the contribution of foreign direct investments on agricultural productivity in tanzania 2nd draft

8/3/2019 The Contribution of Foreign Direct Investments on Agricultural Productivity in Tanzania 2nd Draft

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The Contribution of Foreign Direct Investments on Agricultural

Productivity in Tanzania.

Case of Small Scale Producers in Kisarawe District Coastal Region.

By

Steven. W. Magoha

A Research Submitted to Centre for Foreign Relations as a Partial Requirement of the

Award of Postgraduate in Economic Diplomacy


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TABLE OF CONTENTS

TABLE OF CONTENTS..........................................................................................................i

LIST OF TABLES...................................................................................................................iv

LIST OF FIGURES..................................................................................................................v

CHAPTER ONE.......................................................................................................................1

INTRODUCTION....................................................................................................................11.1 Chapter Introduction ....................................................................................................... 1

1.2 Background of the Problem ............................................................................................ 1

1.3 Statement of the Problem ................................................................................................21.4 Objectives of the Study ...................................................................................................3

1.4.1 Main Objective........................................................................................................3

1.4.2 Specific Objectives:-................................................................................................3

1.5 Research Questions .........................................................................................................3

1.6 The Significance of the Study .........................................................................................3

1.7 Limitations of the Study ................................................................................................. 3

CHAPTER TWO......................................................................................................................5

LITERATURE REVIEW.........................................................................................................52.1 Introduction to Literature Review ..................................................................................5

2.2 Conceptual and Theoretical definitions .........................................................................5

2.2.1 The Concept of Foreign Direct Investment (FDI)...................................................5

2.2.2 Agriculture...............................................................................................................6

2.2.3 Productivity..............................................................................................................6

2.3 Theoretical Review of Literature .................................................................................... 6

2.3.1 Agriculture in Tanzania...........................................................................................62.3.2 The Role of Foreign Direct Investment...................................................................7

2.4 Review of Studies Done in Tanzania Empirical studies..........................................9

CHAPTER THREE................................................................................................................10

RESEARCH METHODOLOGY...........................................................................................10

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3.1 Introduction to Research Methodology ........................................................................10

3.2 General Research approach Research design ...............................................................10

3.3 Population of the Study and Sampling Procedures .......................................................11

3.3.1 Population of the study..........................................................................................11

3.3.2 Sample Frame........................................................................................................11

3.3.3 Sample size............................................................................................................11

3.3.4 Sampling Technique..............................................................................................11

3.3.5 Unity of Analysis:..................................................................................................12

3.4 Data Collection .............................................................................................................12

3.4.1 Secondary Data Sources /Documentary Review...................................................12

3.4.2 Primary Data Sources ...........................................................................................13

3.5 Data Organizing, Analysis and Presentation ................................................................ 13

3.5.1 Data Organizing.....................................................................................................13

3.5.2 Data Analysis.........................................................................................................13

3.5.3 Data Presentation...................................................................................................14

3.5.4 Validity and reliability...........................................................................................14

CHAPTER FOUR..................................................................................................................16

DATA ANALYSIS AND PRESENTATION OF FINDINGS..............................................164.1 Introduction ..................................................................................................................16

4.0 Field Work Execution ...................................................................................................16

4.1 Demographic Characteristics of Respondents .............................................................16

4.2 Agricultural Production Technology Introduced by FDIs in Kisarawe ........................18

4.2.1 Technology used in Farming Activities.................................................................18

4.2.2 Small Scale Farmers Access Financial Facilities in their Area.............................23

4.2.3 FDs Social Responsibility offered in Kisarawe ..................................................24

CHAPTER FIVE....................................................................................................................26

DISCUSSION OF FINDINGS...............................................................................................265.1 Introduction ...................................................................................................................26

5.2 Discussion on Findings .................................................................................................27

5.2.1 Discussion on demographic factors.......................................................................27

CONCLUSIONS AND RECOMMENDATIONS.................................................................32

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6.1 Conclusion ....................................................................................................................32

6.2 Recommendations .........................................................................................................32

6.2.1 General recommendations:....................................................................................32

6.2.2 Policy Implications................................................................................................33

6.2.3 Research Implications ...........................................................................................34

REFERENCES.......................................................................................................................35

APPENDICES AND ANNEXES...........................................................................................38Appendix 1: Questionnaire for Respondents ...................................................................38

Appendix 2: Research Budget ...........................................................................................41

Appendix 3: Schedule of Work/Activity Plan ...................................................................42

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LIST OF TABLES

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LIST OF FIGURES

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CHAPTER ONE

INTRODUCTION

1.1 Chapter Introduction

This part provides an introduction to the research topic, background of the study, statement

of the problem, objectives of the study, research questions, and significance of the study and

limitations of the study. The study looked at how the Foreign Direct Investment contributes

in improving Agricultural productivity to Small scale Producers in Tanzania.

1.2 Background of the Problem

Agriculture is the foundation of the Tanzanian economy. It accounts for about half of the

national income, three quarters of trade in exports, source of food and provides employment

opportunities to about 80 percent of Tanzanians. It has linkages with the non-farm sector

through forward linkages to agro-processing, consumption and export; provides raw

materials to industries and a market for manufactured goods.

Agriculture in Tanzania is dominated by smallholder farmers (peasants) cultivating average

farm sizes of between 0.9 hector and 3.0 hectors each. About 70 percent of Tanzanias crop

area is cultivated by hand hoe, 20 percent by ox plough and 10 percent by tractor. It is rain

fed agriculture. Food crop production dominates the agriculture economy 5.1 million ha. are

cultivated annually, of which 85 percent is under food crops. Women constitute the main

part of agricultural labor force. The major constraint facing the agriculture sector is the

falling labor and land productivity due to application of poor technology, dependence on

unreliable and irregular weather conditions. Both crops and livestock are adversely affected

by periodical droughts.

Irrigation holds the key to stabilizing agricultural production in Tanzania to improve food

security, increase farmers productivity and incomes, and also to produce higher valuedcrops such as vegetables and even flowers.

Urban agriculture has flourished as a household level initiative to cope with economic

hardships encountered as a result of raising cost of living. Urban agriculture that consists of

raising and growing of vegetable and food crops is found in Tanzanian towns and cities

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where the ready markets for Agricultural products are found. Producers of vegetables, milk,

broilers meat and eggs sell to private households and to school, hotels, hospitals, bars,

cafeterias and restaurants.

Tanzania has laid out new agricultural initiative KILIMO KWANZA in order to fasten

the involvement of the private sector in the development of agriculture whereby it

emphasize the critical importance of the private sector participating actively in agricultural

production, provision of agricultural inputs, crop marketing in the agricultural value chain.

The initiative will lead to provide food security, promote sustainable development and

generate economic growth and opportunities by emphasizing the role of science and

technology in order to enhance poverty reduction to the majority of people through the

influence of Foreign Direct Investment.

