ministry for foreign affairs ministry of finance and economic affairs government of finland ...

124 Pages·2010·0.77 MB·English

MINISTRY FOR FOREIGN AFFAIRS MINISTRY OF FINANCE AND
ECONOMIC AFFAIRS
GOVERNMENT OF FINLAND GOVERNMENT OF TANZANIA
LINDI & MTWARA AGRI-BUSINESS SUPPORT
(LIMAS)
PROJECT DOCUMENT
APRIL 2010
PROJECT FACT SHEET
Project Title: Lindi & Mtwara Agri-business Support
Project No:
Sector: Private Sector Development
Sub-sectors: Local Economic Development
Geographical Coverage
And Project Site: Districts of Newala and Liwale in Mtwara and Lindi Regions,
Tanzania
Duration: August 2010 to July 2014
Project Financing: Total Euro: 9.450.000
TZS: 17,489,148,000
Government of Tanzania Approximately 5 % of the Finnish
contribution –will be decided during
the Inception Phase
Government of Finland: Euro: 9.000.000
TZS: 16,659,603,770
Competent Authorities: Ministry for Foreign Affairs, Government of Finland; Ministry of Finance
and Economic Affairs, Government of Tanzania
Institutional Framework: Regions, Districts, Project implementing structure and decision making
bodies
The overall objectiveof the project:Sustainable local economic development.
The purpose of the project: To increase income, employment and sustainable natural resources
management through improved agricultural and forestry production, processing and marketing in the
districts of Liwale and Newala in Lindi and Mtwara regions.
Project Components:
Component 1. Support to building viable business and rural development environment..
Component 2. Support to agricultural production, processing and marketing.
Component 3. Support to sustainable commercial forestry and beekeeping production, processing
and marketing.
Component 4. Support to sustainable environment management and climate change adaptation.
Cross-cutting issues:
1. Sustainable utilisation of natural resources
2. Climate change adaptation
3. Appropriate water saving and management
4. Women and youth mainstreaming
5. Business approach to production and processing activities.
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TABLE OF CONTENTS
MAP OF TANZANIA...................................................................................................................... v
ACRONYMS AND ABBREVIATIONS......................................................................................... vi
EXECUTIVE SUMMARY ........................................................................................................... viii
1 Introduction .................................................................................................................................. 1
1.1 Background............................................................................................................................ 1
1.2 National Strategy for Growth and Reduction of Poverty – MKUKUTA ...................................... 1
1.3 National agricultural sector policy and strategy .......................................................................... 2
1.4 Situation in Micro, Small and Medium Enterprises development in Tanzania ......................... 2
2 PRESENT SITUATION AT LOCAL LEVEL ............................................................................. 3
2.1 Local Government organizational structure ................................................................................ 3
2.2 Regional administration, powers and responsibilities .................................................................. 4
2.3 Key priorities resulting from the problems identified during the DESEMP – PP ......................... 4
2.4 Brief presentations of the selected districts ................................................................................. 5
2.4.1 Geographical coverage ........................................................................................................ 5
2.4.2 District selection criteria ...................................................................................................... 5
2.4.3 Reasons for the selection of Newala ..................................................................................... 6
2.4.4 Reasons for the selection of Liwale ...................................................................................... 6
2.5 Beneficiaries .............................................................................................................................. 7
3 DEFINITION OF THE INTERVENTION ................................................................................... 8
3.1 Overall objective and project purpose .................................................................................... 8
3.2 Project components and expected results .................................................................................... 8
3.2.1 Component 1: Support to building viable business and rural development environment ....... 9
Result 1.1. District administrators, extension officers and private sector knowledgeable in key
business development sectors, principles of business planning and public-private sector
development. .................................................................................................................................... 9
Result 1.2 Land-use rights formalisation started. ............................................................................ 10
Result 1.3. District and ward level extension officers capable in imparting technical training to
groups and individuals.................................................................................................................... 11
Result 1.4. Viable groups working on agricultural production, processing, service provision and
marketing. ...................................................................................................................................... 12
Result 1.5. Business Information Points (BIP) serving clients in Newala and Liwale. ..................... 13
Result 1.6. Local Economic Forum functioning in Newala and Liwale ........................................... 14
Result 1.7. Entrepreneurship increased in the two districts, especially related to value adding in
agriculture and forestry production. ................................................................................................ 15
3.2.2 Component 2. Support to agricultural production, processing and marketing ..................... 15
Result 2.1. Increased income from cashew nut (possibly organic) production and processing in
Newala and Liwale by individual farmers and viable groups. ......................................................... 16
Result 2.2. Increased income from sesame (possibly organic) production and processing in Liwale by
individuals and viable groups. ........................................................................................................ 17
Result 2.3. Increased income from cassava production and processing in Newala ........................... 18
Result 2.4. Increased income from goat production in Newala ........................................................ 19
Result 2.5. Increased income from poultry production in Liwale by women groups ........................ 20
3.2.3 Component 3. Support to sustainable commercial forestry production, processing and
marketing. .................................................................................................................................. 21
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Result 3.1. Increased and diversified income to community groups from sustainable timber sales
from Angai forest ........................................................................................................................... 21
Result 3.2. Increased income from sustainable beekeeping in Liwale.............................................. 23
