question of knowing gender, age, marital status, education level, occupation and income level, there were other main questions. The main research questions included the following:
What kinds of health facilities available in your community? How far is the closest referring or major health facility from community? Is transportation ready available and affordable for community members to reach the facility? Is there adequate number of nurses to the patients? Is there adequate number of doctors to serve the patients? Do members of the community pays for health services? Is it a cost-sharing system? Who is major health service provider in your community? Have recent surge in population in the community resulted in increase and improved health facilities or health services?
Are nurses and medical doctors in those facilities well trained? Is medicine provided for free of charge? According to your income level do you think can you afford to pay health services? What should be done to improve your income so as to afford to pay for health services? Are there any pending plans or proposals to increase health facilities or enhance health?
(iii)Research design
Health assessment was designed to collect both qualitative and quantitative data on the health prevailing situation in the Kwamtoro community. Health assessment included the health services available in the community, common diseases, system of providing health services, availability of health staff (doctors and nurses), and referral facilities. The community assessment was designed to take place in the sampled villages, households and socio-economic groups existing within the 17 villages. The aim was to utilize the collected, analyzed and interpreted qualitative and quantitative data to get the main problem, and eventually prioritize the problem to be solved in a participatory manner. The data from household’s survey were to be analyzed by using Statistical Package for Social Scientists (SPSS) soft ware.
(iv) Research methods
Research methods used to collect information were Documentary review, interview by Focus Group Discussion and Participatory Observation.
Documentary reviews were used to get other secondary data and information such as demographic information. Participatory Observation and transect walk method enabled to observe physical things such as health facilities like furniture, staff quarters, and health buildings. Prepared checklist tool used to records the information for further analysis and interpretation. Documentary reviews were also used to get other secondary data and information such as demographic information.
(v) Research tools used
The tools used in this research were checklist and questionnaires. Information and data were collected from government reports at village, Ward, Division, District level and Health facilities. Other documents reviewed were from previous report of previous base line and evaluation reports from Non Governmental Organizations working in the area.
Focus group discussion was used to get general information on health issues within the community. Checklist was used to find issues on infectious diseases, cholera, typhoid, malaria, pneumonia, skin diseases, anemia, HIV and AIDS. Community awareness on prevention and cure of various diseases were also researched using households survey questionnaires.
Interview guide was prepared and used to collect the information during the interview with health staff such as medical doctors, clinical officers, nurses, Malaria monitors, Village Health Workers (VHWs), Traditional Birth Attendants (TBAs) and Women of Child Bearing Age (WCBA) to get the information regarding medical services and challenge takes place in the community.
(vi)Sampling and sample size
The sampling and sample size for Health Assessment was the same as the one used in the previous Community Assessment. The changes were the sample of
Technical people like clinical officers, medical doctors and nurses were involved in the exercise to support in technical issues regarding medical information and health services. Other groups of Health Community Based Service providers such as Malaria Monitors, Village Health Workers (VHWs), Traditional Birth Attendants (TBAs) and Women of Child Bearing Age (WCBA) were prepared for discussion during Focus group discussion.



(vii) Findings, Data analysis and Presentation
(a) Qualitative data
After undergoing Health assessment using different methods and tools the following findings were revealed as here under.
In the case of health facilities, the Kwamtoro community has one Health centre at Kwamtoro and 4 Dispensaries at Magambua, Ovada, Kinyamsindo and Lahoda Villages. In addition, there are 7 Health posts at Ndoroboni, Msera, Ilasee, Mengu, Takwa, Baaba, and Dinae Villages. All these health facilities are facing inadequate Health staff and other working facilities including shortage of medical supplies, medical equipments and furniture. There are no children Wards at Kwamtoro Health centre. Children are mixed up with adult in case of admission. The health services provided in these facilities include also HIV/AIDS counseling and testing, malaria and prenatal are at low quality.
The nearest referral Health centre or Hospital is about 85 kms that is from Kwamtoro to Kondoa or to Makiungu Hospital in Singida Region. The transport to reach the nearest referral facilities is not readily available due to poor infrastructure. The Nurse and patient ratio at Health facilities is 1: 100 the same as medical doctor and patient ratio.
More than 40% of the population has no latrine. High occurrences of Malaria, Diarrhea Pneumonia, Skin diseases, Anemia and high infection of HIV/AIDS
The Community members’ pays for health services and sometimes share costs as the Government and other service providers subsidize the cost. The major service providers in the community are the Government and the Church where by the Government contributes 90% and 3% contributed by Churches.
The current increases in population resulted in an increase and improve of health facilities and service as their contribution through payment in exchange of service received in term of treatments, since the services are not offered free of charge. Also they participate in day today activities and planning session in the community.
(b) Quantitative data
The data and information collected from Household Survey shows that, More than 40% of the population has no latrine. There are high occurrences of Malaria, Diarrhea, Pneumonia, Skin diseases, Anemia and high infection of HIV/AIDS.


Table No 8: How far is the closest referral or major health facility?

Frequency Percent Valid Percent Cumulative Percent
Valid Very close below 5km 15 15.0 15.0 15.0
Moderate 6-24km 46 46.0 46.0 61.0
Very far more than 25km. 39 39.0 39.0 100.0
Total 100 100.0 100.0

Source: Field Survey, December 2007.
Table no 8 above depicts the distance from the community to the referral or major health facility, whereby the closest facility is about 6 kms and above.
Source: Field Survey, December 2007.
Figure No 7 above depicts the distance from the community to the referral or major health facility, whereby the closest facility is about 6 kms and above.

The Community members’ pays for health services and sometimes share costs as the Government and other service providers subsidize the cost. The major service providers in the community are the Government and the church whereby the Government contributes 90%, while 7% are privately owned and 3% contributed by Churches as shown on table No 9 bellow.

The current increases in population resulted in an increase and improve of Health facilities and service as their contribution through payment in exchange of service.
Table No 9: The major Health service provider in the community

Frequency Percent Valid Percent Cumulative Percent
Valid Government. 90 90.0 90.0 90.0
Church. 3 3.0 3.0 93.0
Private. 7 7.0 7.0 100.0
Total 100 100.0 100.0

Source: Field Survey, December 2007.
Table No 9 shows the Health service provision in the community is dominated by the Government by 90% while private and church contribute by 7% and 3% respectively.
(viii) Validity and reliability
The validity and reliability criteria in Health Assessment were the same as those appearing in the previous Community Assessment.






(x) Health stress, causes of stress and Health Assets.
Table No 10: Summary of Health stress, causes of stress and Assets
S/N Health stress Sources of stress Health assets
1 Poor health facility & service Shortage of medical supplies, equipment and personnel. Availability of Health buildings every Ward and Division.
2 High occurrences of malaria and HIV/AIDS infection. Ignorance and poverty. Presence of NGO’s like World Vision.
Source: Field Survey, December 2007.
1.3 SUMMARY.
In collaboration with UMAKWA CBO, the Kwamtoro community, the Government at village, Ward, Division and District level together with other stake holders, we managed to conduct Participatory Assessment in the four areas namely Community Assessment, Economic Assessment, Environmental Assessment and Health Assessment. Different methods and tools such as interviews by Focus Group Discussion, Documentary review, Participatory Observation and Household Survey were applied. Many of findings, challenges and best practices were identified jointly from the field work. Among of the findings were; decrease of voluntarism among community members, gender imbalance in position and decision making, poor housing, high labour out flow for job search in town, poor education facilities and other basic needs, low per capita income, lack of entrepreneurship skills among community members and IGA’s, lack of financial institutions and services, lack of capital for business and investment, high level of unemployment, low operation of informal sector, high level of deforestation, poor soil fertility and poor health facility and services.
However, there were assets and best practices within the community which includes, Presence of other NGOs, and FBOs like World vision, Africare, RFSP, SEDA, Churches, sufficient Artistic and cultural activities in the community.
Moreover, traditional dances and entertainments are still respected and highly valued hence entertain the community, unite, and bring self-esteem, personality and community identity. Other assets were availability of natural resources such as forests, bees, stone and minerals, sands and animal reserves together with Manpower or labour.
The above observed problems were prioritized using Participatory Rural Appraisal whereby Pair wise ranking was applied and the income poverty will be further dealt in the following chapter two.





CHAPTER TWO: PROBLEM IDENTIFICATION
This chapter examines the specific areas whereby changes are expected. The focus here is to provide a direction for the project to be undertaken. The problem to be solved will be identified in this chapter basing on the findings and results of the Participatory Assessment.
This chapter will outline the plans on how the solution for the prioritized problem. Problems and findings identified in the Participatory Assessment will be ranked to get the first community priority for project design and implementation.
The participatory Assessment conducted jointly by the Kwamtoro community, the host organization (UMAKWA CBO), other stakeholders and the researcher, included Community Assessment, Economic Assessment, Health Assessment and Environmental Assessment. The exercise involved more than fifty participants and identified many problems ranging from Social, Economical, Health, and Environmental aspects. Participatory Rural Appraisal method was used to prioritize problem whereby pair wise ranking was applied as summarized in the table No 11 below.







Table No 11: Prioritization of the problems by pair wise ranking
PROBLEMS Poor education facilities &services. Income poverty (low per capita income) Lack of financial institutions & services. Lack of capital for business, investment. High level of deforestation & poor soil fertility. Poor health facility & service. Total scores. Priority
Poor education facilities &services. Poor education facilities &services. Income poverty i.e. low per capita income. Lack of financial institutions & services. Lack of capital for business & investment. High level of deforestation & poor soil fertility. Poor health facility & service. 2 4
Income poverty i.e. low per capita income. Income poverty i.e. low per capita income. Income poverty i.e. low per capita income Income poverty i.e. low per capita income. Income poverty i.e. low per capita income. Income poverty i.e. low per capita income. Income poverty i.e. low per capita income. 6 1
Lack of financial institutions & services Lack of financial institutions & services Income poverty i.e. low per capita income Lack of financial institutions & services Lack of capital for business & investment. Lack of financial institutions & services Lack of financial institutions & services 5 2
Lack of capital for business & investment. Lack of capital for business & investment. Income poverty i.e. low per capita income Lack of financial institutions & services. Lack of capital for business & investment. Lack of financial institutions & services. Lack of capital for business & investment. 5 3
High level of deforestation & poor soil fertility. Poor education facilities &services. Income poverty i.e. low per capita income Lack of financial institutions & services. Lack of capital for business & investment. High level of deforestation & poor soil fertility. High level of deforestation & poor soil fertility. 2 6
Poor health facility & service. Poor education facilities &services. Income poverty i.e. low per capita income. Lack of financial institutions & services. Lack of capital for business & investment. High level of deforestation & poor soil fertility. Poor health facility & service. 2 5

Source: Field Survey, December 2007.
2.1 PROBLEM STATEMENT
After the analysis and prioritization of the problems, the community identified problem of income poverty i.e. low per capita income as first priority to deal with, hence focus on developing local capacity to sustain community economic development. The thrust of the study will be to tackle the problem of income poverty by reducing the problem where by the identified causes are uncontrolled livestock grazing, fire wood and charcoal burning, wild fire outbreak caused by honey collectors and hunters, unreliable markets, insufficient existing businesses or income generating activities or microenterprises, lack of entrepreneurship skills, lack of financial intermediaries, inadequate capital and low per capita income. The income poverty in the community resulted to poor housing (muddy grass roofed houses), inability to fulfill basic needs like education, food, medical care and treatment and other social obligations, poor or low savings, low money circulation, small size of informal sector, high labour outflows i.e. youths are moving to towns for job search as job house girls or boys and barmaids, disguised unemployment, deforestation and environmental degradation.
The project focus was to mobilize and create community awareness on income generating activities, promotion of savings and credit habit among community members, where by the existing income generating activities were to be strengthened and mobilized to form a strong community based and owned savings and credit cooperative society. Under the project, the existing business groups (small and microenterprises) will be empowered through business trainings to equip them with entrepreneurial skills. Other new interested community members will be trained in microenterprise skills and encouraged to start microenterprises.
In addition, the empowered economic and business groups together with other community members will be sensitized and mobilized to join and form a strong community owned saving and credit cooperative society. By so doing members will eventually save and borrow money for their small and micro businesses.
The target community or beneficiaries were expected to participate in the project implementation by attending fully in the workshop and entrepreneurship trainings and sensitization meetings by also covering the transport cost to the training venues or centre. Moreover, the potential members were expected to contribute through entrance fee, buying shares, saving and depositing their little earnings voluntarily to the SACCOS. The interim committee selected by the community was supposed to offer service on voluntary basis.
The initiative aimed at not only increasing savings, investments and money circulation in the economy but also raising income level, employment and business ownership among community members. Therefore, the project title is “promotion of income generating activities, savings and credit initiatives at Kwamtoro, Lalta and Ovada wards.”
2.2 TARGET COMMUNITY
The project targeted to serve the total population of 33,010, where by 9,293 is adult female, 8,372 are adult males, 5,917 are boys and 9,438 are girls. The coverage area will be under the three Wards of Kwamtoro, Lalta, and Ovada in Kwamtoro Division, which encompasses of a total of 17 Villages namely; Ndoroboni, Kwamtoro, Msera, Ilasee, Magambua, Handa, Lahoda, Manantu, Wairo, Kisande, Dinae, Ovada, Mengu, Kinyamsindo, Takwa, Jogolo and Baaba
2.3 STAKEHOLDERS
There are other stakeholders in the project. The first one was the Kondoa District Council, whereby the co-operative development officer and the community development officer participated to guide the formation of microenterprise and SACCOS as per National policies and guidance. They were Lead Trainers of the groups and SACCOS in general and facilitated legal aspects towards registration.
Another important stakeholder was World Vision Tanzania, who managed to offer financial assistance particularly in all trainings costs by covering training fees and related costs. World Vision agreed to support the initiative because it is in line with its strategic plan of empowering the poor community in sustainable issues. World Vision through its community based programme at Kwamtoro, offered a temporary office freely for a new established SACCOS. Commercial Banks like NBC, CRDB are other stakeholders in terms of financial services.







Table No 12: Stakeholders analysis

Name of stakeholder Potential contributions Responsible person/group/officer Opinion about project & its goals
Community -Beneficiary of the project
-They will offer time, ideas, physical manpower and participation. Individuals and socio-economic groups. They are positive to collaborate with UMAKWA CBO.
District Council (The Government) Provides technical support in terms of trainings, policy guidance and legal aspects.
DED, DPLO, DCDO, District Cooperative officer. Agreed on the Project Goal because it contribute to the Ultimate Goal of the District
World Vision (Kwamtoro ADP). Support in financial aspect regarding the project. Managers and other staffs. They support and promised to collaborate closely.
NBC & CRDB. To provide financial & technical support. Managers and staffs. They are positive with the goal of the host CBO and management show positive sign of cooperation.
SNHU researcher and supervisor. Coordination and facilitation Researcher & Supervisor. Main stakeholder that mobilize other stakeholders.
Source: Field Survey, December 2007.
2.4 PROJECT GOALS IN CED TERMS
Initially, the knowledge and understanding of micro-enterprise and income generating activities in the Kwamtoro community was very low. Informal sector was very small benefiting almost less than 25% of the population. There was no active financial institution operating in the Kwamtoro community as a result more than 90% of the community members saved their money into pots or underground holes. There was no reliable source of capital for micro-credit and business. Banks are very far (165 km in Dodoma), apart from demanding collaterals which the community members does not acquires.
As a result of Community Needs Assessments, the main problem identified in the Kwamtoro community was income poverty i.e. low per capita income caused by unreliable markets, insufficient existing businesses and income generating activities or microenterprises, lack of entrepreneurship skills, lack of financial intermediaries, inadequate capital and low per capita income. The income poverty in the community resulted to poor housing (muddy grass roofed houses), inability to fulfill basic needs like education, food, medical care and treatment and other social obligations, poor or low savings, and low money circulation, small size of informal sector, disguised unemployment, deforestation and environmental degradation.
By implementing this project, the community members were equipped with microenterprise knowledge or entrepreneurship skills. They were able to save their little earnings in the community savings and credit co-operative society, and eventually borrow for their income generating activities or micro-enterprises. Moreover, their accumulated shares, savings and deposits in the SACCOS act as collateral for securing loans from other financial intermediaries where they could not borrow at their own. The knowledge and engaging in micro-enterprise raised the community members’ credibility to other money lenders like microfinance and micro-credit institutions. Since the community members as beneficiaries participated in seminars and training to acquire the knowledge and also participated to buy shares, save, deposit and eventually borrow from their SACCOS, the possibility of the project to achieve its goals was inevitable. The owners of the SACCOS are the members themselves through their respective shares purchased. The increase of active generating activities and micro-enterprises in the community, increase of share capital, savings, deposit and the number of members in the SACCOS are among the signs or indicators that the project is progressing well. The increase of people engaged or employed in the informal sector as a result reduced labour outflows to become house girls or boys and barmaids in towns.
The goal of the project is to strengthen Income Generating Activities (IGAs) and initiate Savings and Credit Co-operative Society (SACCOS) so as to improve socio- economic status of the Kwamtoro, Lalta and Ovada Wards, Kondoa district, Dodoma Region, Tanzania.
2.5 PROJECT OBJECTIVES
In order for the project to succeed there were a number of steps to be accomplished, these steps are called objectives. The following were the set objectives:
1. To increase knowledge and practices of microenterprises to 54 Income Generating Activities groups.
2. To increase knowledge, participation and management to 1,000 Community members on SACCO’s issues.
3. To increase savings, deposits and shares to 30,000,000/= Tshs.
4. To increase employment opportunity to 150 peoples.
5. To support SACCO’s staff for effective and efficient project implementation.
2.6 HOST ORGANIZATION

The selected Community Based Organization is known as “Umoja wa Maendeleo eneo la Kwamtoro” (UMAKWA) i.e. Kwamtoro Development Association. It is the Community Based Organization dealing with holistic development issues. Its registration number is SO 14516 of 30th September, 2006.
UMAKWA operates in the Kwamtoro Division whereby it covers 17 villages in three wards namely; Kwamtoro, Lalta and Ovada in Kondoa District which is in Dodoma Region. The coverage area of operation of UMAKWA is about 950 sq kms while the total population as per 2002 census is 33,010 at projected rate of 2.9%
The aim and purpose of the Community Based Organization is to improve socio-economic life of the community within the operation area. Its mission is to mobilize and involve community for sustainable economic development through use of locally available resources and other resources from outside the community.
In its operation, UMAKWA focuses on Agriculture, Health, and Education, Community capacity building, Gender & Advocacy, HIV/AIDS & Malaria prevention and control, Income generating activities and other related activities.
The organization is being led and managed by the Board of Trustees of ten members. The CBO has some experienced community development practitioners who have the capacity to manage and implement development activities. Some of the Board members are graduates, therefore, are capable of undertaking community activities. Moreover, the CBO is well integrated and networked with the village government as most of them are members of the CBO i.e. institutional members. Therefore it can be easy to undergo any program through villages. The Board members also are evenly distributed in the sense that each village is represented to ease linkages. The UMAKWA CBO is on top of the project implementation and in some cases; UMAKWA sponsor some of the workshops. Some of the facilities such as postal address and bank account already provided for the new formed SACCOS until it reach its legal registration and operation.
UMAKWA CBO is also networking with other stake holders like the Kondoa District council and World Vision Tanzania through Kwamtoro Area Development programme for support in terms of financial and capacity building in some of the technical issues.
The role of the host organization is to make sure that the project is sustainable and beneficial to the Kwamtoro community. The role of the researcher is to guide the organization and the community on how best to manage the project from the planning stage to its evaluation.
2.6.1 Institutional Assessment
Forces in external environment
There are some institutional factors which affect the development of host organization. These factors include:
(i) Administration and legal factors
UMAKWA CBO operates and carries its activities in within the Kondoa District Council which normally provides technical support in all issues pertaining community development. The host organization also gets human support from the community members.