Foreign direct investment (FDI) refers to the net inflows ofinvestment to acquire a lasting

management interest in an enterprise operating in an economy. It plays an important role in

promoting economic growth, raising a countrys technological level, and creating new

employment in developing countries (Blomstrom and Kokko, 2003; Klein et al., 2003;

Borenzstein et al., 1998). It has shown that FDI works as a means of integrating developing

countries into the global market place and increasing the capital available for investment,

thus leading to increased economic growth needed to reduce poverty and raise living

standards (Rutihinda, 2007; Dollar and Kraay, 2000; Dupasquier and Osakwe, 2005).

In Tanzania, the FDI has been argued to improve opportunities for upward social and

economic mobility basically through agricultural sector channel. Since agriculture

traditionally has been a labor intensive sector FDI may absorb significant part of the rural

labor force and provide a steady income for the rural communities.

1.3 Statement of the Problem

Even with the various benefits and opportunities provided by FDI in transforming

Agriculture activities in Tanzania, still small scale producers are failing to engage

themselves profitably due to lack of opportunities and accessibilities of Agriculture

incentives these include among others, lack of enough land for farming activities, modern

2
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cultivation tools and technology, expansion of local markets and control of product price.

The study will look at how the Foreign Direct Investment contributes in improving

Agricultural productivity to Small scale Producers in Tanzania.

1.4 Objectives of the Study

1.4.1 Main Objective

The main objective of this study was to examine the contribution of the Foreign Direct

Investment in improving productivity of small scale farmers in Kisarawe district, Coastal

region.

1.4.2 Specific Objectives:-

(i) To analyze the technology provided by FDIs to small-scale farmers in the study

area.

(ii) To assess the financial facilities provided in their area.

(iii)To identify social services offered in the area.

1.5 Research Questions

This research was guided by the following research questions.

(i) What technology does FDIs provide to small scale farmers in Kisarawe district?

(ii) How do small scale farmers access financial facilities in their area?

(iii) What social responsibility does FDIs offer in the area?

1.6 The Significance of the Study

Several studies have been conducted on the impact of Foreign Direct Investment focused on

promoting of economic growth, raising a countrys technological level, and creating new

employment in Tanzania, but little attention has been revealed on how FDI contribute to the

support of small scale agriculture activities including technological transfer and marketing

of agricultural products that will increase rate of economic growth in a Country. Findings

focus on benefits and constraints of FDI to small scale agriculture Producers in relation to

socio-economic issues in rural areas.

1.7 Limitations of the Study

The study covered only Prime Ministers Office - Tanzania Investment Center (TIC) and

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Kisarawe district Pwani region.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction to Literature Review

This chapter gives the critical reviews of the relevant literature findings, both theoretical as

well as empirical, concerning training and employees performance. The chapter reviewed

related literature on the conceptual definitions, supporting theories from various literatures,

review of empirical analysis, and the conceptual frame work.

2.2 Conceptual and Theoretical definitions

2.2.1 The Concept of Foreign Direct Investment (FDI)

Foreign direct investment (FDI) refers to the net inflows ofinvestment to acquire a lasting

management interest in an enterprise operating in an economy. It has been shown to play an

important role in promoting economic growth, raising a country technological level, and

creating new employment in developing countries.

Investment (or capital) flows1 is also referred to as relative economic strength forecasting:

The focus is on investment flows, which follow strong economic growth trends that attractforeign investments, and thus, increase demand for the local currency. Capital flows

represent investments by countries or companies in another country. The flow of money to a

particular destination tends to increase demand for the target destination's currency. This

increase in demand causes the currency to appreciate (increase in value).

Foreign direct investment is in cash flow investment in another country's assets. The

direction and size of FDI is important to understand the growth of production within a

country and the potential currency changes from that flow. If FDI is expected to increasesignificantly, then the currency of the receiving country should increase in value; the

opposite is also true.

1http://www.wikiwealth.com/dictionary:investment-flow

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2.2.2 Agriculture

Agriculture accounts for the bulk of employment in developing countries and contributes

significantly to national income and export earnings. Given its dominance in the economy, it

will remain a primary source of growth and means of poverty reduction for some time. Itremains the backbone of the rural economy, and employs the majority of the worlds poor

people. The proportion of poor people remains highest in sub-Saharan Africa, where slow

economic growth has left millions at the margins of survival. In sub-Saharan Africa alone,

more than 314 million people continue to live on less than USD 1 a day. And in most

regions poverty remains a largely rural phenomenon.

2.2.3 Productivity

Productivity is a measure of output from a production process, per unit of input. For

example, labor productivity is typically measured as a ratio of output per labour-hour, an

input. Productivity may be conceived of as a metric of the technical or engineering

efficiency of production. As such, the emphasis is on quantitative metrics of input, and

sometimes output. Productivity is distinct from metrics of locative efficiency, which take

into account both the monetary value (price) of what is produced and the cost of inputs used,

and also distinct from metrics ofprofitability, which address the difference between the

revenues obtained from output and the expense associated with consumption of inputs(Courbois & Temple, 1975; Gollop, 1979; Kurosawa, 1975; Pineda, 1990; and Saari, 2006)

2.3 Theoretical Review of Literature

2.3.1 Agriculture in Tanzania

The Government recognizes the pivotal role of the agricultural sector both in terms of

economic growth and poverty reduction. Also the strong influence of factors outside thesector such as infrastructure, rural financial services, land ownership and good governance is

recognised.

Priority actions include:

The pursuit of macroeconomic policies that will motivate investment in agriculture

by smallholders and large scale commercial farmers.

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Creation of an enabling environment and provide proactive support to private

operators, farmers organizations, NGOs and CBOs supplying inputs and credit to

small farmers and ensuring a strong regulatory mechanism.

Concentration of budgetary allocations in agriculture research and extension. Provision of special support to investments in agricultural processing particularly in

fruits and vegetables and accord top priority to implementation of new Land Act.

Today, farmers are allowed to sell their crops both to cooperatives and to private traders and,

as a result of increased competition, normal producer prices for food and export crops have

also increased, making it easier for farmers to sell their products at a faster pace. Currently,

the private sector has absorbed much of the responsibility for the production and processing

functions, while the Government has maintained its position in the facilitation of regulatory

and public support functions. (Tanzania Invest, 2010)

2.3.2 The Role of Foreign Direct Investment

Over the past decade there has been a renewed interest in the globalization process which

reflected into the emergence of new forces of globalization. One of recently identified

important forces of globalization has been private foreign direct investment (FDI). FDI

inflows in the past decade have increased significantly worldwide. For example, in 2000global private FDI inflows reached US$1.1 trillion compared to US$159 billion in 1991

(Bora, 2002). Compared to international trade in goods and services, in 2002, the world

stock of FDI generated sales by foreign affiliates of an estimated $18 trillion, against world

exports of $8 trillion (World Investment Report, 2003). This rapid growth and performance

of FDI has generated a number of policy issues regarding benefits and costs to the

economies of both home and host countries. At the macroeconomic level, FDI is believed to

bring new capital for investment, contributing to the balance of payments, adding to the

countrys capital stock, and potentially adding to future economic growth. FDI is also cited

as a more stable type of capital flow, and thus is arguably more appropriate and

development-friendly for low-income countries than portfolio flows. There is also some

evidence that foreign investment can contribute to raising exports and integrating into global

economic networks. At the microeconomic level there are also a range of purported benefits,

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especially higher productivity through new investment in physical and human capital,

increased employment, enhanced management, and the transfer of technology.

