Tackling youth unemployment in Rural Kilimanjaro
by Bumaco LTD on 01/27/14
Towards extending social security to farmers and self-employed in rural Kilimanjaro
by Bumaco LTD on 11/07/13
Introduction
Disturbed by the question, BUMACO has joined in the efforts towards extending social security to farmers and the self-employed in rural Kilimanjaro. This is done through its RUFIP program, which envisions ‘having in place vibrant communities whose social and economic activities are supported by community-owned, sustainable and conveniently accessible financial institutions’. Since 2005 with support from Cordaid, the Netherland, BUMACO’S RUFIP has mobilized the formation of 20 SACCOS in rural Kilimanjaro. 17 of these SACCOS are now standing on their own and have a total membership of approximately 14, 000 people. Members of these SACCOS are farmers and self-employed people. BUMACO plans to mobilize these members into joining social security funds so as they can protect their future. Since all of the 17 SACCOS were formed around the existing AMCOS, BUMACO is also incorporating the AMCOS into the plan.
Rationale for Extending Social Security to the informal sector
Social security is a development policy. It is a policy that aims at improving and maintaining people’s living standards. It is protection against declining living standards due to failure to earn income as a result of death, disability, and/or age (elderly group). Social security has been linked to Amartya Sen’s definition of development, which focuses on capability. In that respect, social security ensures development even in the absence of capability to work. Furthermore, scholars such as Karl Ove Moene, has related social security to the promotion of Schumpeter’s concept of creative destruction. This is because when people are assured of social protection, they are ready to take more risks and become innovative.
Social security schemes have options to incorporate different insurances such as health, rainfall/drought, and stabilization fund. These are ways of managing risks. The World Bank and other development stakeholders have recognized this and are now putting forward risk management as a development agenda (see World Bank- World Development Report- Risk and Opportunities, Managing Risk for Development, 2014). Evidence shows that risk management is one of the key variables to ensure sustainable development. Uncertainties brought about by issues such as climate change have to be dealt with prior to their happenings.
Social security schemes have loan provisions to its members. Such provisions are much needed to farmers in Tanzania. It has been reported, in Tanzania’s Poverty and Human Development Reports, that one of the main setbacks for farmers in Tanzania is the lack of credit. Small-scale farmers cannot finance their production activities on a cash basis particularly at the start of the season. Availability of loans at the start of the season can increase productivity. Farmers would be able to produce more if they have credit to buy quality seeds, fertilizers, and other key farm inputs.
Social security promotes a saving culture. This is because members have to contribute to the funds every month. The contributions are for future investments. The saving culture is related to BUMACO’s view. The reasons RUFIP choose to work through SACCOS, instead of other financial arrangements, is because SACCOS promote saving culture while many other arrangements are credit-mechanism only.
Working with the National Social Security Fund (NSSF)
Inspired by RUMAKO- a coffee farmers’ cooperative society in Kigoma, BUMACO decided to collaborate with NSSF towards extending social security to its SACCOS members in rural Kilimanjaro. Being sensitized and educated by their area MP, Zitto Kabwe, 750 members of RUMAKO enrolled in NSSF early this year. RUMAKO members who enrolled are already enjoying short-term benefits such as health insurance and low-rate loans from NSSF to boost capital in their small businesses and also in buying farm inputs. BUMACO wishes to see its RUFIP SACCOS members joining the scheme and enjoy both short-term benefits and long-term benefits.
Actions
BUMACO/NSSF Workshop/Seminar to the representatives of SACCOS and AMCOS from rural Kilimanjaro
On 5th November 2013, BUMACO co-organized a seminar/workshop with NSSF for the representatives of SACCOS and AMCOS. In total the seminar attendants were 40 representatives from different districts in Kilimanjaro including Hai, Moshi Rural, and Rombo. The seminar was facilitated by:
1. Mr. Michael Kimemeta- BUMACO, RUFIP Officer
2. Mr. Daudi –NSSF, Kilimanjaro Operations Officer,
3. Mrs. Delfina Masika- NSSF, Kilimanjaro Manager
4. Mr. Salim Kimaro- NSSF Headquarters, Senior Operations Officer
The seminar covered the following:
- General overview and the meaning of Social Protection
- Introduction to NSSF and its products
- Social security to farmers and self-employed through cooperatives
Reactions
Seminar participants were grateful and excited about the idea of having social security to farmers. The response was positive. Participants raised a number of questions, which enabled critical look of the idea and its feasibility. NSSF facilitators answered the questions well and clarified any points that were not properly understood.