(ii) Political and economical factors
In the aspect of political acceptance, all political leaders such as Member of Parliament, Ward Councils, Village and Sub-Village leaders are involved in all socio-economic activities especially awareness creation, sensitization and community mobilization. Although there are multiparty in the area, the ruling Party C.C. M is the most acceptable and still the powerful party in the area. There is no political instability to affect development projects.
Economically, the projects initiated and established by the host organization end-up with provision of income and employment as the case of promotion of income generation activities and Savings and credit initiative project which provides entrepreneurship skill, source of capital, employment and source of households income.
(iii) Social and cultural factors
In the course of projects implementation, the host organization mobilizes the community to join each other so as to unite their efforts for better performance and quick realization of outputs and products. This habit eventually leads to improvement of community’s social capital.
In the UMAKWA CBO operation area, some of the tribes like Barbeig are animal keepers who normally migrate from one place to another for animal grazing. This may affect project implementation since it would be difficult for them to participates in the project.


(iv) Human and financial sources
UMAKWA gets manpower from the community. Most of the time, UMAKWA CBO employee on temporary basis whenever needs arise. The permanent employees are expected to be the Executive Secretary and the Treasurer though they are currently saving on voluntary basis.
The Organization gets funds from member’s contribution and other local and international donors.
Institution factors
These are factors within the host organization which may affects development of the organization or implementation of the project in one way or another. These factors include:
(i) Vision statement
UMAKWA CBO has its Vision statement which states that; “A faithful community which is co-operative and creative in using available resources for sustainable development” The Vision statement insists the use of available resources to attain sustainable development.
(ii) Mission statement
UMAKWA CBO has its Mission statement which states that; UMAKWA CBO is committed to mobilize and involve community for sustainable economic development through use of locally available resources and other resources from outside the community. The Mission statement insists the use of available resources to attain sustainable development.
Organization structure
On the top of the organization there is General Meeting Assembly. The host organization is led by the board of 11 members which is under the Board chairperson. Under the Board there are three committees’ namely Economic Affairs Committee, Executive Committee and Education & Promotion Committee. The organization has an Executive Secretary who runs the day today routine, document and keeps all meeting minutes. Under the Board secretary, there is a treasurer who deals with all financial matters. At the bottom there are individuals and active groups who constitute the members of UMAKWA CBO as shown bellow.
Figure No 8: UMAKWA Organization structure

Source: UMAKWA Constitution.
Inter- institutional linkage
In order to achieve its Vision and Mission, the organization is not working in isolation. UMAKWA work and collaborate with Kondoa District Council, Local NGOs, International Organization and Faith Based Organization. To mention few partners are Churches and Mosques, World Vision Tanzania and Japan embassy,
2.7 SUMMARY
In summary, this chapter outlined 13 problems. By using Participatory Rural Appraisal one problem was prioritized from 6 of them through Pair wise ranking to get the community priority problem for project design. Income poverty i.e. low per capita income was ranked as problem number one followed by lack of financial institution and services, lack of capital for business and investment and poor education facility and service. The community and other stakeholders decided to tack the problem of income poverty by reducing the magnitude of it. The identified problem causes were unreliable markets, insufficient existing businesses and income generating activities or micro-enterprises, lack of entrepreneurship skills, lack of financial intermediaries, inadequate capital and low per capita income. The income poverty in the community resulted to poor housing (muddy grass roofed houses), inability to fulfill basic needs like education, food, medical care and treatment and other social obligations, poor or low savings and low money circulation, small size of informal sector, disguised unemployment, deforestation and environmental degradation. The agreed project title is “promotion of income generating activities, savings and credit initiatives at Kwamtoro, Lalta and Ovada wards” expected to benefit 33,010 people.
CHAPTER THREE: LITERATURE REVIEW
This chapter intended to describe theoretical, empirical literature and policy review by scheming through published and unpublished materials to simplify the research problem. Under this chapter, theoretical literature review was undertaken by citing from reputable sources like books, professional journals and report from intermediaries so as to review how the problem was identified, the existence of the problem, the magnitude and benefit of solving the problem, while empirical literature review provided literature which resemble to this project and show how others have approached similar projects. It provided leanings which can be incorporated in our project.
Policy review provided opportunity to revisit regional and national policies designed to provide a framework to the project and provide clear guidelines in fostering or promoting community economic development initiative in the community.
3.1THEORETICAL LITERATURE REVIEW
3.1.1Back ground information on small and medium Enterprises
An enterprise is considered to be any entity engaged in economic activity irrespective of its legal form, this includes in particular self-employed persons and family business engaged in crafts or other activities and partnerships or associations regularly engaged in an economic activity. Economic activity represents any activity done by individual or group of people in co-operating with each other to satisfy their basic needs or wants like food, clothing, accommodation, medical services and other social obligations.
The small and medium enterprises cover non-farm economic activities mainly manufacturing, mining, commerce and service. There is no universal accepted definition of small and medium enterprise. Different countries use various measure of size depending on their level of development. The commonly used yard sticks are total number of employee total, investment and sales turnover. In the context of Tanzania, micro enterprises are those engaging up to 4 people, in most cases family members or employing capital amounting up to Tshs 5 million. The majority of micro enterprises fall under the informal sector. Small enterprises are mostly formalized undertakings engaging between 5 and 49 employees or with capital investment from Tshs 5 million to 200 million. Medium enterprises employ between 50-99 people or use capital investment from Tshs 200 million to Tshs 800 million as illustrated below.

