PROJECT DOCUMENT - tzdpg.or.tz · LIMAS Project Document, FINAL ii (ix) PREFACE Lindi & Mtwara Agribusiness Support project (LIMAS) is a bilateral development initiative, jointly

Ministry of Finance and Economic Affairs Government of Tanzania

Government of Finland

Lindi & Mtwara Agribusiness Support

PROJECT DOCUMENT REVISED, APPROVED (Dec 2011)

LIMAS Project Document, FINAL i (ix)

PROJECT FACT SHEET Project Title Lindi & Mtwara Agri-business Support (LIMAS) Sector: Private Sector Development Sub-sectors: Local Economic Development Geographical coverage and Project site: Districts of Newala and Liwale in Mtwara and Lindi Regions, Tanzania Duration: August 2010 to July 2014 Project Financing total: EUR: 9.450.000, TZS: 17,489,148,000 Government of Tanzania Approximately 5 % of the Finnish contribution – will be decided during the Inception Phase Government of Finland: EUR: 9.000.000, equal to TZS: 16,659,603,770 Competent Authorities: Ministry for Foreign Affairs, Government of Finland; Ministry of Finance and Economic Affairs, Government of Tanzania Institutional Framework: Regions, Districts, Project implementing structure and

decision making bodies The overall objective of the project: To contribute to economic development in Liwale and Newala Districts through agriculture and forestry production, processing and marketing. The purpose of the project: To generate increased income for rural population in Newala and Liwale through exploiting viable and sustainable opportunities for competitive agribusiness. Project Components: 1. Business and rural development environment and foundation 2. Sustainable agricultural production, processing and marketing 3. Sustainable forestry and beekeeping production, processing and marketing Cross-cutting issues: Environment / natural resources management and climate change adaptation Gender equity HIV/Aids

LIMAS Project Document, FINAL ii (ix)

PREFACE Lindi & Mtwara Agribusiness Support project (LIMAS) is a bilateral development initiative, jointly funded by the Governments of Tanzania and Government of Finland. LIMAS is scheduled to be carried out in 2010 – 2014, having a duration of four years in total.

LIMAS was started in August 2010 with an inception phase of six months. The project approach, outlined in the initial project document from April 2010, was discussed in a number of meetings with the competent authorities and project stakeholders during the inception phase. It appeared that amendments and revisions in the project document were necessary to clearly define the focus of LIMAS, promotion of profitable agribusinesses, as opposed to the rural development project RIPS, which was also funded by the Finnish and Tanzanian Governments and implemented in Lindi and Mtwara regions in 1988-2005.

LIMAS team was by the Project Steering Committee given a task to reformulate parts or the project approach. The first outline of the revised approach, designed with the assistance of an international M&E expert, was presented to a delegation from the Ministry for Foreign Affairs of Finland in March 2011. The outline was then refined into a draft Inception Report that was presented to the Steering Committee in Liwale the 14th of April 2011. In the meeting it was agreed to extend the Inception Phase until the end of June 2011 to give the LIMAS team some further time to elaborate the details and to revise the Project Document.

The final draft was presented and discussed in the LIMAS Steering Committee in August 2011 and in October 2011, and the requested revisions and additions have been made accordingly. In addition, the Competent Authorities have agreed upon some final amendments, mainly in Chapter 5. Those have also been incorporated in this version. The reader is further advised to refer to coming updates in TA staff Terms of references, which will be done based on identified needs.

This revised Project Document outlines how LIMAS intends to facilitate increased rural household income from agriculture and forestry related business. The major change to the initial project document is strengthening the focus on business creation and substantial income generation, and process and sequential approach to business development, where initial basic activities are to be followed by additional activities as identified along the process.

It is seen essential to ensure adequate flexibility to address specific issues as they occur. By having a more open attitude to business and by supporting several actors – from District Council to individual farmers as well as buyers and processors – it is assumed that LIMAS will have a better chance to achieve the project purpose, to generate increased income for rural population in Newala and Liwale through exploiting viable and sustainable opportunities for competitive agribusiness.

Achieving the project purpose will involve the development of profitable and sustainable agriculture and forestry businesses through a number of activities for clear ownership of the resource, higher production, better business knowledge, entrepreneurship promotion and better market access.

The implementation will be done through local government structures as well as through private service providers and civil society organisations. The proposed activities fall within the GoT's National Agricultural Sector Development Programme and are linked to the Local Government reforms.

More details of the findings of the inception phase of the project, forming the basis for this document, can be found in the LIMAS Inception Phase Report covering the period August 2010 – June 2011.

