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INSTITUTE OF RURAL DEVELOPMENT PLANNING
DODOMA
DEPARTMENT OF RURAL AND REGIONAL DEVELOPMENT
PLANNING
CONTRIBUTION OF FISHING INDUSTRIES IN HOUSEHOLDS
POVERTY REDUCTION IN MWANZA CITY: A CASE OF IGOMA AND
IGOGO WARDS
BY
KASESE, J CONSTANTINE
A DESERTATION PAPER SUBMITTED TO THE INSTITUTE OF RURAL
DEVELOPMENT PLANNING IN PARTIAL FULFILMENT FOR THE AWARD
OF BACHELORS DEGREE IN REGIONAL DEVELOPMENT PLANNING OF
THE INSTITUTE OF RURAL DEVELOPMENT PLANNING, DODOMA
TANZANIA
SEPTEMBER, 2010
ABSTRACT
The study was carried out at Igoma and Igogo wards in Nyamagana District aimed at
identifying the contribution of Fishing Industries in household poverty reduction.
The general objective was to examine the contribution of fishing industries in
household poverty reduction specifically in identifying income rising opportunities
offered by the Fishing Industries, determining the roles played by the Fishing
Industries in social services delivery and identifying the challenges facing Fishing
Industries. A total of 108 respondents selected randomly were interviewed. Various
methods and techniques of collecting data like questionnaires, documentary review
and interview methods were used with SPSS and Excel was used for analysis.
Findings revealed that 30.3% of the respondents earned below 100,000/=, 58.6%
earned an average of 300,000/=, 6.1% of respondents earn below 500,000/= and
5.1% of respondents earned above 500,000/=. Also 67.7% of the respondents who
are fishermen have access to market to the Fishing Industries with price of 3500/= to
3700/= per kilogram and through agents it goes by 2500/= to 2900/= per kilogram.
Also 21.2% of the respondents are being financed by the industries in conducting
their business, while 78.8% have no such support. Social services such as education,
health and cleanness are supported by the Fishing Industries where by 68.7% of the
respondents reported to have access to the services provided by fishing industries.
Some challenges which facing the Fishing industries include high production cost,
government policy and decline of fish in the Lake. The researcher concludes that
low income of respondents was due to the constraints such as low purchasing price
in the market, low salaries quality of products, decline of fish and capital to invest.
The efforts and ways to increase people’s income can be through government
interventions in the challenges facing the fishing industries so as to increase income
of the people.
i
DECLARATION
I Constantine J. Kasese declare that the dissertation entitled “Contribution of Fishing
Industries in household poverty reduction” is my own original work carried out by
me under the guidance of Mr. Fadhili, Ngalawa. And it has not been previously
submitted for the award of any academic qualification.
……………………
Constantine John Kasese
22 September, 2010
ii
COPYRIGHT
No part of this paper report may be produced or transmitted in any form and by any
means without permission of the writer or Institute of Rural Development Planning-
Dodoma.
iii
RESEARCH SUPERVISOR’S CERTIFICATION
I certify that this dissertation entitled “Contribution of Fishing Industries in poverty
reduction” submitted to the Institute of Rural Development Planning for the award
of Bachelor Degree in Regional Development Planning, is an independent research
work carried out by Mr. Constantine John Kasese, a student pursued Bachelor
Degree in Regional Development Planning under my supervision and guidance.
………………
Mr. Fadhili Ngalawa,
Research Supervisor,
22 September, 2010.
iv
ACKOWLEDGEMENTS
Many people have contributed both material and moral support to ensure that this
research work is successfully produced.
First of all I would like to thank the Almighty God for giving me good health during
the whole period of my research in Mwanza City Council and to the moment where
all my objectives were achieved as planned. I’m indebted to the family of Mr. and
Mrs. J. Kasese for their financial and moral supports provided to me during the
Research period. Let God bless them and give them everlasting life.
Secondly, I would like to give my special thanks to my Supervisor Mr. Fadhili
Ngalawa for his constructive advice, guidance, devotion, criticisms and helpful
suggestions while supervising me from the primary stage of research proposal
writing to dissertation production.
Third, my grateful thanks go to IRDP staffs, my fellow students; Hamis Lugusha,
Asha Lyoba, Obeid Bulenga, Gasper Misungwi, Angela Magese, Stephen Mpangala
and all Third Year Regional Planning Students (2009/2010), Industrial Official Mr.
J, Kasese (FEM), Ward Executive Officers, Mr. J. Maduhu and Mr. G Bunwenge,
Fisheries Officials Mr. Magere Misana and Doto Maiga, Mwanza city council
management led by Patrick Kalangwa (MCE).
Lastly, I would collectively extend my appreciation to all Institutions, organizations
and individuals who contributed in one way or another to the successful
development and achievement of this dissertation.
v
TABLE OF CONTENTSABSTRACT..................................................................................................................i
DECLARATION.........................................................................................................ii
COPYRIGHT.............................................................................................................iii
RESEARCH SUPERVISOR’S CERTIFICATION...................................................iv
ACKOWLEDGEMENTS............................................................................................v
TABLE OF CONTENTS............................................................................................vi
LIST OF TABLES.......................................................................................................x
LIST OF FIGURES....................................................................................................xi
LIST OF APPENDICES............................................................................................xii
LIST OF ABBREVIATION.....................................................................................xiii
DEFINITION OF KEY TERMS..............................................................................xiv
CHAPTER ONE
INTRODUCTION.......................................................................................................1
1.1 Background information to this problem……………............................................1
1.2. Statement of the Problem and Significance of the study.......................................4
1.3 Research objectives………………………….........................................................5
1.4 Research Questions………………………….........................................................5
1.5 Scope of the study…………………………….......................................................6
1.6 Conceptual framework…………………………....................................................6
CHAPTER TWO
LITERATURE REVIEW............................................................................................7
2.1 An overview………………………………………................................................7
2.1.1 Fishing Industries and Poverty defined.......................................................7
2.1.2 Trend of poverty in Tanzania......................................................................8
2.1.3 Relation between Fishing Industries and Poverty.......................................8
2.2 Fishing Industries in various levels………………….............................................9
2.2.1 Fishing Industries in the World...................................................................9
vi
2.2.2 Fishing Industries in Madagascar...............................................................9
2.2.3 Fishing Industries in East Africa...............................................................10
2.2.4 Fish processing industries in Mwanza......................................................11
2.2.5 Fish processing..........................................................................................11
2.3 Fishing Industries and Poverty…………………..................................................11
2.4 Millennium Development Goals and Fishing Industries......................................12
2.5 Importance of Fishing Industries……………………..........................................12
2.6 Challenges facing fisheries industry in Mwanza..................................................13
2.7 The goal of the National Fishing Industries Policy...............................................13
2.7.1 The objectives National Fishing Industries Policy...................................13
CHAPTER THREE
RESEARCH METHODOLOGIES...........................................................................15
3.1 Selection of the study area……………………....................................................15
3.1.1 Location....................................................................................................15
3.1.2 Climate......................................................................................................15
3.1.3. Population................................................................................................15
3.1.4 Employment..............................................................................................16
3.2 Data types and Sources…………………………….............................................16
3.2.1 Primary Data.............................................................................................16
3.2.2 Secondary Data.........................................................................................16
3.3 Research Design…………………………………................................................16
3.3.1 Sampling frame.........................................................................................17
3.3.2 Sampling Unit...........................................................................................17
3.3.3 Sample Size...............................................................................................17
3.3.4 Sampling procedures.................................................................................18
vii
3.4 Data collection methods……………………………............................................18
3.4.1 Interviews..................................................................................................18
3.4.2 Observation...............................................................................................19
3.4.3 Documentary review.................................................................................19
3.5 Data processing, analysis and presentation…………….......................................19
3.5.1 Data Processing.........................................................................................19
3.5.2 Data analysis.............................................................................................19
3.5.3 Data presentation......................................................................................20
3.6 Limitation of the Study…………………………….............................................20
CHAPTER FOUR
RESULTS AND DISCUSSION OF FINDINGS......................................................21
4.1 Introduction………………………………….......................................................21
4.2 Characteristics of Respondents……………………….........................................21
4.2.1 Sex of respondents....................................................................................21
4.2.2 Age of the Respondents............................................................................22
