Southern New Hampshire University & Open University of Tanzania Master of Science in Community Economic Development [2007] Enhancement of Capital Mobilization Skills for Rural Economic Development Projects Case Study of WACOD - Women in Kisarawe District, Coastal Region, Tanzania By Clarence Kipobota Southern New Hampshire University & Open University of Tanzania Master of Science in Community Economic Developmen t (2007) Enhancement of Capital Mobilization Skills for Rural Economic Development Projects: Case Study of WACOD - Wome n in Kisarawe District, Coastal Region, Tanzania A Projec t o n Capita l Mobilizatio n Submitte d i n Partia l Fulfillmen t o f Requirements fo r Masters of Science in Community Economic Developmen t in th e Souther n Ne w Hampshir e Universit y a t th e Ope n Universit y o f Tanzania in 2007 By Clarence Kipobota Certification of th e Superviso r This is to certify that , I have read the Projec t Paper and foun d i t to be in a Form Acceptable fo r the Review . Copyright © No part of this Project may be reproduced, store d in any retrieval system, o r transmitte d in an y for m b y an y means , electronic , mechanical , photocopy , recordin g o r otherwis e without prio r writte n permissio n o f th e autho r o r th e Ope n Universit y of Tanzania / Southern New Hampshire University in that behalf. Declaration by the Candidate I hereby declare that this work is my original work an d that it has not been submitted for the similar degree in any University. Dedication To my Sweet Mother Catherine Budotela and Loving Memory of my Father and Guardians the Late Raphael Kipobota, John and Cecilia Banene. Acknowledgment The preparation, designing , implementation, monitoring, evaluation, documentation an d organization of data an d informatio n for thi s work have bee n successfu l du e t o effort s from variou s individuals , institutions , department s an d non-governmenta l an d governmental organizations . I woul d lik e acknowledg e thei r tremendou s contributio n during the whole period of this study. I appreciate, in particular the effort s of the hosting organization, WACOD o f Kisarawe Distric t fo r preparing enabling environment withi n which thi s work was done . Thank s also t o th e Communit y Workers for Kiluvya Ward , VEO, WEO and other Local Government Leaders of Kisarawe District. Sincere gratitud e t o m y instructor s fo r projec t managemen t subjec t Miche l Adjibodo u who is also the Director of CED Program Tanzania, Mr. Felician Mutasa who was course instructor and advisor of my Project Paper for their guidance from stag e one of this work up to the end. I have noted with sincere appreciation the monetary contribution of LHRC to my studies particularl y in this course . Specia l thank s t o Ms. Helen Kijo-Bisimb a fo r encouraging an d inspirin g m e t o pursu e thi s course . I a m als o indebte d t o my fiancee Grace Matu i fo r he r back-u p intuitiv e powers. My friends Mr . Peter Makoye , Nipae l Kiondo an d Rodrick Mar o fo r assisting me t o proof-read, commen t o n the content s an d setup and print the initia l draft s o f this Project Paper. Finally , I thank all participants t o the survey and implementation of the project which has resulted into this document. God, the Almighty Bless you all. Asanteni Sana Wote. i Table of Contents List of Tables and Other Figures i Acronyms and Abbreviations i v Abstract v Executive Summary v i Chapter I - Community Needs Assessment 1 1.1 Location , Geography, Demographics and Socio-Economic Situation of Kisarawe District 1 1.1.1 Location and Geography of Kisarawe District 3 1.1.2 Population 3 1.1.3 Income, Social Services and Poverty Level 4 1.2 Th e Customs, Traditions and Habits affecting the Economic Situation 5 1.3 Governanc e of Local Affairs: Th e Power Structure 7 1.4 Kisaraw e District as a Needy Community 8 1.5 Research Methodology used for Needs Assessment 9 1.5.1 Introduction: Methodology 9 1.5.2 Survey Tools/Instruments Used 10 1.5.3 The In-Person Interview and Observation 11 1.5.4 The Number and Contents of the Questions Used During the Survey 12 1.5.5 The Sampling 13 1.5.6 Psychometrics and Reliability for Survey 14 1.6 Description and Statistical Analysis of Data Collection and the Findings 1 5 1.6.1 The Appropriate Analysis: The Descriptive Analysis 15 1.6.2 Coding (Grouping) of Information 16 1.7 The Findings .1 6 Chapter I I - Problem Identification 3 8 2. 