In Newala, Dec 2011

LIMAS TA team

LIMAS Project Document, FINAL iii (ix)

ABBREVIATIONS

ACT Agricultural Council of Tanzania ASDP Agricultural Sector Development Programme AVLFR Angai Village Land Forest Reserve AWP Annual Work Plan BDS Business Development Service BP Business plan CA Conservation Agriculture CBT Cashew Board of Tanzania CCI Clinton Climate Initiative CF Conservation Farming CFU Conservation Farming Unit (of ZNFU, Zambia) CTA Chief Technical Adviser CTI Confederation of Tanzanian Industry DADP District Agriculture Development Plan DALDO District Agriculture and Livestock Development Officer DbD Decentralisation by Devolution DED District Executive Director DESEMP-PP District Economic and Social Empowerment Programme – Preparatory Phase DFID Department for International Development in the UK DPC District Project Coordinator FAA Finance and Administrative Assistant FAM Finance and Administrative Manager FAO Food and agriculture Organization (of the United Nations) FBD Forestry and beekeeping Division (of MNRT) FFC Farmer Field School FPIC Free, Prior, Informed Consent GoF Government of Finland GoT Government of Tanzania HO Home office IAg International Agronomist LGA Local Government Authority LGCDG Local Government Capital Development Grant LGRP Local Government Reform Programme LT Long Term M4P Making markets work for the Poor MATI Ministry of Agriculture Training Institute MCDI Mpingo Conservation Development Initiative MFA Ministry of Foreign Affairs (of Finland) MITM Ministry if Industry, Trade and Marketing MKUKUTA Swahili acronym for National Strategy for Growth and Reduction of Poverty MKURABITA Swahili acronym for the Property and Business Formalisation Programme in Tanzania MNRT Ministry of Natural Resources and Tourism (includes FBD) MoAFC Ministry of Agriculture, Food Security and Cooperatives MoF Ministry of Finance MoU Memorandum of Understanding MTR Mid Term Review MUHIMA “Muungano wa Hifadhi ya Misitu wa Angai” NAFORMA National Forestry Resources, Monitoring and Assessment NEDECO Newala Development Corporation

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NEPS National Poverty Eradication Strategy NFP National Forest Programme NGO Non Governmental Organisation NMB National Microfinance Bank NSGRP National Strategy for Growth and Reduction of Poverty PASS Private Agricultural Sector Support PD Project Document PES Payment for Ecosystem Services PFM Participatory Forest Management PMO-RALG Prime Minister’s Office – Regional Administration and Local Government PMT Project Management team RAS Regional Administrative Secretary REDD+ Reducing Emissions from Deforestation and Degradation, + Conservation RIPS Rural Integrated Project Support SACCO Savings and Credit Cooperative SAGCOT Southern Agriculture Growth Corridor of Tanzania SC Steering Committee SDC Swiss Agency for Development and Cooperation SEDIT Social and Economic Development initiative of Tanzania SIDA Swedish International Development Cooperation Agency SIDO Small Industries Development Organisation ST Short Term SVB Supervisory Board TA Technical Assistance TCCIA Tanzania Chamber of Commerce, Industry and Trade TDV Tanzanian Development Vision ToR Terms of Reference ToT Training of Trainers TPSF Tanzania Private Sector Foundation TSH Tanzania Shillings UN United Nations UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization VICOBA Village Community Bank VLFR Village Land Forest Reserve VNRC Village Natural Resource Committee WAEO Ward Agriculture Extension Officer

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TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................................... vii 1. INTRODUCTION ......................................................................................................................... 1

1.1. Background ........................................................................................................................ 1 1.2. National Strategy for Growth and Reduction of Poverty – MKUKUTA .................................. 1 1.3. National agricultural sector policy and strategy .................................................................. 1 1.4. Government Structure ........................................................................................................ 2 1.5. Private Sector in Tanzania ................................................................................................... 2 1.6. Agribusiness development in Mtwara and Lindi regions ...................................................... 3 1.7. LIMAS Geographical Coverage ............................................................................................ 4 1.8. Beneficiaries ....................................................................................................................... 6

2. DEFINITION OF THE INTERVENTION ........................................................................................... 7 2.1. Agri-Business Approach ...................................................................................................... 7 2.2. Overall Objective and Project Purpose ................................................................................ 8 2.3. LIMAS logframe .................................................................................................................. 8 2.4. Assumptions and Risks .......................................................................................................14

3. IMPLEMENTATION....................................................................................................................15 4. COMPATIBILITY AND SUSTAINABILITY ......................................................................................15

4.1. Development policies ........................................................................................................15 4.2. Economic and Financial Feasibility .....................................................................................17 4.3. Institutional Capacity .........................................................................................................17 4.4. Participation and Ownership..............................................................................................18

5. PROJECT MANAGEMENT ..........................................................................................................19 5.1. Decision Making Bodies .....................................................................................................19 5.2. The Implementing Level.....................................................................................................21 5.3. District Council staff ...........................................................................................................22 5.4. Service procurement and outsourcing of service provision ................................................23 5.5. Office space and logistics ...................................................................................................23 5.6. Coordination with other projects and organizations...........................................................23 5.7. Studies ..............................................................................................................................24 5.8. Timetable ..........................................................................................................................24 5.9. The Exit Strategy ................................................................................................................24 5.10. Budget and financial management .................................................................................24