3.2.4 Component 4. Support to sustainable environment management and climate change
adaptation in Newala and Liwale. ............................................................................................... 24
Result 4.1. Improved and increased rain water harvesting in households and in farms ................... 25
Result 4.2. Improved land husbandry introduced in farms ............................................................. 25
4 ASSUMPTIONS ........................................................................................................................ 26
4.1. The most important assumptions ............................................................................................. 26
5 COMPATIBILITY AND SUSTAINABILITY ........................................................................... 27
5.1 Compatibility with Finnish development cooperation ............................................................... 27
5.2 Policy environment................................................................................................................... 28
5.3 Economic and financial feasibility ............................................................................................ 29
5.4 Institutional capacity ................................................................................................................ 29
5.5 Socio-cultural aspects ............................................................................................................... 30
5.6 Participation and ownership ...................................................................................................... 31
5.7 Gender ..................................................................................................................................... 31
5.8 HIV/AIDS ................................................................................................................................ 32
5.9 Environment ............................................................................................................................. 32
5.10 Appropriate technology .......................................................................................................... 33
6 IMPLEMENTATION ................................................................................................................ 33
6.1 Approach .................................................................................................................................. 33
6.1.1. Approach to the organization of implementation ............................................................... 35
Inception phase .............................................................................................................................. 35
6.2 Project organization .................................................................................................................. 36
6.2.1 The decision making level: the Steering Committee and Supervisory Board ...................... 36
6.2.2 The executive level: Management Teams ........................................................................... 37
6.2.3 The implementing level: Technical Assistance, the District Extension Officers and the
External Service Providers ......................................................................................................... 38
Technical Assistance ...................................................................................................................... 38
District staff ................................................................................................................................... 39
Outsourcing of service provision .................................................................................................... 40
Contractual arrangements for implementing project activities through service providers ................ 42
6.3 Logistics ................................................................................................................................... 44
6.4 Coordination with other projects and organizations................................................................... 45
6.5 Studies ..................................................................................................................................... 45
6.6 Tentative timetable ................................................................................................................... 45
6.7 The exit strategy ....................................................................................................................... 46
6.8 Budget and financial management ............................................................................................ 47
7 PLANNING, MONITORING, REPORTING and EVALUATION ............................................ 47
7.1 Planning. .............................................................................................................................. 47
7.2 Dissemination of information ................................................................................................... 48
7.3 Monitoring and auditing ........................................................................................................... 48
7.4 Reporting ................................................................................................................................. 48
7.5 Evaluation ................................................................................................................................ 49
Annex 1 Documents of reference ......................................................................................................... 2
Annex 2 Definitions ............................................................................................................................. 3
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Annex 3 Logical framework ................................................................................................................. 5
Annex 4 Activity timetable ................................................................................................................ 11
Annex 5 Tentative budget .................................................................................................................. 17
Annex 6 Basic functions of the Districts ............................................................................................. 21
Annex 7 Brief presentations of Lindi and Mtwara regions .................................................................. 23
Annex 8 Features of Newala and Lindi districts ................................................................................. 25
Annex 9 Cashew nut production in Mtwara and Lindi ....................................................................... 31
Annex 10 Outline of sesame production in Lindi and Mtwara ............................................................ 34
Annex 11 Angai forest ....................................................................................................................... 36
Annex 12 Sustainable management of the environment ...................................................................... 40
Annex 13 Mainstreaming women ....................................................................................................... 43
Annex 14 Terms of Reference for the Project Steering Committee ..................................................... 45
Annex 15 Terms of Reference for the International Technical Assistance ........................................... 47
Annex 16 Terms of Reference for the National
Staff............................................................................58.Error! Bookmark not defined.
