Theses (PhD)

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    Contractual arrangements and smallholder cane growers’ performance: Evidence from Kilombero and Turiani, Morogoro - Tanzania
    (Mzumbe Univesity, 2015) Nsindagi, Thobias Edward
    Contract farming (CF) is widely accepted as a tool for improving performance of smallholder farmers in developing countries. In Tanzania CF has been practised in the sugar sector since 2006. However, ever since its commencement, sugarcane production trend portrays ambiguous conclusion with regard to smallholders‟ performance. Based on these trends, this study intended to examine the role of CF on performance focusing on process upgrading, profitability and income diversification in sugarcane production. The objectives were (i) to assess whether CF arrangements facilitate or obstruct farmers from upgrading their production processes, (ii) to determine the levels of efficiency of smallholder cane growers and identify factors influencing the efficiency levels, and (iii) to determine the extent of diversification among sugar cane growers and identify factors influencing diversification. Each objective had its own methodological approach. In analysing these objectives, various econometric tools were used e.g. Cobb Douglas stochastic profit function to analyse factors influencing farm profitability, and single limit Tobit regression for analysing factors influencing income diversification using a sample size of 386 respondents. The findings indicated that CF offers limited incentives and capabilities necessary for upgrading smallholder cane growers‟ processes. About 84% of cane growers affirmed that price of sugarcane, payment systems, and enforcement mechanisms were the main constraints for them to upgrade their production process. Similarly, the capability parameters such as training, extension services, input provision and access to credit were not included in the agreements and therefore cane growers‟ capabilities were adversely affected. Econometric model result indicated that, market satisfaction, a proxy for CF arrangement was not a significant determinant of farm profitability. However, descriptive statistics showed that price and payment mechanisms exhibited high profit inefficiency. This implies that market access restricts attainment of optimal farm frontier profit. Regarding input use, fertilizer was used much below the optimum amount, suggesting that there is a considerable room for input use expansion to boost productivity, and consequently, farm profitability. Tobit result indicated that land ownership, education, household size, and access to paved road were important determinants of diversification. On the basis of these findings, it is concluded that access to incentive and capability variables, improved pricing and payment modalities, and access to various assets might improve performance, profitability and welfare of the sugarcane growers.
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    Contractual arrangements and smallholder cane growers’ performance: Evidence from Kilombero and Turiani, Morogoro – Tanzania
    (Mzumbe University, 2015) Nsindagi, Thobias E.
    Contract farming (CF) is widely accepted as a tool for improving performance of smallholder farmers in developing countries. In Tanzania CF has been practiced in the sugar sector since 2006. However, ever since its commencement, sugarcane production trend portrays ambiguous conclusion with regard to smallholders‟ performance. Based on these trends, this study intended to examine the role of CF on performance focusing on process upgrading, profitability and income diversification in sugarcane production. The objectives were (i) to assess whether CF arrangements facilitate or obstruct farmers from upgrading their production processes, (ii) to determine the levels of efficiency of smallholder cane growers and identify factors influencing the efficiency levels, and (iii) to determine the extent of diversification among sugar cane growers and identify factors influencing diversification. Each objective had its own methodological approach. In analyzing these objectives, various econometric tools were used e.g. Cobb Douglas stochastic profit function to analyses factors influencing farm profitability, and single limit To bit regression for analyzing factors influencing income diversification using a sample size of 386 respondents. The findings indicated that CF offers limited incentives and capabilities necessary for upgrading smallholder cane growers‟ processes. About 84% of cane growers affirmed that price of sugarcane, payment systems, and enforcement mechanisms were the main constraints for them to upgrade their production process. Similarly, the capability parameters such as training, extension services, input provision and access to credit were not included in the agreements and therefore cane growers‟ capabilities were adversely affected. Econometric model result indicated that, market satisfaction, a proxy for CF arrangement was not a significant determinant of farm profitability. However, descriptive statistics showed that price and payment mechanisms exhibited high profit inefficiency. This implies that market access restricts attainment of optimal farm frontier profit. Regarding input use, fertilizer was used much below the optimum amount, suggesting that there is a considerable room for input use expansion to boost productivity, and consequently, farm profitability. To bit result indicated that land ownership, education, household size, and access to paved road were important determinants of diversification. On the basis of these findings, it is concluded that access to incentive and capability variables, improved pricing and payment modalities, and access to various assets might improve performance, profitability and welfare of the sugarcane growers.