6. PLANNING, MONITORING, REPORTING and EVALUATION .......................................................25 6.1. Planning ............................................................................................................................25 6.2. Monitoring and auditing ....................................................................................................25 6.3. Reporting...........................................................................................................................26 6.4. Evaluation .........................................................................................................................26

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ANNEXES Annex 1: LIMAS logframe

Annex 2: LIMAS overall budget 2010-2014

Annex 3: Brief presentation of Lindi and Mtwara Regions and Liwale and Newala Districts

Annex 4: Cashew nut production in Mtwara and Lindi

Annex 5: Outline of sesame production in Mtwara and Lindi

Annex 6: Angai forest

Annex 7: Terms of Reference for the Project Steering Committee

Annex 8: Terms of Reference for the Technical assistance of LIMAS

Annex 9: Summary of issues to be addressed during the Inception Phase, according to the original Project Document

Annex 10. Tanzanian contribution to LIMAS implementation

LIMAS Project Document, FINAL vii (ix)

EXECUTIVE SUMMARY

LIMAS project started in August 2010 as a continuation of the long standing development cooperation between the Governments of Finland and Tanzania in the regions of Mtwara and Lindi.

The project represents a clear change in development cooperation, as the focus has shifted from a problem solving to an opportunity finding oriented approach, where income generation is seen as the foundation for the ability of individuals as well as companies and District Councils to deal with their challenges and for sustainable resource utilisation.

It was realized during the Inception Phase of LIMAS that the LIMAS Project Document (April 2010) needed clarifications to guide the project implementation. A revision of strategy and implementation modalities was started. After consultations with the competent authorities, LIMAS TA staff was in April 2011 given the task to revise and update the Project Document. This document is the result of this process.

The overall objective of LIMAS is to contribute to strong economic growth in the rural sector, in line with ‘MKUKUTA’, the National Strategy for Growth and Reduction of Poverty.

The focus of LIMAS is in agribusiness, sustainable income generation for rural communities and partnering enterprises. Economies of scale will be looked into, and potential for substantial development in the targeted districts, Newala and Liwale, will be explored and exploited.

LIMAS will be implemented by both public and private sector actors. These actors are mutually depending on one another, and the division of roles will continue to be an important topic to be clarified and streamlined.

The LIMAS activities will centre on facilitating and strengthening the following:

• Information sharing and awareness creation on the necessary prerequisite and success factors for business to grow;

• Increasing productivity and production in agriculture and forestry whilst building capacity for climate change adaptation;

• Skills and knowledge in business planning and the requirements in order for men and women to efficiently participate in the supply chain;

• Securing tenurial rights to land and forests as well as other production resources; • Building viable market linkages for better market access, economy of scale and profitability.

LIMAS project will work with a long term sequenced approach to business development. This will ensure that LIMAS is able to react to new trends and changes in the markets, as one activity will lead to another, which can not necessarily be planned long in advance.

The objective of the project is to facilitate linkages between farmers, producers, buyers, service providers and respective authorities, all of which will be the implementers of the project. The role of LIMAS is to provide exposure and ease access to useful networks, information and technologies, link up producers, processors and buyers and thereby help creating foundation for viable business initiatives that sustain and develop even in the absence of the project

LIMAS logframe outlines the results that lead up to LIMAS achieving the Project Purpose:

”To generate increased income for rural population in Newala and Liwale through exploiting viable and sustainable opportunities for competitive agribusiness.”

The logframe has three main components, each with their specific activities and results:

LIMAS Project Document, FINAL viii (ix)

Component 1; Business and rural development environment and foundation.

The first component will be implemented by the District Council and integrated in the District budgets and plans. LIMAS staff will act as facilitators, support implementation and monitoring, and provide technical assistance where necessary. The focus will be on building a better understanding among the stakeholders for business development as well as improving actual production and planning skills in agriculture. Land information and formalisation will be promoted through provision of good data in a form of satellite images and maps that will be used to reduce the cost of land use planning and registration. Initial feasibility assessments and identification of potential business to be supported will be another important activity. Promotion of conservation agriculture (CA) will be the major strategy to increase productivity and production in farming and to mainstream sustainable use of agricultural land, and creating resilience to climate change into activity implementation. Village Community Banks (VICOBA) is another key strategy to empower rural communities, men and women. It targets at fostering grass-root communities’ ability to innovate and manage income generating activities and manage household economy, relying on self-help, shared leadership, transparency and good governance.

Component 2; Sustainable agricultural production, processing and marketing;

LIMAS will under this component team up with potential private sector business operators, farmers, entrepreneurs and companies and support them according to needs to develop their business into profitable and competitive entities. The character of support will depend on the type of business. It can range from business plan preparation and production advice to a small scale poultry farmer to linking up with an out-grower company and support development of fair contracts, as well as assisting with capacity building among the contracted farmers. This component is expected to gradually get increasing emphasis as more opportunities are identified and exploited and the experience among all stakeholders for effective support increases.

