TRANSFORMATION, JOB CREATION AND POVERTY ERADICATION 4 19 th ANNUAL RESEARCH WORKSHOP Ledger Plaza Bahari Beach Hotel Dar es Salaam, Tanzania April 09-10, 2014 By Dr. Parseko Kone

Introduction 5 1.Agriculture transformation in Singida 2.Success Factors 3.The importance of informal enterprise in Capital Accumulation 4.Important factors in moving up the value chain 5.Contribution of Cooperatives as towards enterprise transformation, job creation and Poverty eradication

6 1. Agriculture and Rural Transformation A; Crop Subsector B; Livestock Subsector

 Increase in production of Cash and Food Crops; A; Crop Subsector Transformation YearPercentage increase 2009/ /2013 Food crops442,180859,54494 Cash crops164,673292,02977 Total606,8531,151,

Crop Total Production 2009/2010 (Tones) Total production 2012/2013 (Tones) Percentage increase Sorghum159,083192,78421 Finger Millet90,576128,95742 Paddy3,43815, Sweet potatoes44,707123, Sunflower107,263202,80389 Onion15,52538, Increase in the production trend of Selected priority food and Cash crops 8

i. Increased area under irrigation from 2,696 Ha year 2009/2010 to 19,000 Ha year 2012/2013. Productivity increase; Success Factors Name of Scheme Number of Ha under Irrigation Paddy Productivity before Project (Tones) Paddy productivity after project (Tones) Masimba Maweni Mtiwe

ii. Increased use of improved farm implements as follows; Success factors-2 Farm implement2009/ /2013Percent Tractors Powertillers Ox plough73,83080,80810 Ox - curt588212,

Increased farm operations efficiency using Ox plough and Tractors 11 Success factors-3

iii. Increased use of improved varieties of seeds through production of quality declared seeds and subsidised seeds from Central Government; Success factors-4 Seed supply2009/2010 (Tones)2013/2014 (Tones) Quality declared seeds566 Subsidized seeds8020 Total

Onion Quality declared seed farm in Iramba District The availability of improved seeds to farmers is increased by production of QDS at Ward level. 13 Success factors-5

iv. Increased number of farmers trained on improved agronomical practices;  Prepared and distributed the Singida Agricultural and Livestock Stakeholders Guideline, Expected to produce 2 nd edition recently.  Establish Farmers Field School for training farmers. The number of FFS has increased from 30 during year 2009/2010 to 434 during 2012/2013  Number of Extension Field Officers has increased from 87, 2009/2010 to 123, during 2012/2013 Success factors-6 14

One of Farmers Field School at Sanjaranda Manyoni District. 15 Success factors-7

v. Increased investiment in value addition of crop produces.  The number of Sunflower oil procesing o Industries has increased from 32, year 2005/2006 to 104, year 2012/2013. o Small (73), Medium (26) and Large (5)  The number of trained Enterpreneurs on enterprise development by SIDO is 1,841 Success factors-8 16

Sunflower processing machines Small scaleLarge Scale 17 Success factors-9

vi. Improved formalised Selling points to enhance easy access to markets and attract traders. 2009/2010 – 27 Market Sheds 2012/2013 – 93 Market sheds vii. Increased budget allocation for implementation of DADPs. Success factors-10 18

viii. Availability of financial resources through Agricultural Sector Development Programme to support small Scale producers including value addition activities.. YearAmount receivedYearAmount received 2006/ ,628, /20111,879,121, /20083,739,045, /20121,344,809, /20092,679,166, /20131,344,809, /20102,606,412,533 Grand Total14,014,993, Success factors-11

ix. Improved environmental conservation; Total area of reserved natural Forest – 520, Ha. Stimulated the production of Honey; Average annual production; Honey – 156,118Kgs – TShs -1,561,182,500 Wax - 57,759Kgs – TShs- 404,314,750 Employment -173 groups with 3,633 people Success factors-12 20

Success; Chicken live weight increased from 1.5Kg, 2009/2010 – 2Kg, 2012/2013 Number eggs/chicken/year increased from 45, 2009/2010 to /2013 Milk Production increased from 2lts/day per Cow, 2009 to 8Lts/day/Cow. Increased average number of chicken per household from 3-4, 2009 to 16, 2013 B; Livestock Subsector 21

i. Training livestock keepers through Livestock Field Schools. ii. Vaccination ; Both livestock and Poultry iii. Increased market availability - Price of chicken increased from TShs 5000 per chicken, 2009 to TShs 12,000 per chicken iv. Support Poultry keepers with incubators Eg. Ikungi DC - supported 4 groups with incubator with capacity of hatching 3000 eggs at a time v. Availability of Community Vaccinators – Ikungi DC trained 632 Poultry Vaccinators. Livestock success factors-2 22

 Provision of technical expertise for an enterprise transformation.  With capital accumulation an employee can transform enterprise and bring inclusive growth;  A case study of Mwenge Oil Mill Started an enterprise with 2 machines – capacity 2.8 tones/day. Number of people employed 3 Current; 5 machines tones/day, 2 godowns – capacity 1,370 tones, Number of employee full time employee i. Role of employment as an important link between transformation enterprise development and inclusive growth 23

 Availability of viable technology  Presence of market for the product  Access to financial services  Availability of services – Business and technical training, Financial intermideation and consultancy  Presence of Important infrastructures (Power, water, roads) 2. ii. Important issues in facilitating the process of moving up the value chain include; 24

 There are evidence that informal enterprises are agent for capital accumulation. 3. i. Importance of informal enterprise as an agent for capital accumulation Name of Enterprise Start year Initial Capital Investment Number of employee Current Capital investment Number of employee Chalk industry – Manyoni ,000, ,000,00020 Mwenge Oil Mill – Singida MC ,000, ,000,00025 Mene Oil Mill – Singida (R) 20032,800,000360,000,

According to registration procedures of enterprises in Tanzania context, Informal enterprise are transformed into formal by registering their business with BRELLA Factors –win-win i.Formally determined and agreed benefits prior agreement ii. There should be legally agreement between two parties iii.Formulation of laws and regulations that will govern the whole process iv.Presence of mediator 3. ii. Transformation of informal enterprise into formal 26

 Total number of Cooperatives increased from to 258, AMCOS (99), SACCOs (123), Industrial (2), Irrigators (10), Bee keepers (9), Minerals (15) Roles i.Source of finance for enterprise development i.Provide credit to members – TShs 1,127,275,857 year 2009 to 2,827,350,300 year 2013 ii.Attract capital investment to members – A total of 70 members received Tractor loan from TIB (52), Input Trust Fund (4), CRDB (8), SUMA JKT (5) iii.Support value addition of crops to members Eg 2 Cooperatives 9 Mtinko and Ilongero) iv.iv. Agricultural Marketing Cooperatives play an important role in marketing of products. The implementation of warehouse receipt system in Singida increased prices of Sunflower from Sh 210 per Kilogramme year 2009/2010 to Sh 750 year 2011/ Role of Cooperatives in the Transformation 27

Increased community contribution in improving social and Economic services (Construction of education infrastructures, Health, Water) Improved residential houses Impact of Transformation in Singida Region 28