However, there are various costs associated with FDI as well. Among the costs include thoserelated to countries competing for FDI; market failures in the investment process and the

possible divergences between foreign companies and national interests. For example,

promotion of FDI has been very expensive as developing countries often make major

concessions in terms of special incentives to foreign investors in order to compete for

foreign investment with other countries. These incentives include among others lower

income taxes or income tax holidays, import duty exemptions, and subsidies for

infrastructure. Market failures such as information and coordination failures in the

international investment process; infant industry considerations in the development of local

enterprises, which can lead inward FDI to crowd out these enterprises; static nature of

advantages transferred by FDI where domestic capabilities are low and do not improve over

time, or where FDI is not sufficient enough to raise the relevant capabilities; and weak

bargaining and regulatory capabilities on the part of host government, resulting in the

unequal distribution of benefits or abuse of market power by the foreign companies, are also

a major concern for developing countries. It is significant that the complexity of the FDI

package also means that there may be trade-offs between different benefits and objectives.For instance, countries may have to choose between investments that offer short as opposed

to long-term benefits; the former may lead to static gains but not necessarily to dynamic

ones. A large inflow of FDI can add to foreign exchange and investment resources in a host

economy, but it may lead to a crowding out of local firms or create exchange rate problems.

The desire to generate employment may lead governments to favor labor-intensive, low-

technology investments, while that to promote technology development may favor more

sophisticated investors. Similarly, the desire to upgrade technology may call for heavy

reliance on technology transfer by the foreign firms, while the desire to promote local

innovation and deepening may require more emphases on arms length transfers to

indigenous firms. There can be many such trade-offs, and there is no universal answer to

how they should be made. As noted, there is no ideal policy on FDI that applies to all

countries at all times.

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2.4 Review of Studies Done in Tanzania Empirical studies

In an attempt to get a framework to support the research, studies have been undertaken in

different corners of the Tanzania to improve the livelihoods of rural people by different

projects.In a research carried out in Makete district in Iringa, unfavourable climatic conditions and

poor soils have contributed to poor crop production to some parts of Makete district. As a

result food security and the wellbeing of rural people of Makete have been threatened.

Responding to this situation, local people of Makete have established tree woodlots as an

alternative source of household income (Malimbwi et al., 2009).

In another study done in 2009 by MVIWATA, under the support of OXFAM, which

generally seek to improve livelihood of small scale farmers through improving market

access, financial services and building their organisational capacities.

Majority of small-scale farmers in Tanzania are practising traditional and subsistence

farming which normally brings insignificant changes in improvement of their living

standards. Poor marketing systems including insufficient market knowledge is one of the

bottlenecks to smallholder farmers in the country.

Considering the serious need to improve agricultural production of small-scale farmers in

Tanzania, MVIWATA in its strategic plan has concentrated on the 6 key areas of

intervention. Among these six four are:

Improving agricultural marketing systems for small holders including their

entrepreneurship skills and also;

Improving micro financing and rural banking systems; including cereal

banking as means of enhancing their capital generation;

Strengthening lobbying and advocacy capacity of farmers and enhance theirparticipation in processes that determine national and international policies;

Strengthening Market Access;

Lack of proper market is one of the key problems encountered by smallholder

farmers in the country. (MVIWATA, 2009)

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction to Research Methodology

This chapter discusses the methodology used in this study. It explains the research design,

methods of data collection, analysis and presentation.

3.2 General Research approach Research design

A research design in a framework for specifying the relationship among the study variables

and plan for selecting the sources and types of information to be used in answering the

research question. Research design is a plan of action through which a researcher organizes

his/her work from data collection, data organization to data analysis (Kothari, 1997).

This study chose a case study approach. Robson (2002), defines case study as a strategy for

doing research which involves an empirical investigation of a particular contemporary

phenomenon within its really life context using multiple sources of evidence. Its

characteristic is a single case design, whereas one aspect, that is, Foreign Direct Investment

on Agricultural production will be studied so as to see what impacts it has in general in

farmers livelihoods. The design of the study was cross-sectional that consists of asking

questions to a representative of the population at a single point in time whereby

questionnaire and interview method were employed as instruments of data collection. The

design is appropriate for descriptive purpose.

This is a qualitative method and employed the case study approach. According to Kombo

and Tromp (2006) a case study seeks to describe a unit detail, in context and holistically. In

a case study, a great deal can be learned from a few examples of the phenomena under a

study. Thus, a case study strategy enabled easy collection of both primary and secondarydata sources. The case study approach will be of particular interest to you if you wish to gain

rich understanding of the context of the research and the processes being enacted (Morris

and Wood, 1991).

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The research adopted and relied on several data sources that converge in a triangulating

fashion that constitutes an appropriate method of researching a contemporary phenomenon

(Yin, 1994).

3.3 Population of the Study and Sampling Procedures

3.3.1 Population of the study

To define the population, a researcher specifies the unit being sampled, the geographical

location and the temporal boundaries of population. Saunders, Lewis and Thornhill (2009)

define population as the complete set of cases or group members. The population of this

study was made up of Members of Staff of TIC and Small scale Producers of Kisarawe

District. During the study, the researcher used stratified sampling technique whereby the

total populations were splat into different groups.

3.3.2 Sample Frame

As defined by Saunders, Lewis and Thornhill (2009), sampling frame is a complete list of all

the cases in the population, from which a probability sample is drawn. The study has been

conducted in Kisarawe district. Thus the sampling frame included farmers as beneficiaries

and main stakeholders of agricultural activities conducted in the study area, as well as other

key stakeholders drawn from public institutions involved with Investment and Agriculture

sectors in the country.

3.3.3 Sample size

Sample size refers to the number of items to be selected from the location to constitute a

sample. During the study, the researcher used stratified sampling technique to select 4

respondents from among members of staff of TIC, and seventy (70) small scale agriculture

producers from Kisarawe district.

3.3.4 Sampling Technique

Probability and non- probability sampling are sampling techniques which were used in this

study.

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Purposive Sampling

Purposive sampling is a deliberate selection of a particular unit of universe for constructing

a sample that represents the universe. The researcher does so, so as to get data, which would

help in a accomplishing the purpose of a research. Purposive sampling enables a researcherto pick those respondents who will be useful in data collection for research findings

(Kothari, 1999). This was employed to select farmers which have direct linkage to the FDIs

in their undertakings.

3.3.5 Unity of Analysis:

According to Mugenda and Mugenda (1999), unit of analysis refers to that unit we initially

describe for the purpose of aggregating their characteristics in order to describe some larger

group or abstract of phenomenon. For the purpose of undertaking this study, units ofanalysis were drawn from the Public sector; Private sector; and the local communities i.e.

small scale producers.

3.4 Data Collection

The researcher employed the qualitative data approach (Patton, 2002). The use of qualitative

data yields detailed and thick description in the case of observation and capture direct

quotations in the case of interviews.

Data from both secondary and primary sources were used in order to thoroughly meet the

objectives of this study. The main sources of evidence are documentation policy

documents, reports, legal documents, archival sources including press articles and elite

interview.