Component 3; Sustainable forestry and beekeeping;

In forestry the focus will be on development of models for sustainable utilisation and income generation from forest. The initial activities will, under the supervision of LIMAS TA staff, focus on Angai Villages in Liwale in securing the tenurial rights and the requirements for the Angai Villages to get the formal rights to their forest. In parallel LIMAS and stakeholders will look for viable markets for forest products such as timber, firewood, charcoal as well as the carbon market.

Lessons from participatory forest management (PFM) internationally and in Tanzania show that commitment to sustainable forest use can only be achieved when there is clear ownership of the resource. To limit deforestation and boost good management, the income from forest products must be comparable to what can be obtained if the same area was used in agricultural production.

LIMAS will team up with other initiatives for PFM and forestry products in Tanzania and internationally to find markets for forest products and assist communities to make a well informed, market based, decision for how to best and sustainably utilise their forest.

The main stakeholders of LIMAS are the two District Councils, Newala and Liwale and Private Sector service providers.

The District Project Management Teams have a key role in the implementation of LIMAS District activities where the District Councils operate as public sector service providers. A good lot of LIMAS activities will be integrated in and implemented as part of Districts’ annual work plans, in line with the Districts’ core functions as the providers of agricultural extension and community development services as well as registration of business entities.

Private sector service providers will implement support activities targeting the private sector development activities, component 2 and 3. These can be experienced individuals, companies as well as NGOs and will be selected by a Tender Board after recommendations from the LIMAS TA.

LIMAS Project Document, FINAL ix (ix)

The total budget of LIMAS is EUR 9.45 mill, equal to TSH 17,500,000,000. The Finnish contribution is EUR 9 mill for the duration of four years. The project will, after 11 months’ inception phase ending in June 2011, be implemented for three years till July 2014. The Technical Assistance consists of a number of long term and short term consultants. In addition, various service providers will be engaged in the implementation according to identified needs. Project management and administrative modalities follow the procedures implemented in projects that are funded bilaterally by Finland and Tanzania.

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1. INTRODUCTION

1.1. Background

Finland has had a long-term partnership with the Lindi and Mtwara regions since the early 1970s 1. Significant human capital and financial resources have been invested in participatory learning and local democratic governance, as well as in rural development. Finland intends to continue support to Mtwara and Lindi Regions, aligned with the on-going national and decentralised reform processes of the Government of Tanzania (GoT).

An 18-month Preparatory Phase of the District Economic and Social Empowerment Programme (DESEMP - PP) was undertaken from February 2007 to July 2008, to prepare the foundation for a new long-term collaboration. DESEMP–PP produced a number of studies and economic analyses, including a comprehensive Baseline Survey on Poverty and Vulnerability, to provide background information on the social and economic situation of the population of the two regions. In addition, three detailed market and value-chain studies were made.

Lindi & Mtwara Agri-business Support project (LIMAS) aims to continue support to the rural sector in the two regions with specific focus on agribusiness development.

1.2. National Strategy for Growth and Reduction of Poverty – MKUKUTA

The main policy framework for LIMAS is the National Strategy for Growth and Reduction of Poverty (NSGRP), better known by its Kiswahili acronym 'MKUKUTA'. By supporting the implementation of MKUKUTA – specifically to the Cluster 1 – dealing with the promotion of broad-based growth, LIMAS will first and foremost promote local economic development processes and strengthen the capacity of the private sector to be an engine of growth for the regions of Lindi and Mtwara.

The overall ambition of MKUKUTA is to bring Tanzania to the group of middle income countries in the next fifteen years. This is a very ambitious target and will require a serious effort from all parties. A transformation of the agricultural and forestry sectors towards higher production, productivity and competitiveness is necessary. To secure the rural populations’ righteous demand for economic development while simultaneously securing the rights to land, food security, water health etc. will pose an enormous challenge.

1.3. National agricultural sector policy and strategy

With 80% of the poor in Tanzania living in rural areas and agriculture accounting for 75% of rural households' incomes, the GoT has adopted an Agricultural Sector Development Strategy (ASDS). The ASDS sets the framework for achieving the sector objectives and targets which contribute to both the MKUKUTA objectives and the Tanzania Development Vision (TDV) 2025.

The Agricultural Sector Development Programme (ASDP) was developed by key Agricultural Sector Lead Ministries. The ASDP emphasizes empowerment of local governments and communities to control their planning processes and the establishment of environment which encourages private sector to invest in agriculture.

The government frame work for the growth of agriculture sector called Kilimo Kwanza (Agriculture first) emphasises the importance of agriculture as the driver of the growth in Tanzania. Kilimo Kwanza stresses the importance of private sector participation and modernisation of agriculture through irrigation, mechanisation and increasing use of inputs as means of achieving durable results.

1 The first Finnish funded initiatives were FINNWATER, a major drinking water and sanitation project that was implemented from 1974-1993, and FINNROAD, which implemented several road projects over the same period. After that there was the area-based programme, Rural Integrated Project Support (RIPS), which was implemented in three phases over the period 1988 to 2005.