1 Problem Identification Context 3 9 2.1.1 The Statement 3 9 2.7.2 The Analysis 4 0 2.2 The Target Community 4 0 2.3 Stakeholders 4 1 2.4 The Project Goal 4 2 2.5 The Project Objectives 4 2 2.6 Hosting Organization 4 2 Chapter II I - Literature Review 4 4 3.1 Theoretical Literatures 4 3 3.1 Empirical Literature 5 2 3.2.1 Self Saving Mobilization 5 2 3.2.2 Saving Clubs 5 3 3.2.3 Community Banks without Collateral: The Grameen Bank of Bangladesh 54 3.3 Policy Review 5 6 ii Chapter IV - Implementation 6 4 4.1 The Project Products and Output 6 4 4.1.1 Capacity Building Trainings Organized and Conducted 65 4.1.2 Consultative Meeting Conducted 66 4.1.3 Four Sources of Capital Mobilization have been explored 66 4.2 The Project Planning 6 8 4.2.1 The Implementation Plan 68 4.2.2 The Project Inputs 69 4.3 Staffing Pattern 6 9 4.3.1 Human Resource 69 4.3.2 Financial Patterns 70 4.4 The Actual Implementation of the Project 7 0 4.5 The Implementation Process 7 1 Chapter V - Monitoring, Evaluatio n and Sustainability 7 2 5.2 The Monitoring 7 2 5.2.1 The Methodology of Monitoring 72 5.2.2 Management Information System 75 5.2.3 The Summary of Monitoring Process 7 7 5.3 The Evaluation 7 9 5.3.1 Methodology used for Evaluation 79 5.3.2 The Performance Indicators and the Evaluation Table 82 5.3.3 The Evaluation Findings: Formative and Summative 85 5.4. Sustainability 8 7 5.4.1 The Essence of Sustainability to this Project 87 5.4.2 Sustainability Elements and Plan 87 5.4.3 The Institutional Plan 89 Chapter VI - Conclusions and Recommendations 9 1 6.1 Conclusion 9 1 6. 2 Recommendations 9 2 6.2.1 Need to Institutionalize Social Capital 92 6.2.2 A need to enhance the Local Organizational/Groups' Capacities 95 6.2.3 Need of Community Economic Empowerment and Involvement 96 6.2.4 Need of Adopting Village Saving and Credit Clubs/ Committees 97 Bibliography 10 0 Appendix 10 3 iii List o f Tables and Othe r Figures Figure 1 Ma p of Pwani Region showing the location of Kisarawe District Figure 2 Populatio n Size of Pwani Region and Kisarawe District Figure 3 Rati o in Percentage of the Main Economic Activities in Kisarawe District Figure 4 Obstacle s t o the accessibility of Financial Resources in Percentage Figure 5 Leve l of Business Manageria l Skills in Kisarawe District Figure 6 Percentag e of the Level of Business Managerial Skills in Kisarawe District Figure 7 Monitorin g Table Figure 8 Evaluatio n Table of Output an d Outcome o f the Projec t Table I Projec t Activitie s and Implementation Pla n Table II Evaluatio n Table Table Ilia Projec t Informatio n Syste m fo r Monitoring Table Ulb Monitorin g Plan and Information Tabl e Table IV Budge t a s Estimate d Table Va Abstrac t of Job Description Used Table Vb Content s of Questions Aske d During Interview s Table VI Mai n Economic Activities in Kisarawe District according to this Stud y Table VII Reason s for Lack/Low Accessibility of Financial Resources Table VIII Alternativ e Capital Mobilization Strategies in Kisarawe District Table IX Leve l of Understanding o f Important Socio-Economic Policies, Strategies and Related Laws among th e Community Members. Table X Summar y of Chronological Events of Project Implementation . Attachments Newspaper s Cuttings fo r Advocacy iv Acronyms and Abbreviations CBOs Communit y Based Organization s CED Communit y Economic Developmen t EEP Economi c Empowerment Polic y of Tanzania FAO Foo d and Agriculture Organization (UN) LHRC Lega l and Human Rights Centr e MKUKUTA Nationa l Strategy for Economic Growth and Reduction of Poverty of Tanzania MKURABITA Busines s an d Property Formalization Programme o f Tanzania MVC Mos t Vulnerable Children NGO Non-Governmenta l Organizatio n PIMs Projec t Implementatio n Meeting s PLHA Peopl e Living with HIV/AIDS PMP Projec t Managemen t Performanc e RDS Rura l Development Strateg y of Tanzania RFSP Rura l Financial Service Programme o f Tanzania ROSCAs Rotatin g Savings an d Credit Association SACCOS Saving s and Credit Cooperative Societie s SME Smal l and Medium Enterprise Polic y of Tanzania SRS Simpl e Random Sampling VEO Villag e Executive Officer WACOD Wome n and Community Development Organizatio n (Kisarawe District, Pwani Region, Tanzania) WEO War d Executive Officer V Abstract Poor people , especiall y poor wome n in Tanzania have ver y limited acces s t o financia l services.