ECONOMIC CONTRIBUTION OF VILLAGE COMMUNITY BANKS IN CONSERVING FOREST RESOURCES: A CASE OF KAZIMZUMBWI AND PUGU FOREST RESERVES RWEKAZA, GODLOVE DEODATUS A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS OF THE SOKOINE UNIVERSITY OF AGRICULTURE. MOROGORO, TANZANIA. 2019 2 ABSTRACT Village Community Banks aimed to reduce extreme poverty among community group members and enable members share knowledge on how to generate income which could be alternative sources of income rather than depending on illegal exploitation of forest resources for the economic purpose. This study aimed at assessing economic contribution of VICOBA in conserving forest resources. Multistage sampling technique was used to obtain 5 villages adjacent to both Kazimzumbwi and Pugu Forest Reserves. In the selected villages 23 VICOBA was selected by using Probability Proportional to Size (PPS), 230 respondents form selected VICOBA was sampled and 15 key informants were purposively selected. Primary data was collected using questionnaires and key informants interviews. Quantitative data were processed and analyzed using SPSS and Microsoft excel, in addition a binary logistic regression analysis was done to determine factors influencing VICOBA member decisions in exploit forest products. Results show that, VICOBA programme enable its members to engage in small business activities as alternative sources of income at 55% which reduce illegal exploitation of forest resources, also binary logistic model results reveal significant factors that were negatively influence VICOBA members decision in forest products consumption at P < 0.05 are alternative sources of income, national conservation laws, access to credit, educational level and cultural believes, 44% of VICOBA members were aware in forest conservation through conservation education provided and engaged in conservation through reporting illegal activities and participating in environmental clubs. Finally, this study recommends promotion of community microfinance groups in societies which could be source of alternative income generating activities to reduce overdependence and overconsumption of forest resources. DECLARATION I, Godlove Deodatus Rwekaza, do hereby declare to the Senate of Sokoine University of Agriculture, that this dissertation is my own original work done within the period of registration and that it has neither been submitted nor being concurrently submitted in any other institution. Godlove Deodatus Rwekaza Date (MSc. ENAREC. Candidate) The declaration is hereby confirmed by: Dr. L. P Lusambo Date (Supervisor) COPYRIGHT No part of this dissertation may be reproduced, stored in any retrieval system, or transmitted in any form or by any means without prior written permission of the author or Sokoine University of Agriculture in that behalf. 5 ACKNOWLEDGEMENTS I am grateful to Almighty God for His protections, blessing and guidance throughout my life and my study period. I would like to express my special thanks to my family for their prayers throughout my study, special thanks go to my supervisor Dr. L. P. Lusambo for his professional advice, guidance, encouragement and constructive critiques as would be required for the completion of this dissertation. I would like to express my sincere thanks to all 230 respondents and 15 key informants in communities adjacent to Kazimzumbwi and Pugu forest reserves participated in the interviews and their responses to various questions directed to them. I am highly gratified to Hon. Jokate Mwegelo (Kisarawe District Commissioner) her guidance that enable me to access communities, sincere thanks goes to TFS office in Kisarawe district for availing valuable information concerning forest conservation. Kisarawe District Cooperative and Development Officers are appreciated for their cooperation during field work. Finally, I would like to acknowledge the very special support rendered by best friends Advocate Derick Deodatus and Basinzaki Kusekwa as the part of my family for successful completion of my study. DEDICATION This work is dedicated to my beloved parents, Mr. and Mrs Deodatus Rwekaza. Their contribution as parents to my upbringing and education is highly appreciated. Their love and care for me enable me to be who I am today. May God bless them, Amen. TABLE OF CONTENTS ABSTRACT ........................................................................................................................ ii DECLARATION ............................................................................................................... iii COPYRIGHT .................................................................................................................... iv ACKNOWLEDGEMENTS ............................................................................................... v DEDICATION ................................................................................................................... vi TABLE OF CONTENTS ................................................................................................. vii LIST OF TABLES ............................................................................................................. xi LIST OF FIGURES .......................................................................................................... xii LIST OF APPENDICES ................................................................................................. xiii LIST OF ACRONOMYS ................................................................................................ xiv CHAPTER ONE ................................................................................................................. 1 1.0 INTRODUCTION.....................................................................................................1 1.1 Background information...........................................................................................1 1.2 Problem statement.....................................................................................................2 1.3 Justification of the study...........................................................................................3 1.4 Objectives of the study..............................................................................................3 1.4.1 Main objective..............................................................................................3 1.4.2 Specific objectives........................................................................................3 1.5 Research questions .................................................................................................... 4 1.6 Conceptual framework of the study .......................................................................... 4 1.7 Limitations of the study ............................................................................................ 5 1.7.1 Lack of willingness to disclose economic activities information ................. 5 1.7.2 Writing skills barrier ..................................................................................... 5 8 CHAPTER TWO................................................................................................................6 2.0 LITERATURE REVIEW.........................................................................................6 2.1 Micro finance..............................................................................................................6 2.1.1 Microfinance as the social capital for the conservation................................7 2.2 VICOBA structure and operation...............................................................................7 2.2.1 Why study VICOBA?...................................................................................8 2.3 Natural resources conservation...................................................................................8 2.4 Natural resources sustainability..................................................................................8 2.5 Forest resources and its functions...............................................................................9 2.6 Forest conservation problems....................................................................................10 2.7 Strategies for managing forest resources...................................................................10 2.7.1 Community based forest management........................................................11 2.7.2 Joint forest management..............................................................................11 2.8 Alternative income sources versus conservation.......................................................12 CHAPTER THREE..........................................................................................................13 3.0 RESEARCH METHODOLOGY..........................................................................13 3.1 Description of the study area....................................................................................13 3.1.1 Kazimzumbwi forest reserve.......................................................................13 3.1.2 Pugu forest reserve......................................................................................13 3.1.3 Reasons for selecting study area.................................................................13 3.1.4 Target population of the study....................................................................14 3.2 Research design.........................................................................................................15