3.4.1 Secondary Data Sources /Documentary Review

Secondary data collection involved a review of relevant information/published documents

on development of farmers, in particular, in Tanzania and globally. Other information wasgathered from key institutions involved in the whole aspect of farmers operations. Since

there is possibility of not accessing printed documents, other materials were sought from the

internet to supplement existing available materials.

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3.4.2 Primary Data Sources

In order to fill information gaps, interviews and focus group discussions were conducted.

Amongst the interviewees were government officials from Public Institutions closely

involved with farmers operation and investment as well. These were key informants for this

study whereby guided interviews, formal discussions and consultation were undertaken by

the researcher with strong emphasis on institutional analysis. Thus, information collected

from the public/government so as to ensure inclusion of policy-making levels and field

operation levels. Primary data collection methods that were used included questionnaires,

interviews and observation.

3.5 Data Organizing, Analysis and Presentation

3.5.1 Data Organizing

The term data organization in research refers to orderliness in research data. This is

putting the data into some systematic form (Kombo and Tromp, 2006: 111). In this study,

organization included identifying (and correcting) errors in the data, coding the data, and

storing it in appropriate form.

3.5.2 Data Analysis

Analytical approaches (both qualitative and quantitative) were employed to analyse the data.

The descriptive and statistical analyses were conducted basing on data and information

collected from primary and secondary sources.

Quantitative data were analysed through Computer software (Microsoft Excel) to compute

percentages, tabulation and cross-tabulation of responses. This was chosen because it can

take data from almost any type of file and use them to generate tabulated reports, charts,perform descriptive statistics and conduct complex statistical analyses.

Qualitative Analysis2

2The analysis will vary with the purpose of the research, the complexity of the research

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This based on information obtained through interview and discussions. More generally the

thematic analysis was a working tool.

3.5.3 Data Presentation

Data have been presented by using a combination of both statistical and graphical techniques

include but not limited to; frequency distributions, pie charts, histograms, measures of

central tendency and dispersion.

3.5.4 Validity and reliability

A conclusion of any study can be affected by either a researchers bias or subjective

judgment in the data collection process (Yin, 1994). I had to carry out interviews and

discussion with relevant respondents. This was done in order to avoid subjectivity in the data

collection process. According to Nachmias and Nachmias (1996), the researcher must

provide supporting evidence that a measuring instrument does, in fact, measure what it

appears to measure. Thus, interviewing single respondent at a time and doing the Focus

Group Discussion.

Reliability, on the other hand, is the central concern to social scientists because themeasuring instruments they employ are rarely completely valid. Nachmias and Nachmias

(1996) refers reliability as the extent to which a measuring instrument contains variable

errors, that is, errors that appear inconsistently from observation to observation during any

one measurement attempt or that vary each time a given unit is measured by the same

instrument. Sample selection was done in order to boost the reliability in the existing local

farmers who enjoy the benefits of the presence of FDIs.

Triangulation for the collected data and information was done through carrying out of

interviews to different stakeholders from the farmers, as well as officials from the TIC and

from district. This on the other hand helped to check out the reliability. This enhanced

design and the extent to which conclusions can be reached easily (Orodho & Kombo,2002:116 cited in Kombo & Tromp, 2006)

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triangulation of data and information and hence and on the other hand guaranteed reliability.

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CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION OF FINDINGS

4.1 Introduction

This study examined the contribution of the Foreign Direct Investment in improving

productivity of small scale farmers in Kisarawe district, Coastal region.

The target population of this study was farmers in Kisarawe district in Coastal region and

government officials from Public institution (TIC) closely involved with FDIs operations.

There were guided interviews, formal discussion and questionnaires given to respondents.

The main of objective of the study was to examine the contribution of the Foreign Direct

Investment in improving productivity of small scale farmers in Kisarawe district, Coastal

region. The research questions guided the analysis of the study findings and were used in

accomplishing the objectives of the study.

4.0 Field Work Execution

The field work exercise comprised of distribution of questionnaires, interviews andcollection of secondary data and it took five weeks from 19th June to 21st December 2011.

Questionnaires were distributed to the staffs that were selected randomly from the

organizations mentioned departments/units. The questionnaires which were distributed

were 80, only 73 questionnaires were returned which was just above the sample size which

was anticipated before as 70 respondents. Also 10 scheduled interviews were conducted

with Government officials, Extension officers and Ward Executive Officers. Respondents

were guaranteed confidentiality.

4.1 Demographic Characteristics of Respondents

It was important for this study to get information on the demographic characteristics

of the respondents that is information based on gender, age, marital status as well as

educational qualifications of respondents. The summary of distribution response is as

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given in Table 4.1 below.

TABLE 4.1: RESPONDENTS PROFILE- DEMOGRAPHICCHARACTERISTICSOFRESPONDENTSDimension Frequency Number Percentage

Age 18-2526-3536-4546+

18231814

25%32%25%18%

Gender MalesFemales

3934

53%47%

Education PrimarySecondaryAdvance levelOthers

581104

79%15%0%6%

Duration of farming 1-10yrs

11-20yrs21-30yrs3140yrs

43

1668

59%

22%8%11%

Source: Researchers field data, 2011.

The demographic factors show that, the highest respondents questioned were between the

ages of 36 - 45 years representing 32%, and the lowest was those with 46years and more by

18%.Those with the age of 18-25 and 36-45 each had 25%(18).

Some of the above results are represented graphically on Figure 4.1

FIGURE 4.1: RESPONDENTS AGEDISTRIBUTION

Source: Researchers own findings, 2011.

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Gender was equally distributed among the respondents; the male were high by 3 percentage

points. This is presented in Figure 4.2.

In the villages surveyed, most of the respondents education level was at the primary stageby (58)79%, Secondary level by (11)15%, others level of education such as vocational

trainings and religious education were 6 % and none had reached Advanced Secondary

level education(form five and six). This is represented in the pie chart in figure 4.2.

FIGURE 4.2: RESPONDENTS LEVELOF EDUCATION

Source: Researchers findings, 2011.

For 43(59%) of the respondents reported that they have practiced farming activities forperiods between 1 10 years while few (8%) had practiced for 21 years to 30 years. By (16)

11% have practised farming activities for 11-20years and only (8)11% have been farming

for 31-40years.