Table No 13: Categories of SMEs in Tanzania

CATEGORY
EMPLOYEES CAPITAL INVESTMENT IN MACHINERY(TSHS)
Micro enterprise 1-4 Up to 5 million.
Small enterprise 5-49 Above 5million to 200mill.
Medium enterprise 50-99 Above 200mill to800 mill.
Large enterprise 100+ Above 800 million.
Source: Literature review
3.1.2 Importance of small and medium enterprises in Tanzania
It is estimated that about a third of the GDP originated from the small and medium sector according to the informal sector survey of 1991, Micro enterprises operating in the informal sector alone consisted of more than 1.7 million business engaging about 3 million person that was about 20%of the Tanzanian labour force. Though the data in small and medium enterprises sector are rather sketchy or vague and unreliable, it is reflected to play a crucial role in the economy. Small and medium create employment at present; unemployment is a significant problem that Tanzania has to deal with. Estimates show that there are about 700,000 new entrants into the labour force every year. About 500,000 of these are school leavers with few marketable skills. The public sector employs only about 40,000 of the new entrants into the labour market, leaving about 660,000 to join the unemployed reserve. Most of these persons end up in the small and medium sector, and especially in the informal sector. Given the situation and the fact that Tanzania is characterized by low rate of capital formation, small and medium enterprises are the best option to address this problem.
Small and medium enterprises are the more effective in the utilization of local resources using simple, appropriate and affordable technology. They play a fundamental role in utilizing and adding value to local resources. In addition, development of small and medium enterprises facilitates distribution of economic activities within the economy and that fosters equitable income distribution.
Furthermore, small and medium enterprise’s technologies are easier to acquire, transfer and adopt. Also small enterprises are better positioned to satisfy limited demands brought about by small and localized markets due to their lower overheads and fixed costs. Moreover, small and medium enterprises owners tend to show greater resilience in the face of recessions by holding on their business as they are prepared to temporarily accept lower compensation. Small and medium enterprises have great potential to employment large industrial requirements through business linkage, partnerships and subcontracting relationships. Strong and productive industrial structures can only be achieved where small and medium and large not only coexist but also function in a symbiotic relation.
In addition, small and medium enterprises serves as a training ground for entrepreneurship and managerial development and enable motivated individuals to find new avenue for investment and expanding their operations. The various ongoing reforms that are oriented towards private sector development indicate the bright future for small and medium enterprises sector and they lay the ground for development in Tanzania.
In addition, the recognition of small and medium enterprises sector that it has a higher potential for employment generation per capital invested attracts key actors to support small and medium development programmes. Since small and medium development does contribute significantly to poverty alleviation will also be availed to the small and medium sector.
The various initiatives towards improving the infrastructure such as roads and ongoing schemes aimed at strengthening small and medium enterprises service providers such as Small Industries Development Organization (SIDO), Vocational Education Training Authority (VETA), Micro finance Bank like NMB, and other Micro-credit Institutions like FINCA, PRIDE TANZANIA, and various industrial support organization provides opportunities for growth for the small and medium enterprise sector, hence contribute significantly to employment creation, income generation and stimulation of growth in urban and rural areas.
3.1.3 Need for microfinance
Microfinance is the supply of financial services –loans and savings tailored to the demand of micro enterprises.
For the majority of Tanzanians, whose incomes are very low, access to financial services offer the possibility of managing scarce households and enterprise resources more efficiently, protection against risks, provision for future and taking advantage of investment opportunities for economic returns. For households’ financial service allow higher standards of livings to be achieved with the same resource base, while for enterprises and farmer’s financial service can facilitate the pursuit of the income growth.
Savings services are among the most beneficial financial services for low-income people. Newly all households need to save to protect themselves against periods of low income or specific emergencies and to cover large anticipated expenses (like school fees). Enterprises also need to store the value they accumulate from their profits until they can invest them to earn a higher return. More over saving in financial intermediaries can provide funds for investment by others, thus saving services can have a very broad outreach and value credit services can perform some of the same services as savings and can allow enterprises to make some important investments sooner. Enterprises use credit as a source of short term working capital and longer term investment capital. Households uses it to meet consumption needs, particularly during periods when income flows are low such as during the off season before crops are harvested and to make investment, such as housing improvements. Payments and other related saving are also valuable to low income people and to the residents and institutions in rural Ares. Payments services can play an important supporting role in the overall profitability of the financial institution that offers them. In short micro finance addresses the financial needs of major sectors of the Tanzanian population. They are primary facilitators rather than creators of the underlying economic opportunities that lead to widespread economic prosperity
From micro-enterprise or micro-credit point of view, Microfinance Institutions (MFIs) have played a great role in providing financial services to low income population. These are organizations dedicated to providing financial services includes NGOs, Credit union, Co operatives, Private Commercial Banks etc. In Microfinance, group members are required to monitor each other at regular meetings, and thus social pressure to meet financial commitments is created hence filling the role of collateral in traditional financial services and avoiding the twins problems of moral hazard (unwillingness to pay).
Grameen believes that charity is not an answer to poverty. It only helps poverty to continue. It creates dependency and takes away the individual’s initiatives to break through the wall of poverty. Unleashing or set free of energy and creativity in each human being is the answer to poverty.
Mohammed Yunus (2006) also highlight one of the great advantages of microfinance as opposed more traditional forms of development aids, is based on the philosophy of the hand-up rather than the handout. Microfinance is not a top -down solution to poverty. It is a bottom-up approach that aims to empower the poor, harnessing their individual aspirations and abilities of creating an environment in which they can realize the true benefit of the market economy.
3.1.4 Back ground information on Co-operatives
Co-operatives is defined as the pure organizational model “which is any kind of group or person linked together by economic interest who undertake a planed activity by using their own resources of solving their own problems” (Munkner (1984:9). Co-operatives, more or less in the (traditional Rochdale western European) concept of a Co-operative society, in the developing world is described as pseudo or quasi classical forms which have formal characteristics of a Co-operative society. These include s formal registration, by- laws, bureaucratic structures etc. but it excludes material characteristics such as organizational autonomy, self- help initiatives, membership participation and empowerment (Verhagen 1987:20). By ‘rural co-operatives’ it means all types of Co-operatives formed in the rural areas rather than in urban areas.
The new approach for advocating new rural development strategies that imply Co-operative groups that is, people’s participation through Co-operative projects to help bring about the eradication of poverty in the rural areas (UNRISD & UNDP).
However, Nikolas Newiger (1984) in support of UNDP and WCARRD’s new approach advises that a national strategy to fight rural poverty requires (i) The promotion of rural institutions including co-operatives and peoples participation where by gainful employment of the poor masses can be achieved and (ii) the Government in respect is required to strengthen the organization and administration of its field services in order to facilitate and promote the peoples participation. Co-operative group projects will attract the inform type of co-operative groupings at the grassroots’ level, instead of launching co-operative in the traditional Rochdale model.
3.1.5 Back ground information on SACCOS
Savings and Credit Co-operative Society (SACCOS) is a financial organization owned and operated on a nonprofit basis by its members according to co-operative principle. The objective is to promote thrift or economy among its members and creation of a source of credit for its members at controlled rate of interest exclusively for provident or productive purposes, where by thrift developing the habit of putting some money aside as saving for use in the future, provident urgent and acceptable social requirements such as fees, medication etc, while productive income generating craft institution, purchase of milling machine etc.
The saving and Credit Co-operatives Societies (SACCOS) goes back to Reiffeisein and schulze of Germany who initiated the idea of community lending as a solution to usury by moneylenders in 1884. The similar situation can be observed in Tanzania where by urban areas were rampant with shameful activities of pawnbrokers and money lenders who charged exorbitant and illegal rates of interest. In rural peasant who earned sizeable sums of money during harvest times got back to poverty due to unwise spending.
After independence Tanzania government decided to ban pawnbrokers and sought for an alternative for people to mobilize their savings. The saving and credit co-operative movement started in 1961 when the government drafted money by law to enable any group with a common bond of occupation, association and residence.
By1964 there were 35 SACCOS in the country which formed National Savings and Credit Union League of Tanganyika (SCULT) whose responsibilities included, co-operative training, management advisory, inspection, supply of stationeries, insurance services and representation. With structure change of 1976 SCULT, along with all other co-operative unions were abolished and the department within the co-operative unions of Tanzania between 1976 and 1991 did the coordination of SACCOS. Following the 1991 Co-operative Act, SACCOS again formed National Savings and Credit Co-operative Union League of Tanzania-SCCULT 1992. The functions of SCCULT by then were to promote SACCOS movement in the country, promote finance stability among SACCOS where by SCCULT formed central finance programme (CFP). Another function was to provide risk insurance through risk insurance scheme.
3.2 EMPIRICAL LITERATURE REVIEW
Micro-enterprises can play can play a role in the revitalization of the local economies. In the period of lagging economic growth and the overseas migration of firms and jobs, many communities are focusing today on building a local culture and business environment that is supportive of entrepreneurship, which is seen as a key to local economies because it creates jobs, retain locally generated profits and broaden the distribution of wealth as shown in (Charmes, J. (1996). Informal sector, poverty and gender). Where informal sector’s contribution to National employment in 1991 was 19.6%, while in total GDP was 21.5%.
3.2.1PRIDE Tanzania Microfinance Institution Case study
Information from PRIDE Tanzania, which is one of the largest microfinance institutions, shows high performance in terms of memberships, number of branches, member’s savings, loan disbursement and loan portfolio quality.
According to the June, 2008 PRIDE Tanzania report; the institution had a total of 35 branches spread almost in all Regions and in some Districts. The number of clients with different loan products were 96,881 whereby Group loan were 89,766 clients, Premium loan were 4,032 clients, “Ajira” (for employed people) loan were 1,336 clients, “Asasi” (for institutions) loan were 129 institutions. And “Mtaji” (for capital) loan were 1,747 clients
The total amount of 16,374,184,390/= Tshs have been saved by clients as a compulsory requirement for every member who want to borrow from Group, Premium and “Mtaji” (capital) loan products. The total loan disbursed by PRIDE Tanzania since inception was amounting to 216,770,465,000/= Tshs comprising of Group loan product (181,714,540,000/= Tshs), Premium loan product (24,619,200,000/= Tshs), “Ajira” (for employed) loan product (1,199,725,000/= Tshs), “Asasi” (institution) loan product (2,516,000,000/= Tshs), and “Mtaji” (capital) loan product (6,721,000,000/= Tshs).
Loan outstanding balance as at June is 31,386,651,786/= Tshs comprising of Group loan product 17,206,937,826/= Tshs, Premium loan product 8,272,853,362/= Tshs, “Ajira” loan product 482,653,179/=, “Asasi” loan product 1,547,087,844/=, and “Mtaji” loan outstanding balance was 3,877,119,575/= Tshs.
The loan repayment quantitatively as at June, 2008 was 94.74% while the loan repayment quantitatively was 96.36%. The portfolio at risk rate is 11.50%.
Table No 14: PRIDE Tanzania Savings &Loan status
Products Savings Cumulative Disbursement loan outstanding
MEC/Group loan 11,557,496,569 181,714,540,000 17,206,937,826
Premium 3,919,698,382 24,619,200,000 8,272,853,362
“Ajira” 0 1,199,725,000 482,653,179
“Asasi” 0 2,516,000,000 1,547,087,844
“Mtaji” 896,989,439 6,721,000,000 3,877,119,575
Total 16,374,184,390 181,714,540,000 17,206,937,826
Source: PRIDE TZ performance report for 2008.
Loan Menu
PRIDE’s loan menu has eight loan cycles with small loan amount ranging from 50,000/= to 15,000,000/=Tshs for MEC loan and Premium loan, and 10,000,000/= to 50,000,000/= Tshs for “Asasi” loans. “Ajira” loan depends on the size of salary of employee. Clients have to graduate from lower to higher loan cycles.
(i) MEC Loans: Group loans from 50,000= to 999,999=
This type of loan product created a foundation of PRIDE Tanzania and is the source of success of PRIDE Tanzania, the system is copied from Grameen model in which group members guarantee each other to access loans, purposely to avoid using collateral as security of loans, repayment quality depends on the group discipline and peer pressure within a group is used to pressurize borrowers to repay their loan on time.
Interest rate of this type of loan is 30% annual.
Group Organization as collateral
The success of the PRIDE Credit program through the Market Enterprise Committee (MEC) structure depends entirely on strict and disciplined observance of the following;
1. Only people involved in income generating activities are eligible to form a PRIDE Market Enterprise Committee.
2. A market Enterprise committee (MEC) made up to 10 groups of five people called Enterprise Group (EGs).
3. A group is formed with persons who are similar economic condition and enjoy mutual trust and confidence.
4. All members of the group must be residents of one market centre or community and operate businesses not greater than 5 km from the PRIDE branches.
5. Close relatives (spouse, children, parents, siblings) must not be members of the same Enterprise Group (EG)
6. Each EG shall elect a chairperson and Secretary or treasurer
7. The Chairperson and Secretary or Treasurer of each EG serves on the executive Committee that composed of 20 members (in MECs of 50 members.)
8. The MEC Executive committee in turn elects the MEC Chairman, Secretary, and Treasurer who form Management Committee of the MEC.
9. PRIDE will recognize a group only after;
(i) Being satisfied with the eligibility of its members
(ii) Observing the willingness of the group to maintain discipline and good business practice
(iii) The group has pledge to strictly adhere to PRIDE credit rules and procedures.
(iv) Verifying that the group is properly registered with PRIDE and the local authorities and has submitted correct membership information
(ii) Premium Loans- -Premium Enterprise Group Loans-PEG Loan
Interest rate; interest charged depends on the size of loan, from 1,000,000 to 5,000,000= Tshs is 24% annually and above 5,000,000 to 15,000,000/= Tshs which is maximum amount charged 22% per annum.
Loan application fee; loan application fee for this loan is 1% of the principle loan applied.
Loan applicant is also required to pay loan insurance fee of 1% of the loan amount that will be used to cover a loan outstanding balance in case of death.
Grace period of one month is offered for this type of loan but not a must. Repayment period varies from six months to 2 years. Repayment schedule involves monthly installments equally charged from principle and interest. Personal eligibility - Should be a graduate of MEC loans. An applicant must have collateral apart from group guarantee (a house, plot or any valuable assets such as vehicles). Therefore a land lease or vehicle card can be temporality owned by PRIDE as collateral up to the period of completion of loans and must be 18 or above years old.
(iii) “Ajira” Loans
“Ajira” loan starts from 100,000 up to not more than one three quarter of the basic salary. Interest rate charged in this type of loan product is 2% per month and a total of 10,000/= Tshs loan fee is required. There is no grace period offered by this type of loan product. This type of loans is repaid within one to two years. Payments are being deducted from personal salary monthly.
In order to qualify for this loan a person must be at least 18 years old; and in contract employment of not less than two years or permanent employee, supported by two copies of months’ salary slips.
(iv) “Asasi” Loan Facility
This loans menu offered to rural Microfinance institutions specifically SACCOS. Initial loan is 10,000,000/=Tshs and subsequent loan is be determined by the Microfinance institution absorption capacity, overall performance and track record of payment. PRIDE management determines maximum loan amount. Under normal circumstances, the maximum loan amount is 50,000,000/= Tshs per institution with 1% of loan application fee paid by Microfinance institution upon requesting a loan. Interest rate charged for this type of loan is 15% flat rate per year and there is no grace period offered by this product,
Repayment period of this loan starts with six months up to two years and the first installment be payable on quarterly basis fall due in three months after loan disbursement date, while those payable half yearly fall due in six months later. The scheme is designed to suit existing Microfinance institutions and financial community based organizations in rural areas i.e. registered SACCOS- Savings and Credit Co-operative Societies and SACAS- Savings and Credit Associations. The objective of the scheme is to support these institutions by providing them with whole sale credit for onward lending to their target members or clients. Microfinance institution must have certificate of registration from recognized relevant authorities; being in operation for at least two years; satisfactory performance including audited accounts for at least two years and must have a minimum of 100 members. The Microfinance institution also must maintain basic accounting records, clients’ records, loans and savings portfolio and must have a written business plan for at least 3 years.
3.2.2 NKWERWA Talanta SACCOS LTD case study
NKWERWA TSACCO was legally registered on 1st February, 2006 with registration number KAR 518. It is operate at Nkwenda and Rwabwere Wards in Karagwe District Kagera Region. The members as at June, 2009 were 1593, whereby 688 were male, 866 were female, and 37 were institutions and groups.
These members have purchased shares amounting to 25,416,500/= Tshs. Their savings worth 138,989,095/= Tshs, while their deposits are about 71,310,712/= Tshs. and their entrance fees worth 7,965,000/= Tshs, hence make their portfolios to be 243,681,307/= Tshs.
In 2008, NKWERWA Sacco disbursed loans to its 798 members amounting to 515,802,916/=Tshs. Among 798 borrowers, 320 are females, 460 are males, 15 are groups and 3 are institutions. 290,052,403/=Tshs was the repaid loan while 225,750,513/= Tshs were still with borrowers.
During 2007, NKWERWA Sacco succeeded to secure 200,000,000/=Tshs loan from the President money famously known as “Kikwete billions” through CRDB Bank Karagwe branch. It was the loan for entrepreneurs to start or strengthens their micro-businesses.
According to the findings, members from 11 Villages namely Rwabwere, Karongo, Iteera, Chanya, Nkwenda, Muhulire, Rukuraijo, Kitwechenkura, Kakerere, Chanyangabwa, and Songambele have used their loans to solve their day to day obligations hence, eliminate problems in the following areas:
Some members have used loans to build houses which were impossible before SACCOS. Moreover, other members managed to purchase agricultural implements such as tractors, engaging in livestock keeping, such as goats, cows, and poultry keeping and
Used loans to establish and extending their businesses. Some have used loans to solve some unforeseen contingencies such as sickness and burial activities, pay for their children school fees ranging from ordinary level to masters level. Through offering business loan, the SACCOS increased employment to those engaged in businesses hence earns their daily income and meet their social obligations.
Moreover, it was noted that community in Nkwenda and Rwabwere Wards managed to reduce the habit of exploitation known as “Butura” whereby farmers have been sold their coffee to middle men at the farm before the harvest time at very low price. These have been done so as to meet social obligation before the opening of official selling period by the Government. By using SACCOS, members can therefore borrow from their SACCOS to cater for their respective social obligations while waiting better market price for their produce.
3.2.3 Development of SACCOS in South Africa.
SACCO is the acronym of Savings And Credit Co-operative. There is no difference between credit union and SACCO. The term "credit union" was generally not used in South Africa to avoid confusion with the various labour movements.
A Savings and Credit Co-operative (SACCO) is a democratic, unique member driven, self-help cooperative. It is owned, governed and managed by its members who have the same common bond: working for the same employer, belonging to the same church, labour union, social fraternity or living and working in the same community. A Savings and Credit Cooperative’s membership is open to all who belong to the group, regardless of race, religion, color, creed, and gender or job status. These members agree to save their money together in the SACCO and to make loans to each other at reasonable rates of interest. Interest is charged on loans, to cover the interest cost on savings and the cost of administration. There is no payment or profit to outside interest or internal owners. The members are the owners and the members decide how their money will be used for the benefit of each other.
History of savings and credit co-operatives
Savings and Credit Co-operatives first appeared in Germany in the 1870's. The idea moved to North America in 1900 with European immigration. Canada, the United States, Australia and Ireland have the most established movements. In many regions of these countries SACCOs are much larger than the commercial banks. There are 28 countries in Africa that have established credit unions. In May 1996, South Africa became the 28th African country to become a member of the African Confederation of Savings and Credit Co-operatives (ACCOSCA). Globally there are almost 100 million individual members in 60 + countries around the world. SACCOL is a member of World Council of Credit Unions, through its membership in ACCOSCA. Through this relationship SACCOL enjoys a reciprocal relationship with member countries throughout Africa and throughout the world.
Savings and Credit Cooperative League of South Africa (SACCOL) was formed in 1993. It evolved from the Cape Credit Union League (CCUL), which was formed in 1981. At this time various Catholic Church parishes decided to form Credit Unions and CCUL was formed to help them to coordinate their activities and standardize their operations. At this time though the Credit Unions were formed as social organizations and did not operate their cooperatives as businesses. This brought about a whole lot of problems.
Current status of SACCOS in South Africa
Although traces of credit unions in South Africa date back to the 1940’s, apartheid closed these original organizations. Savings and Credit Cooperatives (SACCOs) as they are known today did not fully re-emerge until the early 1990’s. There are currently 28 SACCOs serving 9,800 members with savings, loan, transmission and insurance products at rates generally better than banks. None of these SACCOs or SACCOL, the National League is receiving any form of subsidy or donation at this time.
Table NO 15: SACCO Annual Statistics in South Africa
Year SACCOs Members Savings dep. Net Loans Total assets
2006 38 12,608 R 46,416,168 R 34,536,722 R 50,727,069
2005 39 11,525 R 35,632,154 R 27259,927 R 42,752,022
2004 35 9,049 R 24,469,260 R 21,081,899 R 29,972,251
2003 30 7,990 R 18,424,398 R 16,779,823 R 22,890,694
2002 30 8,454 R 14,893,630 R 14,707,855 R 19,298,451
2001 28 5,870 R 8,403,766 R 12,400,349 R 17,211,483
2000 21 4,110 R 5,460,668 R 7,349,175 R 10,530,860
1999 21 3,402 R 2,522,072 R 5,703,450 R 8,014,594
Source: Savings and Credit Cooperative League of South Africa (SACCOL) report 2006
3.2.4 Development of Rural SACCOS in Kenya
The development of both urban and rural SACCOs in Kenya started around 1970. In the rural areas a selection of Primary Co-operative Societies and Unions, mainly coffee co-operatives, offered financial services to their members. The District Co-operative Union to which the Primary Cooperative Societies were connected handled this activity. To help and keep personal savings- and credit accounts the unions established Union Banking Sections (UBS).
Murata farmers SACCO Society LTD
The Murata Farmers SACCO Society Ltd started in 1966 as a rural SACCO, but after five years it was transformed into a Union Banking Section. It operated as a UBS until 1996 when it was transformed to a rural SACCO again. In October 1998 the SACCO changed its name to avoid being confused with the name of the Co-operative Union, into Murata Farmers SACCO Society Ltd. Up to 2000 the SACCO has 9 branches within the District which include; Murangá, Thika, Kiriaini, Kandara, Kirwara, Kahuro, Kangema, Kahuhia and Maragua. The SACCO was serving 117, 309 customers of which 63, 951 were members. The members had 150 million shares together. The following services were offered to members or customers:
Maintenance of savings accounts, payment calculations on behalf of the Societies, execution of standing instruction orders given by the members or customers, booking and maintaining of credit records and subsequently recovery through payments, mobile banking services to over 40 paying centers spread over the Murangá District. At the paying centers members can withdraw and deposit cash and buy shares. The mobile service visits the paying centers three times a month.
The individual members of the SACCO benefited from the following types of loans:
Family Welfare Loans
These loans were used to assist in such family incidentals as coffee picking, school fees, hospital bills etc. The maximum amount to borrow was 30 percent of the value of the immediate years farm produce. The loan was repayable in one year and the interest rate was 16 percent per year.
Working Capital Loans
These loans are used to assist in land preparation, procurement of farm inputs and were to be repayable in eighteen months at an interest rate of 16 percent per year. These loans were also based on 30 percent of the value of the farm produce the immediate year.
Capital Development Loans
These loans are used to assist farmers to improve their farm or start up connecting-production like irrigation system, farm equipment and machinery and agricultural industry. These loans were based on 80 percent of the value of the last three years farm produce and repayable in five years at a rate of 16 percent. The last types of loan were not in use yet. Before, the first two types of loans were also based on the value of the previous three years farm produce, but since the production of coffee has gone down this way of calculation made the farmers qualify for too large loans, which they were not able to pay back. This made the bank change its policy on loan qualifications. Two guarantors were also required for security of small and short-term loans. For longer and larger loans an additional security was required, usually land titles or other security.
The Primary Marketing Societies who were also members of the SACCO enjoyed credit facilities as Well
Crop Advances
The Societies borrow for crop advance payments to their members for their future crops.
Working Capital Loan
This type of advance was extended to the Societies to meet their working capital needs, for instance payment of salaries, purchase of diesel and general running of the Societies.
Famine Relief Loans
For the purchase of foodstuff during drought periods or when the crop fails.
Farm Input loans
These were loans for the purchase of fertilizers and other chemicals for their retail stores. Only members of the Primary Co-operative Societies can become members of the SACCO and only members of the SACCO were entitled to loans. The members apply for loans directly through the SACCO and not via their Society. They cannot apply for loans at the mobile service but have to go to the nearest branch. Other restrictions are the security requirements mentioned above. From the Society the members can purchase farm input on credit, like fertilizers and chemicals. The amount of the purchase is then deducted from the member's personal account when the coffee payment is deposited. The SACCO handles all the payments for the Societies.
Usually loans are defaulted as a result of crop failure or poor coffee payment. When a member is unable to repay his or her loan, the guarantors are held responsible and they are required to repay the loan at the end of the first quarter. Today there are 195.5 million KShs in total outstanding loans and out of those 70.7 million were overdue (36%). Both members and non-members can save in the SACCO. Usually non-members act as a security of funds to the SACCO when the members have not been paid for their produce. The interest rate on savings varies with the amount. For savings less than 50,000/= KShs it was 4 percent, between 50, 000/= to 1,000,000/= KShs it was 5 percent and over 1,000,000/= KShs it was 6 percent. The SACCO also offers fixed accounts where the interest rate was 8 percent but varies with the rate of the treasury bills. The minimum balance on these accounts is 100,000/= KShs and the minimum time 1 year. The total amount of savings for all nine branches currently 913.1 million KShs. The SACCO Society has continuously produced a surplus and at the end of the financial year, 1997/98 the retained surplus was 24,829,873/= KShs, dividends were 17,606,575/= KShs, bonus shares were 21,127,890/= KShs and staff bonus were 5,538,957/= KShs. In 1998/99 the surplus was 55,687,927/= KShs.
Apart from lending to individual members and Societies the SACCO use some of its funds in other areas of investments like fixed deposits in other banks, treasury bills and purchase of shares in other organizations. The members of the SACCO and Societies do not use other sources of credit.
3.3 POLICY REVIEW
In this area of the project, that is promotion of income generating activities saving and credit initiates there are a number of polices designed to guide income generating activities, micro, small and medium enterprises, together with saving and credit co-operative societies SACCOS. Under this initiative as number of policies and Acts will be reviewed. These policies and Act provide guideline for the under taking of the initiative. The policies and Acts include Small and Medium Enterprise Development Policy (2002), National Microfinance Policy (2000), Co-operative Development Policy (2002), Co-operative Act no 20 of 2003.
3.3.1The Small and Medium enterprise Development Policy (2002)
Under the Small and Medium Enterprise Development Policy of 2002 its vision states as to have a vibrant and dynamic small and medium enterprise sector that ensures effective utilization of available resources to attain accelerated and sustainable growth.
The mission of this policy is to stimulate development and growth of small and medium activates through improved infrastructure, enhanced service provision and creation of legal and institutional framework so as to achieve competitiveness. The overall objective of this policy is to foster job creation and income generation through promoting the creation of new small and medium enterprises and improving the performance and contribution to the Tanzanian economy. There are some policy statements which guides and promote enterprises and entrepreneurship development for instance, the government will promote entrepreneurship development through facilitating improved access of small and medium enterprises to financial and non-financial services. The strategies for this statement includes, to inculcate through education training and other programmes values and attitudes that are conducive to development of entrepreneurship, review school curricula to accommodate entrepreneurship development, introduce entrepreneurial programmes in vocational and technical training, facilitate entrepreneurship development for selected target group or sectors e.g. school leavers, facilitate capacity building in entrepreneurship development.
In addition the government will enhance the capacity of institutions providing business training to small and medium enterprises. Facilitate opening up small and medium enterprises windows in financial institution, promote innovative financial products for small and medium enterprises such as hire purchase scheme, leasing, inventory financing, venture capital small and medium enterprise and saving and credit schemes, promote improving access of small and medium enterprise to bank financing through simplification of procedures, and mobilize resources and promote development of new financing small and medium enterprises. The policy also includes cross cutting issues such as gender and the disadvantaged groups, environmental consideration, and HIV/AIDS prevention and control.
3.3.2 The National Micro Finance Policy (2000)
This policy covers the provision of financial services to household, smallholder farmers, and small and micro enterprises in rural areas as well as in the urban sector.
It covers a range of financial services, including savings, credit, payments and other services. The policy is guided by a vision of achieving widespread access to micro finance throughout the country. A wide range of institutions will be involved in the provision of services including specialized and non specialized banks, non bank financial institutions, rural community banks by embarking on capacity building of business training institutions aimed at improving quality of service provided, and facilitate tailor-made business training programme for start-ups and for strengthening existing business.
Moreover, the Government is committed to facilitate and support programmes aimed at improving small and medium enterprises access to markets, through promotion of business linkage between large and small enterprises, strengthening marketing agencies and institutions that support small and medium enterprises, create small and medium bulk provision systems through a co-operative mechanism, facilitate small and medium enterprise participation in local and international markets through trade fair and missions, establish small and medium exhibition centers, facilitate small and medium enterprises to meet standards, facilitate training on trade issues i.e. multilateral trading and regional trading arrangements and facilitate small and medium enterprise benefits from Government procurement needs and activities.
Through this policy the Government will enhance financial reforms aimed at further liberalization of the financial sector and the creation of financial intermediaries to cater for small and medium enterprises, by promoting transferring lessons and good practices from traditional financing mechanisms into suitable financial products for financing small and medium enterprises, co-operatives, banks, SACCOS and NGOs
The Government role will be to create a supportive macro-economic settings and a regulatory environment that allows sound financial institutions offering micro-finance services to emerge. The key functions of the Government will includes, keeping inflation low, allowing interest rate to be set freely, developing rural infrastructure to allow access to remote areas, building healthy credit culture through public awareness programs, providing high quality and independent banking supervision and developing a legal framework supportive of financial institutions operations
The ministry of finance has the overall responsibility of the Government finances and is responsible for the development of the financial system on the part of the Government.
It oversees all official donors assistance coming into the country including programs planned jointly with other Government ministries. In this role, it will ensure that all such programs are consistent with this policy statement and based on best practices.
The Bank of Tanzania will have overall responsibility to coordinate the implementation of microfinance policy, to develop a regulatory and supervisory framework that is supportive of micro finance operations and consistent with financial prudence.
The Savings and Credit Co-operative Societies (SACCOS) are institutions, which operate under the Co-operative Act NO 20 of 2003, in offering saving and credit services to members. They are also covered under the Banking and financial Act, 1991 as financial intermediaries.
3.3.3The Co-operative Development Policy (2002)
The vision of Co-operative system in Tanzania is geared towards improved and sustainable Co-operatives that are capable of fulfilling members economic and social needs, while the mission is to develop Co-operatives that are;
(a) Member based i.e. owned and controlled by members.
(b) Work for the betterment of member’s own economic and social development and that of the community in which they live.
(c) Operate competitively as independent economic entities and
(d) Care for present and future members.
The main objectives of the policy are
(i) To encourage the establishment and continuous operation of member-owned and members -controlled Co-operatives.
(ii) To encourage the establishment of economically strong Co-operatives those are capable of operating as viable independent business entities.
(iii) To protect co-operative business operation against unfair competition.
(iv) To support the establishment of viable Co-operative financial institution.
(v) To encourage internal co-operative capital formation.
(vi) To recognize and support small producer group initiatives with the view of transforming them into future economically strong Co-operatives.
(vii) To ensure existence of good co-operative leadership and management those are capable of managing a co-operative in a businesslike manner while being accountable to members.
(viii) To foster an efficient and effective co-operative movement structure.
(ix) To support and encourage the provision of co-operative education training and research services that focus on member empowerment.
(x) To widen the scope of operations of Co-operative societies through encouraging and supporting establishment of Co-operative societies in various sectors of the economy.
(xi) To encourage sustainable operation and development of Co-operatives by ensuring that.
(a) Present co-operative member respect interests of future member and of the whole community.
(b) Co-operatives carry out activities that respect gender equality and environmental protection.
The policy statements which promotes provide guideline for the initiative includes
The government will promote Co-operative as one of the important tools for economic and social development of the people in the country.
The government will work hand in hand with all organization and institutions, which are responsible for poverty reduction to ensure full realization of the poverty reduction strategy.
In addition with respect to the international Co-operative principle and values the government recognizes and adopts Co-operative values which are based on self-help self-responsibility, democracy, equality, equity and solidarity and that they will be pursued and maintained in all Co-operative development efforts within Tanzania socio –economic environment. Co-operative pinnacle is important milestones and guidelines by which the co-operatives value will be put into practice. These principles are voluntary and open member ship democratic member control, members’ economic participation autonomy and independence education training and information co-operative and concern for community. The policy also includes crosscutting issues or themes that is women and other marginalized groups in the community and environment consideration. However, the other most important policy statement is that which touch the existence of SACCOS thus the government will encourage formation of co-operative financial institutions in order to reactivate thrift and saving habits among members and thus enable co-operatives to benefit from the members and thus enable co-operatives to benefit from the capital generated.
In addition the Government will encourage formation of SACCOS within the area of operation of primary societies.
The Government will also continue to provide technical assistance to strengthen and develop the existing SACCOS in urban and rural areas.
The Co-operative Act no 20 of 20003 and the Co-operative society’s rules of 2004 provide the basic and guideline for the formation development and operation of Co-operatives in the country including savings and credit Co-operative societies.
3.3.4 Lessons learned from the literature review
Strengthening Micro-enterprises or Micro-business is a unique process in this process in this project, that it offers individuals the opportunity to generate income, build assets, and save as owners, not only just workers.
Forming SACCOS by the rural poor is possible and necessary for poverty alleviation as the case of Professor Yunus (2006) succeeded in Bangladesh.
SACCOS improve social coercion in the sense of social or community ownership and a self guaranteed of the member on financial loan in their respective SACCOS as well as other Financial Institutions.
Moreover, it was noted that community in Nkwenda and Rwabwere Wards managed to reduce the habit of exploitation known as “Butura” whereby farmers were sold their coffee to middle men at the farm before the harvest time at very low price. This was done so as to meet social obligation before the opening of official selling period by the Government.
By using SACCOS, members can therefore borrow from their SACCOS to cater for their respective social obligations while waiting better market price for their produce.
3.4 SUMMARY
The literature review in this chapter involved theoretical literature review on small and medium enterprises which falls under informal sector.
Literature review revealed that small enterprises are the more effective in the utilization of local resources using simple, appropriate and affordable technology. The development of small and medium enterprises facilitates distribution of economic activities within the economy and that fosters equitable income. Strong and productive industrial structures can only be achieved where small and medium and large not only coexist but also function in a symbiotic relation. The majority of Tanzanians are low income earners hence face difficult to access financial services. This challenges lead to need of microfinance institutions (MFIs) which played a great role in providing financial services to low income population. In microfinance, group members are required to monitor each other at regular meetings, and thus social pressure to meet financial commitment is created, hence filling the role of collateral in traditional financial services and avoiding the twins’ problems of moral hazard (unwillingness to pay). Microfinance discourage charity, since it helps poverty to continue, creates dependency and take away the individuals’ initiatives to break through the wall of poverty. Microfinance encourages free energy and creativity in each human being is the answer to poverty. Microfinance is based on the philosophy of the hand- up rather the hand out approach that aims to empower the poor, harnessing their individual aspirations and abilities of creating an environment in which they can realize the true benefit of the market economy. Under this chapter, different Policies and Acts were reviewed so as to get guidance for the project for better design and easier implementation. The Policies and Acts reviewed include; Small and Medium Enterprise Development Policy (2002), National Microfinance Policy (2000), Co-operative Development Policy (2002), Co-operative Act no 20 of 2003.















