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CXB Market Assessment July 2020

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CXB Market Assessment July 2020 MARKET FUNCTIONALITY ASSESSMENT AMID COVID-19 PANDEMIC IN THE UNITED REPUBLIC OF TANZANIA - Market Functionality Index – JULY 2020 INSERT IMAGE TANZANIA MARKET ASSESSMENT: INTRODUCTION COUNTRY CONTEXT COVID-19 pandemic continues to Market assessment is Markets in Mwanza are well Food prices in urban centres pose devastating global health therefore essential to supplied with a variety of in Tanzania are often double crisis, with over 17 confirmed understand the level of market commodities sold at the prices given by farmers cases globally as of early July 2020. functionality and capacity of reasonable price. Some due to high transportation The pandemic has seriously the markets in urban areas to markets such as Buhongwa cost from the farm to the impacted the social economic respond to increased demand also serve the neighbouring market. Prices are lowest situation and livelihoods of the in case of a humanitarian regions including Kagera and during the harvesting season people especially in sub-Saharan cash-based response. Mara. and highest during the lean Africa. season. High transportation In Zanzibar, there are markets and market information cost While Tanzania did not impose a MARKET CONTEXT of different sizes selling a are also the key factors total local down, the government variety of goods including limiting efficient flow of food closed schools, suspended supplies to the market. Dar es Salaam is the key cereals; such as rice and international flights and banned all destination market for staple maize, Food Items other than public gatherings before lifting the foods originating from the surplus cereals; such as meat, fruits, restrictions in June. Although all producing regions. A large fish, vegetable and spices and social and economic activities are network of traders facilitates Non-Food Items (NFI) such as back to normal, there has been no collection, distribution and clothes and utensils. These empirical evidence of eradication retailing of staple foods across goods are available in both of Corona virus in the country. the country and ensures wholesale and retail. Some availability of commodities at all markets make auction of The urban poor were more time. Generally, there is no goods every day. susceptible to COVID-19 infection significant barriers to entry to due to living conditions, and to the trade. There are many traders selling socio-economic effects of COVID- similar goods thus resulting 19 since about 80% of the urban into stiff competition in population depend on informal markets in Zanzibar. livelihood activities with unreliable income sources. 1 JULY 2020 TANZANIA MARKET ASSESSMENT: METHODOLOGY THE MARKET FUNCTIONALITY INDEX REPORT FORMAT The Market Functionality Index WEIGHT Report findings have been divided into methodology is WFP’s standardized market The MFI considers three basic categories: 9 key dimensions of a functioning assessment approach that aims to quantify 1) Cereals market: market functionality in a score per 2) Food items other than cereals marketplace, while also identifying 3) Non-Food Items (NFI) 1. Assortment weaknesses or areas of interventions to 2. Availability guarantee the continuity or effectiveness of 3. Prices the assistance. Cereal foods are considered more valuable by WFP to beneficiaries and thus 4. Supply Chain Resilience weighted higher than non-cereal foods 5. Competition SURVEY and NFIs. This means scores will be 6. Infrastructure The methodology relies on a standard impacted more by the measurements survey where questions are organized 7. Service (assortment, availability, etc.) of cereals under nine dimensions deemed crucial to 8. Food Quality than non-cereal food and NFIs. make a judgement statement around 9. Access and Protection market functionality. These are: Assortment, Availability, Price, Resilience of Supply DATA COLLECTION Chains, Competition, Infrastructure, Service, Data collected 8th -26th July 2020: Food quality and Access and Protection. 1,372 traders interviewed Access the MFI online dashboard 29 assessed marketplaces, SCORING • 10 in Dar es Salaam Markets are thus globally scored on a scale • 10 in Mwanza from 0 to 10 to allow worldwide • 9 in Zanzibar comparability, where a score of 10 (MFI=10) indicates that a market is fully developed, efficient and functional. In most contexts where WFP operates, we do not expect such scores to be achieved. 