4.2.3 Education level of Respondents................................................................22
4.2.4 Occupation of Respondents......................................................................23
4.3 Opportunities for rising income offered by the Fishing Industries to the
local people.................................................................................................24
4.3.1 Employment status of people in the Fishing Industries............................24
4.3.1.1 Household average income implication.............................................25
4.3.1.2 Accessibility of Market by fishermen in the industries.....................26
4.3.2 Market situation........................................................................................27
4.3.2.1 Trend of price in the market in past five years..................................28
4.3.3 Financial support from the industries.......................................................29
viii
4.4 Roles played by the Fishing Industries in social services delivery.......................30
4.4.1 Distribution of social services conducted by the Fishing Industries.........31
4.4.1.1 Education services.............................................................................31
4.4.1.2 Health services...................................................................................32
4.4.1.3 Cleanness of City Surrounding..........................................................32
4.4.1.4 Other social services..........................................................................33
4.5 Challenges facing the Fishing Industries in its operations....................................34
4.5.1 Decline of fish...........................................................................................34
4.5.2 Production Cost.........................................................................................35
4.5.3 Government Policy...................................................................................36
4.5.3.1 Size of Nets and Fishes......................................................................36
4.5.3.2 Double Taxation.................................................................................37
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION.........................................................38
5.1 Introduction……………………………………...................................................38
5.2 Conclusion……………………………………....................................................38
5.3 Recommendations…………………………….....................................................39
REFERENCES..........................................................................................................41
APPENDICES...........................................................................................................43
ix
LIST OF TABLES
Table 1: Categories of respondents……………….....................................................18
Table 2: Distribution of Respondents by Sex……….................................................21
Table 3: Age Category of the Respondents………....................................................22
Table 4: Occupation of respondents……………........................................................24
Table 5: Percentage of Respondents employed in the Fishing Industries...................25
Table 6: Respondents who get market access to the Fishing Industries.....................26
Table 7: Market situation of Fish in Fishing Industries..............................................28
Table 8: Respondents accessibility to social services.................................................30
x
LIST OF FIGURES
Figure 1: Conceptual Framework………………........................................................6
Figure 2: Education level of respondents………………............................................23
Figure 3: Distribution of income of the Respondents.................................................26
Figure 4: Price variation among local fishermen and fish business men....................27
Figure 5: Trend of price in past six years………........................................................29
Figure 6: Respondents who had access to loan from the industries............................29
Figure 7: Distribution of social services supported by Fishing Industries..................31
Figure 8: Ghand Hall round about in Mwanza City....................................................33
Figure 9: Challenges facing Fishing Industries…………...........................................34
xi
LIST OF APPENDICES
Appendix 1: Household Questionnaire………….......................................................43
Appendix 2: Questionnaire for Weo And Veo……………………………....……....46
Appendix 3: Fisheries Officer…………………….....................................................47
Appendix 4: Questtionnaire for Indistrial Official………..........................................48
xii
LIST OF ABBREVIATION
BMU Beach Management Unit
EU European Union
FAO Food and Agriculture Organisation
GDP Growth Domestic Product
HBS Household Budget Survey
IRDP Institute of Rural Development Planning
IUCN International Union for Conservation of Nature
LVFP A Lake Victoria Fisheries Processer Association
MCC Mwanza City Council
MCE Mwanza City Economist
MDGs Millennium Development Goals
NPES National Poverty Eradication Strategy
NPFL Nile Perch Fisheries Limited
SPSS Statistical Package for Social Science
URT United Republic of Tanzania
VEO Village Executive Officers
WEO Ward Executive Officers
xiii
DEFINITION OF KEY TERMS
Poverty it refers to the state of being extremely poor, or is the renunciation of the
right to individual ownership of property.
Industry refers to an economic activity concerned with the processing of raw materials and manufacture of goods in factories.
Household refers to a house and its occupants regarded as a unit.
Fishing refer to an organized effort by humans to catch fish and other aquatic species and rear fish.
xiv
CHAPTER ONE
INTRODUCTION
1.1 Background information to this problem
Fishing Industries is the dominant economic activities that contribute largely to the
income of the Mwanza region as the region itself is found along the shore of Lake
Victoria. Most of the seven fish processing industries that are present in Mwanza
today have been established in the 1990s (MCC, 2008).
The present seven fish processing industries in Mwanza today have been established
in the 1990s. The industries contributes significantly to the foreign exchange
earnings of the country, in 1994 earning from fish was estimated to about US $ 14
million (Maembe, 1997), and this continues to rise as the number of the processing
industries are increasing now to about seven (7) industries in 2010 which are Nile
Perch Fishing Industries Limited, Vic Fish Limited, Tanzania Fish Processors
Limited, Omega Fish Limited, Mwanza Fishing Company Limited, Tan perch
Limited and Tanzania Fishing Industries Development Company Limited (NICO) as
compared to 2 in 1994 in Mwanza. So due to this one of the major occupation of the
inhabitants along the shores of Lake Victoria in Mwanza region is fishing. Lake
Victoria provides freshwater fishing potential for the region. Fishing in the Lake is
always done by local artisan fishermen using planked boats and dug-out canoes
(Maembe, 2006).
Principal fish caught are the Nile perch and “Dagaa”. Other important species
include tilapia, African lungfish and catfish .It is only in recent years that the great
potential of the Lake is being fully realized through the establishment of organized
fish marketing and processing. Annual fish harvests of 200,000 tons can be achieved
from the Lake Victoria without endangering the fish population. Recorded figures
for 1992 were 93,327 and recorded weight in 1993 was over 129,000 tons, but
declined to 74,133.8 tons in 1994 and 75,086.7 tons in 1995 and to 80,083 in 1996
(Maembe, 1997).
1
Form 1990s to present there have been a high rate of growth of investment in the
Fishing Industries processing industries in Mwanza as a result of the increase of
demand and expansion of market in the fish products in Northern countries. As a
result of this there is a big competition between the factories to an extent that many
of the factories began to use illegal means for catching fishes. Though there are
authorities who are responsible on this, poor payment to them leads to increase in
corruption at different levels and this leads to poor management of the Fishing
Industries resources in Lake Victoria (Jansen, 2006).
So the development of the fish processing industries in Lake Victoria is mostly
determined by the integration between the available authorities, national and
international investors in the fishing sector. All this is because the alternatives that
will be foregone by this sector have direct effects to employment opportunities to
the people, living standard of the people and food for the communities who are
depending on fishing as their dominant activity for survival. As most of the investors
are profit oriented, if it occurs that there is a decline in the fish stock they tend to
shift to other areas where there is abundant fishes and as a result it affects and
exposes much the local population to poverty trap since they depend much on fish
resources as their source of income.
To a greater extent the most Fishing Industries oriented industries has brought a
greater challenge among the traditional Fishing Industries. An equal trend about the
ownership and management of fishing operations is connected to the increased
among the Fishing Industries factories that seeks to secure efficient fish supply.
Form the Poverty and Human Development Report (URT, 2005), it was estimated
that about 36% of the Tanzania population was living below the poverty line in
2000-2001.Where in rural areas 39% of the population was found in rural areas
though there was a decrease from 41% in 1991-1992 to 39% in 2000-2001.Basing
on Tanzania Households Budget Survey (HBS) of 2006-2007,about 34% of the
Tanzanians are now falling below the basic need poverty line and about 17% are
2
found below the food poverty line. This trend represents a small decline of about 2%
in the proportion of the poor on both the measures of 2000-2001 and that of 2006-
2007 Household Budget Survey (URT, 2007). All this has been caused by high
population growth in Tanzania since 2000 and 2007.
3
1.2. Statement of the Problem and Significance of the study
The development of fisheries processing industries came as the result of the National
investment policy of 1996 the emphasized on the promoting development and
growth of small and medium scale industries which will serve both the domestic and
export market (URT, 1996). Most of the fish processing industries in Mwanza
started in 1990s’ based on the established companies. Presently, there are 7 fish
processing industries that process fish for exportation. It is estimated that Fishing
Industries generate about 1.7 billion to the government in a year. Fishing Industries
provide employment for over 400,000 locals and outsiders and generated income of
Tsh.182 million to local fishermen from selling fish to the processing plant in a day
(MCC, 2008).
A study conducted in the area showed that 66% of the beneficiaries from Fishing
Industries earn 100,000/= to 300,000/= in a month that does not satisfy them to meet
their needs as compared to the findings of the Household Budget Survey of
2006/2007 that show that national poverty line is Tshs. 10,219 for food and Tshs.