Way forward
Participants agreed to go and explain the idea to their respective board members. Following that, members of the cooperatives will be sensitized and mobilized.
BUMACO will assist the SACCOS in mobilization of members’ meetings and NSSF will conduct the meetings.
Meghji Z., Kwayu C., & Meghji R., The Woman Co-operator and Development (Kijabe: Maarifa Publishers Limited, 1985) pp.127
by Bumaco LTD on 11/07/13
An interest on Co-operatives and their positive role in rural development is re-emerging in Tanzania. The passing of new Cooperative Societies Act (Tanzania) in June 2013 is powerful evidence to this. The Poverty and Human Development Reports (Tanzania) of 2007 onwards also speak about cooperatives. The reports acknowledge the need and potential role of farmers associations in improving productivity and welfare of farmers’ hence rural development. Poverty in Tanzania is a rural phenomenon and much related to agriculture. More than 70% of the population dwells in rural areas. The main economic activity is small-scale agriculture. The impressive rising economic growth, which has been 7% average over the last decade, has not trickled down to rural areas. Poverty rates remain high. 67.9% of population still lives under the poverty line (UNDP, 2013).
With such a gloomy paradoxical picture, development-loving people in Tanzania have been asking a question, what can be done? This is the source of the renewed interest of Co-operatives in Tanzania.
Strikingly, Zakia Meghji, Clement Kwayu, and Ramadhan Meghji realized the potential of co-operatives in driving rural development 30 years ago. In this book, they rightly argue that ‘…stability and development. The lubricant for the levers is the co-operative’ (p.91).
The most impressive aspect of the book is its focus on women. Literature and research has it that women are the champions of development. This book uniquely links two drivers of development- women and co-operatives. The book demonstrates how participation of women in co-operatives leads to improvement in economy of households, family stability, and development in general.
The authors are experts of cooperatives. They worked as lecturers at the Co-operatives College in Moshi (now MUCCOBS) and researchers at the International Cooperative Alliance. The book is thus rich in insight. They collected case study data from Eastern, Central, and Southern Africa. In this respect, the book is rich of case studies from different countries. In that light, it gives a comparative picture, which strengthens the analysis of why certain cooperatives were successful and why others were not.
The cases and analyses above were not done in vacuum. The first chapter of the book provides an excellent theoretical framework substantiated by theories of development and feminism. The chapter also provides a historical background of pre-colonial, colonial, and post-colonial Tanzania. Following that were the rich case analyses giving details of different co-operatives societies in Tanzania, Lesotho, Zambia, Botswana, Kenya, and Swaziland. The analyses were interdisciplinary. Carefully, the authors consider various variables from economic, social, and political perspectives that could explain women participation and success. For example, it was evident that the policies of mid 1970s in Tanzania were not favorable for cooperatives and that could partly explain challenges that cooperative societies faced during that period and after. The authors also looked at the issues of governance and value systems on the side of cooperative officers and related departments. Interesting also, was the fact that the authors presented cases of different types of cooperatives, such as agricultural marketing cooperatives, workers cooperatives, saving and credit cooperatives, consumer cooperatives, production cooperatives (poultry, tailoring, and handicrafts cooperatives). Such examples are eye opener to different opportunities of establishing a cooperative society.
The final chapter of the book gives a way forward towards more and better participation of women in cooperatives. This chapter is relevant to this renewed debate on cooperatives. The issue of low women participation in cooperatives as presented in the book is still a problem in existing cooperatives societies. If we want rural development to happen and be sustainable women have to be actively engaged. This is especially the case with agriculture marketing cooperatives where the man is a principle member while it is often the woman who works on the farm to produce that cash crop. The cases of Botswana show that due to greater degree of independence among women in Botswana cooperatives was relatively better than in other countries such as Swaziland. We all know how well Botswana is doing economically and I am pretty confident that the independence of women may have been a significant contributory factor to its economic development. The book ends with a clause ‘Let the woman of Africa come forth and Africa will blossom’.
As much as the book was written in 1985, it is contents are still extremely relevant to our debates in cooperatives. I urge all development loving people in Tanzania to read this book if they want to engage women in rural development efforts and actually to reach that goal!