The recently presented draft Agricultural Marketing Strategy (Jan 2011) from Ministry of Industry and Trade has as its purpose another ambitious target, to increase agricultural growth to 6.3% in the next 5 years.

1.4. Government Structure

The Government of the United Republic of Tanzania (GoT) governs the unitary republic between the two republics of Tanganyika and Zanzibar. The Tanzania Government structure has three levels for decision making;

National Government with an elected parliament based in Dodoma, District Governments (urban and rural) with an elected Full Council as decision makers and, Village Governments with elected leaders to manage the grass root level activities based on the

Decentralisation by Devolution (DbD) policy. The executive branch of the District Governments is the District Council headed by the District Executive Director (DED). The District Councils are responsible for implementation of all plans for economic and social development.

The Ministry responsible for coordinating the Tanzanian Government support to the Districts is the Prime Minister’s Office for Regional Administration and Local Governments (PMO-RALG). Below the national level is the Regional Administration headed by a Regional Administrative Secretary (RAS) and represented at a District level by the District Administrative Secretary (DAS).

The role of the Region is supervision and monitoring. At the regional level, the Regional Commissioner (RC) is the senior political official while at District level the District Commissioner (DC) is the principal representative and assistant to the Regional Commissioner.

1.5. Private Sector in Tanzania

The private sector in Tanzania is comprised of a wide and diverse range of actors, including micro, small and medium enterprises, large enterprises, informal sector, representative associations, product-specific associations and large and micro finance institutions as well as huge rural population as farmers, traders and artisans.

Three major groups representing private sector can be distinguished at the district and sub-district levels: associations representing the informal sector, and the rural private-sector and urban private sector organisations. Each of them caters for their own specific constituency and advocates for specific issues. Most of these organizations are not formally registered.

Formal rural private sector service organisations include the Primary Agricultural and Marketing Co-Operative Societies, Savings and Credit Co-Operatives, and Farmers’ Associations. Since their establishment by the government, these societies have, however, suffered from mismanagement and inefficiency, poor service delivery and increasing loss of trust of the people they would propose to represent.

At the national level the Tanzania Chamber of Commerce, Industry and Trade (TCCIA), the Confederation of Tanzanian Industry (CTI) and the more recently established Agricultural Council of Tanzania (ACT), are developing into serious dialogue partners and private sector advocacy organisations. They have established vertical integration structures from the district or regions to the national level.

A recent development initiative from ACT is the Southern Agriculture Growth Corridor of Tanzania (SAGCOT2) where a number of companies and actors have teamed up to promote large scale commercialisation of agriculture in the corridor along the Tanzania – Zambia highway. This initiative is looking at tackling a wide range of constraints to agricultural growth in Tanzania and hope to achieve competitive economy of scale by concentrating efforts on a potentially high growth area.

2 SAGCOT www.africacorridors.com/sagcot


1.6. Agribusiness development in Mtwara and Lindi regions

Mtwara and Lindi are regions, where agri-business is very limited and mostly about one crop – cashew nuts. The area has by tradition had limited exposure to market oriented farming and business practices. The exchange of ideas and produce as well as migration of labour has been challenged by the remote location and distance to markets, or it has been and still is a one way migration, where rural youth leave the districts for Dar es Salaam or other towns. This has contributed to the regions still being highly dependent on subsistence based farming with a single cash crop.

The regions are a challenging area for development of more agribusiness. The traditional way of agricultural production generates limited surpluses for the market. Customary farming practices are highly biased towards ensuring household food security through own production as opposed to a market driven production, where the main target is to optimise income creation in a long perspective.

This duality is also reflected in frequent high level encouragement to focus on certain crops, such as cassava, which is labour intensive, and by nature high cost and low value product. Market driven development assumes that farmers are free to produce the most profitable mix of crops on their lands.

Numerous initiatives have over the years been carried out in Lindi and Mtwara regions to boost small-scale agribusiness for the sake of better livelihoods and fight against poverty among rural population. A large number of farmer/processing groups have been equipped with improved crop varieties, manual or motorised machinery etc. by various donor agencies like One UN and FAO through the district councils. Manual crackers for cashew nut processing, motorised cassava graters, modern bee hives and gear, improved cockerels and goats etc. are just some examples. In many cases the groups have received some basic technical training in operating the equipment but rarely have they received any business management training or hands-on support in such. As a result much of the equipment is underutilised due to poor production scheduling, lack of market understanding and poor cash flow management etc.

During the Inception Phase of LIMAS in August 2010 – June 2011, a number of key issues were identified in relation to what challenges LIMAS is likely to face when trying to accomplish its mission. These findings have guided in the revision of the original LIMAS Project Document:

There is need to keep a clear business focus of an agribusiness project and not to revert to activities that belong in a rural development project.

There is need to integrate land use planning in all land related activities. Promotion of sound farming and forest management practices is focal to ensure adequate

supply to markets and sustainable use of resources and at the same time strengthen communities’ resilience and adaptation to climate change.