13,998 for basic needs per adult equivalent (Bilame, 2009). As a result of this most
of the people from the industries do engage themselves in other small activities such
as subsistence farming, casual labour and small business such as retail shops (Kiosk)
so that they can earn their living. So the question comes, why this situation is still
prevailing in the study area despite of the presence of the industries? Therefore this
study aims to provide critical fact related to the contribution of fish processing
industries in poverty reduction.
Therefore, the findings and recommendations from this study will be used as an
important tool for policy and decision makers in ensuring that good fisheries
industrial policy are formulated to enable the community to benefit from the present
established Fishing Industries. Also this research can act as the base for further
researches on Fishing Industries and poverty reduction. Furthermore, this study will
be a partial fulfillment of my Bachelor Degree in Regional Development Planning
(BDRDP) from the Institute of Rural Development Planning (IRDP) as per
Institute’s almanac.
4
1.3 Research objectives
The general objective was to assess the contribution of Fishing Industries in
households’ poverty reduction a case study of Igoma and Igogo wards in Mwanza
City.
Specific Objectives
i. To identify income rising opportunities offered by the
Fishing Industries to the local people.
ii. To determine the roles played by the Fishing Industries
in social services delivery.
iii. To identify challenges facing Fishing Industries in daily
operation.
1.4 Research Questions
i. What are the opportunities for rising income offered by the Fishing
Industries to the local people?
Variables
Employment
Market
Financial support
ii. What roles do the Fishing Industries play in social services delivery?
Variables
Health services
Education services
Cleanness.
iii. What are the challenges facing the Fishing Industries in its operations?
Variables
Decline of fish
Quality of products
Government policy
5
1.5 Scope of the study
This study is proposed to be conducted in Mwanza city council, Nyamagana district
specifically in Igoma and Igogo wards with the aim of accessing the contribution of
the available Fishing Industries in household income reduction.
1.6 Conceptual framework
The conceptual frame work is an analytical tool that tries to show the relationship
between the variables that will be assessed during the research; it is divided into
three groups of the independent, intermediate and the dependent variable. Basing on
the study this conceptual frame work tries to distinguish clearly different types of
variables that will be studied and showing the relationship that exist between the
variables. It can be in the form of narrative statement or mathematical equation.
Figure 1: Conceptual Framework
Independent variables
Intermediate variables
Dependent variable
Income generationInvestmentEmployment opportunitySaving Fishing input accessibilityFinancial supportPriceStorage system
Poverty reduced at household level
Market PolicyTechnologyCapitalFishing education
6
CHAPTER TWO
LITERATURE REVIEW
2.1 An overview
Fishing Industries are a source of income for over 100 million people. The
majorities are employed in small-scale Fishing Industries in the developing world;
90% are from Africa and Asia, where poverty among coastal and rural communities
is often particularly high. In many developing countries, Fishing Industries and
poverty are synonymous. But although many fishers are poor, Fishing Industries are
also capable of generating great wealth. For Fishing Industries to contribute to
poverty reduction, the distribution of that wealth must be addressed. However, too
much fishing pressure is causing overexploitation of fish stocks and threatening the
contributions they can make to poverty reduction (FAO, 2000).
2.1.1 Fishing Industries and Poverty defined
Fishery
Fishery this refers to an organized effort that is done by people in groups or an
individual to catch fish and other aquatic creatures for the aim of generating income
or sometimes as food Fishing Industries refer to areas where the Fishing Industries
products are taken for processing and packaging mostly for commercial purposes
within or without the country (Shechambo, 2004).
Poverty
Poverty refers to deprivation, however, it is now viewed as encompassing both
income and non-income dimension, thus poverty is not only lack of income and
other material means but also lack of basic social amenities such as education,
health, clean and safe water as well as lack of personal security (Shechambo,
2004).So ever lack of effective participation of individuals and ability to handle
shocks are also increasingly to be recognized as the key dimension of poverty.
7
2.1.2 Trend of poverty in Tanzania
In Tanzania, the definition of poverty has been evolved from simply focused on the
cost of meeting basic needs necessary for maintaining minimum standards of living
(URT, 2005). Recently, the definition for income poverty has been strengthened by
including the ability of people to access social and economic services such as
education, health and clean and safe water (URT, 2005).
Tanzania is classified as one of the poorest countries in the world; this is based on a
wide range of monetary indices such as Gross Domestic Product (GDP) and Gross
National Product (GNP) per capita per year, and USD per capita per day. According
to the Household Budget Survey of 2000/01 the proportion of the population below
the national food poverty line is 18.7 percent and that below the national basic needs
poverty line is 35.7 percent. Poverty remains overwhelmingly in rural areas where
87 percent of the poor population live, and is highest among households who depend
on agriculture. As the population is growing, the absolute number of the poor raises
concern (URT, 2005).
The Tanzania government has adopted and formulated various intervention
measures which address the issue of poverty both at national and individual or local.
In addressing the key challenge of reducing income poverty Tanzania prepared and
adopted Development Vision 2025 in 1999 and the National poverty Eradication
strategy (NPES) in 1997, which spell out a vision for the society with object poverty
and improved social condition. The NPES that was adopted in 1997 aimed at
providing guidance to all stakeholders in identifying, formulating, implementing and
evaluating their poverty (Ravalion, 2000; Sen. 1999).
2.1.3 Relation between Fishing Industries and Poverty
According to Bene (2003) reviewed at the perceptions that was embraced by various
international agencies, elites and practitioners who tried to identify the relation that
exist between poverty and Fishing Industries in developing countries and then he
tried to identify the underlying concept that have structured the perceptions. The
8
review was based much on two things which are economic (income poverty) and
biological (overexploitation of fish stocks) aspects of the prevailing problem. His
review was based on the perception that was made from other sectors with regard to
the poverty as it is proposed by various international communities. The review
showed that the inclusion of the recent research on poverty that helps to show how
various social-institutional mechanisms governing the access by people to Fishing
Industries resources rather than the resources themselves play such a role in
vulnerability to poverty.
2.2 Fishing Industries in various levels
2.2.1 Fishing Industries in the World
According to the Food and Agriculture Organization (FAO), the world harvest in
2005 consisted of 93.3 million tones captured by commercial fishing in wild Fishing
Industries, plus 48.1 million tones produced by fish farms. In addition, 1.3 million
tons of aquatic plants (seaweed) were captured in wild Fishing Industries and 14.8
million tons were produced by aquaculture.
2.2.2 Fishing Industries in Madagascar
Madagascar is an island east of the African continent. Its economic policy has
centered on a strategy of privatization and liberalization since the mid 1990s, with
considerable loans from the World Bank and IMF. This strategy has placed the
country on a slow and steady growth path from an extremely low level. Agriculture,
including fishing and forestry, is a mainstay of the economy, accounting for more
than one-fourth of GDP and employing four-fifths of the population. Current GDP is
about US$ 5.5 billion or US$ 240 per capita. Although GDP growth averaged only
2.1% between 1990 and 2003, GDP growth rebounded after the crisis year 2002 and
increased to 6% in 2003. Madagascar’s export grew with a remarkable 121 % in
2003 and averaged US$ 852 million in that year (Rojat and Chaboud, 2004).
9
Since the last five years, the Fishing Industries and aquaculture sector is one of the
three main economic sectors in Madagascar (next to mining and tourism).
Madagascar has a big wealth in fishing grounds and the fishing product is rich and
diversified. The shrimp Fishing Industries have been the main growth sector in the
national economy. Shrimp aquaculture is a major export sector for Madagascar and
one of the principal sources of foreign currency. Total output yields around 15 000
tones, and provides US$75 million in foreign exchange earnings. Since 1994, the
Malagasy government has changed fishing policies and introduced a successful
state/fishing industry partnership programmed (Rojat and Chaboud, 2004).
2.2.3 Fishing Industries in East Africa
Kenya started to export fish in the early 1980s, when fish processing factories were
established around Lake Victoria. Thus over the past 20 years, the Fishing Industries
sub-sector has gradually evolved from a domestic consumption oriented industry to
an export oriented industry with value added processing being applied (Boka and
Ikiara, 2000).The Fishing Industries sub-sector provides employment and income to
over 500,000 Kenyans engaged in fish production and related enterprises. In terms
of contribution to the gross domestic product (GDP), Kenya's fishing industry has
accounted for 0.3% of GDP for the period 1999-2003. Kenya’s annual average
production for the period 1999-2003 was 171,000 metric tones with a value of
approximately KHz 8 billion in 2003. About 30% of the fish is exported to countries
in Europe and other non-European countries (Abila, 2003).