2 MFI Assessed Markets in the United Republic of TanzaniaTanzania Mainland Zanzibar MWANZA DAR ES SALAAM KASKAZINI UNGUJA & MJINI MAGHARIBI Tanzania Market Assessment - July 2020 3 3 TANZANIA MARKET ASSESSMENT: FINDINGS SUMMARY KEY FINDINGS MFI by region MFI SCORES Market MFI 5.1 5.1 4.0 3.4 Dar es Salaam This assessment confirms that the Dar es Salaam Mwanza Mjini Kaskazini Temeke (Tandika) 7.03 functionality of marketplaces in Dar Magharibi Unguja Mwananyamala 5.54 es Salaam, Mjini Magharibi and Ilala (Buguruni) 5.51 Mwanza are adequate, with the Mawasiliano 5.30 caveat that service levels tend to be MFI: Regional Average Ilala Boma 5.25 on the lower side (i.e. shopping and Mabibo 5.05 check out experience). In terms of Access & Kariakoo 4.76 assortment, a wide range of goods Protection Stereo 4.57 covering essential needs are being 10 Tegeta Nyuki 4.22 sold in most markets, and there is Service Assortment Kinondoni (Tandale) 3.57 adequate competition among traders. Kaskazini Unguja 5 Mkokotoni 3.43 With no major issues in terms of Mjini Magharibi availability of goods and relatively Resilience Availability Darajani 5.30 resilient supply chains, most of the 0 Mombasa Kwa Mchina 5.15 assessed markets have adequate Saa Teni 4.14 supplies and should be able to Kwa Haji Tumbo 4.02 respond to demand shocks. Despite Price Competition Jumbi 3.78 this, however, in some markets Kwa Mabata 3.31 (particularly those of Mjini Magharibi Ngalawa 3.25 and Mwanza), price volatility was Infrastructure Food Quality Mwanakwerekwe 3.18 flagged as a potential issue and will Mwanza require careful monitoring. Mbugani 6.05 Kaskazini Unguja Dar-es-salaam Mjini Magharibi Mwanza Sabasaba 6.04 Assessed markets lack some of the Kirumba 5.75 minimum requirements that are Mkuyuni 5.52 largely present in more developed Assessed markets also generally scored well on the access & Buzuruga 5.12 markets in terms of infrastructure protection dimension, with the main constraint being seasonal Mirongo 4.70 and food quality. access for a few markets. Ibungiro 4.69 Nyegezi 4.44 Kitangiri 4.39 Buhongwa 4.22 Access the MFI online dashboard4 TANZANIA MARKET ASSESSMENT: ASSORTMENT Average Score by Region Market Score ASSORTMENT Dar es Salaam Mwanza Ilala (Buguruni) 9.0 Tegeta Nyuki 9.0 The assortment of essential goods Mjini Magharibi answers two questions: Temeke (Tandika) 8.0 Dar-es-salaam Kariakoo 8.0 Kinondoni (Tandale) 7.0 1. Can beneficiaries find all of Kaskazini Unguja their essential needs in the Mwananyamala 7.0 market? 0 2 4 6 8 10 Ilala Boma 7.0 Mawasiliano 7.0 Mabibo 6.0 2. Do they have a wide range of FINDINGS Stereo 4.0 choice? Kaskazini Unguja Average scores by region for assortment varied between 5 in Mkokotoni 5.0 Essential needs refer to what Kaskazini Unguja (where only Mkokotoni market was assessed) and Mjini Magharibi households require to ensure 9.3 in Mwanza. Although there are a few exceptions, the majority of Mwanakwerekwe 10.0 minimum living standards (items markets in Dar es Salaam, Mjini Magharibi and Mwanza have Saa Teni 10.0 such as food, shelter, basic decent assortment, and it is possible to buy not only food and Mombasa Kwa Mchina 9.0 household items, safe drinking household items but also other essential goods including Water, Darajani 9.0 water, sanitation and hygiene or Sanitation and Hygiene (WASH) items, some health, shelter, Kwa Mabata 8.0 healthcare). To evaluate choice, education and communication items. medicines, construction Ngalawa 8.0 the MFI investigates the maximum materials, household items, goods for school and for Jumbi 7.0 number of commodities, or Stock communications. In Kaskazini Unguja’s Mkokotoni market, however, Keeping Units (SKUs) sold in health and shelter items were not being sold. Kwa Haji Tumbo 7.0 outlets in the market. Mwanza Buhongwa 10.0 Mkuyuni 10.0 Dar-es-salaam Kaskazini Unguja Mjini Magharibi Mwanza Kitangiri 10.0 Cereals 90% 100% 100% 100% Ibungiro 10.0 Non-cereal foods 100% 100% 100% 100% Sabasaba 10.0 Household items 100% 100% 100% 100% Mbugani 9.0 Communication 40% 100% 88% 80% Nyegezi 9.0 Education 70% 100% 75% 100% Kirumba 9.0 Health 10% 0% 88% 80% Mirongo 8.0 Buzuruga 8.0 % of assessed markets in each region Shelter 60% 0% 100% 100% where at least 1 trader was selling the item in question WASH 100% 100% 100% 100% Access the MFI online dashboard5 TANZANIA MARKET ASSESSMENT: AVAILABILITY Market Score AVAILIBILITY Average Score by Region Dar es Salaam Kinondoni (Tandale) 10.0 Availability is the physical Kaskazini Unguja Temeke (Tandika) 10.0 presence of goods in sufficient Dar-es-salaam Mwananyamala 10.0 quantities, thus adequate Tegeta Nyuki 10.0 supplies in a functioning Mwanza Ilala Boma 10.0 market. Availability answers two Mjini Magharibi Kariakoo 10.0 questions: Mabibo 10.0 0 2 4 6 8 10 Stereo 10.0 1. Are there any key products Ilala (Buguruni) 8.3 that are scarce? FINDINGS Mawasiliano 6.7 Kaskazini Unguja Mkokotoni 10.0 2. Are there any key products Average scores by region for availability ranged between 6.4 and 10, Mjini Magharibi which are already running with the latter being for Kaskazini Unguja where only 1 market Kwa Mabata 10.0 out? (Mkokotoni) was assessed. In Dar es Salaam also, the majority of markets had no issues with availability. This implies that at the time Mombasa Kwa Mchina 10.0 of the assessment, traders believed to have enough stocks to meet Darajani 10.0 Availability assesses whether the current demand and thus were not afraid of running out of Mwanakwerekwe 6.7 certain products are scarce or stocks.
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