The complexity and unclearness of mandates – roles and responsibilities – of different levels of government in relation to land and forestry ownership, need to be acknowledged. Clarity and mutual respect is necessary among the operators in the field of developing private business. Business has several actors, and each has to play his/her role.

Ensuring adequate capacities within the Districts to perform tasks that are their responsibility. The records of working together among producer groups in business enterprises are poor. An

agribusiness project will face a challenge in getting farmers to trust each other and work together.

The farmers have in general several constraints to increase their production, such as access to credit and inputs as well as limited knowledge and skills for proper use of these, both from a finance and agronomic point of view. Exposure to new ways of production combined with access to a learning environment can assist in tackling these issues.

Lack of any Economy of Scale is most likely one of the major challenges that makes it necessary to add some sort of subsidy/support to any new production in order to assist it to get beyond a one year failure because of too high handling and transport costs. Access to the port in Mtwara may be one of the major assets of the regions but will require large volumes to be effective.

Further details on the above are found in the LIMAS Inception Phase report.


1.7. LIMAS Geographical Coverage

The LIMAS project will operate in two districts: Newala in Mtwara and Liwale in Lindi Region. These two districts were chosen as primary target areas, following local assessments and consultations with regional and district authorities while preparing the initial Project Document. The main features of Mtwara and Lindi and Newala and Liwale districts are presented in Annex 3.

The selection of the two Districts was based on the following criteria:

Recommendations from Regional Authorities; Willingness and commitment of District Authorities; Existence and performance of farmers groups and women groups with business initiatives; Presence of other development agencies and projects already active in the District; Operational feasibility.

The Regional Authorities had recommended that the project should include the following components:

Support to agriculture and livestock, including increased livestock productivity through improved access to veterinary services, and increasing and improving production systems and income for the rural poor;

Transforming the agricultural sector from small-holder subsistence agriculture to small, medium and large scale commercial farming systems and strengthening the link between agriculture production and domestic food industry, increasing the contribution to other sectors, while preventing negative impacts to the environment and people’s livelihoods, promoting technical innovation, and improving communications and physical infrastructure such as roads and storage facilities;

Increase the productivity and profitability of agriculture through technological innovation such as improved high yielding, pest resistant varieties, drought tolerant varieties, improved tools and equipment and improved extension services;

Modernisation and expansion of physical infrastructure through enhanced public-private partnerships;

Promote water harvesting in the Makonde plateau for domestic use.

1.7.1. Reasons for the selection of Newala The selection of Newala district was based on the following reasons:

Commitment of District officers and Authorities, with political support of the Region; Very few aid organisations are present in Newala; There are several areas of entry with possible visible results within 2 years time (cashew nuts,

cassava processing, sesame organic, Newala goat dairy production); Urgent need for water conservation activities; The presence of very active and well organised SACCOs (3 existing SACCOs); Collaborative possibilities with the Aga Khan Foundation (rice, sesame, conservation farming,

groups formation, climate change adaptation) working in Lindi and Mtwara regions; Distance of about 2,30 hours (140km) from Mtwara; Main road is being repaired; Office space available in District premises; Favourable climatic conditions for agriculture (altitude, rainfall)

There are, however, the following concerns about Newala related to project implementation: Problems with electrical grid, although planned for upgrading; Scarcity of water availability and fast depletion of ground water level; Location is rather isolated for full-time posting of project staff.


Features of Newala and Liwale Districts Newala and Liwale are among the poorest and least developed districts in Tanzania. Among the causes for the poverty in these districts are the very low productivity levels of agriculture and a high dependency on a single crop – cashew.

There are no substantial volumes of any other cash crop than cashew, although sesame is seen as a popular alternative.

The level of organization and marketing skills among farmers is low, thus contributing to poor market access and few reliable market linkages.

The very high transport cost to Dar es Salaam, the main hub of Tanzania, makes the whole region suffer from the low prices that can be offered for surplus crop production and this is compounded by the high cost of inputs. The only major exemption in this negative scenario is the cashew market where volumes are large enough to be exported directly through the port of Mtwara.

On the positive side there are huge opportunities for improved productivity in agriculture through better knowledge and skills in farming practices. There is a large untapped potential for local production of a number of products and the recent economic upswing and growth in the region offers new market opportunities. Any major production for export from the regions should take advantage of the port in Mtwara or in other ways aim to overcome the very high costs of transport.

For Liwale district the large and relatively undisturbed forests represent a huge potential income although the obstacles in terms of lack of community management models, poor market linkages, long transport distances and a total lack of economy of scale makes large incomes in the near future unrealistic.

Liwale is today producing relatively large volumes of cashew and sesame. The dominant farming method is based on slashing and burning the existing forest cover to open up new farms.

1.7.2.