There are 17 industrial fish processing companies in Kenya all of which are export
oriented and can be classified as either land based establishments or water-based
freezer vessels. These companies mainly produce frozen and chilled fish for export
to European and other non-European markets. These companies deal in different fish
species including Nile Perch, prawns, lobsters, octopus, cuttlefish and squids. The
fish processors industries in Kenya have an installed capacity of 437 Metric tones
per day of which only 213.4 metric tones per day is utilized. The sector is regulated
10
and controlled by the Fishing Industries Department, which falls under the Ministry
of Livestock & Fishing Industries (Abila, 2003).
2.2.4 Fish processing industries in Mwanza
There are seven fish processing industries which can process a total of 200 tones of
Nile perch per day-say an average of about 60,000 tons a year. About 40,000 tons of
fish is exported to European Union (EU) countries and Far East countries of Japan
and Australia. A total of 29,630 tons been sold to other regions within the country
and about 28,875 tons is consumed locally within the region (MCC, 2008).
2.2.5 Fish processing
Fish processing delivered by commercial Fishing Industries and fish plants that are
in the region. The larger fish processing companies have their own fishing fleets and
independent Fishing Industries. The products of the industry are usually sold
wholesale to grocery chains or to intermediaries. Fish processing can be subdivided
into two categories: fish handling (the initial processing of raw fish) and fish
products manufacturing. Aspects of fish processing occur on fishing vessels, fish
processing vessels, and at fish processing plants. Another natural subdivision is into
primary processing involved in the filleting and freezing of fresh fish for onward
distribution to fresh fish retail and catering outlets, and the secondary processing
that produces chilled, frozen and canned products for the retail and catering trades
(FAO, 2005).
2.3 Fishing Industries and Poverty
Combating poverty is high on the agenda of governments and the international
community. In September 2000, 189 nations committed themselves to work towards
the Millennium Development Goals (MDGs), a set of 8 goals aimed at halving the
number of people living in poverty by 2015. Fishing Industries can play a role in
achieving these goals. Fishing Industries are a source of income for over 100 million
11
people. The majorities are employed in small-scale Fishing Industries in the
developing world; 90% are from Africa and Asia, where poverty among coastal and
rural communities is often particularly high. In many developing countries, Fishing
Industries and poverty are synonymous. But although many fishers are poor, Fishing
Industries are also capable of generating great wealth. For Fishing Industries to
contribute to poverty reduction, the distribution of that wealth must be addressed
(FAO, 2005).
2.4 Millennium Development Goals and Fishing Industries
Fishing Industries provide an important source of revenue for many developing
countries Net Fishing Industries exports amounted to US$17.4 billion in 2002 in
foreign exchange earnings for developing countries, more than the net exports of
coffee, cocoa, sugar and tea combined. The total export value of the world trade of
Fishing Industries and aquaculture products was US$58.2 billion in 2002, half of
which accrued to developing countries (FAO, 2000).
2.5 Importance of Fishing Industries
Source of employment and hence income: The Fishing Industries Sector
employs about 150 000 full time artisanal fishermen. About other 2.0 million
people make their livelihoods through various Fishing Industries-related
activities. Such activities include boat building, net mending, fish processing,
food vendors, and other petty business (URT, 2007).
Source of Government Revenue: The Fisheries industry Division collects
revenue from the sector activities at different levels of the government. The
money collected is used to develop the sector in terms of management, training
and monitoring of the resource utilization. Some of the revenue is also used for
human resource development in the Fishing Industries sector (URT, 2007).
2.6 Challenges facing fisheries industry in Mwanza
12
Lack of Fishing Industries experts to manage the industry effectively, ranging
from those who would educate fishermen on how to do/perform modern fishing
to bring about sustainable development within fishing industry. The monitoring
and supervision of fishing activities is minimal due to few personnel, lack of
transport and poor communication.
Lack of fishing infrastructure – only one industry/workshop which are in place
for making fishing ship, boats Illegal fishing, the use of un authorized
methods/means of fishing example the use of smaller sizes of fishing net which
catches the young fishes not intended /or not allowed; use of drugs to poison
fishing grounds
Presence of lake weeds – aeration in the lake waters becomes poor (MCC,
2008).
2.7 The goal of the National Fishing Industries Policy
The overall goal of the National Fishing Industries Policy is to promote
conservation, development and sustainable management of the Fishing Industries
resources for the benefit of the present and future generations (URT, 1997).
2.7.1 The objectives National Fishing Industries Policy
To put into efficient use available resources in order to increase fish production
so as to improve fish availability as well as contribute to the growth of the
Economy.
To encourage and support all initiatives leading to the protection and sustainable
use of the fish stocks and aquatic resources.
To protect productivity and biological diversity of coastal aquatic ecosystems
through prevention of habitat destruction, pollution and over exploitation.
13
Improved involvement of fisher communities in the planning development and
management of fishery resources.
Pursue a continuing integrated program for Fishing Industries in the coastal
zones to meet the ecological and social economic needs of present and future
generations (URT, 1997).
14
CHAPTER THREE
RESEARCH METHODOLOGIES
This section intend to describe how and where the study was conducted ,as it shows
the design of the research, methods and type of data collected and analysis
techniques used in research ,sampling procedures and sample design will be
explained in this section.
3.1 Selection of the study area
This study was conducted in Nyamagana district specifically in Igoma and Igogo
wards, The reason for selecting this study area is because in the two wards there are
three (3) Fishing Industries are located which are Vick fish Limited, Tanzania Fish
Processing Limited and Nile perch Fishing Industries Limited also the two wards are
along the Lake thus it enabled the researcher to get required data easily.
3.1.1 Location
Mwanza city council is situated between latitude 2°15 south 2°45just south of
equator and between 32°45-33°33east.it is among eight districts of Mwanza region.
Mwanza city council itself consists of two districts, Lamella and Nyamagana,
21wards, 17 streets and 517 hamlets /Miata.
3.1.2 Climate
Mwanza city receives between 700-1000mm of rainfall per annum with two rain
seasons, short from August –October and December –May is long rain season.
Average temperature is between 20°C to 30°c annually. Mwanza is about 1140
meters above sea level. Mwanza has tropical climate and favorable lake wind.
3.1.3. Population
According to the 2002 National Census, Mwanza City has 476,646 (Nyamagana
District 210,735 and Lamella 265, 911). The current population is estimated to be
15
500,000 people with an annual natural growth rate of 3.2% and rural to urban
immigration almost 8 % (URT, 2002).
3.1.4 Employment
According to 2008 Mwanza Environmental Profile Report, 4% of people were self-
employed, 32% employed and 27% unemployed. Most of the employed people
work in the service sector, while those who are self-employed are involved in petty
trade, tilling land, micro-fishing activities. The current figure of the employment in
the City (employed and self employed) stands at about 50%. The average per capita
income is about US $21 per month (MCC, 2008).
3.2 Data types and Sources
3.2.1 Primary Data
These are the data and information that were directly collected from respondents in
the category of households (small scale fishermen, employees in the Fishing
Industries) and from key informant that includes Government officials (Natural
resource officer, Village and Ward Executive Officers, Official Fishing Industries
agent).
3.2.2 Secondary Data
These are written documents from the responsible offices published documents,
reports, files, and other available documents. Records, various literatures related to
poverty and fish processing industries as well as documentary review of files
investment policy and profile of the area of study.
3.3 Research Design
There are two main types of research design which are; experimental and non
experimental design research. This study used non-experimental techniques which
were nominal or ordinal data about the values of the population parameters where
cross – sectional, observation and library research methods was employed. The cross
16
– sectional research method involved asking questions to representatives sample of
different groups at the study areas, observation for assumption was drawn at
random, and library research method was involved the use of written materials from
different sources as libraries, and internet respectively.
3.3.1 Sampling frame
This shows the list of the population that was used in the study, which population
should be of interest to the researcher. This study based on the beneficiaries from the
fish processing industries where a sample of 17,022 households including fishing
communities and employees from two Fishing Industries in the two wards was used
to draw a sample size of 99 respondents.
3.3.2 Sampling Unit
The basic unit of sampling was from household, official (Village Executive Officer
and Ward Executive Officer), Fisheries agent and natural resource officer.