CHAPTER FOUR: PROJECT IMPLEMENTATION

The main goal of the project was to strengthen Income Generating Activities (IGAs) and initiate Savings and Credit Co-operative Society (SACCOS) so as to improve socio- economic status of the Kwamtoro, Lalta and Ovada Wards. The goal was achieved through both strengthening of 54 groups of income generating activities and forming and establishing Savings and Credit Co-operative Society in the area. A logical framework matrix was prepared to guide implementation of the project.
4.1PRODUCTS AND OUTPUTS

Objective 1
To increase knowledge and practice of microenterprise to 54 income generating activity groups by the end of 2009.
Outputs
In the course of project implementation different outputs were achieved as outlined here under.
150 group representatives were trained on microenterprise and entrepreneurship skill, 10 tailoring group were supported with sewing machines and 4 micro-enterprise groups of different undertakings were supported with bee hives and carpentry inputs.
Products
In addition to outputs there were product noted under the project which included 44 IGA groups operating their business in a well organized way with appropriate business plans in place and 14 IGA groups are using more modern facilities hence increase of quality products.
Objective 2
To increase the knowledge, participation and management of 1,000 community members on SACCOS issues by the end to 2009.
Outputs
Under objective number 2, four outputs were achieved including 17 sensitization meetings conducted in 17 villages to create awareness on SACCO’s issues, 15 SACCOS interim committee members were selected, I5 SACCOS interim committee members were trained on effective operation of primary SACCOS and SACCOS important documents such as Constitution, Loan Policy and Savings & Deposit Policy were prepared and in place.
Objective 3
To increase savings, deposits and shares to 30,000,000/=Tshs by the end of 2009.
Outputs
Under objective number 3, outputs were 105 community members joined LAKWAO TSACCOS (2008) LTD, 12,484,000/=Tshs were collected from 105 community members whereby 700,000/= Tshs were entrance fee, 2,502,000/= Tshs were shares, and 9,282,000/= Tshs were savings/deposit.
Products
The products noted under objective number 2 and 3 were the acceptance of application for registration by the Registrar and ultimately offer of registration for LAKWAO TSACCOS (2008) LTD and the positive altitudes of the Community members toward joining the SACCOS.
Objective 4
To increase employment opportunities up to 150 people
Outputs
Under this objective, 54 group leaders were trained on entrepreneurship skills
Products
Under objective number 4, 44 IGA groups were operating their business in a well organized way with appropriate business plans in place.
Before starting other activity implementation, the community members were sensitized on micro-enterprise and informal sector knowledge by using sensitization meetings. Community members were sensitized and equipped with knowledge on the importance of savings and credit co-operative society (SACCOS) and advantages of saving and depositing of their little earnings in the community owned SACCOS. The UMAKWA CBO leaders, District Co-operative officer and the researcher conducted 17 sensitization meetings in 17 villages on the importance of microenterprise, informal sector and Savings and Credit Co-operative society (SACCOS). The cost for sensitization meetings which was about one million Tanzanians shillings shared between Kwamtoro ADP and UMAKWA CBO.
During the implementation, representatives from the 44 groups out of 54 targeted groups of income generating activities were trained on micro-enterprise skills. The training was divided into four phases of forty members each. However, only thirty members were attended during the last phase, making the total members attended the training to be 150 instead of the 160 targeted members. Each group was represented by 3 to 4 group members. Two facilitators from the District Council and one from other NGO were requested to facilitate the training while World Vision Tanzania through Kwamtoro Area Development Programme facilitated the costs of the training for 8 days. The total cost for the training amounted to 2,750,000/=Tshs.
After the training, ten groups were supported with sewing machines as working facilities while four groups were provided with bee hives and carpentry tools to inputs. These appropriate facilities will not only increase the respective group production efficiency but also contribute to increase of quantity and qualities of their expected output and product hence raise their income in the future. All facilities were provided by Kwamtoro ADP at the cost of 2,150,000/=Tshs.
The project facilitated the selection of the SACCOS interim committee of 15 members and trained them on effective operation of primary SACCOS. The interim committee members formed the Management Board, Supervision committees, Loan committee, and Education & Promotion sub-committee. The selection of the 15 interim committee members was led by the District Co-operative Officer as per Co-operative Act no 20 of 2003 guideline. The District Co-operative Officer trained the committee members on effective ways of running primary SACCOS. In collaboration with the SACCOS interim committee, the project managed to form a community owned Savings and Credit Cooperative Society called LAKWAO TSACCOS (2008) LTD (Lalta, Kwamtoro and Ovada Talanta SACCOS Ltd). Up to the end of July, 2009 the SACCOS had 105 members with the total entrance fees 700,000/=Tshs, shares 2,502,000/=Tshs, savings and deposits 9,282,000/= Tshs amounting to a total of 12,484,000/=Tshs. The formed SACCOS has already prepared its constitution, savings & deposit and loan policies which were also reviewed by both District Co-operative Officer and Registrar of Co-operatives, hence granted registration on 15th June, 2009 with registration number DOR 707. Up to the end of July, 2009, the performance and accomplishment of various activities resulted to 150 community members being trained and practicing micro-enterprise and business in the community. 14 groups of income generating activities have been supported with appropriate facilities such as sewing machines, bee hives and carpentry tools and inputs. 15 members of the interim SACCOS committee were in place and leading the day to day SACCOS activities on voluntary basis. The SACCOS constitution reviewed by both District and Region Officers is in place. Other important documents in place are LAKWAO TSACCOS Loan Policy and the Savings & Deposit Policy. These Policies together with the Constitution will provide the guideline for the day today operation of the SACCOS. After the registration of the LAKWAO TSACCOS (2008) LTD, the interim committee in collaboration with other stakeholders managed to facilitate official inauguration of the SACCOS which accompanied with promotion activities. The Minister for Energy and Minerals Honorable William Ngeleja was the Guest of honour during the event which took place at Ovada village on 29th July, 2009.
4.2 PROJECT PLANNING
(a) Project implementation plan
Basically, the project had five objective had to be achieved through accomplishment of a number of activities. These activities were to facilitate 4 trainings on micro-enterprise knowledge to 160 members, support IGA’s groups with appropriate facilities such as sewing machines & carpentry tools, facilitate 17 sensitization and awareness creation meetings to community on SACCOS issues, facilitate selection of interim committee within their respective villages and train them on effective operation of primary SACCOS.
Other activities were to facilitate the interim committee to prepare Constitution, Loan Policy, and Savings & Deposit Policy, assist interim committee to register the SACCOS legally and eventually facilitate interim committee or Board members to visit similar organization within Tanzania for learning visit.
Up on registration, the project will facilitate promotion and inauguration activities and provide various prizes to 10 members with more portfolios and eventually the project will support SACCO’s staff with salary and benefit for efficient and active project implementation. Project activities are also explained clearly in the table No 13 bellow and in the Logical frame work matrix attached in the appendix



Table No 16: Project Implementation Plan
Objective1
To increase knowledge and practice of microenterprise to 54 income generating activity groups by the end of 2009.


Activities Project month Resources needed Person responsible
j a s o n d j f m a m j
1.1 To conduct 4 trainings on microenterprise knowledge to 54 income generating activity groups of 160 people.








x



x


x


x Trainees, Trainers, stationeries, money, transport, meals, accommodation and drinks.
UMAKWA Chairperson & Researcher.
1.2 support income generating activity groups with appropriate facilities like sewing machines, carpentry tool/inputs


x Money for buying facilities. UMAKWA Chairperson & Researcher.
Objective 2
To increase knowledge, participation and management to 1,000 Community members on SACCO’s issues.

2.1 To conduct 17 sensitization and awareness creation meetings to community members on SACCO’s issues- i.e. savings deposits, joining & buying shares.







x Transport, meals, soft drinks, loudspeaker, facilitator and money for facilitation fees. UMAKWA Chairperson & Researcher.
2.2 facilitate selection of SACCO’S interim committee of 15 members. x Transport & meals Researcher.

2.3 Train 15 SACCO’S interim committee members on effective operation of primary SACCOS that is Management Board, Supervision committee, loan committee, and education & promotion sub-committees.






x
Trainees, Trainers, stationeries, money, transport, meals, accommodation and drinks.
UMAKWA Chairperson & Researcher.
2.4 Train key employees (secretary & Accounting clerk) of SACCOS on relevant skills focusing on effective operation & accounting system as per Tanzania cooperative ACT No 20 of 2003.




x Trainees, Trainers, stationeries, money, transport, meals, accommodation and drinks. UMAKWA Chairperson & Researcher.
2.5 To facilitate the SACCO’S committee to prepare SACCOS constitution, loan policy, savings and deposits policy.


x Stationeries, transport, meals, accommodation and drinks. UMAKWA Chairperson & Researcher.
2.6 Assist the SACCOS interim committee to register the SACCOS as per Tanzania cooperative ACT NO 20 of 2003.

x

Money for travel & networking. UMAKWA Chairperson & Researcher.
2.7 support interim committee members to visit other similar organization within Tanzania for learning purpose.

x

Meals, accommodation, transport costs and institutional fees. UMAKWA Chairperson & Researcher.
Objective 3
Increase savings, deposits and shares to 30,000,000/= Tshs by the end of 2009.