Tables
Table 1 Monthly household income Mtwara and Lindi Regions
Table 2 Sectors of intervention and location
Table 3 Project activities and implementing bodies
Table 4 Population in Mtwara Region (Census 2002)
Table 5 Population in Lindi Region (Census 2002)
Table 6 Rainfall in Liwale
Table 7 Economic activities of Liwale
Table 8 Livestock population in Liwale
Cover photo by Mariella Sandini: Women group on Liwale locally processing cashew nuts
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MAP OF TANZANIA
Map of Lindi Region with Districts Map of Mtwara Region with Districts
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ACRONYMS AND ABBREVIATIONS
AVLFR Angai Village Land Forest Reserve
AMCOS Agricultural and Marketing Co-Operative Society
ASDP Agricultural Sector Development Program
BDS Business Development Service
BEST Business Environment Strengthening Program for Tanzania
BIC Business Information Centers
CAMARTEC Center for Agricultural Mechanization and Rural Technology
CBT Cashew Board of Tanzania
CTA Chief Technical Advisor
CTI Confederation of Tanzanian Industry
CU Cooperative Unions
DALDOs District Agriculture and Livestock Development Officers
DADPs District Agriculture Development Plans
DESEMP District Economic and Social Empowerment Programme
DESEMP-PP District Economic and Social Empowerment Programme – Preparatory Phase
DSMSs District Subject Matter Specialists
FBD Forestry and Beekeeping Division
FBG Farmers Business Groups
FSDT Financial Sector Deepening Trust
FSRP Financial Sector Reform Programme
GDP Gross Domestic Product
GoF Government of Finland
GoT Government of Tanzania
IUCN International Union for Conservation of Nature
LED Local Economic Development
LGA Local Government Authority
LGCDG Local Government Capital Development Grant
LGRP Local Government Reform Programme
MATF Mandeleo Agricultural Trust Fund
MFA Ministry for Foreign Affairs of Finland
MITM Ministry of Industry Trade and Marketing
MKUKUTA Kiswahili acronym for the National Strategy for Growth and Reduction of Poverty in
Tanzania
MKURABITA Kiswahili acronym for the Property and Business Formalisation Program in Tanzania
MoAFC Ministry of Agriculture, Food Security and Cooperatives
MoFEA Ministry of Finance and Economic Affairs
MITM Ministry of Industry, Trade and Marketing
MNRT Ministry of Natural Resources and Tourism (includes the Forestry and Beekeeping
Division)
MoPEE Ministry of Planning, Economy and Empowerment
MSMEs Micro, Small and Medium Size Enterprises
Mt-SGRP Mtwara Strategy for Growth and the Reduction of Poverty
MUHIMA “Mungano wa Hifadhi ya Misitu wa Angai”
NGO Non-Governmental Organization
NFP National Forest Programme
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MFP National Micro-Finance Policy
NSGRP National Strategy for Growth and Reduction of Poverty
PFM Participatory Forest Management
PMO Prime Minister’s Office
PMO-RALG Prime Minister’s Office – Regional Administration and Local Government
PCU Project Coordination Unit
PIU Project Implementing Unit
PRS Poverty Reduction Strategy
PSO Private Sector Organisation
PSFT Private Sector Foundation of Tanzania
RDS Rural Development Strategy
REDD+ Reducing Emissions from Deforestation and Degradation, + Conservation
RIPS Rural Integrated Project Support
SACA Savings and Credit Associations
SACCO Savings and Credit Co-Operatives
SC Steering Committee
SIDO Small Industries Development Organization
SME Small and Medium Size Enterprise
MSME Micro, Small and Medium Enterprises
TanCert Tanzanian Organic Certification Association
TA Technical Assistance
TCCIA Tanzanian Chamber of Commerce, Industry and Agriculture
TIRDO Tanzania Industrial Research Development Organisation
TNBF Tanzanian National Business Council
ToR Terms of Reference
Tsh Tanzanian Shillings
UN United Nations
VICOBA Village Community Bank
VLFR Village Land Forest Reserve
WB World Bank
WRS Warehouse Receipt System
EXCHANGE RATES
1 Euro (EUR) = 1851 Tanzanian Shilling (Tsh)
1 United States Dollar (US$) = 1330 Tsh
April 2010
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EXECUTIVE SUMMARY
The planning of the Lindi & Mtwara Agri-Business Support (LIMAS) started as the Preparatory Phase
(PP) of the District Economic and Social Empowerment Programme in 2007. During the PP a number
of value chains of rural products were identified for the support; the final selection of the products took
place during LIMAS planning process.
LIMAS will be conducted for four years (2011-14) in the districts of Newala and Liwale, in Mtwara and
Lindi regions. The project will focus on:
- development of sustainable agricultural production, semi-processing and marketing;
- development of commercial, sustainable, participatory forestry;
- improving the business environment and business information in the districts.
The issues of climate change adaptation, water management, participation of women and youth, as
well as the business approach will be mainstreamed in the interventions.