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    Economic burden of malaria in Tanzania: An investigation of children under five years
    (UDSM, 2017) Chamwali, Lihoya Antony
    The importance of having good health for both parents and their children cannot be ignored, as it allows households to participate effectively in activities which earn them income. This study analyzes the economic burden of malaria in Tanzania for households with children under five years. Specifically it examines the effect of the presence of the under five malaria admissions on households’ incomes and wages, estimates the effect of the presence of under five malaria admissions on households’ agricultural output and finds out the determinants of under five malaria admissions. The study uses the Tanzania National Panel Survey (TNPS) data set which was conducted in three waves by the National Bureau of Statistics (NBS). The first, second and third waves were conducted in years 2008/9, 2010/11 and 2012/13 respectively. The survey covered more than 3000 households in each wave. But for the purpose of this study, more than 600 households who had under five children and who were interviewed in all the three rounds formed the main sample size of the study. A fixed effect model is used to analyze the effect of the presence of the under five malaria admissions on households’ wages and incomes. Ordinary Least Square (OLS) is used to analyze the effect of the presence of the under five malaria admissions on households’ agricultural output and the panel logit regression model is used to find the determinants of the under five malaria admissions. The results reveal that the presence of the under five children admitted with malaria in a household burdens households as its income and wages are reduced by 12.06 percent and 6.6 percent respectively, while households’ agricultural output was reduced by 18.94 percent in 2008/9 and by 28.94 percent in 2012/13 holding climate related factors constant. The study has also revealed that a large size of the household , age of the household head and sources of drinking water (both well water, river water and piped water) put the under five children at risk of having malaria admissions. The policy implications of the findings are that the government needs to focus on the prevention of malaria through indoor and outdoor spraying in addition to the distribution of free mosquito nets. A malaria free society will allow households to increase hours of work in productive activities and this will increase their incomes. Households will also become food secure if malaria rates are reduced due to effective participation in agricultural activities. Besides, the government needs to ensure that leaking pipes are repaired timely so as to reduce the mosquitoes breeding places, especially ponds of leaked water around homes.
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    Effects of contract farming on production and income of sunflower farmers in Kongwa district in central agricultural zone of Tanzania
    (Mzumbe University, 2015) Mpeta, Daniel F.
    This thesis undertakes to explore the effects of farming contracts on technical efficiency of production and incomes of smallholders in Kongwa district of great interest in the study is fact that, farming contracts examined involve sunflower crop, a low value crop which does not belong to conventional crops considered to be ideal crops for contract farming. Most contract crops as described in Prowse (2012) are often those which exhibit higher net return per hectare of land than staples; have high degree of perishability and require product homogeneity in their production, high hygiene, and safety requirement at the end market. They are crops such as vegetables, fruits, flowers, ornamentals, condiments and spices whose transactions costs in spot market are usually high (Temu&Temu, 2005; Prowse, 2012). Sunflower does not have such characteristics. It is an easy to grow crop, an indispensable edible crop, with low perishability and with many buyers. Econometric modeling is used to determine the contract effects on productivity and income of sunflower farmers. Considering contract farming as a governance form between smallholders and agri-business firms, the study uses a value chain approach to examine the role of contracting firms in coordination of trade relationships. A cross-sectional data set of 400 small-scale sunflower farmers in Kongwa district and chain survey data covering 7 sunflower processing firms based in Dodoma and Singida practicing contract farming are used. Results show that participating in contract farming lead to an average increase in technical efficiency of a farmer by 4.5- 7.4 percent. Contract participation also increases land productivity of a farmer. The expected output per acre of contract farm is 24% higher than non-contact farm. Similarly, contract farmers realize positive income effects from sunflower production. Results also show that innovativeness of firms and collaborations with Local Government Authorities, are a key to contract farming success. Promotion of contract farming could be done by e.g. providing improved services to contract firms and farmers such as by supporting the availability of improved seeds, and creating conducive contract farming laws and regulations
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    Institutional context, household access to resources and sustainability of river basin resources in Tanzania towards an analytical framework
    (University of Antwerp, 2015) Shitima, Christina M
    River basin resources contribute in diverse ways in the livelihoods of rural people in Tanzania. People living around these areas depend on small scale agriculture, subsistence forestry, artisanal fishing, livestock keepings, artisanal mining and small-scale trade as sources of livelihoods. While it was expected that these important livelihood assets would be used in sustainable ways, the destructive practices behavior related to the use of basins resources are increasing. Increase of population, declining of agricultural productivity without increase of employment in industrial sector are among the factors that lead to competition for the use of river basin resources. This paper aims at providing an analytical framework that elaborates the relationship between people’s access to and control over resources and sustainability of River basin resources in Tanzania. It uses the concept of livelihood framework, together with institutional theories to build the analytical framework that elaborates multiplicity of factors that affect sustainability of river basin resources in Tanzania. The livelihood framework is modified to include the concept of Ostrom’s polycentric governance system to study how different institutions interact in the governance of river basin resources in Tanzania to affect the sustainability of River basin resources. This is the first paper to link the concept of polycentric governance system with the livelihood framework. This paper is part of the literature review that will feed into the PhD research on household development strategies and their linkage to RBR degradation in Tanzania.