Activities Project month Resources needed Person responsible
j a s o n d j f m a m j
3.1 Conduct promotion activities through use of meetings, T-shirts, posters and leaflets.





x



x

x Money, t-shirts, posters, leaflets & transport costs UMAKWA Chairperson & Researcher.
3.2 Provide prizes like special T-shirts, 1-2 shares to members with more savings and shares.



x x Money, t-shirts & transport costs UMAKWA Chairperson & Researcher.
Objective 4
To increase employment opportunities to 150 people by the end of 2009

Activities
Project month

Resources needed Person responsible
j a s o n d j f m a m j
4.1 Train 54 leaders of IGAs on entrepreneurship skills









x Trainees, Trainers, stationeries, money, transport, meals, accommodation and drinks. UMAKWA Chairperson & Researcher.

Objective 5
To support SACCO’s staff for effective and efficient project implementation.

Activities
Project month
Resources needed Person responsible
j a s o n d j f m a m j


5.1 Facilitate staff salary payment to the SACCOS Secretary or manager.


















x

x

x

x Money, stationeries, employees. SACCOS Chairperson & Manager.
5.2 Facilitate benefit payment to the SACCOS Secretary or manager.

x

x

x

x Money, stationeries, employees SACCOS Chairperson & Manager.

5.3 Facilitate salary payment to the SACCOS Account clerk.

x

x

x

x Money, stationeries, employees SACCOS Chairperson & Manager.
5.4 Facilitate benefit payment to the SACCOS Account clerk.


x

x

x

x Money, stationeries, employees SACCOS Chairperson & Manager.

(b)Inputs
During project implementation, a number of inputs were used to enable the activity accomplishment. These inputs included training facilities and equipments such as flipcharts, note books and exercises books, ball pens, transport facilities, motor vehicles, loudspeakers, t-shirts, posters, banners & leaflets, financial documents like receipt books, membership ledger book, passbooks, Trainers and Facilitators and funds or money.
Others were sewing machines, carpentry tools and inputs like hammers, cutting saws, other documents such as Co-operative Development Policy of 2002, the Co-operative Act no 20 of 2003, the Small and Medium Enterprise Development Policy of 2000 as guideline and references for the training and process towards registration of SACCOS and formation of Micro-enterprises and Income Generating Activities.
(c) Staffing Pattern
Since the project involved also the formation of a community owned SACCOS, there was an organization structure which included also staff for the day today operation and running activities. The overall management of the SACCOS was under the Management Board of not more than 9 people including supervision committee of 3 peoples. Under the Board there were Loan committee and Education & Promotion subcommittee to facilitate loan and promotion activities respectively. Both the chairperson and Management Board are accountable to the general meeting assembly, though the Chairperson led the Board.
As well, there was a Secretary or SACCOS Manager who supervised the day to day activities and other staff. The SACCOS Manager is accountable to the Management Board. Under the Secretary or Manager, there was an Accounts Clerk to deal with all financial transaction and book-keeping of the SACCOS.
The manager needed training on fund raising and business promotion, how to manage the SACCOS, with reference to the Co-operative Development Policy of 2002 and Co-operative Act no 20 of 2003. The SACCOS Account Clerk needed training on SACCOS Accounting, Co-operative Accounting, book-keeping and customer care services.
(d) Budget
The budget for this project came from different stakeholders. The host organization (UMAKWA CBO), World Vision Tanzania through its community based Programme i.e. Kwamtoro Area Development Programme, the community and the Kondoa District Council contributed through technical advice during and after the project implementation.
World Vision through Kwamtoro Area Development Programme provided a temporary office at Ovada village free of charge. Kwamtoro Area Development Programme paid all the training costs pertaining to the Income Generating Activities, micro-enterprise, entrepreneurship skills, SACCOS, microfinance, study visits, promotion activities and other supporting items. On the other hand, the host organization (UMAKWA CBO) footed the cost for training of the 15 SACCOS interim committee members, registration costs and prize cost for the competition winners. The community members have been paying the cost for fare to the training centers, costs during the selection of the 15 interim committee members and during the preparation of the SACCOS important documents. The formed SACCOS paid all the salaries and benefits of the employees i.e. SACCO’s Manager and Accounts Clerk.
At the beginning, the SACCOS Manager preferably to be a SACCOS member, paid 180,000/=Tshs per month while the Accounts Clerk also preferably a SACCOS member was paid 150,000/=Tshs. The Management Board worked on voluntary basis until the SACCOS financial and economic status stabilizes.
4.3PROJECT IMPLEMENTATION
(a) Project implementation report
Despite the challenges associated with shortage of time, the project managed to accomplish most of the planned activities. The project managed to conduct 4 trainings on micro-enterprises and 1training on entrepreneurship skills whereby 150 community members and 54 group representatives participated. These trainings were preceded by 17 sensitization and awareness creation meetings to community on SACCO’s issues whereby 2,752 people attended the meetings.
After the training of the Income Generating Activities group members and their leaders and representatives, appropriate working facilities were provided to 15 groups with sewing machines and 10 groups with carpentry tools.
In addition, 15 SACCOS interim committee was selected from the respective village and trained on the effective operation of primary SACCOS. The interim committee was facilitated to prepare SACCOS Constitution, Loan Policy and Savings & Deposit Policy. These SACCOS important document enabled both District and Region co-operative Officers to register the SACCOS on 15th June, 2009 with Registration number DOR 707.
After registration of the SACCOS, the project conducted Promotion activities during inauguration which took place on 27th July, 2009 whereby Minister for Energy and Minerals Honourable William Ngeleja was the Guest of honour. During inauguration and promotion event, 2,800,000/=Tshs Donated by new members and other stakeholders through contributions.
Moreover, one cell phone was donated by the Minister for SACCO’s office operation apart from the promise of solar power installation at the SACCOS building. As of July, the SACCOS managed to collect 12,484,000/=Tshs from members.
The SACCOS managed to employ one Accounts Clerk while the Board members were still working on voluntary basis.
However, some of the activities were partially or not implemented due to various reasons. These activities included trainings whereby some of the participant didn’t come. Other activity was exposure visit to other similar organization for learning purpose which rescheduled for the end of 2009.

(b) Project Implementation Gantt chart
Table No 17: Project Actual Implementation

PLAN ACCOMPLISHMENTS
Objective Outputs Activities Activities/outputs Means of Verification Comments


1.To increase knowledge and practice of microenterprise to 54 groups of income generating activities by the end of 2009 1:1 160 peoples knowledgeable on microenterprise skill and practicing business. 1.1.1To conducts 4 trainings on microenterprise knowledge to 160 people for 2 days.
• 4 trainings were conducted and 150 peoples trained on microenterprises. • Minutes of the training.
10 peoples didn’t turn up during the last phase of training.
1:2 25 IGA’s groups supported with appropriate facilities. 1:2:1 support IGA’s groups with appropriate facilities (15 sewing machines & 10 carpentry tools • 10 groups of income generating activities have been supported with sewing machines, while 4 groups provided with bee hives and carpentry tools and inputs. • Inputs and facilities provided.
• Dispatch book or GIN Other 11 groups will receive facilities in the next financial year.
PLAN IMPLEMENTATION
Objective 0utput Activity Activity/outputs Means of verification Comments



2. To increase the knowledge, participation and management of 1,000 community members on SACCOS issues by the end to 2009.







2.1 17 sensitization meeting to be conducted and 2,500 people expected to attend meetings.
2.1.1 Facilitate 17 sensitization and awareness creation meetings to community on SACCO’S issues.
• 17 sensitization meetings were facilitated and 2,752 people were attended the meetings. • Attendance list
• Sensitization reports. Many people attracted by the meetings hence attendance were more than expectation.
2.2 15 SACCO’s interim committees members selected and leading the SACCOS.

2.2.1 Facilitate selection of 15 SACCO’S interim committee within their respective villages and meet at Ovada for one day workshop.
• 15 SACCO’s interim committee’s members were selected and attended workshop. • Attendances register.
• Minutes of the meeting. All 15 members are very active towards the SACCOS operation.
2.3 15 knowledgeable SACCO’s committee members on SACCO’s operation. 2.3.1 Train 15 SACCO’S interim committee members on effective operation of primary SACCOS for 2 days. • All 15 committee members were trained on primary SACCO’s operation. • Training reports.
• Attendances register. All members were trained.





PLAN IMPLEMENTATION
Objective 0utput Activity Activity/outputs Means of verification Comments
2.4 trained key employees of SACCOS (secretary &Accounting clerk) on relevant skills.
• 2.4.1 Train 2 key employees of SACCOS (secretary & Accounting clerk) on relevant skills. • The key employee are not yet employed • Employment contracts.
• Interview minutes. Employment of key employees will take place after Board selection.
2.5 prepared constitution, loan policy, saving and deposit policy in place.

2.5.1 To facilitate the SACCOS interim committee to prepare constitution, loan policy, savings and deposits policy.

• SACCO’s constitution, loan, policy and savings & deposit have has been prepared. • Approved hard copies of constitution & policies are available and in use.
• Project reports. All document prepared and agreed by the general assembly meeting and reviewed by Registrar of cooperatives.
2.6 registered SACCOS in operation. 2.6.1 Assist the interim committee to register the SACCOS legally.
• The SACCOS registered on 15th June, 2009 with registration number DOR 707. • Registration or project report.
• Registration certificate in file. The SACCOS registration was done on 15th June 2009.
2.7 SACCO’S committee visited other similar organization in Tanzania. 2.7.1 Support interim committee members to visit other similar organization within Tanzania for learning. • The visit to Kagera Zone has been planned. • Visit repots.
• Project report. The activity is planned to be in September, 2009.


PLAN IMPLEMENTATION
Objective Outputs Activities Activities/outputs Means of Verification Comments

3. To increase savings, deposits and shares to 30,000,000/= Tshs by the end of 2009. 3.1 Promotion & inauguration event is conducted. 3.1.1 Conduct promotion & inauguration activities through use of meetings T-shirts, posters and leaflets.
• The promotion and inauguration event conducted on 27th July, 2009 by Minister for Energy and Minerals Honorable William Ngeleja. • Project or village report.
• Minutes and attendance list.
• Distribution list.
• handing over report The promotion and inauguration event conducted and 3 million raised, one cell phone provided and promise of solar power installation by the Minister.
3.2 prizes like t-shirts provided to 10 best members. 3.2.1 Provide prizes (special T-shirts) to 10 members with more shares, savings and deposits. • 5 t-shirts, two bicycles and 3 certificates were provided to best members and the SACCOS. • Project report.
• Distribution list.
• handing over report The activity was done.

4. To increase employment opportunity to 150 people by the end of 2009. 4.1 54 group leader of IGAs trained on entrepreneurship skills 4.1.1 Train 54 group leaders of IGAs on entrepreneurship skills • 54 leaders were trained on entrepreneurship skills • Trainings reports
54 group leaders were trained. The improvement of income generating activities will ultimately create job opportunities.




5. To support SACCO’s staff for efficient and active project implementation by the end of 2009. 5.1 secretary or manager being receiving salary on monthly basis 5.1.1 Facilitate staff salary payment to the SACCOS Secretary or manager. • No salary payment has been effected so far. • Salary slip Salary payment to start after recruitment
5.2 secretary being receiving benefits monthly. 5.2.1facilitate benefits payment to the SACCOS Secretary or manager.
• No benefit payment has been effected so far. • Salary slip Benefit payment to start after recruitment.
7.3 Account clerk receiving monthly salary. 7.3.1 Facilitate salary payment to the SACCOS Account clerk. • No salary payment has been effected so far. • Salary slip Salary payment to start after recruitment
7.4 Account clerk receiving benefits monthly. 7.4.1 Facilitate benefit payment to the SACCOS Account clerk. • No benefit payment has been effected so far. • Salary slip Benefits payment to start after recruitment

4.4 SUMMARY
This chapter presented the products and outputs, project planning and project implementation report. It analyzed what were the planned activities, the accomplished and actual implemented in the course of the project. Under this chapter, Inputs, Staff Pattern and the Project Budget were discussed and analyzed. Partially and unimplemented activities were highlighted with the reasons for not accomplished or partially accomplishment.


















CHAPTER FIVE: PARTICIPATORY MONITORING, EVALUATION &
SUSTAINABILITY

Monitoring of the project was carried out throughout the project implementation. Always monitoring was performed with the UMAKWA CBO staff and the SACCOS interim committee members. The UMAKWA Board of trustees was responsible to monitor the entire task under the project. Monitoring was continuously done to enable the CBO to analyse the current situation, identify problems and find solutions, to discover trends and patterns, keeping project activity on schedule and measure progress towards objectives and formulate accordingly.
Since the project got support from other stakeholders like World Vision, the Participatory monitoring was done through field visits and routinely progress reports.
During the course of implementation, the staff from The Open University of Tanzania participated in the monitoring process and added inputs to the UMAKWA CBO leaders and the researcher on how to make the project implementation effective and sustainable for the future after the researcher vacates the project area. Dr. Sinda Hussein Sinda represented The Open University of Tanzania to participate in monitoring process.
(a) Importance of Participatory Monitoring
The Importance of Participatory Monitoring is to assist the implementer to see whether the project is keeping on track, it helps to report on progress towards the goals and objectives.
(b)Monitoring and Research Methodology
(i) Participatory Monitoring objectives
The main objective of Participatory monitoring was to check whether the project plan were proceeding in the right track in terms of planed activities, inputs and resources so as to achieve the set project objectives. The project objectives included to increase knowledge and practices of micro-enterprises to 54 Income
Generating Activities groups, to increase knowledge, participation and management to 1,000 Community members on SACCO’s issues, to increase savings, deposits and shares to 30,000,000/= Tshs, to increase employment opportunity to 150 peoples and to support SACCO’s staff for effective and efficient project implementation.
(ii) Monitoring Questions
The following questions were used to guide the monitoring process during field visit exercise and used to recheck on the day to day activities if are complying with our objectives. 1. Are the planned activities done and on time? 2. Are the stakeholders met their promises regarding their contribution to the project 3. Are the resources budgeted utilized effectively as planned? 4. Is each staff in his position and on duty? 5. Do we need to reschedule our work plans?
After the collection of data and information, the researcher led the CBO personnel to analyse the information and use for adjustment where went wrong.


(iii) Research Design
The research design focused on what will be done in the Participatory monitoring aiming at collecting quantitative and qualitative data regarding the trend of the project implementation. The design involved the participation of other stakeholders, implementers and beneficiaries to keep record of their day to day operations.
(iv)Research Methods
The research methods used during the Participatory Monitoring included: Stakeholder’s workshops, Self-esteem, Associative strengths, Resourcefulness, Action planning, Responsibility (SARAR), Beneficiary assessment and Self-Assessment methods. It also included Documentary review, Interviews and Participatory Observation. Secondary data and information were collected from daily reports from IGA’s, and Government reports at village, Ward, and Division level. A participatory Observation method enabled to observe physical things such as socio-economic activities going on and was recorded using prepared checklist tool. All these methods enabled the researcher and the CBO officials to record and identify what were not working in the right track.
(v)Research Tools used
The research tools used to collect data and information were Focus Group Discussion, interview guide, checklist and questionnaires.
(vii)Sampling and sample size

The total population of ten villages where the study was done is approximately nineteen thousand four hundred and seventeen (19,417) with total number of households ranging to five thousand and forty seven (5,047). Leaders of Small groups of common interest like income generating activities groups, cultural groups, and business men or women were involved in daily routine. Another group of 20 people comprising NGOs like World Vision, Faith Based Organizations like mosques and Churches were represented by their respective leaders, UMAKWA Board members, and Technical staff such as Rural Extension Officers.
(viii) Findings, Data analysis and presentation

The following were observed during the routine monitoring process:
 4trainings involved 150 peoples were conducted on microenterprise skills.
 10 groups of income generating activities have been supported sewing machine, while 4 groups were supported with bee hives and carpentry tools.
 17 sensitization meetings have been facilitated and 2,752 members attended.
 15 SACCO’s interim committee members were selected and trained on primary SACCO’s operation.
 Provisional SACCO’s constitution, Loan Policy and Savings & Deposit Policy have been prepared and reviewed by both SACCO’s members and District Cooperative officer.
 105 community members joined the formed LAKWAO TSACCOS LTD with their portfolio of 12,484.000/=Tshs.
 54 leaders of IGAs were trained on entrepreneurship skills.
 17 sensitization meetings were conducted in ten villages on the importance of IGA and financial intermediaries and 13 sensitization meeting were conducted in thirteen villages on youth to engagement in informal sector.

Table No 18: Monitoring Framework



Objectives

Activities

Data source

Methods and tools

Results



1. To increase knowledge and practice of microenterprise to 54 groups of income generating activities by the end of 2009.
1.1 Conduct 4 trainings on microenterprise knowledge to 160 people for 2 days.
- Training reports.

- Attendance list.
-Documentary review
- Focus group discussion  4 trainings involved 150 people were conducted on microenterprises skills.



1.2 support IGA’s groups with appropriate facilities (15 sewing machines & 10 carpentry tools - Project reports.
- Handing over reports.
- Distribution list. - Observation.
-Documentary review.
 10 groups of income generating activities have been supported with sewing machines, while 4 groups have been supported with bee hives and carpentry tools.