The beneficiaries will include at least 40 agriculture production and semi-processing groups (at least
half of members women) as well as the population of approximately 30 000 men and women living in
the 13 village around the Angai Village Land Forest Reserve. At least 200 entrepreneurs working on
sectors related to agriculture and forestry will benefit from business training. The knowledge and
capacity of district staff will be updated on issues ranging from organic agriculture to climate change
adaptation and business planning. The development of off-farm job opportunities for the youth has
special emphasis on the project. Private and civil society service providers will benefit from capacity
building by international and national technical assistance.
LIMAS will deliver services to districts, groups, communities and small-scale enterprises to improve the
production, semi-processing and marketing of agricultural and forestry products. It will target the
interventions in different parts of the value chain and generally to the development of sustainable
economic activities.
The overall objective of the project is Sustainable local economic development, while the Project
purpose is to increase income, employment and sustainable natural resources management through
improved agricultural and forestry production, processing and marketing in the districts of Liwale and
Newala in Lindi and Mtwara regions. This will happen through four different components:
Component 1. Support to building viable business and rural development environment. The Immediate
objective of the component is Improving the extension service, local business environment and
entrepreneurship. Component 1 will stimulate the cooperation between the district and the private
sector through dialogue structures, providing information to the farmers and business people and
training / mentoring entrepreneurs in business planning and management. It will strengthen the
formalisation of agricultural production through securing land rights to villages and in the same time it
will provide support to groups engaged in production, processing and marketing. Business Information
Points (BIP) will be established in both districts and the project will facilitate the initiation of Local
Economic Fora.
Component 2. Support to agricultural production, processing and marketing. The immediate objective
of this component is Improving the quantity and quality of agricultural production, first
processing/packaging of existing products and marketing of the products. The products considered
under the component are cashew nuts, sesame, cassava, Newala goats and poultry. The organic
production of cashew nuts and sesame will be promoted. Crosscutting issues include climate change
adaptation and mitigation, which will be addressed through conservation farming, water harvesting and
adoption of drought resistant varieties. They are discussed more in detail in the Component 4.
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Component 3. Support to sustainable commercial forestry and beekeeping production, processing and
marketing. The Immediate objective of the component is Improving the quantity and quality of
production from sustainably managed forests.The emphasis will be on timber, carbon and beekeeping
products (honey and wax) and the development of viable groups able to implement Participatory
Forest Management (PFM) in the Angai Village Land Forest Reserve in Liwale, as well as to manage
in a sustainable way the general land around the forest. The possibility to generate alternative income
from carbon (through REDD arrangements) will be studied.
Component 4. Support to sustainable environment management and climate change adaptation. The
Immediate Objective of this Component is improving land-use and environment planning, rain water
harvesting and capacity to adapt to climate change.The change in rain and general climate patterns is
clear to District authorities and villagers. Less evident are the ways of addressing the changes, to
continue to ensure food security, and at the same time mitigate the climate change and negative
impacts of agricultural practices. The result areas under this Component will be linked to the
production activities in Component 2. The activities will include improved and increased rain water
harvesting in households and in farms, as well as improved land husbandry.
The Logical Framework of LIMAS is presented in the Annex 3.
The goal of the Project is to increase the incomes of people in the participating Districts, e.g. Newala
and Liwale. The creation of on-farm and off-farm employment opportunities particularly for youth is an
important part of the Project concept. The LIMAS Project can not accomplish everything by itself, but it
has to collude with other stakeholders, including public authorities, to enhance agricultural production
and improve the business environment in the selected Districts. The Project activities should be seen
as complementary to existing or forthcoming activities in the areas of Project components.
The project activities are to be integrated into Agricultural Development Plans of the Districts
consistent with respective national plans. The strategy is to improve and sustain the quantity and
quality of agricultural production of known food commodities and forestry products, through a step-
wise introduction of activities. The strategy also addresses market and value-chain requirements of
micro and small enterprises to promote agri-business activities in the Districts.
The present project will have the duration of four years. The possibility of further extension depends on
the results of the Mid-Term Review. The initial Inception phase will take five months, during which the
staffing will be completed, project offices will be established, procurement and outsourcing of services
will be initiated and roles and responsibilities defined. The project shall seek to rapidly synchronize its
planning and implementation as much as possible with the institutional planning cycles of the local
authorities, to assure that the project interventions are in line with the plans of the Districts. It is
extremely important that the activities under the joint support from the project and the two Districts are
reflected in their annual work plans and budget, to ensure that the financial as well as human
resources are available.
The Technical Assistance provided by the project will include a Chief Technical Advisor (CTA) and a
number of international and national consultants. The CTA will be responsible for project planning and
coordination. He/she shall support the participating local authorities in preparing specific work plans for
the various project components. The Terms of Reference for the technical assistance are provided in
the Annexes 15 and 16.
The general implementing structure is described in the organogramme in the Chapter 6.2.3. It is
composed of three levels: (a) the decision-making level (Steering Committee and Supervisory Board),
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