AFRICA RURAL DEVELOPMENT SUPPORT

INITIATIVE (ARUDESI) STRATEGY

Mainstreaming small scale farmers into the global

economy – Using Farmer Ownership as the driver of the

value chains

ARUDESI IS:

A specialized value chains development and management service provider

Within the agribusiness products and services value chains

In an integrated, holistic and comprehensive approach

To ensure that the value chains are robust, competitive and equitably profitable

Affiliation with:

Farm Gain Tanzania – Agribusiness Value Chains Information Company

Farm Gain Uganda, Kenya, Rwanda, and Burundi

Serving East African Union, SADEC, and Comesa markets, marketing and information needs

ARUDESI – Vision and Mission To become “The Agribusiness Value

Chains Development and Management Company” in Africa

To cause a change of mindset and attitude that will enable stakeholders within the agribusiness product and service value chains to embrace farming is business, get organized, access business facilitation tools, for value addition, access to competitive markets, are paid/pay on performance (value for money) and contribute to sustainable wealth creation that will eradicate abject poverty.

Pillars (Values)

Change of mindset and attitudes

Sense of Ownership and being organized

Farming and livestock keeping is business

Diversification of farming and income streams risks

Pillars Contd. Access to business facilitation tools (skills,

knowledge, know how, credit, appropriate inputs, technologies, markets, marketing, price information and enabling environment)

Value Addition that will justify farmer and livestock keeper participating in price setting instead of being a price taker

Access to Competitive markets Pay/Paid on Performance (value for money)

Activities Organization of stakeholders within

the product and service chains Mapping specific farming and

livestock products and services value chains

Profile of resource and assets base of stakeholders within the chains

Select the best enterprise mix within the specific chains for commercialization

Activities Contd. Develop business plans for all the

enterprises selected Building the capacity of the

stakeholders to implement their business plans, manage their businesses and taking advantages of any emerging business opportunities.

Providing back-up services including continuous research of new technologies, markets and information

Activities Contd. Linking the stakeholders to specific

local, regional and international service and products markets

Work with the stakeholders to develop a payment system that rewards each stakeholders according to efforts

Link the farmers to medical, crop, and pension schemes insurance related service providers.

Monitoring and evaluation

Micro – Finance Related Activities Sensitize farmers to become aware that they are

vulnerable and do not have bargain power in the markets because they lack savings to finance their basic needs (about $50 per month) hence sell the little they have under pressure (at a give away price set by the buyer)

Support groups to identify source of financing to pay for their basic needs such as sugar, salt, paraffin, soap so that they can produce and sell value added products .

Groups mobilize saving among themselves and lend to each other

Group members may raise additional capital to finance any shortfall from SACCOS, MFI’S and village banks

As a Result The extra premium income generated

through group selling will be available to save and lend the other members of the groups

There is no commodity financing since the farmers can wait OR sell on consignment basis – reduced financial risks and interest charges

To minimize mismanagement, embezzlement and theft the savings and credit schemes lend out the entire amount saved.

As a Result… We have group owned and managed thrift

and credit schemes that target financing to stimulate value addition, influence price setting and increase incomes

Functional business plans and insurance policies readily available as collateral

Cost of finance reduced due to decreased risks, increased leverage and ability to pay

Objective The objective is to ensure that groups

prolong ownership and are able to participate in price setting

The savings and credit schemes are a vehicle for individual members to graduate to formal banking with MFI’S and village banks

Sale proceeds are remitted directly to individual farmer cell phone or bank accounts

Group or primary society leaders are paid for services rendered after the transaction is completed.

Expected Results Sustainable wealth is created Income of small scale farmers and

livestock keepers increased Abject poverty is eradicated Food security is achieved Graduate from selling commodities

which are subject to vagaries of demand and supply to selling complex products with stable prices

Paradigm Shifts That “Well organized value chains could

influence markets, demand. prices and quality” and the notion that “demand determines supply” is not necessary true

That the notion that “Value addition starts at the factory gate could be shifted and start at the; into the farm gate in the agribusiness related activities”

Conditions for Value Chains to Work Change of mindset, attitude, thinking of

“we” instead of “me”, thinking outside the box with commitment, patriotism, courage, willing to assume risks and determination to succeed

High level of trust, confidence, integrity, honesty, transparency, accountability, being smart greedy/selfish and in good faith

Maximum cooperation, alliance building, strong linkages and coordination

Private sector lead

Conditions Contd. A clear understanding that development is our

responsibility as individuals and we can develop ourselves if we believe so

Government and development partners will never bring to us development

The Role of Government is to create an enabling environment for business growth

The development partners may complement the efforts of the government and private sector but it should be in accordance with the needs and priorities of the beneficiaries

Threats

There are many people and institutions that benefit as result of our poverty

Our institutional set up does not adequately encourage and reward for “thinking outside the box and being innovative”

We are more driven by “money” instead of work and results

Threat……

Institutional structures and set ups not being development oriented i.e. district councils being politicised.

We are more oriented in being dependant than being independent

Our economic development strategies are political oriented.

Experiences Integrated with the Rural Wealth Creator

(RUWECA) lead initiatives in the coffee sub-sector – Arumeru District in Tanzania

Integrated with the National Union of Coffee and Agribusiness Farm Enterprises (NUCAFE) – Uganda

Integrated with a new project sponsored by the Ministry of Industries, Trade and Marketing – Farmer Empowerment Project – Kagera Region Tanzania

Contacts Magomeni Mapipa K.K.K. T Mviringo P.O. Box 32830 Dar es Salaam – Tanzania Tel: +255 22-2170532 Cell: +255-752-110-290/ +255-715-

301494 Email : hmrema@hotmail.com

ed@arudesi.orgWebesite: www.arudesi.org