4.2 Agricultural Production Technology Introduced by FDIs in Kisarawe

4.2.1 Technology used in Farming Activities

This section answers the research question of what technology does FDIs provide to small

scale farmers in Kisarawe district. According to Socio-economic profile of Coast Region

(URT, 2007), Annual economic survey of Tanzania shows that about 60 percent of Coast

GDP is derived from agricultural sector. However, the available arable land is not fully

utilized. This reveals that fertile land is not yet wholly used. On district basis, the situation is

worse. As most of the districts except Mafia do not utilize the arable land at reasonable

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level. For example, Bagamoyo uses only 6.7 percent, Rufiji 20.7 percent, and Kisarawe 27.1

percent. In Kisarawe the percentage distributions of the Population who engage in

Agriculture is 87%, and the cultivated area per district is 83,645(44%). The major food crop

is Cassava besides being a food crop, cassava is also a cash crop especially when there issurplus and is second after cashew nuts. Other food crops are Rice, Millet, Legumes, Maize

and Sweet Potatoes. They produce 6.0 Hectors per Tons of Cassava, 0.8 Hectors per Tons of

Paddy, 1.3 Hectors per Tons of Maize, 7.0 Hectors per Tons of Sweet Potatoes and 1.0

Hectors per Tons of Sorghum. . The status of the areas suitable for irrigation (Ha) is 6,400,

the area which is under cultivation (Ha) is 93 and the percentage of utilization is 1.4

According to regional agricultural statistics, the major food crops grown are maize, paddy,

sorghum, cassava, sweet potatoes, legumes, pulses and bananas all these are grown in

Kisarawe though the trend of acreages fluctuated from year to year. Maize is also grown in

the region. The major cash crops grown in Kisarawe district are cashew nuts, sesame and

coconuts.

An ambitious programme for scaling down poverty known as National Strategy for Growth

and Reduction of Poverty (NSGRP) being implemented in two phases over a ten-year period

(2005 2015) has come hardy to make farming more meaningful for many farmers. NSGRPfocuses on outcome oriented on three clusters namely, growth and reduction of income

poverty; improved quality of life and social wellbeing as well as following up governance

and accountability. Kisarawe district agricultural and livestock officer (Daldo) Ayoub Isere

is optimistic that 15 power tillers distributed early this year to each of the 15 wards forming

the district council will revolutionise smallholder farming. In addition to the 15 power

tillers, for Msimbu and Marui wards The Council has added two tractors for each after

learning that the demand is relatively high there. The number of small tractors supplied tofarmers groups in Kisarawe, slightly over 200, is equivalent to 10 per cent of a total 2,154

distributed to different districts in the country by mid last year, according to the latest budget

speech of the Ministry of Agriculture and Food Security. The DALDO further says that in

order to ensure sustainability of the initiative whose implementation is in line with the

governments Agricultural Sector Development Programme (ASDP) and the Agriculture

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First initiative, commonly known as Kilimo Kwanza, the local authority has formed

special groups to manage the equipment from which the farmers will lease them. A

condition has been set for group members that they must have at least two acres of land each

to quality for membership, notes DALDO. What make many smallholder farmers even moreexcited is the fact that the new tools would help a great deal in cutting down farming costs

as well as time spent on preparing and tilling the land. Another Kisarawe farmer, Athuman

Mdugi, who resides in village known as Kidugalo says, I hope that I will spend less next

season. We have been told that between 25,000/- and 30,000/- will be charged per acre. I

used to spend around 90,000/- on paying labourers per acre. This is a big relief and should

therefore be warmly welcome. Mdugi further explains that he has also been informed by a

local extension officer that the power tillers were capable of tilling one acre in a single day.

This is incredible, as labours would spend up to two weeks for a similar assignment, he says.

A district official charged with the management of the power tillers, Dr Kisamo Minja is

optimistic that productivity will go up. The area of land under cultivation is estimated to

more than double in the next season. I cant give you the exact figures of what we expect in

the coming seasons. However, things will definitely improve because people will spend less

time and money in farming and still get bumper harvest if nothing goes wrong, he says. Not

a blessing to all! However, for a few, mainly labourers, the power tillers have been a curse

rather than a blessing. Minja says application of the equipment has rendered over 200 peoplejobless. The victims of mechanisation, around 15 in each of the 15 wards, are labours who

traditionally are not Coast region natives. Mostly they come from Dodoma, Shinyanga,

Tabora and Mwanza region. The only ward without a hope of setting aside the hand hoe is

Kiluvya. The area councillor, Anzameen Masawe reports that trials on using power tillers

have failed. We wont use them unfortunately, he informed. The land there is comprised

of clay soil, which is too compacted to be tilled by power tillers efficiently, he said. Quality:

No cause for alarm. One of the key challenges facing the mechanisation initiative is making

the equipment sustainable in terms of routine service, availability of spare parts and ensuring

that supply meets the growing demand. Mafizi ward councillor Kebo Sangi says, Farmers

have been sensitised and I think they will definitely need more in the near future.His

concern regarding the supply is echoed by Vikumbulu councillor Mohamed Dihomba and

Mzenga extension officer Ally Enzimbali who says a six-acre demonstration form developed

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in his area has attracted many people. We should brace for increasing demand of the

equipment in the very near future. Im not so sure if we are prepared enough to tackle the

challenge, he says. District Executive Director (DED) Isaya Moses alley fears that shortage

of power tillers will be an issue in future. Plans are underway to bring more power tillerswhenever demand goes up. So, this is not a matter of concern, he says, declining to give

more details of the plan he is talking about. However, the success of this ambitious

programme to mechanise agriculture right from the grassroots will have meaning if it helps

in boosting up productivity, increase incomes and improve the wellbeing of the poor

majority as targeted under the NSGRP blueprint.

The companies and organizations in Kisarawe promote various soil and water conservation

technologies:

Contour farming ploughing and growing crops along the contour rather than up

and down the slope.

Grass strips planting grass strips to break the flow of water down the slope.

Mixed cropping planting a mix of crops to protect the soil from heavy rain and to

maintain soil fertility.

Crop rotation of maize, tomatoes, and nitrogen-fixing legumes such as groundnuts

and beans to prevent the build-up of pests, diseases and weeds, to improve the soil

structure and to maintain fertility.

Mulching using crop residues to protect the soil surface prevent erosion and

conserve moisture in the soil.

Fanya juu a trench dug along the contour, with the soil piled into a ridge upslope

to control water flow, prevent erosion, and encourage the natural formation of

terraces. The ridges are planted with grass and trees to stabilize them. Fanya juus are

useful on gentle to moderate slopes of up to 8% gradient. Terracing moving large amounts of soil to form a series of flat terraces suited for

irrigation. Terraces are appropriate for steeper slopes, up to 13% gradient.

Check dams barriers across a gully or stream to slow down the flow of water, so

preventing further erosion.

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All these technologies aim to reduce erosion, conserve and improve the soil fertility, and

keep water in the soil where crops can use it. To use the conservation techniques correctly,

farmers have to know how steep the slope is: steeper slopes mean terraces orfanya juushave to be closer together. They also have to mark out contour lines so they can plough

along the contour, plant grass strips, or constructfanya juus or terraces. HEM teaches them

how to use a spirit level to measure the slope and mark out contours. It also teaches how to

use the various soil and water conservation techniques.

As summarised in Table 4.2.

TABLE 4.2: TECHNOLOGY USED IN FARMING ACTIVITIES

Dimension Frequency Number PercentageFarming Technology used Contour farming

Crop rotationMixed cropping

271828

37%25%38%

Awareness of FDIs in yourlocality

YesNo

5221

71%29%

Activities/services offered bythese FDIs in your area

a) Training of trainers& promotion

b) Demonstration plots.c) Sales: retail

and wholesale.d) Promotionse) Not applicable

151716250

21%23%22%34%0%

New farming technology beenintroduced by these FDIs inyour area

YesNo

4845

66%34%

Any impact in your productionas a result of applying the newtechnology?