3.3.3 Sample Size
In this a number of unit was selected from the sampling frame to constitute a
sample, the sample complied with regard to; efficiency of doing the research,
representation of the study population, reliability of data and flexibility in executing
the research. This study will consist of 108 respondents; the sample size was
obtained by using the following formula;
n = N
1 + N (e)2 (Yamen,1967)
Where; n – Sample size, N- Number of households, (1702 households) 1- Constant,
e- Error (confidence interval 0.1)
n = 17022 n = 99
1+17022 (0.1)2
17
Table 1: Categories of respondents
NO. CATEGORY O F RESPONDENT
PLACE AND SAMPLE SIZEIGOGO IGOMA TOTAL
1 WEOs and VEOs WEO 1
VEOs 2
WEO1
VEOs2 6
2 Fishermen and Employees from Industries 49 50
99
3 Fisheries officer 1 1
4 Fish agent 1 1 2TOTAL 108
3.3.4 Sampling procedures
Both probability and non-probability sampling procedures were used in this study.
For probability sampling sample stratified sampling and random sampling was used
to obtain respondents from each ward and for non-probability the purposive
procedure was used to get information from households’ leaders, ward executive
officers, village executive officers, natural resources office and one of the fish agent
using rotary and tabling tools.
3.4 Data collection methods
In carrying out this study three techniques of data collection was employed
including, interview, documentary review and observation.
3.4.1 Interviews
This is a method of collecting data by interviewing people by asking questions and
getting reply from them. The main tool used in this method includes questionnaires,
where open and close form questionnaire were prepared according to respondents
oral interview was used were people were directly consulted by the researcher.
18
3.4.2 Observation
This helps researchers to validate the collected information through the methods
used. A researcher gathered information or data through observation and noting the
behavior and actions of respondents and community as well as in their day to day
activities.
3.4.3 Documentary review
This was used to get secondary data through the use of checklist. The main tools
used in this method are summarizing and abstracting of the information so as to get
information from the documents found in the respective offices.
3.5 Data processing, analysis and presentation
All the data which were collected were compiled manually and coded accordingly.
Then all data were processed and analyzed by using computer programs like
Microsoft Excel and Statistical Package for Social Sciences (SPSS).
3.5.1 Data Processing
Processing of data includes editing, tabulation, classification and coding of the
questionnaires by developing codes assigning numerals and symbols so as to
answers for limited numbers of categories to reduce a small number of classes which
contain the critical information required for analysis, editing and examining the
collected raw data especially in survey to detect errors and omissions so as to
analyze them using Statistical Package for Social Sciences (SPSS).
3.5.2 Data analysis
A substantial part of the analysis in this study was based on descriptive statistics
analysis. These include frequencies, percentages, means and correlation coefficients
of some variables. SPSS was used to analyze descriptive statistics such as estimates
of frequencies and percentages while Microsoft Excel was used for drawing graphs
and charts from the analyzed data.
19
3.5.3 Data presentation
The research findings from the obtained data were presented in tabular forms charts
and other statistical tools analysis such as frequencies, percentages and simple
tables. Therefore, discussion of results, conclusion and recommendations were based
on findings interpreted.
3.6 Limitation of the Study
The researcher faced some limitations when carrying out the study the following are
some of the limitations faced.
Community awareness on the important of providing data and information is
very low some respondents were reluctant in providing data. This was solved
by spending time to convince and teach the respondents on the importance of
conducting research.
The return of questionnaires for respondents took place over long period of
time than the planned time. This forced the researcher to spend most of time
to make dairy follow up for the respondents with questionnaires so that to get
data.
Some respondents were not able to read and write this resulted to the
recruitment of more enumerators so that to assist the researcher to collect
data that were to be filled by writing and this resulted to increase cost of
conducting research.
20
CHAPTER FOUR
RESULTS AND DISCUSSION OF FINDINGS
4.1 Introduction
This chapter is basically concerned with the discussion of the findings of the
research based on the collected data from various respondents who are involved
directly in fishing activities, employed in Fishing Industries and business people
based on the contribution of the Fishing Industries in poverty reduction at
household.
4.2 Characteristics of Respondents
The general characteristics of the examined respondents include their sex, age,
marital status, education level and occupation of the respondents.
4.2.1 Sex of respondents
Table 2 below shows the distribution of the respondents by sex. The results show
that 92.9% of the respondents were male and only 7.1% were female. This shows
that men are mostly involved in activities concerning fish and employed in Fishing
Industries for income generation of the family while women take a small part
especially in selling of fishes in the market for domestic consumption.
Table 2: Distribution of Respondents by Sex
Sex Percent
Male 92.9
Female 7.1
Total 100
21
4.2.2 Age of the Respondents
Table 3 below shows the age composition of the respondents. The age was ranged
from 25-35 years, 36-45 years and 46-Above years. The result shows that 48.5% of
the respondents fall in the age category of 36-45 years of age that means that at this
age people who are involved in fishing activities own fishing equipments (fishing
gears and boats) because they consider fishing as their source of income and the
only activity that can increase their income. While those employed in Fishing
Industries have their own capital or access to loans to conduct business for income
generation for raising their income. Since fishing is self employment, respondents in
category of 25-36 years of age that is 42.4% this category have low capital and thus
they use local tools in their activities. And lastly those who are in the category three
46-Above years of age that is 9.1% are business people in fishing sector from the
study area were others are selling fish to the industries and others are selling fisher
for domestic consumption.
Table 3: Age Category of the Respondents
Age (years) Percent
36-45 48.5
25-35 42.4
46-Above 9.1
Total 100
4.2.3 Education level of Respondents
Figure 2 below shows the level of education attained by the respondents in the study
area, three levels of education status were identified and these are primary
education, secondary education and college/institute. The study shows that 7.1% of
the respondents where 4 respondents are fishermen and 3 are business men in fish
had attained secondary education; also 71.7% of the respondents had attained
primary education where 48 are fishermen, 12 are fish business men and 11 are
22
employed in the fishing industries in loading of cars and guards in the industries.
Lastly 21.2% of the respondents had attained collage/institute education and all
these are employed in the industries in various departments.
Figure 2: Education level of respondents.
4.2.4 Occupation of Respondents
The respondents of the study area have various occupations which help them to get
day to day basic needs, where by 52.5% of the respondents are directly involved in
fishing activities as their main source of income, 15.2% of the respondents are
involved in fish business from fishermen to the industries (Agents) of fish in the
industries and lastly 32.3% of the respondents are employed in the Fishing
Industries found in the study area. As the study itself that looks on the contribution
of Fishing Industries in poverty reduction at household level, the results revealed
that all the three categories of the respondents are benefited from the industries in
one way or the other whether by selling direct fishes to the industries and others by
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0%
Education level
Secondary Primary College
23
being employed to the Fishing Industries. The study also revealed that agents of fish
are benefiting much more than the fishermen because they do purchase fishes at low
price from the local fishermen and sell to the industries at high price as compared to
purchasing price from the local fishermen. All this is because the agents are more
selective to the fish that are required by the industries and thus it becomes difficult
for the fishermen to deal with other fishes that are not required as a result they sell
them to local market at a low price. (Table 4) below shows the distribution of the
occupation of the respondents in the study area.
Table 4: Occupation of respondents
Type of occupation Percent
Fishing 52.5
Business of fish 15.2
Employment( driver, store, accountant) 32.3
Total 100
4.3 Opportunities for rising income offered by the Fishing Industries to the
local people
In this objective the researcher aimed at determining the extent Fishing Industries
have offered opportunities to the community in the study area. In determining the
contribution of the industries the researcher tried to solicit on three things which are
employment status, market chances and financial support. So with the three
opportunities that are offered by the industries in the study area the researcher came
up with the following findings of how the Fishing Industries contribute to poverty
reduction.
4.3.1 Employment status of people in the Fishing Industries
Table 4 below indicates that 33.3% of the respondents are working in the industries
at various departments such as accountants, drivers, loaders, store keepers, guards
and cleaners. This shows that the industries are providing employment opportunities
24
to the people in the area so that they can conduct their living. Thus 33% of the
respondents reported that the income generated was helping them to meet their
necessities and in so doing combat poverty. Compared to the study conducted by
(MCC, 2009) it shows that since the introduction of the business in the early 90s, the
statistics shows that an industry employment increased from 30,000 to 400,000.
About 300,000 people work part time jobs in the fisheries processing industries in
Mwanza City. So this does not vary so much with the finding that show the trend of
employment offered by the Fishing Industries to people in the study area because the
findings from MCC shows that Fishing Industries employ to about 3% of all the
people in the City.