2.
To increase the knowledge, participation and management to 1,000 community members on SACCOS issues by the end to 2009.
2.1 facilitate 17 sensitization and awareness creation meetings to community on SACCO’S issues.


- Project repots.
- Minutes and attendance list.


-Observation
- Documentary review

 17 sensitization meetings have been facilitated and 2,752 attended.

2.2 facilitate selection of 15 SACCO’S interim committee within their respective villages and meet at Ovada for one day workshop.

- Project repots.
- Minutes and attendance list.



- Documentary review
 15 SACCO’s interim committee members were selected and trained on primary SACCO’s operation.
2.3 Train 15 SACCO’S interim committee members on effective operation of primary SACCOS for 2 days.

- Training reports.

- Project reports.


- Documentary review
 15 SACCO’s interim committee members were selected and trained on primary SACCO’s operation.

2.5 To facilitate the SACCOS interim committee to prepare constitution, loan policy, savings and deposits policy,


- Project reports.
- Documentary review.

-Observation
 SACCO’s constitution, Loan Policy and Savings & Deposit Policy have been prepared and reviewed by both District and Regional Cooperative officer.
2.6 Assist the interim committee to register the SACCOS legally.
Registration and project reports.
- Original certificate file.
- Documentary review.

-Observation  The SACCOS has been legally registered by the registrar of cooperatives on 15th June, 2009.




Objectives

Activities

Data source

Methods and tools

Results

3. To increase savings, deposits and shares to 30,000,000/= Tshs by the end of 2009.




3.1 sensitize community members to join the community owned SACCOS
-Sensitization reports.
- Documentary review.
- Questionnaires
 105 community members joined the formed LAKWAO TSACCOS LTD with their portfolio of 12,484,000/=Tshs.


4. To increase employment opportunity to 150 people by the end of 2009.



4.1 Train 54 group leaders of IGAs on entrepreneurship skills.

- Training reports.

- Project reports.

- Documentary review.
- Questionnaires

 54 leaders of IGAs were trained on entrepreneurship skills.




(iii) Validity and Reliability.

The questionnaires were tested in a pilot socio-economic group at Ovada which was among the sampled villages. The aim was to test our tools so as to get practical view of the tools. This was done in both in meeting and interview by Focus Group Discussion. The process was very participatory with other stakeholders, whereby the tools were amended and adjusted accordingly. All respondents were assured about confidentiality of the information they offered and that were for research and academic purpose, hence this motivated them to feel free to speak their truly inner heart feelings to enrich the day to day routine
Data collectors encompassed natives who had limited education but could speak native (vernacular) language and one skilled enumerator who assured consistent and accuracy of question asked vis-à-vis response from interviewee. This enhanced validity and reliability of data collected because the native could probe more about the matter even using vernacular language so as to get right answers.








5.2 PARTICIPATORY EVALUATION
(a) The Importance of Formative and Summative Evaluation

The main objective of the Evaluation was to assess accomplishment and impact of the project initiative particularly the activities done after need assessment. Formative evaluation was intended to highlight accomplishments since the beginning of the project design by both the UMAKWA CBO, the researcher, the community and other stakeholders.
On the other hand, the summative evaluation focused on the impact of the project for time since the researcher started to engage with the UMAKWA CBO (the host organization).
Formative evaluation is a method of evaluating the importance of a project while the project activities are still on progress. It focuses on the process level and it is used for assessing the project as it progress, to find out the extent of project implementation. This method of evaluation determines improvements and adjustments needed to attain the project objectives. It is conducted normally more than once with the aim of improving where necessary.
Summative evaluation is a method of evaluation whereby it focuses on the impact of the project at the end of the implementation. It focuses on the outcome and it is used to find out the extent to which the project objectives were achieved and to determine whether the project components should be revised, redesigned, continued, or terminated. It provides information on the product’s efficacy in terms of effectiveness, efficiency and usefulness of the project. This method normally involves quantitative using percentages, numeric scores or grades to assess achievements.
(b) Evaluation Research methodology
(i) Evaluation objective
The main objective of Participatory Evaluation was to assess the impact and accomplishment of the project. It was intended to be both Summative and formative whereby concrete outcomes for each goal were outlined and provide guidance and recommendations designed to strengthen or improve the project, make it sustainable or enhance performance and productivity.
(ii) Evaluation Questions
The following questions were used during Participatory Evaluation objectives. 1. Are the planned activities done and on time? 2. Are the stakeholders met their promises regarding their contribution to the project 3. Are the resources budgeted utilized effectively as planned? 4. Is each staff in his position and on duty? 5. What were the project outcomes? 6. Were the project goal and objectives achieved? 7. What are the learning and recommendations from the project implementation?
(iii)Research Design
The research design focused on what will be done in the Participatory Evaluation aiming at collecting quantitative and qualitative data regarding the impact and accomplishment of the project. It involved the process of ascertaining the concrete outcomes derived for each goal and provision of guidance and recommendations designed to strengthen or improve the project, make it sustainable or enhance performance and productivity.
(iv) Research Methods
The research methods used during the Participatory Evaluation included: Stakeholder’s workshops, Beneficiary assessment and Self-Assessment methods. It also included Documentary review, Interviews by Focus Group Discussion and Participatory Observation. Secondary data and information were collected from daily reports from IGA’s, and government reports at village, Ward, and Division level. A participatory Observation method enabled to observe physical things such as socio-economic activities going on and was recorded using prepared checklist tool. All these methods enabled the researcher and other stakeholders to record, analyze, and provide results, recommendation and leanings for improvement and project sustainability.
(v) Research Tools used.
The research tools used to collect data and information were Focus Group Discussion, interview guide, checklist and questionnaires
(vi) Sampling and sample size
The sampling and sample size for Participatory Evaluation was the same as the one used in the previous Participatory Monitoring.
(vii)Finding, Data analysis and presentation
Before starting evaluation exercise, the first thing was to design questionnaire basing on the performance indicators stated in the respective objectives. Some of the questions were: “How many IGA groups are running their businesses in profitable manner?” “How many Group leaders are knowledgeable in microenterprise?” Those are kind of questions informed the evaluator in terms of status IGAs operating in the area. Participatory Observation to some of IGAs operating also used to compliments information obtained from face to face interview. There was also Documentary review to assess how those IGA doing as per expected standard and also to assess accomplished activities as per implementation plan/log frame.
(c) Performance Indicators
Every objective has a performance indicator which reflects success or progress toward achievement of the outlined objectives. The following are those indicators which are also attached in the evaluation table:
Table No 19: Performance Indicators

S/N Objective Performance indicators
1. To increase knowledge and practice of microenterprise to 54 groups of income generating activities by the end of 2009 - Number of groups and group members knowledgeable and practicing microenterprise
2. Increase the knowledge, participation and management to 1,000 community members on SACCOS issues by the end to 2009
- Number of Community members knowledgeable in SACCOS Management
3.


To increase savings, deposits and shares to 30,000,000/=Tshs by the end of 2009. - Number of community members joined SACCOS.

- Amount of money collected as shares, saving and deposits
4. Increase employment opportunity to 150 people by the end of 2009. - Number of people employed
5. To support SACCO’s staff for efficient and active project implementation by the end of 2009. - Number of SACCO’S staff employed and receive monthly salary and benefits.
(d)Formative evaluation results:
The following are accomplishment of the project in the area as found in formative evaluation:
(a) 4trainings involved 150 people were conducted on microenterprises skills.
(b) 10 groups of IGAs were supported with sewing machines, 4 groups with bee hives and carpentry tools & are practicing.
(c) 2,752 members attended 17 sensitization meetings.
(d) 15 SACCO’s interim committee members were selected and trained.
(e) SACCO’s constitution, loan and saving policies have been prepared and reviewed by SACCO’s members District Cooperative officer and Regional cooperative officer
(f) The process of registration has been reached at district level
(g) 105 community members joined the formed LAKWAO TSACCOS LTD with their portfolio of 12,484,000/=Tshs.
(h) 95 community members have been employed direct and indirect in the IGAs.
Summative evaluation
The following outcome reflected in the summative evaluation of the project which intended to promote income generating activities, saving and credit behavior:
b) The prepared questionnaires were distributed to all leaders of 44 trained IGA groups. 37 trained IGA group leaders appreciate change in their business attitude. Formally, they were not writing proper records of their business, but nowadays they keep proper records as a results they know status of their business. “I used to do business and use money to settle various obligations such as family expenditures, school fees, and other community contribution in our village without recording anywhere and no calculation of daily, weekly, monthly profit or loss. But nowadays everything is being recorded” said Ayub Sereri from Ching group.
b) The awareness created during sensitization and entrepreneurship and fund rising skills enabled the UMAKWACBO to write 2 proposals, one for Sunflower oil machines for three IGA groups from World Vision Ireland, and another one is for construction of Girls Dormitory at Msakwalo from Japan Embassy.
(c)Japan embassy agreed to support 99 million for the Dormitory project, while World Vision Ireland promised to support the Sunflower oil Project.
d) The saving habit among community members have changed compared before the establishment of the LAKWAO TSACCOS (2008) LTD. One of the community members from Wairo Village decided to save 2.5 million and said “I used to save my money in pots where it was risk for my life and my money. Today I can sleep comfortably since everyone in the village knows that I have surrendered my money to the SACCOS. Moreover, it is impossible to spend my money for unnecessary expenditure compared the previous days”. Said Mr.Shaban Njiku, SACCO’s member from Wairo Village.
d) More than 70% of the SACCOS members are knowledgeable of the SACCOS issues. They can explain and understand the meaning of the Cooperative terms such as entrance fees, Members share, savings and deposits. 63 SACCOS members out of 89 managed to differentiate entrance fees, shares, savings and deposits.

Table No 20: Evaluation Framework

Goal Objective Performance indicators Data source Methodology Results
1. To increase knowledge and practice of microenterprise to 54 groups of income generating activities by the end of 2009. 1.0 To assess microenterprise knowledge and practices IGA groups.
Number of groups and group members knowledgeable and practicing microenterprise • Training reports.
• Attendance list
• Reports from micro credit development officer. • Documentary review
• Focus Group Discussion
• Review business records.
• Observation. • 4trainings involved 150 people were conducted on microenterprises skills.
• 10 groups of IGAs were supported with sewing machines, 4 groups with bee hives and carpentry tools & are practicing.


2. To increase the knowledge, participation and management to 1,000 community members on SACCOS issues by the end to 2009 To assess the knowledge, participation and management of community members on SACCOS issues. Number of Community members knowledgeable in SACCOS Management • Project repots.
• Minutes and attendance list.
• Observation
• Documentary review
• 2,752 members attended 17 sensitization meetings.
• 15 SACCO’s interim committee members were selected and trained.
• SACCO’s constitution, loan and saving policies have been prepared and reviewed by both SACCO’s members and District Cooperative officer.
• The process of registration has been reached at district level
3. To increase savings, deposits and shares to 30,000,000/= Tshs by the end of 2009
To assess the position of the SACCOS in terms of portfolio.
Number of community members joined SACCOS.
Amount of money collected as shares, saving and deposits

• Sensitization reports
• Monthly Reports
• Interview
• Questionnaires
• Documentary review.

• 105 community members joined the formed LAKWAO TSACCOS LTD with their portfolio of 12,484,000/=Tshs

4. To increase employment opportunity to 150 people by the end of 2009.
To asses new employment created as a result of strengthening of IGAs Number of people employed
• Training reports.
• Project reports. • Documentary review.
• Questionnaires • 95community members have been employed direct and indirect in the IGAs.





(viii) Validity and Reliability
The validity and reliability criteria in the Participatory Evaluation were the same as those appearing in the previous Community Assessment and Participatory Monitoring.
5.3 PROJECT SUSTAINABILITY PLAN
5.3.1Sustainability
The promotion of income generating activity, savings and credit project is a sustainable project in the sense that it is a community based and owned from the planning stage to evaluation stage. The community members who are the primary beneficiaries involved on the identification and selection of the project.
The SACCOS which is currently owned by the members from the community will depend on the interest rate earned from the loan disbursed to its members. Other income will be from penalties, grants and loan from other financial institutions. The SACCOS as one the financial institution can mobilize savings from the community members, whereby it can use that savings for business and investment promotion in the community. In addition, strengthening small and medium enterprises and business provides wealth and ownership opportunities to the groups that face socio-economic exclusion and discrimination. Therefore, individual members and groups participating in micro business increase their rate of business ownership. Strengthening of microenterprises and micro businesses is a unique process in this project in the sense that it offers individuals the opportunity not only to generate income but also build assets and to save as owners, not just workers. All these substantiate the project sustainability.
5.3.2 Sustainability plan and sustainable development
The project aimed at sustainable development economically, socially and environmentally. Through increase of knowledge and practice of micro-enterprises, the community members increase savings, deposits and shares. This will lead to efficient utilization of accumulated resources (money) whereby investors can access easily and invest the money in productive businesses hence increase income and wealth among the community members. Moreover, the use of income generating activity groups and SACCO’s groups will increase social coercion and social capital among community members. Women participation in income generating activities and in savings and credit will be highly encouraged to empower women and eventually take leadership position.
The project emphasized more on the women and girls participation during the formation of socio-economic group. Parents were sensitized to save more for their children’s needs such school fees and other education support for both (girls and boys). Other social groups like traditional dancing groups football clubs, FBO’s groups (churches & mosques) were organized & mobilized to form groups and join SACCOS.
In addition, People with disabilities and other abnormalities were sensitized and encouraged to form socio-economic groups so as join SACCOS. Moreover, Income Generating Activities and other informal sector activities which are not environmental friendly were highly discouraged. Business activities like charcoal burning and fire wood selling business were discourage instead environmentally friendly activities like use of biogas, seedlings and tree planting activities were highly supported.
Other stakeholders like financial institutions such as Banks will be involved for financial consultations and advice pertaining finance issues. UMAKWA CBO and World Vision will continue to support the project financially. The District Government particularly through District Community Development and Co-operative Officers will continue to guide the SACCOS and Income Generating Activities.
5.3.3 Strategic Planning and Management
The project is highly supported by the community, local Government authority and other NGOs like World Vision due to the fact that, they were all involved in design and agreed to support the project. As outlined in the project design, the community members are the owners of income generating businesses i.e. entrepreneurs and also owners of the formed SACCOS by paying their entrance fee, buying shares and depositing savings and deposits in the SACCOS.
The Government authority as an important stakeholder is not only responsible for legal registration of the SACCOS and Small & Medium Enterprises in the community but also to build capacity and support them. The District Development Officer, Business or Commercial Officer and Co-operative Development Officer will continue to be lead facilitators and trainers of the business group’s entrepreneurs, SACCO’s management Board and other sub-committees.
Both World Vision and UMAKWA CBO agreed to support the project because it is in line with their strategic plan of empowering the poor community in sustainable issues. World Vision through its community based programme at Kwamtoro offered a temporary office freely for a new established SACCOS. Commercial banks like NBC, CRDB and NMB are other important stake holders’ in terms of financial services.
Nevertheless, the overall objective of the project is to contribute to sustainable development and poverty reduction in line with the National Vision of 2025 and The National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA) as well as other National Development and Poverty Reduction Programmes. It is also in line with The Small and Medium Enterprise Development Policy of 2002, whose overall objective is to foster job creation and income generation through promoting the creation of new small and medium enterprises and improving the performance and contribution to the Tanzania economy. One of the policy statement states that, “The Government will promote entrepreneurship development through facilitating improved access of small and medium enterprises to financial and non financial services”.
Another policy sustaining the project is The National Microfinance Policy (2000) which covers the provision of financial services to households, small holder farmers and small micro enterprises in rural areas as well as in the urban sector. The Co-operative Development Policy of (2002) and The Co-operative Act No 20 of 2003 both emphasizes on co-operatives which are member based i.e. owned and controlled by members for sustainability.
The two organization supporting the project (World Vision and UMAKWA CBO) guaranteed the support to the project in long term due to the fact that it is a community based organization, in the sense that, members of UMAKWA are also members of SACCOS and other micro-enterprise and businesses, while World Vision maintains relationship with their respective Area Development Programmes and handover all the activities to the CBO and community after the end of programme. In principle World Vision programme are run in collaboration with the respective communities.