YesNo

5221

71%29%

Source: Researchers findings, 2011

In undertaking this study this research examined the respondents to find out whether farmers

are aware of existing FDIs in their area of practice. For 52(71%) of all respondents were

aware of FDIs operation in their areas either by seeing or knowledge given by word of

mouth by fellow farmers on the brand or by utilising the services directly, whereas the rest

21(29%) were not aware of FDIs operation within their area. This is presented in Figure 4.3

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4.2.2 Small Scale Farmers Access Financial Facilities in their Area

This study sought to find out about the availability of financial services to the farmers in the

study area. The findings are summaries here below in Table 4.3.

TABLE 4.3: RESPONSES ON FINANCIAL SERVICES AVAILABLE FOR FARMERS

Dimension Frequency Number Percentage

Source of financial facilities availablefor farming activities in your area

(a) MFIs(b) Commercial Banks(c) SACCOS/VICOBA(d) Other sources

25171615

34%23%22%

21%

The accessibility of financial facilitiesin your area as a result of existence ofFDIs

(a) Yes(b) No

6012

83%17%

Requirements of accessing financialservices available

(a) Plot of land(b) Concrete house(c) Immovable assets(d) Others

19231417

26%32%19%23%

Utilisation the financial servicesavailed to farmers

(a) Mechanisation offarming activities(b) Improving Livingstandards(c) Utilising improvefarming inputs

16

53

4

22%

73%

5%

Source: Researchers Findings, 2011

To ensure sustainable livelihoods, Plan Tanzania supports the formation of Village Savings

and Loans Associations (VSLAs), which help people typically unable to borrow from

commercial banks to save and access credit, enabling them to invest in their businesses and

provide for their families. This organization also provides vocational training scholarships

and training in income generating projects and entrepreneurial skills for youths.

For 60(83%) of the respondents agreed that there is accessibility of financial services in their

area of operation The remaining 12 respondents who are 17% have not seen these operations

in their area of jurisdiction as illustrated in Figure 4.3

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FIGURE 4.3: THEACCESSIBILITYOFFINANCIALSERVICESTOFARMERS


The respondents agreed on the increase of productivity, they have seen the changes in their

yields, what notified them is that, they now see many people engaging in farming activitiesby 16(22%), and the majority 53(73%) agreed that their living standards have improved,

while the minority 4(5%) the changes which they noticed is that pests are more controlled

and are non resistant to the pesticide they use. Shown on below Figure 4.5.

FIGURE 4.4: UTILISATIONTHEFINANCIALSERVICESAVAILEDTOFARMERS.

Source: Researchers own findings, 2011

4.2.3 FDs Social Responsibility offered in Kisarawe

Many farmers in Tanzania traditionally work in groups so they can achieve a common goal

that they cannot achieve individually. Groups have many purposes: get better prices for their

produce, manage irrigation systems, secure access to land, obtain technical support from the

government, and many others. Farmers need information, goods and services if they are to

improve their farm production and become better off. Groups of farmers have much to learn

from each other, and collectively they are strong enough to lobby the government and attract

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the attention of the private sector. This is also a case existing in the study area i.e. Kisarawe.

Table 4.4 below shows the findings in terms of the contribution brought by the presence of

FDIs in Kisarawe district.

TABLE 4.4: CONTRIBUTIONBROUGHTBYFDIINKISARAWE

Dimension Frequency Number Percentage

Kind of social servicesare offered as a result ofthe FDIs in your area

(a) Extension services(b) Provision of farming inputs(c) Provisional of farmmachineries(d) Support on education andhealth facilities

19231417

26%32%19%23%

Contribution of FDIservices in increasingsmallholder farmersefficiency and their

productivity

(a) Farmers know good usage ofpesticide

(b)Affordable farming inputs atprices all farmers can buy(c) Increase of yields

18

23

31

25%

32%

43%

The contribution of socialservices offered throughFDIs in generaldevelopment of area

(a) Farmers educated in properuse of farming inputs(b) Availability of socialservices and markets for products(c) More yield, more

productivity

18

12

42

25%

17%

58%

The contribution of FDIsin improving productivityof small scale farmers in

Kisarawe district, Coastalregion.

(a) Training and education(b) Promotions and sales(c) Demonstration plots

271828

37%25%38%


The finding above answers the third research question, which states as follows how DVA

contribute to the increase of yields in Kisarawe district hence productivity.

For 23(32%) of all respondents reported that they are happy with the availability of farming

inputs which enable them to engage in good farming practices, while 19(26%) said that they

have enjoyed extension services from all companies that are operating in their area, another

group agreed by 17(23%) that FDIs support other social services especially on health and

primary education sectors while the remained group (19%) have been able to access farming

machineries like Power tillers availed to them.

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The respondents were asked about the contribution of FDI services in increasing smallholder

farmers efficiency and their productivity, the majority said it was to improve productivity

hence increase their yields by 43%, while 32% agreed that FDIs offer products and farming

inputs at affordable prices to all farmers and the remaining 25% reported they farmers nowknow good usage of pesticide.

General contributions made by FDIs in agriculture sector in Kisarawe in these farming

societies is through Promotions and sales in open markets by 38%, Training and workshops

of farmers and extension officers respondents agreed by 37% and the use of having

demonstration plots in different areas by 25%. This is shown in the Figure 4.5.

FIGURE 4.5: THE CONTRIBUTION OF FDIS IN IMPROVING PRODUCTIVITY OF SMALL SCALE FARMERS IN KISARAWEDISTRICT, COASTALREGION.

Source: Researchers own findings.

CHAPTER FIVE

DISCUSSION OF FINDINGS

5.1 Introduction

This chapter is a discussion of the findings of the inquiry that examined the contribution of

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the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe

district, Coastal region.

The objective of this study was to examine the contribution of the Foreign Direct Investmentin improving productivity of small scale farmers in Kisarawe district, Coastal region..

5.2 Discussion on Findings

5.2.1 Discussion on demographic factors

For a long time farmers in Tanzania have used indigenous practices to be successful in their

yields, the findings in the Respondents demographic factors show that there was equal

distribution of gender. In the study area all men and women participate equally in farmingactivities. All take agriculture as an occupation they can rely on daily basis.

Many have primary education and few succeeded to secondary level and vocational training.

The reason behind is not being able to pay fees for further studies but since ancestors they

were made to believe that agriculture is the backbone of the countrys economy. From

generation to generation farming was made for generating normal household income for

either produce food only for subsistence but very little kept for surplus. So most parents didnot invest in education as the key to their success, As soon as children complete primary

level they are given a portion of land to cultivate to sustain them in their daily needs.

The respondents chosen many where in the age of 26-35 years, and these farmed in between

1 and 10 years. These respondents fall in the majority of the primary education level, but

educated enough to the use of farming inputs in their cultivations. These have also been

advanced in practising agriculture for business not only for household use.

The main objective of this study was to answered by the following research questions:

(i) What technology does FDIs provide to small scale farmers in Kisarawe district?