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    Participation of private sector companies in emerging capital markets: A study of capital markets in Tanzania
    (Mzumbe University, 2011) Nangawe, Abbi G
    This study aimed at determining factors influencing participation of private sector companies in Tanzanian emerging capital market. The study answered the question on the relationship between a company‟s going public decisions on the one hand and going public rules and regulations (which include ordinance compliance requirements, prospectus information disclosure and external monitoring and corporate governance), going public costs, company‟s confidentiality, company‟s reputation and credibility, and company‟s portfolio diversification to allow risk sharing on the other hand. The testable hypotheses were formulated as follows: (i) Going public rules and regulations are negatively associated with company‟s decision to go public; (ii) Going public costs are negatively associated with company‟s decision to go public; (iii) Company‟s confidentiality syndrome is negatively associated with companys’ decision to go public; (iv) Company‟s reputation and credibility is positively associated with companys’ decision to go public; and, (v) Company‟s portfolio diversification to allow risk sharing is positively associated with companys’ decision to go public. The study adopted a survey design using a cross-sectional approach. The sample size comprised of 168 private profit making companies from three regions of Tanzania mainland, namely Arusha, Dar es Salaam, and Kilimanjaro. The three regions were selected because they account for over 61% of all private profit making and non-profit making companies in Tanzania mainland (CRE, 2007). Data analysis used the Statistical Package for Social Sciences (SPSS) software and applied a multiple linear regression analysis (MLRA) model, using the ordinary least square (OLS) estimation technique. Findings of the study had mixed support for the hypotheses. Four predictor variables which slightly supported the hypotheses are: portfolio diversification to allow risk sharing; external monitoring and corporate governance; company‟s confidentiality and prospectus information disclosure requirements. Surprisingly enough, company‟s control variables did not support our hypotheses. The actual results of the study revealed that, empirical support came from company portfolio diversification to allow risk sharing, prospectus information disclosure requirements, company reputation and credibility and company confidentiality. On the other hand, results revealed there was no empirical support for going public costs, while going public ordinance compliance requirements was only slightly supported. The study recommends measures which will enhance capital markets policy interventions. First, are measures to be instituted by policy makers to increase supply of and demand for security instruments and to strengthen the regulatory operating capacity. Second, are training and research measures which will enable Capital Markets and Securities Authority (CMSA), in collaboration with Dar es Salaam Stock Exchange (DSE), training and research institutions, to develop and promote new market strategies, such as curricular programmes to enhance the public's awareness of capital markets. Last, but not least, the study recommends strategic measures to private sector companies which will enhance their incentives to save, and mechanisms to channel those savings into further investments. Finally, the study suggests directions for future research on capital markets participation in emerging markets and Tanzania in particular.