Liwale

Newala

20 km

120 km


1.7.2. Reasons for the selection of Liwale Liwale was selected for the following reasons:

Commitment of District officers and Authorities, with strong political support by the Region; Only one aid organisation, ActionAid, active in Liwale (Techno-Serve formerly supported

marketing of sesame); Angai Village Land Forest Reserve (140 000 ha), not yet officially declared but to be owned by

the 24 (formerly 13) surrounding villages, and with great commercial potential, has been supported by Finland since the 1990s, but in a discontinuous manner;

High rates of forest depletion (shifting cultivation still the major cultivation system in a wide area);

Past history of Finnish cooperation; Area of entry with possible visible results within 2 years time (cashew nuts, organic sesame,

poultry, honey, timber and other forestry products); Concern of District authorities about future of youth; Need for water conservation activities; Presence of a well organised women's group with a project already prepared by the District

Community Development Officer; Existence of an apex organisation for farmers groups network, but in need of business training

and planning; Existing sesame producers' cooperative; Road to Kilwa is being repaired; Office space available in District premises.

Concerns about Liwale related to project implementation

Distance of about almost 4 hours (230 km) from Lindi; Accommodation for project staff might be a problem; Electricity somehow stable (under control), but limited; Still unreliable internet connection; Limited control of unsustainable shifting cultivation practices

1.7.3 HIV/AIDS prevention in targeted districts

According to UNICEF, the HIV/AIDS prevalence rate in Tanzania is nearly 9 %. The incidence of HIV/AIDS has been stressed by authorities of Newala and Liwale as an important social and health problem, and the issue is being addressed in their general District Development Plans. HIV/AIDS Prevention and Nutrition Education trainings are one aspect of the work required to improve the health of Tanzania’s most vulnerable populations through increased food security and improved nutrition. 1.7.4 Environmental concerns versus tenurial rights

The potential environmental threats in the Mtwara and Lindi regions are mainly related to agriculture, fisheries, logging and illegal hunting. A common denominator for these is that they relate to the use of an “open access” resource. Land, forest, sea and wildlife are all treated as “common goods”, whereby investing time or money in long-term management is not seen as justified. Secure tenure is a pre-condition to enable long-term investment and sustainable management.

1.8. Beneficiaries

The rural population in Newala and Liwale are the main beneficiaries of the LIMAS project. Potentially, people in neighbouring districts may also benefit by joining into and learning from activities in the two districts of Newala and Liwale.

1. For the rural population, male and female equally, the benefits will mainly be:


Increased income from sales of identified profitably and sustainably produced crops and forestry produce

Improved capacity and knowledge in sustainable agricultural and forest production Improved business planning skills Secured tenurial rights to resources, land and forests Improved access to and understanding of profitable markets and business opportunities.

2. Private sector actors that develop business ventures supported by LIMAS will benefit from improved access to development services, information and capacity building, and ultimately from improved potential to run business. Input suppliers will benefit from increased market demand.

3. Decision makers and District staff will benefit from increased skills and understanding of business and production, and clarification of the roles of the public and private sector when targeting at creation of profitable business ventures.

4. The District Councils will benefit as the increased formal business activities will assist the District in revenue collection from the natural resources levies.

5. The existing Service Providers such as research institutions and NGOs will be another level of beneficiaries, where clear agri-business orientation of LIMAS will assist them to focus attention towards profitable income opportunities.

Targets for the outreach of LIMAS activities will be set each year in LIMAS Annual Workplan.

2. DEFINITION OF THE INTERVENTION

2.1. Agri-Business Approach

LIMAS will strive for development of economic opportunities for improved income for the rural population of the two targeted Districts. This approach is built on a number of basic principles of making markets work for the poor, such as:

The rural people, farmer or forest users, are strong individuals and are able to improve incomes him/herself - when given the opportunity.

It is more effective to “teach someone how to fish than to give him/her a fish” Securing access and clear rights to the use of resources, such as land or forests, is necessary to

stimulate investments in agriculture and forestry. The present small volumes and high transactions costs pose challenges for profitable

production. Under-developed market provides few good economic opportunities for a farmer/forest user.

The challenge to shift the basis of the rural production from subsistence to a more efficient and profit oriented production is huge, and the challenges along the way are difficult to predict. Therefore LIMAS will work with a sequential approach, seeking for and focusing on the most viable business opportunities, and – based on the experiences and emerging prospects – step by step move forward to assist the rural producers and other actors in the value chains in the best way.

Such an approach will require that LIMAS is able to quickly respond to identified needs and design appropriate actions. It is assumed that the logframe needs to be updated frequently in order to correspond to the latest experiences and remain open enough to allow for a learning environment.

LIMAS will also look for and utilize experiences and best practices from other development projects and approaches with similar focus as LIMAS. One of those is “Making Markets Work for the Poor” Approach (M4P). It is supported by DFID, Sida and SDC among other donors. M4P is a practical approach to reducing poverty, grounded in best practices and guided by four underlying principles: Systematic action, Sustainable change, Large scale impact and Facilitative role.


2.2. Overall Objective and Project Purpose

The overall objective of LIMAS is to contribute to economic development in Liwale and Newala Districts through agriculture and forestry production, processing and marketing.

The project purpose and main strategy of LIMAS is to generate increased income for rural population in Newala and Liwale through exploiting viable and sustainable opportunities for competitive agribusiness.