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Agriculture productivity relies on different factors which are conserved soil and

maintenance of soil fertility, protecting the crop from pests. By combining three principles,

disturbing the soil as little as possible, keeping the soil covered with cover crops such as

crop residues or mulch and by crop rotation or mix crops (planting a cereal such as maizeand legume such as pigeon pea).

The study sought to understand the contribution of the Foreign Direct Investment in

improving productivity of small scale farmers in Kisarawe district, Coastal region. Many

factors were listed as the efficacy of the agrochemicals and how well it controlled and killed

pests, changes were seen before and after usage of the pesticides; also these generics are not

resistant to pests in the crops, many brands after long use they lose their efficacy in terms of

the pests tend to build a defensive mechanism of having an extra shell in their bodies which

are not affected by that chemical. Also the prices of these products and services and very

cheap and affordable to every farmer,

After many farms were modernized by use of advanced methods on farming practices, many

have seen positive changes especially in increasing productivity after assessing

products/services from FDIs existing in the area. Farmers in Kisarawe have learnt that they

have to invest in order to increase productivity, in the previous years if farmers do not

receive the subsidized agrochemicals given by the government they leave their crops

unattended. But with a lot of private markets around, these farmers are able to always have

access to products and services and not totally rely on the ministry of agriculture and

cooperatives.

Some of the changes the farmers in the study area noticed are, many people have engaged in

farming activities after seeing the changes in livelihoods of their fellow villagers. Also byproducts and services being accessible this had made them increase back their faith in

farming. Another factor is the control of markets for the end products, these has also

encouraged them to engage more in farming.

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(ii) How do small scale farmers access financial facilities in their area?

Very few farmers productivity improved through their annual productivity due to poor

farming practices. Even though there were farmers cooperatives after Tanzania

independence, few succeeded in providing initiatives, like financial services, farming inputs,machinery and agrochemicals. The government used to finance the agricultural through the

former Cooperative and Rural Development Bank (CRDB) as well as buy all agrochemicals

from local and foreign companies and sell to the farmers on subsidized prices. These inputs,

machinery and agrochemicals were monopolized, not many foreign companies could

participate in these tender documents neither did the farmers had much choice in what to use

and what not to use. Most of them did not get the training or education on good practices

and good usage of these pesticides they used on their crops little did they yield and very

little was their livelihoods improved.

With regards to the obstacles facing farmers today, the findings were as expected. From

1980s when Tanzania liberalized the markets including the agriculture sector many foreign

businesses invested in Tanzania. This was the outcome when Tanzania economy

deteriorated in the late 1970s and early 1980s.

The presence of FDIs in Kisarawe just proves to us, the changes and transition Tanzania has

gone since post Arusha declaration. Foreign business being introduced in Tanzania, the

farmers now have a wide range of accessing financial services from existing Microfinance

Institutions in the study area which in turn facilitates farmers to acquire agrochemicals,

inputs and machinery from many different companies originating mostly from China,

Germany, India, Spain, Israel and France. Now there are more than 100 registered products

used in crops.

Now farmers have awareness of the existence of the business and have accessibility to the

products. They access these products during training of trainers which is conducted by the

foreign companies themselves to train extension workers, regional distributors, agents and

farmers themselves. These people are trained in various topics including how to acquire

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loans for agricultural purposes, the right applications of pesticides to be used on the crops,

the correct way of spraying the crops and also first aid to give to an injured person affected

by these pesticides.

These findings proved that there is no difficulty for foreign companies to operate in the

agricultural production areas.

Most of the farmers have managed to build modern houses made of blocks and aluminium

sheets, they have improved their transport facilities from riding bicycles to motorcycles and

others even have managed to buy second hand cars. Others have even managed to send their

children for higher education in different parts of the country.

(iii) What social responsibility does FDIs offer in the area?

The findings in the study showed that the services which FDIs provides has brought increase

in yields in Kisarawe district, these are:-

One of the strategic way of penetrating farming business in the farming society in Kisarawedistrict is by establishing demonstration plots in different villages in every ward. As the old

saying goes, seeing is believing. The farmers trust on the efficacy of agrochemicals, inputs

and machinery only when it is tried on their crops or farms.

Other farmers from other areas are notified of the demonstration plots, locate them and trace

the availability of products from different providers. Groups of farmers were formed and

every group divided up responsibility for each plot. Each week, a subgroup checked on the

crops in their plot, and then reported back to the whole group. The whole group monitored

the differences among the plots, discussed each sub-groups findings and solutions, and

agreed on what to do.

FDIs organise study visits for village leaders and extension officers to train farmers in each

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village they have their activities how to implement the various technologies. They provide

practical training on one of the participants farms. A group of farmers gets together in one

of their own fields to learn about their crops and things that affect them when using different

pesticides of different companies. They learn how to farm better by observing, analysing andtrying out new ideas on their own fields. The farmers meet regularly weekly from planting

to harvest, to check on how the crops are growing, looking at the amount of moisture in the

soil, and counting the numbers of pests (scouting).

Foreign investors also collaborate with NGOs working in the area, and pass this information

to the extension officers. This information may be in form of brochures or newsletters and

regular visits of agronomists. These Foreign investors produces training manuals and easy-

to-understand printed information materials in both Swahili and English for distribution to

farmers in the villages, as well as to other business partners who distribute their products

and NGOs who are engaged in agriculture and educational institutions working on similar

issues elsewhere in Tanzania. This helps spread the techniques and approaches developed.

The study findings illustrate the main reasons which influenced these farmers in Kisarawe

district in Coastal region to utilize these services. The main reasons were to improve

productivity of their crops hence their livelihoods, Most of the farmers who properly used

these services have doubled their yield, income and improved their standards of life. Others

have utilized these services by controlling pests in the farms who were destroying their

crops, which reduced the amount of yield they harvested annually and lowered their income.

This made them experience hardships in maintaining their living standards hence improve

their livelihoods.

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CHAPTER SIX

CONCLUSIONS AND RECOMMENDATIONS

6.1 Conclusion

As in most low income societies, it has been very hard for farmers to get credit in banks orother financial institutions, when granting credit, have the requirement that the potential

lender business should have a current account or collaterals. Many cannot access restrictive

requirements such as large deposits, formal employment, significant collateral, age and high

level of minimum loans. These farmers are not able to increase their capital, move from

manual ploughing to machinery use of tractors

.

Another factor is the long and complicated procedures and bureaucracy before the release ofloans which exist among different banks. These delays acquisition of loans to the poor

farmers and if it comes, it is too late for the season. We recommend farmers to use wisely

the Savings and Credit Cooperatives (SACCOS). It is much easier for banks to grant loans

through these cooperatives than to individual farmers. But other challenges which hinders

farmers from getting credit is that these SACCOS have poor quality of human resources,

operating systems, procedures and practices and supporting services. Still rural areas have

problems in operating them; hence lack the qualities for getting good loans in financial

institutions.

Benefits obtained in the research is the farmers have many traditional practices and have

developed innovations that have not been documented or shared with others, this could be

asset for future developers.

6.2 Recommendations

6.2.1 General recommendations:

In rural areas where there is a poor infrastructure, should be improved especially during

rainy season. This is to encourage more companies intervene their business in the remote

areas of the country where most farmers are located. So that the supplies of farming inputs

are available at the right time of the season hence increase productivity.