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    Rural-out migration as a livelihood diversification strategy to rural households: A study of Makete and Iringa rural districts, Tanzania
    (Mzumbe University, 2011) Rwechungura, Fred Alfred
    This study assessed whether rural-out migration as a livelihood strategy enhanced livelihoods of rural households in Iringa region. The objectives were, to establish how dependent households were on diversified livelihood portfolios, what the determinants for rural-out migration were, and outcomes of rural-out migration and remittances from it to household assets. The study used cross-sectional data involving 272 migrant and non-migrant households. Findings revealed that out of 272 households, 93(34%) had out-migrants. Additionally, all 272 households were dependent on diversified livelihood portfolios, with agriculture dominating, followed by non-farm activities. However, in ranking these portfolios, migration came eighth out of nine listed activities, suggesting it was not a valued source of livelihood. At household level, the following variables were significant and positively associated with rural-out migration: household size, age of household head, and the marital status of head of household. At societal level, lack of job opportunities such as non-farm self-employment, casual labour, and working in enterprises; and poor or lack of infrastructures and /or utilities such as water dams, irrigation schemes, electricity, and markets/market places accounted for rural-out migration. On the outcomes of migration to the households’ assets, migration did not have any significance to the households; instead it had more detrimental outcomes, including withdrawal of productive human resource from community; family abandonment; erosion of morals; spread of HIV/AIDS; increasing number of vulnerable children; and school drop-out. The main conclusion from these findings is that unlike what many studies had found (in other countries), out-migration did not have better outcomes to the livelihoods of rural households in the studied districts. The policy implication of these findings is that unless rural livelihood is improved, rural-out migration will continue, as rural dwellers continue searching for ‘greener pastures.’ As this continues, poverty is perpetuated. Consequently, not only will this affect urban and other economically vibrant areas where migrants continue flocking to by saturating these destinations’ capacity to handle the migrants, but it will also affect poor rural areas negatively by draining their energetic and productive human resource. On this basis, the need to promote rural livelihood diversification by breaking the cycle of poverty through development of correct policies on human capital, infrastructure and utilities, credit provision, and enabling environments for grassroots initiatives is imperative. Likewise, adopting social protection approach, market-based approach, labour union approach, and rehabilitation approach could be steps in the right direction towards addressing problems associated with rural-out migration.
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    Rural-out migration as a livelihood diversification strategy to rural households: A study of Makete and Iringa Rural districts, Tanzania
    (Mzumbe University, 0201) Rwechungura, Fred Alfred
    This study assessed whether rural-out migration as a livelihood strategy enhanced livelihoods of rural households in Iringa region. The objectives were, to establish how dependent households were on diversified livelihood portfolios, what the determinants for rural-out migration were, and outcomes of rural-out migration and remittances from it to household assets. The study used cross-sectional data involving 272 migrant and non-migrant households. Findings revealed that out of 272 households, 93(34%) had out-migrants. Additionally, all 272 households were dependent on diversified livelihood portfolios, with agriculture dominating, followed by non-farm activities. However, in ranking these portfolios, migration came eighth out of nine listed activities, suggesting it was not a valued source of livelihood. At household level, the following variables were significant and positively associated with rural-out migration: household size, age of household head, and the marital status of head of household. At societal level, lack of job opportunities such as non-farm self-employment, casual labour, and working in enterprises; and poor or lack of infrastructures and /or utilities such as water dams, irrigation schemes, electricity, and markets/market places accounted for rural-out migration. On the outcomes of migration to the households’ assets, migration did not have any significance to the households; instead it had more detrimental outcomes, including withdrawal of productive human resource from community; family abandonment; erosion of morals; spread of HIV/AIDS; increasing number of vulnerable children; and school drop-out. The main conclusion from these findings is that unlike what many studies had found (in other countries), out-migration did not have better outcomes to the livelihoods of rural households in the studied districts. The policy implication of these findings is that unless rural livelihood is improved, rural-out migration will continue, as rural dwellers continue searching for ‘greener pastures.’ As this continues, poverty is perpetuated. Consequently, not only will this affect urban and other economically vibrant areas where migrants continue flocking to by saturating these destinations’ capacity to handle the migrants, but it will also affect poor rural areas negatively by draining their energetic and productive human resource. On this basis, the need to promote rural livelihood diversification by breaking the cycle of poverty through development of correct policies on human capital, infrastructure and utilities, credit provision, and enabling environments for grassroots initiatives is imperative. Likewise, adopting social protection approach, market-based approach, labour union approach, and rehabilitation approach could be steps in the right direction towards addressing problems associated with rural-out migration.