Table 5: Percentage of Respondents employed in the Fishing Industries
Employed in Fishing Industries Percent
Yes33.3
No66.7
Total 100
4.3.1.1 Household average income implication
Household income of the respondents have direct link to the occupation of the
respondents, all the respondents in the study are reported that the income generated
helped them meet their family basic needs. Where by 30.3% of the respondents
earned below 100,000/=, 58.6% earned average of 300,000/=, 6.1% of respondents
earn below 500,000/= and 5.1% of respondents earned above 500,000/=. This does
not differ much with the study conducted by (Bilame, 2009) that shows the average
income earned by the local fishermen in Mwanza ranges from 100,000/= to
300,000/= and few respondents earned about 1,650,000/= monthly. So despite of
low income earned respondents are able to pay for school fees for their children and
renting house and other construct houses. The respondents’ further reported that they
25
spend a large share of their income in buying food requirements. (Figure 3) below
shows the distribution of income of the respondents in percentage from those with
high income to low income earners.
Figure 3: Distribution of income of the Respondents
4.3.1.2 Accessibility of Market by fishermen in the industries
Respondents presented in (Table 6) below shows the market situation offered by the
fisheries processing industries to the local fishermen in the study area. So the
findings from the study shows that 67.7% of the respondents who are fishermen
have access to market to the Fishing Industries through agents who are purchasing
fishes from the local fishermen and sell to the industries, the respondents also added
that it is more profitable to sell to the industries directly rather than through agents
because the purchasing price of agents differ from that of the industries since selling
direct to the industries goes by 3500/= to 3700/= per each kilogram and through
agents it goes by 2500/= to 2900/= per each kilogram. Other 32.3% of the
respondents are not fishermen thus they are involved in other activities like
employment and business.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0%
Below 100,000 Above 500,000
Income category
Average 300,000 Below 500,000
26
Table 6: Respondents who get market access to the Fishing Industries
Market Percent
Yes 67.7
No 32.3
Total 100
Respondents presented in (Figure 4) reported the price variation between the local
fishermen and large fishermen of fishes in the fisheries, the variation came because
the local fishermen sell the fish through agents at a low price of 2500/= to 2900/=
and the large fishermen sell fishes direct to the industries at a price of 3500/= to
3700/=
Figure 4: Price variation among local fishermen and fish business men
4.3.2 Market situation
The researcher also was interested to know the market situation of fish in the Fishing
Industries and the study revealed that 42.4% of the respondents reported that the
5.1
43.4
1.0
14.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2000-2500 Tsh 2500-3000 Tsh 3000-3500 Tsh 3500-4000 Tsh
Local fishermen Large Businessmen
%
27
market situation is low due to decline of fishes in the lake. Other respondents who
account 29.3% said that the market situation is high because of the increase in the
number of industries in the study area thus there is high demand of fish in the
industries. And lastly 28.3% of the respondents had no idea about the trend of fish
market in the Fishing Industries. (Table 7) below present the market situation as
reported by respondents who were traced.
Table 7: Market situation of Fish in Fishing Industries
Market situation Percent
Low 42.4
High 29.3
Not sure 28.3
Total 100
4.3.2.1 Trend of price in the market in past five years
The trend of price of fishes in the market varied year to year due to decline of fish
and demand of fish in the market. (Figure 5) shows the trend of variation of price in
the market in respective years as follows;
23002700
3000
3500 35003800
0
500
1000
1500
2000
2500
3000
3500
4000
2005
2006
2007
2008
2009
2010
Pri
ce
28
Figure 5: Trend of price in past six years
4.3.3 Financial support from the industries
The findings from the study area show that 21.2% of the respondents are being
financed by the industries so that they can conduct their business and increase their
income, while 78.8% had no access to such loans. But for a person to qualify for the
capital offered by the industries he/she must be accessed to have capacity to return
the amount given in an appropriate time as required. Some qualification measure
includes land, house or car as a bond to be repaid for compensation. Also according
to the study conducted by (Bilame, 2009) shows that shows that large scale
fishermen have direct mutual link to the fish processing industries, they therefore,
have access to all the necessary facilities for fishing (gill-nets, credit supply and
transport vessels) from the fish processing factories. Thus the study by (Bilame,
2009) have direct link to this study because financial support from industries have
helped many people to increase their capital and thus increase their income.
(Figure 6) shows the findings of the responses about access to credit/ loan from the
industries.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Yes NoYes No
%
29
Figure 6: Respondents who had access to loan from the industries
4.4 Roles played by the Fishing Industries in social services delivery
This question was developed by the researcher so that to identify and see to the
extent to which the Fishing Industries involve in social services delivery to the
people in the study area. The findings from the respondents shows there are three
main services that are offered by the Fishing Industries and these include health
services, education and cleanness of the City surroundings, where by 68.7% of the
respondents said that they have enjoyed services that are provided by the Fishing
Industries like education and health services where the association of Fishing
Industries have contributed to construction of one school in called Nyangulungulu
Secondary school, contribution in rehabilitation of Sekou Toure Hospital,
construction of Hindu Union hospital in Igogo ward and construction of Igogo road
to Bugando Hospital (NPFL, 2009). So the report written by NPFL shows the
involvement of the fisheries industry in social services delivery to the people who
are working in the industries and the community at large.
Table 8: Respondents accessibility to social services
Response Percent
Yes 68.7
No 31.3
Total 100
30
4.4.1 Distribution of social services conducted by the Fishing Industries
(Figure 7) shows the distribution of social services that are provided by the
association of fisheries in Mwanza City.
Figure 7: Distribution of social services supported by Fishing Industries
4.4.1.1 Education services
Findings show that 39% of the respondents had access to education services which
have been in one way or the other a result of the Fishing Industries in the study area.
Where by Nyangulungulu Secondary school is much considered because it have
been constructed by the association of the Fishing Industries. Also training about
good methods of fishing is another type of education that is offered by the Fishing
Industries so that to assure sustainability of fish products. This helps to reduce
poverty among the community because as the fishermen gets education they
increase their income through quality products which will have greater demand in
the market both for industrial and domestic consumption.
39%
46%
15%
Education Health services Cleanness
31
4.4.1.2 Health services
Researcher also finds that 46% of the respondents enjoy health services which have
been as a source from the Fishing Industries, where by workers in the Fishing
Industries reported that they do access health services from the industries in ensuring
safety and health at work. So ever the association of the Fishing Industries has
contributed to the construction of Hindu Union hospital with $ 30 million in Igogo
ward that will help people to access health services easily also the association have
contributed to the rehabilitation of Ilemela District hospital (Sekou Toure Hospital)
with Tsh 30 million. This can be compared to the study by (Kimaryo, 2009) in
Kenya that shows how association of fisheries industry assist health services in three
East African countries. As health services an important element that ensures good
health of people that leads to effective performance of activities that increases
income in the house so people have been benefited from the health services
supported by the Fishing Industries.
4.4.1.3 Cleanness of City Surrounding
Cleanness of City surrounding is among the services which is offered by the
association of the Fishing Industries where by there are several gardens and
dumping bins which are serviced by the association of the Fishing Industries such
as, Ghand hall square, Station road square and Nyerere round about which are under
the association of the Fishing Industries. This contributes to poverty reduction
among the community because there are people who have been employed to
maintain and care those sites and thus they earn income to sustain their living in
such way rather than being idle in the streets. (Figure 8) shows one of the famous
gardens which is serviced by the Vickfish Processing Industry in Mwanza City and
this have employed a number of people who are paid for servicing the garden.
32
Figure 8: Ghand Hall round about in Mwanza City
4.4.1.4 Other social services
The research findings also showed that there are other services that were supported
by the Fishing Industries in the study area and this include; Police post , the
construction of one police post in Nyakato ward was assisted by the Nile Perch
Fisheries Industry Limited (NPFL) so that to enable people to get access to that
service easily. Construction of court in Mkolani ward also is among the service that
was assisted by the organisation of the Fishing Industries in Mwanza. This was
constructed so that to enable people to access court services in the nearby place
despite of going to town at high transport cost. Construction of Igogo road to
Bugando Hospital also is among the services that was promoted by Vickfish
Processing Industries Limited were by the road have been constructed by cement
and stones and the road covers about 1.5 kilometers. This is also found in the Lake
Victoria Fisheries Processor Association (LVFPA) annual report where by services
provided by the fisheries processing industries are analyzed and mentioned which
are the same as that the researcher finds in the study area. So this shows that the
33
association of Fishing Industries in Mwanza plays part in providing social services
to the people around the area.