The project will be institutionalized through the formation of SACCOS which is established by socio-economic group of 10 to 20 group members. Apart from improving the social coercion it improve the sense of social or community ownership and a self guaranteed of the member on financial loan issues in their SACCOS and other financial intermediaries.
The project will be sustainable over time due to the fact that, the SACCOS established will play a great role in financial services within the area. The income generating activities will be strengthened, while SACCO’s members will be increasing their portfolio for self reliance in terms of capital for their respective business and other social obligations.
The good networking and reputation of UMAKWA CBO and World Vision Tanzania to the Government and other Local and Foreign NGOs will be replicated to the SACCOS established as well as to the respective socio-economic groups in the community.
The future expectation is to have a community with a strong SACCOS which can provide or cater for the member’s demand for capital for their Small and Medium Enterprises.
Among other things which may be needed to improve the projects sustainability is the existence of social and political peace and stability in the country and Kwamtoro area in particular. Others are practical commitment and implementation of the Government leaders on Policies appropriate to the project.
Sustainability Indicators
The sustainability indicator to monitor the sustainability of the project includes:
- varied source of funding sources
- Number of varied NGOs and other stake holders networking with the community.
- Number of community members continuing participating in project planning process.
- budget within reaches of community
- number of technically competent staff in the project
- Progressive growth of project in terms of members and their portfolio capital shares, saving, deposits.
- Number of community leaders supporting the project.
- More than 85% percent of loan repayment.
5.4 SUMMARY
This chapter presented Participatory Monitoring and Evaluation. It analyzed the Monitoring and Evaluation Research methodology applied i.e. research objectives, questions, design, methods, tools, sampling & sample size, Findings, Data analysis and presentation and Validity and reliability. The chapter further described the performance indicators, sustainability indicators and presented the project sustainability plan.
CHAPTER SIX: CONCLUSION AND RECCOMENDATIONS
This chapter presents conclusion, recommendation and areas for further research for other researchers attempting similar projects.
6.1 CONCLUSION
The promotion of income generating activities, savings and credit project was among of the most remote community based project. In the participatory assessment, income poverty was revealed and prioritized as the main problem in the community. The identified causes of income poverty were unreliable markets, insufficient existing business and income generating activities or micro-enterprises, lack of entrepreneurship skills, lack of financial intermediaries, inadequate capital and low per capita income (93% receive 10,000/= to 50,000/=Tshs per month.
The income poverty in the community resulted to poor housing (muddy grass roofed houses), inability to fulfill basic needs like education (only 4% of the population have acquired secondary school education while the majority (80%) reached only primary level of education), food, medical care/treatments and other social obligation. Other effects were poor savings, low money circulation, small size of informal sector (only 25% benefit from the sector), disguised unemployment (25%), deforestation and environmental degradation.
After the analysis of the information and data collected, stakeholders decided to deal with the problem of income poverty due to the reason that it was the main problem in the community and affects the majority. It was also expected that by fighting against income poverty, most of the causes and effects of the problem will be addressed.
The goal of the project was to strengthen Income Generating Activities (IGAs) and initiate Savings and Credit Co-operative Society (SACCOS) so as to improve socio- economic status of the Kwamtoro, Lalta and Ovada Wards, Kondoa district, Dodoma Region, Tanzania.
Literature review highlighted the importance of small and medium sector. According to the informal sector survey of 1991, micro-enterprises operating in the informal sector alone consisted of more than 1.7 million businesses engaging about 3 million persons that were about 20% of the Tanzanian labour force. Though the data in small and medium enterprises sector are rather sketchy or vague and unreliable, it is reflected to play a crucial role in the economy. Estimates show that there about 700,000 new entrants into the labour force every year. About 500,000 of these are school leavers with few marketable skills. The public sector employees only 40,000 of the new entrants into the labour markets leaving about 660,000 to join the unemployed reserve. Most of these persons end up in the small and medium sector particularly in informal sector.
Since Tanzania is characterized by low capital formation, small and medium enterprises are the best option to address this problem as are more effective in the utilization of local resources using simple, appropriate and affordable technology.
It is obvious that micro-enterprise needs microfinance provides financial services i.e. loan and savings or deposits. These microfinance services are very important for the majority of Tanzanians whose income is very low. They can borrow at a very modest rate of interest by use of social collateral. Savings services are among of the most beneficial financial service for low income people. Households need to save to protect themselves against period of low income or specific emergencies and to cover larger anticipated expenses like school fees. Enterprises also need to store the value they accumulate from their profit until they can invest to earn higher return. In microfinance, group members are required to monitor each other at regular meetings and thus social pressure to meet financial commitment is created hence filling the role of collateral in the traditional financial services and avoiding the twins problems of moral hazards (unwillingness to pay).
Community participation and contribution is very crucial. Grameen believes that charity is not an answer to poverty. It creates dependency and takes away the individuals initiatives to break through the wall of poverty. Unleashing/ set free of energy and creativity in each human being is the answer to poverty. The greater advantage of microfinance as opposed more traditional forms of development aids, is based on the philosophy of the hand-up rather than the handout (Mohammed Yunus, (2006). Microfinance is not a top-down to poverty. It is a bottom-up approach that aims to empower the poor, harnessing their individual aspirations and abilities of creating an environment in which they can realize the true benefit of the market economy.
The new approach for rural development strategies by (UNRISD & UNDP) which also supported by Nikolas Newiger (1984), advocates co-operative groups that is people’s participation through co-operative projects to help bring about the eradication of poverty in the rural areas. The approach advises that National strategy to fight rural poverty requires, promotion of rural institutions including cooperatives and peoples participation where by gainful employment of the poor masses can be achieved, while the government should strengthen the organization and administration.
Charmes, J. (1996) in the book of Informal sector, poverty and gender, highlighted the informal sector’s contribution to national employment in 1991 was 19.6% while total GDP was 21.5%.
The project is highly in line with the Tanzania National Policies and Acts of Small and Medium Enterprises Development Policy (2002), National Microfinance Policy (2000), Co-operative Development Policy (2002) and the Co-operative Act no 20 of 2003.
The implementation of the project aimed at improving the socio-economic status of the community members. Sensitization and awareness creation meetings were conducted all over the 17 villages, so as to create awareness in the importance of micro-enterprises, informal sector and use of financial institution for their sustainable development. 44 representatives of the income generating activities out of (54 targeted) were trained on micro-enterprise skills. The trainings were divided into four batches of forty people each. 150 members from 44 groups managed to attend the training out of the 160 targeted members.
In addition, 14 groups of income generating activities were supported with tailoring machines, bee hives and carpentry tools to improve their work and productivity. Interim committee for SACCOS was formed to constitute the interim management Board under the guidance of the District Cooperative officer. The Community based Savings and Credit Cooperative Society Called “LAKWAO TSACCOS (2008) LTD” was formed under the interim Management Board. Important documents like SACCO’s Constitution, Loan Policy, and Savings & deposit Policy were formed and reviewed by the Cooperative Officer.
There was no change of objectives in the course of implementation, although the objectives were partially achieved. 10 groups of income generating activities didn’t send their respective members to attend trainings, 11 groups of income generating activities didn’t get the expected facilities. Despite the formation of LAKWAO TSACCOS (2008) LTD, the target of collecting 30,000,000/=Tshs from member’s collection not yet achieved. The UMAKWA CBO, the SACCOS, the Kondoa District Council and other stake holders will make sure the remaining tasks are completed to achieve the objective fully.
During Participatory Monitoring and Evaluation, the team noted that, 4 trainings involved 150 participants were conducted on micro-enterprise skills. 17 sensitization meetings were facilitated and 2,752 members attended the meetings. 15 SACCO’s interim committee members were selected and trained on primary SACCO’s operation. SACCO’s constitution, Loan Policy and Savings & deposit Policy were prepared and in place. 105 community members joined the formed SACCOS with their portfolio of 12,484,000/=Tshs.
Moreover, some of the qualitative changes noted, for instance 37 trained IGA’s groups have started to put records of their business. Income generating activities have started to look for external source of funds by preparing project proposals through UMAKWA CBO.
Saving habit among community members have been changed since they can now save their money promptly and 70% of the SACCOS members can explain and understand the meaning of co-operative terms such as entrance fee, member’s shares, savings and deposits. 63 SACCOS members managed to differentiate the co-operative terms.
The involvement of community, UMAKWA CBO, the Kondoa District Council and other NGOs like World Vision Tanzania qualifies the sustainability of the project. All these stake holders involved and participated fully since the project design implementation, monitoring and evaluation.
The community owns the SACCOS through member’s share contribution and accumulation of wealth through savings and deposits of their little earnings. Strengthening of micro-enterprises and micro-businesses is a unique process in the project in the sense that, it offers individuals the opportunity not only to generate income but also build assets and to save as owners of income generating business (entrepreneurs) and also owners of the formed SACCOS.
The government will sustain the project since it is in line with the National Policies such as National Vision of 2025 and the National Strategy for growth and Reduction of Poverty (NSGRP/MKUKUTA) as well as other National Development and Poverty Reduction Programmes. World Vision Tanzania through its community based Programme at Kwamtoro offered a temporary office for SACCOS free of charge. UMAKWA CBO (the host organization) will put more effort in networking with other financial institutions, donors etc to increase the capacity to provide services to their members.
Although there is a significant percentage of objectives accomplishment there are some factors that led the project to its partial accomplishment of objectives. These include financial constraints and delay of other resources from stakeholders and unexpected increase of the prices for services and items planed for the project.
Strengthening small and micro-enterprises and business provides wealth and ownership opportunities to the groups that face socio-economic exclusion and discrimination. Therefore, individual members and groups participating in micro business increase their rate of business ownership.
Strengthening of micro-enterprises and micro-businesses is a unique process in this project in the sense that it offers individuals the opportunity not only to generate income but also build assets and to save as owners, not just workers.
6.2 RECOMMENDATIONS
It is my recommended that use of Household Survey and Focus Group Discussion is more effective and helpful for reliable data in the participatory Assessment. The participatory approach to get beneficiaries view and needs is the good foundation for success in Project implementation and management.
The philosophy of hand-up rather than handout is very beneficial to community based projects of this nature. Avoiding charity and unleashing energy and creativity in each human being are the answer to poverty alleviation. I recommend also the Government and other development key players should put more effort to community based projects for effective realization of positive results that are sustainable. This is due to the fact that the beneficiaries own the projects since the time of project design up to project evaluation.
In reference to Kwamtoro, it is further recommended that more community sensitization and awareness creation is needed regarding use of financial institution and their respective services.
Careful selection of the SACCOS Management Board considering capacity, faithfulness and commitment of the person is very important to avoid the bad history and performance of previous Co-operatives in the area and Country in general. Regarding the Nation, it is again recommended that the Government should put effort to replicate the success story of the Kwamtoro area in other Districts and Regions in Tanzania. In order to fight against poverty particularly in the rural areas, it is recommended that the National Policy should be more practical on the new approach which advises that a national strategy to fight rural poverty requires (i) the promotion of rural institutions including co-operatives and peoples participation where by gainful employment of the poor masses can be achieved and (ii) the government in respect is required to strengthen the organization and administration of its field services in order to facilitate and promote the peoples participation. Co-operative group projects will attract the informal type of co-operative groupings at the grassroots’ level, instead of launching co-operative in the traditional Rochdale model which rely on formal registration, by-laws, bureaucratic structures etc. but it excludes material characteristics such as organizational autonomy, self-help initiatives, membership participation and empowerment.

6.3 AREAS FOR FURTHER RESEARCH
This project identified and addressed only one problem of Income poverty in Kwamtoro. But, through Participatory Assessment many problems were observed but not addressed and intervened. It is suggested here that there is need to undertake further research and intervention in the other problems as gender imbalance in position and decision making, poor housing, high labour out flow for job search in town, poor education facilities and other basic needs, high level of unemployment, high level of deforestation & poor soil fertility and poor health facility & services.

















BIBLIOGRAPHY:
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Birgegaard, L-E, (1993), "Rural finance. A review of issues and experiences", Rural developmentstudies no. 32, Swedish university of agricultural science, Uppsala.
CEDPA (1994), Project Design for Program Managers:
Central Bureau of Statistics, Ministry of Planning and National Development Nairobi, EconomicSurvey, 1980-1999.
Charmes, J. (1999). Informal sector, poverty and gender. A review of empirical evidence, Background paper for the world development report 2001, Washington, the World Bank, 44p.
Charmes, J. (2000). 4th meeting of the Delhi Group on informal sector statistics. Geneva 28-30 august 2000.
Cooperative Act NO 20 of 2003.
Cooperative development policy (2002).
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Kikula J. S. (2003) – Small business and entrepreneurship.
Kondoa District profile
Levine, (1997). Financial Development and Economic Growth. View and agenda, Journal of Economic Literature, Vol. xxxv pp. 688-726.
Mkurabita: Tanzania Property and business formalization Programme.
Narayan, J.R.M. (1962). Participation and social assessment. Tools and techniques.
National Microfinance Policy (2000).
National Population census report, (2002).
NKWERWA TSACCOS Annual report (2008).
Official journal of the European Union 20-5-2003 L 124/36-L124/41.
PRIDE Tanzania (2008): Portfolio report.
Rwegoshora, H.M.M. (2006). A guide to social science research.
Savings and Credit Cooperative League of South Africa (SACCOL) report 2006
Shigukulu, Z.F. (2007). Kwamtoro Participatory Assessment.
Small and Medium Enterprises Development Policy (2002).
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URT (2003) Small and Medium Enterprise Policy, DSM.
Verhagen, K, Kadasia, B, Enarsson, S, Olney, G, (1998), A Report on Status of Rural Savings and Credit Co-operatives in Kenya, International Co-operative Alliance, Regional Office for East, Central and Southern Africa.
Young, Trevor (2000). Successive Project management.
Yunus, M. (2006). What is Microfinance?



APPENDICES OR ANNEXES

APPENDIX I: Logical frame work matrix

Table No 21: Logical frame work matrix



PROJECT OBJECTIVE. OBJECTIVELY VERIFIABLE INDICATOR MEANS OF VERIFICATION
COSTS.
COMMENTS/
ASSUMPTIONS

DESCRIPTION.
TARGET
BASELINE
DATA SOURCE
TIMING
RESPONSIBLITY

GOAL
To strengthen Income Generating Activities (IGAs) and initiate Savings and Credit Cooperative Society (SACCOS Kwamtoro, Lalta and Ovada Community. Political and peace stability in the area and country.

PURPOSE 1
To strengthen 54 groups of income generating activities in Kwamtoro, Lalta and Ovada Wards. # of groups existing and performing their activities 54 0 Project report.
-field visit report.
-evaluation report. triennially UMAKWA CBO
-Community leader &members Government maintains the policies supporting the project.
PURPOSE 2.
To establish saving and credit cooperative society in the community. # of SACCOS Performing financial activities efficiently. 1 0 Project report.
-field visit report.
-evaluation report. triennially UMAKWA CBO
-Community leader &members
OUTPUT 1. 1
Increased knowledge and practices of microenterprise to 54 income generating activity groups (160) members’ people by the end of 2009.



# of groups knowledgeable and practicing microenterprise
54
0
-Project report.
-field visit report.
-evaluation report.

annually
- Researcher
-UMAKWA CBO
-Community leader &members.
ACTIVITY1.1.1
To conduct 4 trainings on microenterprise knowledge to 160 people for 2 days. # of group’s members trained.
# of training days
160

2 0

0 -Training reports. Annually - Researcher
-UMAKWA CBO
-Community leader &members
2,880,000/=
ACTVITY 1.1.2
support IGA’s groups with appropriate facilities (15 sewing machines & 10 carpentry tools # of IGA groups supported with sewing machines.
# of IGA groups supported with carpentry tools.
15


10
0


0 -project report.


-distribution list.

Annually -Researcher
-UMAKWA CBO
-Community leader &members
2,500,000/=

OUTPUT 1.2
Increased knowledge, participation and management to 1,000 community members on SACCO’s issues by the end of 2009.
# of community members joined SACCOS.
# of Community members knowledgeable in SACCOS Management. 1,000


15 0


0 -Project report.
-SACCO’S membership register/ledger.

Monthly Researcher -UMAKWA CBO
-Community leader &members

ACTIVITY 1.2.1
Facilitate 17 sensitization and awareness creation meetings to community on SACCO’S issues. # of sensitization/awareness creation meetings conducted.
# of community members attended. 17 0 - Project repots.
- Minutes and attendance list.
Annually Researcher
-UMAKWA CBO
-Community leader &members
1,000,000/=
ACTIVITY I.2.2
Facilitate selection of 15 SACCO’S interim committee within their respective villages and meet at Ovada for one day workshop. # of SACCO’s interim committee members selected.


# of work shop conducted.
# of members attended the workshop.


15



1

15
0



0

0 - Project repots.
- Minutes and attendance list.
Annually
-Researcher
-UMAKWA CBO
-Community leader &members


105,000/=
ACTIVITY 1.2.3
Train 15 SACCO’S interim committee members on effective operation of primary SACCOS for 2 days




# of members trained.


# of training days.

15


2

0


0

- Training reports.

- Project reports. Annually
Researche-UMAKWA CBO
-Community leader &members

470,010/=
ACTIVITY 1.2.4
Train 2 key employees of SACCOS (secretary & Accounting clerk) on relevant skills focusing on effective operation & accounting system and procedures.

# of employee trained.



# of training days.

2


3

0


0

- Training reports.

- Project reports. Annually
Researcher
-UMAKWA CBO
-Community leader &members

2,000,000/=
ACTIVITY 1.2.5
To facilitate the SACCOS interim committee to prepare constitution, loan policy, savings and deposits policy.
# of constitution prepared.

# of loan policy prepared.

# of saving and deposits policy prepared.
1


1


1
0


0


0


- Project reports.

-Approved hard copy documents in place/in use.


Annually
-Researcher
-UMAKWA CBO
-Community leader &members


150,000/=
ACTIVITY 1.2.6
Assist the interim committee to register the SACCOS legally. # of SACCOS registered and operating.
# of certificates of registration received. 1



1 0



0 - Registration/project reports.
- Original certificate in file.

Annually
-Researcher
-UMAKWA CBO
-Community leader &members

300,000/=
ACTIVITY 1.2.7
Support interim committee members to visit other similar organization within Tanzania for learning purpose.
# of learning visits supported.

# of participants
1


15
0


0
- visit reports.

-project reports.

Annually
-Researcher
-UMAKWA CBO
-Community leader &members

4,500,000/=
OUTPUT 1.3
Increased savings, deposits and shares to 30,000,000/= by the end of 2009. Amount of money collected as shares, saving and deposits. 30 millions 0 -project report
Monthly
-Researcher
-UMAKWA CBO
-Community leader &members

ACTIVITY 1.3.1
Conduct promotion & inauguration activities through use of meetings T-shirts, posters and leaflets.