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It is recommended that more companies should be established in Kisarawe district to allow

better accessibility of agrochemicals and other inputs. Also these companies should sell

along with the products protective gears to prevent harm during spraying. And for the

government the tenders should be announced early so to allow the supplies during theseason to be much faster and on time for spraying.

Marketing; Marketing of food and cash crops is a problem for many farmers, leading to a

glut in the market and low prices for perishable commodities. Possible solutions includes

identifying new markets, forming a marketing group to sell the produce to more distant

buyers, processing the crops (drying the tomatoes), switching to other crops with a more

reliable price, planting and harvesting at different times to avoid having to sell at low prices

during the peak harvest period, signing contracts with buyers for a guaranteed price, and so

on.

6.2.2 Policy Implications

As conservation agriculture is suitable for farmers of all income groups, but poorer people

adopt faster because they need to make sure they have enough food, and conservation

agriculture enabling them to save money to pay for labour.

Training and development could help entrepreneurs to obtain management skills, including

skills in preparing business plans and financial statements, which could, furthermore, bridge

the gap in the inequality in granting credit by the banks. In addition, awareness campaigns

should be held so that women entrepreneurs could have knowledge about those

organizations with the result that they could then utilize their support and facilities.

Both government and non-governmental organizations in Tanzania should undertake aresponsibility of training, educating and conducting workshops of farmers from time to time.

and not leaving this to foreign companies alone. As more yield means more raise in the GDP

of the country.

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Limited markets: Farmers have to do extra work for sustainable or organic production,

prices for their products in the local markets is low. Unlike local markets, foreign markets

offer premium prices for organically grown produce. But accessing the export market is very

difficult for smallholders without outside support. Improved access to higher- value marketswould motivate many more farmers to invest work in sustainable agriculture.

6.2.3 Research Implications

The study focuses on examining the contribution of the Foreign Direct Investment in

improving productivity of small scale farmers in Kisarawe district, Coastal region.

Apparently there are other key issues which also can be studied as to see their impact on

effecting farmers productivity in Developing countries like Tanzania. One can undertake a

study on the following areas:

(i) How would the Foreign businesses in Developing countries, provide a common

platform to discuss the issues, opportunities and challenges on the interface of

livelihood and their (foreign businesses) interventions as well as identifying

strategies for further state intervention.

(ii) There is a need for conducting further studies to assess the financial and technical

strength of the existing foreign businesses. This will reveal the actual situation on the

current coverage size and the support received by the clients (i.e. farmers)

(iii) Future researchers can conduct these study or replicate this study in other

regions were farming activities are popular such as the southern highlands, and use

other foreign companies to research on how they have succeeded in improving

farmers livelihoods.

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http://www.mviwata.org/content/support-small-scale-farmers-tanzania-financed-oxfam-irelandhttp://www.mviwata.org/content/support-small-scale-farmers-tanzania-financed-oxfam-irelandhttp://www.mviwata.org/content/support-small-scale-farmers-tanzania-financed-oxfam-irelandhttp://www.mviwata.org/content/support-small-scale-farmers-tanzania-financed-oxfam-ireland


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5th edition. Pearson Education Limited, Essex, England.

SIDA; Swedish International Development Cooperation Agency - Division for Policy and

Socio- Economic Analysis.

Tanzania Agriculture Sector (Retrieved from http://www.tanzaniainvest.com/tanzania-

agriculture on 27th February, 2011)

URT (2007). Coast Region Socio-Economic Profile 2nd Edition. Joint Publication by

National Bureu of Statistics (NBS) and Coast Regional Commissioners Office Coordinated

By: Ministry of Planning, Economy and Empowerment Dar es Salaam, Tanzania.

Yin R. (1994). Case Study Research: Design and Methods, Third Edition, Applied SocialResearch Methods Series, Vol. 5 (Paperback)

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http://www.tanzaniainvest.com/tanzania-agriculturehttp://www.tanzaniainvest.com/tanzania-agriculturehttp://www.tanzaniainvest.com/tanzania-agriculturehttp://www.tanzaniainvest.com/tanzania-agriculturehttp://www.tanzaniainvest.com/tanzania-agriculture


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APPENDICES AND ANNEXES

Appendix 1: Questionnaire for Respondents

The study examines the contribution of the Foreign Direct Investment in improvingproductivity of small scale farmers in Kisarawe district, Coastal region. Please tick () youranswers you consider best reflect your opinion. Your responses and the information youprovide will be treated as confidential and will used for academic purpose only and nototherwise. Thus, I am asking for your cooperation in this task to enable me complete mystudies at Centre for Foreign Relations.

Respondent No Date...

A. Personal details of Respondent:

1. What is your Age ..

2. Sexa) Male ( )b) Female ( )

3. Marital Statusa) Single ( )b) Married ( )c) Divorced ( )

4. Level of Education .;

5. How long have you been farming?a) 1 10 years ( )b) 11 20 years ( )c) 21 30 years ( )d) 31 40 years ( )

6. Which technology did you use during farming activities?

7. Are you aware of any FDIs in your locality?a) Yes ( )

b) No ( )

8. What activities/services offered by these FDIs in your area? Please mention them..

9. Is there any new farming technology been introduced by these FDIs in your area?

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a) Yes ( )b) No ( )

10.If you answered yes to question 6, please mention the technology here below

...

11. Is there any impact in your production as a result of applying the new technology?a) Yes ( )b) No ( )

What impact ..

12. What source of financial facilities available for farming activities in your area?..

13.Do you have an access to financial facilities in your area as a result of existence ofFDIs?a) Yes ( )

b) No ( )

14. What are the requirements for farmers to access them? Please mention them...

15. How do you utilize the financial services availed to you?..

.

16.What kind of social services are offered as a result of the FDIs in your area?...

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17.How does these services contribute to increasing your efficiency as a smallholderfarmers and hence your productivity? Please specify...

18. What is the contribution of social services offered through FDIs in generaldevelopment of area?....

19.General comments on the contribution of FDIs in improving productivity of smallscale farmers in Kisarawe district, Coastal region?.

Thanks for your Cooperation

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Appendix 2: Research Budget

The researcher will be required to have sufficient fund for conducting the study. Source of

funds to finance the study will be from financier of the study.

ITEM TRANSACTION AMOUNT TOTAL

Stationeries Stationary 300,000 300,000/=Secretarial services Typing 75,000

Photocopy 100,000Binding 50,000 225,000/=

Transport To the Institute 300,000To the Field 500,000 800,000/=

Meal Breakfast (10,000 x 5 days x10 weeks)

500,000

Lunch (20,000 x 5 days x 10weeks)

1,000,000 1,5000,000/=

Communication Mobile phone and Internet 100,00 100,000/=Other Related expenses 200,000 200,000/=GRAND TOTAL 3,125,000/=

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Appendix 3: Schedule of Work/Activity Plan

The study will be conducted from October 2011 to the end of December 2011. The

Activities of the study will comprise the following:

Activities October November DecemberPre

the contribution of foreign direct investments on agricultural productivity in tanzania 2nd draft

Documents