4.5 Challenges facing the Fishing Industries in its operations
Under this question the researcher wanted to know if there are any challenges which
are facing the Fishing Industries in their daily operations. The main three challenges
which are facing the fisheries processing industries are described in the (Figure 9).
Figure 9: Challenges facing Fishing Industries
4.5.1 Decline of fish
Findings from the study are shows that 27.8% of the respondents who are fishermen
reported that there is a decline of fish in the lake because of illegal fishing (use of
smaller sizes of fishing net which catches the young fishes not intended, use of
drugs to poison fishing grounds, fishing in restricted areas such as breeding areas).
Environmental destruction by pollution, extensive agricultural methods resulting to
siltation of the lake, deforestation along lake shores is also among the reasons for the
0
5
10
15
20
25
30
Fish size Production cost
Decline of fish
Net size
%
34
decline of fish in the Lake reported by the respondents in the study area. This study
resembles to a report by the International Union for Conservation of Nature (IUCN)
that shows in August 2009, there was a sharp dwindling of Nile Perch population in
its territory of Lake Victoria, posing a threat to $200 million annual exports from
Fishing Industries. The Nile Perch stock in Tanzania’s territory of Lake Victoria
plummeted by 50 % reaching 200,000 tonnes between January and August sharp
dwindling of stock amounting to 100,000 tonnes in the period of nine months
(Titchaz,2010). This have direct impact to increase of poverty among the people
because the decline of fishes in the Lake may lead to closure or redundancy to some
people who are depending heavily in fishing activities and those employed in
Fishing Industries.
4.5.2 Production Cost
The respondents in the Fishing Industries who account to 21.7% reported that
production cost in the Fishing Industries is the main challenge that affects
productivity in the industries , all this is because the most useful utilities (water, fuel
and electricity) in the industries are charged at higher rates. In the Fishing Industries
water is used to wash fishes which are processed from one stage to another so the
resource is needed all the times because processing of fishes passes to about four
stages where at each stage fishes are to be washed. Fuel is used much in transporting
fishes from the industries to the market places whether by flight or by road, so the
consumption of fuel is at high rate always. The study conducted by ( Bagumire,
2009) shows that the impact of high fuel costs in fish processing plants among many
users affected outputs because at a minimum, energy accounts for 10% of the total
production costs. The company spends over 20,000 US$ per month on electricity
alone. The electricity tariff charges in Tanzania have increased over the years
reaching a high of (0.11 US $) 145 TSZ per unit KWH. This can be compared to the
findings of this study because as the production cost increases profit earned by the
industries decreases because the price in the world market does not vary with the
variation of price of fuel in the local countries. So the increase in production cost
leads to low salaries to workers in the industries.
35
4.5.3 Government Policy
The findings from the research also showed that available government policy have
direct impact to the Fishing Industries in the study area. 50.5% of the respondents
who are working in the Fishing Industries reported that government policies affects
much productivity in the Fishing Industries, two of the policies include size of the
fishes and size of nets used in fishing.
4.5.3.1 Size of Nets and Fishes
26.3% of the respondents reported that the government laws allow only fish with not
less than 5 centimeters long are the one to be catched. This was largely brought
about by a regulation to control fishing of immature fish by enforcing a slot size
restriction of 40-85cm for Nile Perch fishing. Prior to January 2008, the slot size for
fishing Nile perch was 42, a year later it was increased to 50cm. This increase in slot
size for fishing Nile perch reduced the production of most companies by 30 %. Most
companies had complied with the slot size requirement for about 6-9months, yet
according to most of them there was still no observed increase in fish. The study
conducted by (URT, 2002) revealed that high prices of legal gear such as 6” mesh
size gill nets are prohibitive. For example, 6’’ mm fishing net requires an investment
of about Tshs. 2 million compared to about Ths.400, 000 – Tsh. 700,000/- Tshs for
the illegal 4’’mesh size net. Fishermen’s incomes can only allow them to own part
or all of the illegal 4’’ gill net, but the 6’’ gill nets are too expensive so this affects
production in the industries because fish of that are caught by nets of less than the
required size are not accepted in the foreign market. So this have impact to the
industries because it takes a number of years for fishes to regenerate to the actual
size required by the government laws that is a fish of 50cm and above.
36
4.5.3.2 Double Taxation
So ever 24.2% of the respondents reported that double taxation on fish licenses of
fishes from places where they are collected (landing sites) from local fishermen to
agents there are several taxes such as boats levy and land site levy. This is also is
among the challenges which are facing the Nile Perch Fishing Industries as reported
by the official from Nile Perch Fishing Industries Limited. This is because the
agents of the company are charged from point to point where they are taking fishes.
Example for those who are taking fishes from Magu they are charged at each check
point on the way to Mwanza where there are about three check points.
37
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter presents conclusion and recommendation based on the research
findings in chapter four.
5.2 Conclusion
Generally, respondents in the study area reported that they do realize the
contribution of the fishing industries in poverty reduction as they mentioned the
opportunities which are offered by the Fishing Industries though there are
limitations such as low salary, unfavorable price to local fishermen, high production
cost and government policies that hinder fishing activities.
Despite of the employment opportunities offered by the fishing industries most of
the workers 58.6% in the industries reported that they were paid low salary that
ranges from 100,000 Tshs to 500,000 Tshs for most of the workers in the industries
thus the income can not satisfy to meet all the basic family needs.
Market for fish also is another opportunity offered by the industries to the people but
this has not helped them much to increase their income because of low price that lies
between 2500 Tsh to 3000 Tsh paid by the industries to the local fishermen. All this
is because the local men have no capital to invest in buying advanced storage
facilities (refrigerators) that could preserve for a long time. So the local fishermen
do sell their fishes daily as they can not store them for long time.
The findings from the study area show that only 21.2% of the respondents are being
financed by the industries so that they can increase their income for poverty
reduction. This shows a small number because there are hard conditions so that to
get loan from the industries where a low income people can not afford to access
such loans.
High production cost in the fishing industries also affects much productivity in the
industries because the most used resources in the industries are charged very high by
38
the government. For the case of electricity an industry pays to about 20,000 US$ per
each month that is very high and this leads to decline of profit in the industries as the
cost continues to increase.
Finding from the study also revealed that decline of fish in the Lake is the main
challenge facing fishing industries this is because the product is the only raw
material that keeps the industries survives despite of decline as time goes. The
survival of the industries also is because of the increase in demand of the fish
products in Europe, America and Far East.
Government policies such as taxation system and levy are the challenges that face
the fishing industries and local fishermen because the respondents reported that
there are several taxes that are imposed in the whole process of fishing and
transporting fishes to the fishing industries.
5.3 Recommendations
The researcher recommended the following from the findings of the research.
(i) Reduction of production cost by the government in the industries to the
most used utilities in the Fishing Industries that are water and power
should be put focused because they are the most useful than any other
utilities in the industries. So as the price of the utility is high the
production cost in the industries increase and thus low profit is generated
by the industries that lead to low salaries to the workers in the Fishing
Industries. Reducing local taxes such as landing site tax, fish boat tax and
royalty tax should be cut off as in Uganda and Kenya.
(ii) Protect/ control illegal fishing. The Local government authorities has to
put in place by laws to stop illegal fishing, environmental destruction.
This can be managed by establishing a strong and workable Beach
Management Units (BMUs) in every local communities (villages)
bordering the lake or in the islands. These BMUs should be charged with
39
the duty to watch out that fishing activities are done as stipulated by
regulations/laws of the government.
(iii) Encourage/establish fish farming technology, this is the technology used
in most of the developed countries to control deficit of fishes in the
fisheries processing industries. The government should put measures to
start/establish fish farms in all places where fishing activities is
undertaken, this will help to control overfishing in the Lake and thus
leave chance for fishes to generate to the appropriate size required by the
government. This will be helpful because it will reduce the problem of
decline of fish as seasonal fishing will be conducted in the Lake and in
the farm as well.
(iv) Reduce restriction in financial support, financial a constraint also is
another challenge that face most of the local fishermen because they use
local tools in fishing. So by reducing restriction in provision of credits
from industries to local fishermen will enable them to purchase fishing
gears, good boats and engines that will be used in fishing and thus
increase their income as they will be catching fishes in large quantity
when using engine boats in fishing activities.