# of promotion/ inauguration events facilitated.
# of t-shirts distributed.
# of posters and leaflets distributed. 1


250

500 0


0

0 -project/ village report
-minutes and attendance list.
- Distribution list.
-handing over reports. Annually
-Researcher
-UMAKWA CBO
-Community leader &members
3,750,000/=

1,500,000/=
ACTIVITY 1.3.2
Provide prizes (special T-shirts) to 10 members with more shares, savings and deposits. # of special t-shirts distributed.

# of SACCO’s members received prizes. 10


10 0


0 - Project reports.
-Distribution lists.
-Handing over reports. Annually
-Researcher
-UMAKWA CBO
-Community leader &members
300,000/=
OUTPUT 1.4
Increased employment opportunity to 150 peoples by the end of 2009. # of people employed 150 0 -project report Annually
-Researcher
-UMAKWA CBO
-Community leader &members
ACTIVITY 1.4.1
Train 54 group leaders of IGAs on entrepreneurship skills.
# of group leaders trained.

# of trainings conducted.

# of training days.
54



2

0



0 - Training reports.

- Project reports Annually
-Researcher
-UMAKWA CBO
-Community leader &members

972,000/=








OUTPUT 1.5
Reduced disguised unemployment to 2% by the end of 2009.


% of unemployment reduced 2% 0 -project reports Annually
-Researcher
-UMAKWA CBO
-Community leader &members

ACTIVITY1.5.1

Conduct 17 sensitization meetings to the community members on the importance of establishing income generating activities.

# of sensitization meetings conducted.


# of community members attended.

17



17

0



0
- Project reports.

-Village meeting minutes.

Annually
-Researcher
-UMAKWA CBO
-Community leader &members


1,000,000/=

ACTIVITY 1.5.2

Creating awareness to the community members on the advantage of using financial intermediaries like SACCOS, microfinance institutions to strengthen their businesses
# of awareness creation meeting conducted.


# of community members attended.
17





1700
0





0
- Project reports.



-Village meeting minutes.
Annually
-Researcher
-UMAKWA CBO
-Community leader &members


1,000,000/=
OUTPUT 1.6
Increased size of informal sector from 25% to 30% by the end of 2009. % increase of informal sector 5% 0 -project report. Annually
-Researcher
-UMAKWA CBO
-Community leader &members
ACYIVITY 1.6.1
Conduct 17 sensitization meeting and mobilize youth to engage them in the informal sector. # of sensitization meetings conducted.


# of community youths attended 17



54 0



0 - Project reports.

-Village meeting minutes. Annually
-Researcher
-UMAKWA CBO
-Community leader &members

1,000,000/=






OUTPUT 1.7
SACCO’s staff supported for efficient and active project implementation by the end of 2009.


# of SACCO’S staff supported. 2 0 -Employees file/records Monthly
-Researcher
-UMAKWA CBO
-Community leader &members
ACTIVITY 1.7.1
Facilitate staff salary payment to the SACCOS Secretary or manager. # of staff facilitated with salary. 1 0 - Project reports.

- Salary slips. Monthly SACCO’S Chairperson & Manager. 2,160,000/=
ACTIVITY 1.7.2
Facilitate benefit payment to the SACCOS Secretary or manager. # of staff facilitated with benefits. 1 0 - Project reports.

- Salary slips.
Monthly SACCO’S Chairperson & Manager.
216,000/=
ACTIVITY 1.7.3
Facilitate salary payment to the SACCOS Account clerk. # of staff facilitated with salary payment. 1 0 - Project reports.

- Salary slips.
Monthly SACCO’S Chairperson & Manager.
1,800,000/=
ACTIVITY 1.7.4
Facilitate benefit payment to the SACCOS Account clerk. # of staff facilitated with benefits 1 0 - Project reports.
- Salary slips.
Monthly SACCO’S Chairperson & Manager.
180,000/=



APPENDIX II: Project budget spreadsheet (profoma
Table No 22: Project budget spreadsheet (profoma)


Activities/items Quantity Costs per item in Tshs Total cost for the whole project. Terms of reference for activities Donor/funder.
1.1 To conduct 4 trainings on microenterprise knowledge to 160 people for 2 days.

160

9,000x2= 18,000/=

2,880,000/=
- Meals.
- Accommodation.
- Training fees.
- Stationeries. World Vision (Kwamtoro ADP).
1.2 support 25 IGA’s groups with appropriate facilities (15 sewing machines & 10 carpentry tools

25

100,000/=

2,500,000/=
- Purchase of 15 sewing machines.
- 10 carpentry tools i.e. screw hammers, cutting saws.
- Transport costs.
World Vision (Kwamtoro ADP).
2.1 facilitate 17 sensitization and awareness creation meetings to community on SACCO’S issues.


17
58,824/=
1,000,000/=
- Car hire/fuel.
- Meals for facilitators.
World Vision (Kwamtoro ADP).
2.2 facilitate selection of 15 SACCO’S interim committee members within their respective villages and meet at Ovada for one day workshop.

15
7,000/=
105,000/=
- Transport costs.
- Meals (breakfast & lunch only)
Community members.
2.3 Train 15 SACCO’S interim committee members on effective operation of primary SACCOS for 2 days

15

15,667 x 2=


470,010/=
- Meals.
- Accommodation.
- Training fees.
- Stationeries.
- Transport costs

UMAKWA CBO.
2.4 Train 2 key employees of SACCOS (secretary & Accounting clerk) on relevant skills focusing on effective operation & accounting system and procedures.

2

1,000,000x2=

2,000,000/= - Meals & transport costs
- Accommodation.
- Training fees.
- Stationeries. World Vision (Kwamtoro ADP).
2.5 To facilitate the SACCOS interim committee to prepare constitution, loan policy, savings and deposits policy.


3

50,000/=

150,000/= - Secretarial services.
- Meals & transport
- Accommodation.
Community members.
2.6 Assist the interim committee to register the SACCOS legally.
2
150,000x2=
300,000/= - networking costs with Distr & Region Coop officers.
- meals and transport costs
- Registration fees.
UMAKWA CBO.
2.7 support interim committee members to visit other similar organization within Tanzania for learning purpose.

15

300,000/=

4,500,000/= - Meals.
- Accommodation.
- Visiting fee if any.
- Transport costs
World Vision (Kwamtoro ADP).
3.1 Conduct promotion & inauguration activities through use of meetings, T-shirts, posters and leaflets. 250 t-shirts.
500 posters & leaflets 15,000/=

3,000/= 3,750,000/=

1,500,000/= - Design & print.
- Purchase t-shirts.
- Design, print & purchase of posters & leaflets.
- Transportation costs
World Vision (Kwamtoro ADP).
3.2 Provide prizes (special T-shirts) to 10 members with more shares, savings and deposits.
10
30,000/=
300,000/= - Design & print.
- Procurement of special t-shirts.
- Transportation costs
UMAKWA CBO.
4.1 Train 54 group leaders of IGAs on entrepreneurship skills.
54
9,000x2=
972,000/= - Fare costs.
- Meals & accommodation.
- Training fees. World Vision (Kwamtoro ADP).
5.1 Conduct 17 sensitization meetings to the community members on the importance of establishing income generating activities.

17

58,824/=

1,000,000/= - Car hire/fuel.
- Meals for facilitators.
- Facilitation fees.
World Vision (Kwamtoro ADP).
5.2 Creating awareness to the community members on the advantage of using financial intermediaries like SACCOS, microfinance institutions to strengthen their businesses
17
58,824/=
1,000,000/= - Car hire/fuel.
- Meals for facilitators.
- Facilitation fees. World Vision (Kwamtoro ADP).
6.1 conduct 17 sensitization meeting and mobilize youth to engage themselves in the informal sector.
17
58,824/=
1,000,000/= - Car hire and fuel.
- Meals for facilitators.
- Facilitation fees. World Vision (Kwamtoro ADP).
7.1 facilitate salary payment to the SACCOS Secretary or manager.
1
180,000/=
2,160,000/= - NSSF Payment.
- Salary payment.
- Pay as you earn. SACCOS and community members
7.2 facilitate benefit payment to the SACCOS Secretary or manager.
1
18,000/=
216,000/= - NSSF Payment by employer.
SACCOS and community members
7.3 facilitate salary payment to the SACCOS Account clerk.
1
150,000/=
1,800,000/= - NSSF Payment.
- Salary payment.
- Pay as you earn. SACCOS and community members
7.4 facilitate benefit payment to the SACCOS Account clerk.
1
15,000/=
180,000/= - NSSF Payment by employer.
SACCOS and community members
TOTAL PROJECT BUDGET. 27,783,000/=






APPENDIX III: SACCOS Organization Structure



























APPENDIX IV: Job description for SACCO’s staff
Table No 23: Job description for SACCO’s staff
JOB DESCRIPTION FOR ACCOUNT CLERK JOB DESCRIPTION FOR SACCOS MANAGER OR SECRETARY.
- Report to the SACCO’S Manager.
- Prepare and keep financial and other documents.
- Receive all money and reconcile inflows and out flows.
- Collect loans, prepare bank reconciliation, monthly report, list of creditors and submit to the Board.
- Assist members to fill loan forms and implement daily financial activities.
- To do any other responsibilities as required by the manager or Board. - Report to the SACCO’S Management Board.
- Receive and respond to all correspondence accordingly.
- Prepare all General meetings and other SACCO’s meetings.
- Responsible for all communication on behalf of SACCOS.
- To ensure that all SACCO’S money and other assets are kept safely.
- Prepare short and long term plans, budget and SACCO’S reports.
- Advice the management Board on all issues pertaining employment, expenditures, business management and administrative issues.
- He or she is the custodian of all important SACCO’S documents.
- To supervise and coordinate all SACCO’S economic activities.
- To do any other responsibilities as required by the Board.


APPENDIX V: Coding book for SPSS– Participatory assessment
Table No 24: Coding book for SPSS– Participatory assessment

(A) COMMUNITY ASSESSMENT.
QSNN QSN WORDS CODING WORDS/PARTICULARS CODING NUMBERS
01 Gender. Male.
Female. 1
2
02 Age. Age Put no of yrs
03 Marital status Married.
Single.
Widow.
Divorced. 1
2
3
4
04 Education. Primary.
Secondary.
Degree/collage.
Higher degree.
No formal education. 1
2
3
4
5
05 Occupation. Employed.
Self employed.
Unemployed. 1
2
3
06 Income level. 10,000-50,000 tshs.
50,001-100,000 tshs.
100,001-150,000 tshs.
150,001-200,000 tshs.
Above 200,000 tshs. 1
2
3
4
5
07 Voluntarism increase. Yes.
No. 1
2
08 Decision making an open. Yes.
No. 1
2
09 Encourage new ideas. Yes.
No. 1
2
010 All kind of people involved. Yes.
No. 1
2
011 Education for local leaders. Primary.
Secondary.
Degree/collage.
Higher degree.
No formal education. 1
2
3
4
5
012 Safety in the community. High.
Moderate.
Low 1
2
3
013 Dealing adequately with poverty. Yes
No. 1
2
014 Causes of poverty. Illiteracy.
Climatic condition.
Poor governance.
Lack of capital. 1
2
3
4
015 Opportunities in the community. Training institutions.
Availability of financial services.
Availability of local resources. 1
2
3
016 Un fulfillment of essential human needs. Yes.
No. 1
2
017 Health care accessible by all residents. Yes.
No. 1
2
018 How the cost of living does? High.
Moderate.
Low 1
2
3
019 How the cost compared to other Districts, Region & National figures. High.
Moderate.
Low 1
2
3
020 Housing is adequate. Yes.
No. 1
2
021 Decline of sets of tradition, activities. Yes.
No. 1
2
022 Effects of cultural traditions. Death.
Poverty.
Social exclusion.
Development.
Disease. 1
2
3
4
5
023 Education facilities sufficient. Yes.
No. 1
2
024 Education facilities used to help business and labor. Yes.
No. 1
2
025 Artistic and cultural activities sufficient. Yes.
No. 1
2
026 Pending plan or proposal damage the community. Yes.
No. 1
2

027ec Kind of business not doing well. Agriculture.
Live stock keeping.
Industrial activities.
Retail and whole shop.
Transport.
Hotel and guest.
Salons and dry cleaners.
Other informal business. 1
2
3
4
5
6
7
8
028ec Economy make house more or less affordable. More affordable.
Less affordable. 1
2
029ec Difficult to get business/home loan. Yes.
No. 1
2
030ec Private investor tends to invest or shun. They invest.
They shun. 1
2
031ec Community expansion helping/hurting business. Helping.
Hurting. 1
2
032ec Certain job paid less than living wage.
Yes.
No.
1
2
033ec Business provides adequate employee benefits. Yes.
No. 1
2
034ec Employment prospects improve or diminish. Improve.
Diminish. 1
2
035ec Employees receive adequate job trainings. Yes.
No. 1
2
036ec How good is to match job skills & job opportunities? High.
Moderate.
Low 1
2
3
037ec Business people feel to operate in a supportive environment. Yes.
No. 1
2
038ec Business buy goods locally or import Buy locally.
Import. 1
2
039ec Money leak from the economy. Yes.
No. 1
2
040ec Business has skills to success. Yes.
No. 1
2
041ec Business people able to get capital for business. Yes.
No. 1
2
042ec Financial institution available in the area. Financial institution-CRDB, NBC, NMB, BARCLAY etc.
Microfinance institution-PRIDE, FINCA, SEDA, FAIDIKA etc.
Saving and Credit Cooperative Societies. 1

2

3
043ec Financial institution easy to get financial services. Financial institution-CRDB, NBC, NMB, BARCLAY etc.
Microfinance institution-PRIDE, FINCA, SEDA, FAIDIKA etc.
Saving and Credit Cooperative Societies. 1

2

3
044ec The size of informal sector in the local economy. High.
Moderate.
Low 1
2
3
045ec Population involved in informal business. 10%-25%.
26%-50%.
51%-75%.
76%-99%. 1
2
3
4
046ec Public service and infrastructure adequate and attracting new growth? Yes.
No. 1
2
047ec If so who will pay the costs? Community.
Government.
Donor. 1
2
3
048 Do you like or see the importance of forming or establishing SACCOS in your area?
YES
NO
1
2
049 What should be done to improve financial services in your area? To form or establish another SACCOS.

To strengthen the Kwamtoro SACCOS. 1

2
048en Condition of the local natural resources. Good.
Bad.
2
049en Local ecosystem service is being used faster than they are being replenished. Highly damaged.
Moderate damaged.
Low damaged. 1
2
3
050en Presence of problem sources of pollution. Yes.
No. 1
2
051en Waste products are being handled responsibly. Yes.
No. 1
2
052en Are there ways of exhausting resources through unsustainable practice? Yes.

No. 1

2
053en To avoid environmental degradation economic activities-charcoal burning and overgrazing. Total burn of such activities.

Education for proper use. 1

2
054en Children likely to find the community’s natural resources and ecosystem. Yes.

No. 1

2
055he Kind of health facilities in the community. Health centers.
Dispensaries.
Hospitals. 1
2
3
056he How far is the closest referral or major health facility? Very close below 5km.
Very far more than 25km.
Moderate 6-24km. 1
2
3
057he Is transportation available and affordable to reach the referral facilities? Yes.
No. 1
2
058he Are there adequate numbers of nurses to the patients? Yes.
No. 1
2
059he Are there adequate numbers of doctors to save the patients? Yes.

No. 1

2
060he Community members pay for health services? Yes.
No. 1
2
061he Is it cost sharing system? Yes.
No. 1
2
062he The major health service provider in the community. Government.
Church.
Mosque.
Private. 1
2
3
4
063he Population increase resulted to improve or deteriorate of health services and facilities? Improve.
Deteriorate. 1
2
064he Are nurses and doctors in health facilities well trained? Yes.
No. 1
2
065he Medicine provided for free. Yes.
No. 1
2
066he According to your income level, can you afford to pay health services? Yes.
No. 1
2
067he What should be done to improve your income so as to afford to pay health services? More education to people.
Improve agricultural output.
Improve business activities. 1
2
3
068he Is there any pending plan or proposals to increase/enhance health facilities? Yes/NO 1/2
APPENDIX VI: List of photographs

Photograph No 1: IGA group members Photograph No 2: IGA group
in class. Members in group discussion.



















Source: Field survey, 2008. Source: Field survey, 2008.

Photographs No 1&2 above Are IGA group representatives’ in-group discussion (right) and in class (left) during entrepreneurship skill Training at Kwamtoro centre.








Photograph No 3: Tailoring group members receiving facilities

Source: Field survey, 2008.
Photograph No 3 above is representatives of tailoring groups receiving working facilities from Kwamtoro ADP.







Photograph No 4: Inauguration of LAKWAO TSACCOS (2008) LTD

Source: LAKWAO TSACCOS (2008) LTD report 2009.
The above photograph shows the Minister for Energy and Minerals during official inauguration of LAKWAO TSACCOS (2008) LTD at Ovada Village on 29th July, 2009.

Photograph No 5: Passbook handing over ceremony


Source: LAKWAO TSACCOS (2008) LTD report 2009.
The above photograph shows one of the LAKWAO TSACCOS member receiving member’s Passbook from the Guest of Honour, Honourable Minister for Energy and Minerals William Ngeleja.



Photograph NO 6: Stakeholders’ discussion during project monitoring.

Source: Field survey, 2008.

Photograph No 6 above shows The University representative Dr Hussein Sinda, (in white cap) talking with UMAKWA CBO leaders, during his Monitoring visit to the Project.

APPENDIX VII: Power point Presentation