(v) Strengthen the capacity of local fishermen association in negotiation of
price of fishes in the industries is another recommendation the researches
noted that will be helpful in increasing the income of local fishermen. All
this is because the price charged to the local fishermen by the agents is
very low as compared to large fishermen who sell fishes directly to the
industries. So the local authority should restructure reasonable price that
will be favorable to all local and large fishermen this will assist market
assurance at reasonable price to both local and large fish businessmen.
40
REFERENCES
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Abila, R.O. and E.G Jansen. (1997). “From Local to Global markets; The Fish Exporting and Fishmeal Industries of Lake Victoria-Structure and Socio-economic Impact in Kenya.” Socio-economic of Nile Perch Fisheries of Lake Victoria. Project Report No.2. IUCN-EARO. Nairobi
Bagumire, A. (2009) Impact of the Global Financial and Economic Crisis on the
Fish Industry in Uganda and Tanzania. Food Industry Consultant, Dar es
Salaam Tanzania
Béné, C. (2003). Poverty in Small-scale Fisheries: A Review and Some Further Thoughts, Small-Scale Fisheries, Poverty and the Code of Conduct for Responsible Fisheries
Bilame, O. (2009). Contribution of Small-scale Nile Perch to Household income in Sengerema, REPOA WORKSHOP Dar es Salaam Tanzania
Boka, C. and Ikiara, M. (2000). The Macro-economy Of the Export Fishing Industry in Lake Victoria Nairobi, Kenya
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Jansen, E.G and A, J. Boye. (2006). “Sustainable Management of Fisheries resources and the Role of the National and Local Authorities". A paper presented to the Norwegian Centre for Development and the Environment, University of Oslo.
Kimaryo, M. (2008) Policy constructive forum on health livelihoods of fishing
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Nairobi Kenya
Maembe, T. (2006). Fisheries and Management with references to Lake Victoria “A
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Madagascar. IIFET 2004 Japan Proceedings.
Ravallion, M. (1999). “Poverty Lines in Theory and Practice.” LSMS Working
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Tanzania
URT, (2003). Fishing Industries Act No. 22 of 2003 Government Printers Dar es
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URT, (2002). Tanzania Participatory Poverty Assessment, Government Printers Dar
es Salaam, Tanzania
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APPENDICES
APPENDIX ONE; HOUSEHOLD QUESTIONNAIRE
A: General information
1. Location: Ward……………..Village…………………
2. Age of respondent (Years)…………………………..
3. Sex 1= male 2= female
4. Marital status 1= married 2= Single, 3= Widow, 4= Separated, 5= others
(Specify)………
5. Education level 1= None, 2= Primary, 3= Secondary, 4= College and above
6. Major income generating activities; 1 = fishing activities, 2= Farming, 3=
Business 4= others (specify)…………………….
7. Household size (No.)……………
B: Information related fishing activities
1. Are you engaged in fishing activities 1= yes 2= no
2. If yes, what types of fishes do you fish? 1= Tilapia 2= Nile perch 3= Others
(Specify)………………………….
3. Do you sell fishes for income generation? 1= yes 2= no
4. If yes, where do you sell them?
1= to middle men 2= to industries5. If you are selling to the industries at what price do you sell?..........................
6. If you are selling to middlemen at what price do you sell?..........................
7. (a) Which species of fish do you mostly sell? 1 = Tilapia, 2= Nile Perch,
3= others (specify)…………..
(b) Give reason for the most sold fishes……………………
8. How do you perceive market for fishes currently? ; 1= low 2= high 3= Don’t
know
43
9. What are constraints to fishing activities do you encounter in your
area?......................
C: Opportunities and financial support from the industries
1. How do you perceive accessibility to credit services 1= easily accessible 2 = not
easily accessible ( )
2. Have you ever received loan for fishing activities 1= yes 2=no; if yes,
where/……….
3. How do the Fishing Industries support you in accessing loans? …………
4. What are the opportunities do you have from the industries?
a)…………………………………………….b)…………………………………………….c)……………………………………………
5. Do the industries support you to get access to social services? 1 Yes 2= NoIf yes, what services do you get?a)………………………………………….b)………………………………………….c)………………………………………….
6. Are there any by laws in conducting your activities? 1. Yes 2.NoIf yes, mention thema)………………………………………….b)………………………………….………
D: Income and Family Expenditure
1. What is the average income from activities or from fishing?
Below 100,000
Average of 300,000
Below 500,000
Above 500,000
2. What are the basic family needs?……………………………….……………………………….………………………………
3. What is the Rank/ Place of fishing activities in solving the problem of food
shortage at the household? 1= first, 2= second, 3= third, 4= fourth, etc…..
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APPENDIX TWO
QUESTIONNAIRE FOR WEO AND VEO
1. Name of respondent………………………………………………………….
2. Age of respondent…………
3. Sex of the respondent 1=Male 2= Female ( )
4. Marital status of the respondent 1= Married 2=Single 3= Widow 4= Divorced ( ) 5. Education level of the respondent. 1= Secondary 2= Certificate 3= Diploma 4= Degree
6. Position of the respondent1=VEO 2= WEO ( )
7. Is there any fish processing industry in your area? If yes, mention them by names…………………….. ……………………..
8. How many households in your ward are involved in fishing activities?..............
9. How many people from your place are employed in the Fishing Industries present in your area?
1= 0 – 100 2=100 - 500 3= Above 500 ( )
10. What other economic activities have emerged as a result of the establishment of the fish processing industries in your area?
1) …………………………………2) …………………………………3) …………………………………4) …………………………………
11. To what extent do the Fishing Industries contribute in the income of your ward/village?
…………………………………………………………………………….. …………………………………………………………………………….. …………………………………………………………………………….. ……………………………………………………………………………..
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APPENDIX THREE
FISHERIES OFFICER
1. Name of respondent………………………………………………………….
2. Age of respondent…………
3. Sex of the respondent 1=Male 2=Female ( )
4. Marital status of the respondent 1= Married 2= Single3= Widow 4=Divorced ( )
5. Education level of the respondent.1= Certificate 2= Diploma 3= Degree ( )
7. What are the problems caused by Fishing Industries in the area?1)………………………………………………………….2)………………………………………………………… 3)
………………………………………………………… 8. What are the environmental measures undertaken by Fishing Industries to conserve the environment in the area?
1)…………………………………..2)………………………………….3)………………………………….
9. Are there any measures in conserving fishing bleeding sites undertaken in the area?
1 = Yes 2 = No If yes, mention them ……………………………………………….
……………………………………………..
10. What are the most dominant species of fish that found in your area?1)……………………………2)……………………………3)……………………………
11. What is the rate of change of prices of fish in the past five years?
YEAR PRICE PER KILOGRAM
2005
2006
2007
2008
2009
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APPENDIX FOUR
QUESTIONNAIRE FOR INDISTRIAL OFFICIAL
1. Name of respondent……………………………………
2. Age of respondent…………
3. Sex of the respondent 1=Male 2= Female ( )
4. Marital status of the respondent1= Married 2= Single 3= Widow 4= Divorced ( )
6. Education level of the respondent.1= Certificate 2= Diploma 3 =Degree 4= Others ( )
7. Position of the respondent……………………………………
8. What are the main activities carried out in the industry?…………………………………………………………
9. What has been the level of production from your industry in five years from 2005 to 2009?
YEAR AMOUNT IN TONNS
2005
2006
2007
2008
2009
10. What is the average income earned by the industries from 2005-2009?
YEAR AMOUNT EARNED
2005
2006
2007
2008
2009
11. Who are the main buyers/consumers of your products?
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………………………………………………………………………………………………………………………
12. How many people are employed in your industry? .......................
13. Do you involve in any environmental conservation activities?
If yes, how…………………………..
…………………………...
If no, why…………………………….
……………………………
14. Are there any measures in conserving fishing bleeding sites by the Fishing
Industries?
If yes, mention them ……………………………………………….
……………………………………………..
……………………………………………..
15. Do you provide any social services to the area around?
If yes, what are they…………………………..
…………………………...
If no, why…………………………….
……………………………
16. What are the challenges facing production in your industry?
……………………………………………………………….
………………………………………………………………
………………………………………………………………
17. Are there any by laws which hinder you in your daily activities of production in
the industries?
If yes, mention them………………………………………………..
………………………………………………..
……………………………………………….
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