The key words in this development are Business orientation, Profitability and Income.

In order to contribute to the overall targets of MKUKUTA, LIMAS will aim to develop new and profitable production from agriculture and forestry. LIMAS will strictly focus on business strengthening and related activities, and not engage in other development activities.

LIMAS will through assessment, feasibility studies, lobbying and discussions at district, regional and national level work towards identification and development of potential large income opportunities. Two examples of such possibilities are described below.

In agriculture, there is an opportunity for major production on the Newala Development Corporation (NEDECO) farm in northern Newala District. The potential of this farm will have to be judged through soils and crop suitability assessment. In collaboration with the board of NEDECO a scheme model for a major out-grower / block farm setup can be developed. Another option is to seek for investors willing to develop the farm to a major hub of production in Newala.

In forestry there is a need to look at the potential to develop forest based industry in Liwale. At present, the road infrastructure is poor prohibiting profitable production of raw, unprocessed forest products due to costly and difficult transport. An industry that produces timber products, energy biomass (briquettes, pellets), and potentially also energy/electricity to Liwale, could provide a profitable market and provide an incentive for the forest owning villagers to commit to sustainable forest management and thereby increase forest production.

Both such developments could, through present levies, add substantially to District natural resource levy and have major impacts on the District Council’s ability to sustain its own operations.

2.3. LIMAS logframe

The preparation of LIMAS logframe is based on findings done during the Inception Phase (August 2010-June 2011), on reports done by DESEMP, on other related documents like policy and legal frameworks, and on rapid value chain assessments of commodities like honey, cashew nuts and poultry, conducted during the Inception phase.

Interviews with Angai related stakeholders in relation to a status report for Participatory Forest Management (PFM) in Angai, Liwale, have also given vital information for LIMAS logframe preparation.

LIMAS will work through a process oriented sequential approach. The logframe has therefore been made more open-ended as compared to “traditional” logframes, where a number of predefined activities are planned for several years in advance in expectation of achieving certain defined results. A flexible approach is seen necessary in order to tackle identified support needs and take advantage of identified business opportunities as they appear. The project management follows up the progress and frequently reports to the Steering Committee (SC) to facilitate informed and timely decision making.

LIMAS Logframe consists of three major components, explained in detail later in this chapter:

COMPONENT 1: Business and rural development environment and foundation.

COMPONENT 2: Sustainable Agriculture production, processing and marketing.

COMPONENT 3: Sustainable forestry and beekeeping production, processing and marketing.


The overriding project purpose of building a core of improved, competitive and profitable agriculture and forestry production will be guiding in all activities.

Sound and sustainable natural resource management, climate change adaptation, gender equity as well as HIV/Aids mitigation will be integrated as cross-cutting parts into LIMAS activities.

LIMAS will aim at taking advantage of the business opportunities offered as opposed to solving problems. The project will strive to reduce the causes of poverty and not on reducing the symptoms of poverty.

LIMAS will focus on working together with farmers/ producers, processors, traders and other enterprises that are identified to have the capacity to commit themselves to long-term development projects and to operate according to plans. The role of LIMAS is to facilitate the pre-assessment, planning, preparation, implementation and monitoring of the initiatives. The activities will be implemented by the District Councils, community groups, private enterprises and companies, and LIMAS technical assistance (TA) staff. Networking and cooperation with relevant actors and service providers at local, regional and national level will be promoted.

The logframe is presented in full in Annex 1. Enclosed is a summary of the major results targeted under the three components that LIMAS will be striving for, with indications to types of activities that will be implemented under the respective components. The mentioned activities are not exclusive, but rather serve as examples of potential initiatives. It is anticipated for example that new value chains will be scrutinised for demand-led activity opportunities as the learning process of project implementation emerges.

The components, results and activities are aimed to be interlinked with each other to best support development of agribusiness.

Implementation of activities in Component 1 will be a shared responsibility between District Councils and LIMAS team. In Component 2 and 3 the implementation responsibility lies with LIMAS, contracted Service Providers and private business entities.

Table 1. Summary of LIMAS component 1, respective results and indicative activities.

COMPONENT 1: Business and rural development environment and foundation

Covers all the basic, foundation activities that are required for the LIMAS support to the development of specific businesses to succeed.

Emphasis is on learning and information sharing to create an environment where farmers and entrepreneurs can access information that will enable them to make informed decisions.

Collaborative learning and information sharing strategy: public-private sector mutual understanding Targeted result 1.1 District decision makers have improved understanding of the private sector and

are more supportive of private sector development How • LIMAS will actively inform decision makers, community as a whole and private

sector on project activities, business opportunities and requirements. Opportunities for accessing relevant information and knowledge will be offered. Environment, gender and HIV/AIDS concerns will be incorporated.

• Clarifying the roles and responsibilities of the various stakeholders, public and private, will be targeted. Communication and joint events, addressing specific policy barriers and behavioral shifts required for constructive engagement with the private sector, will be organized.

• The activities will include District meetings, as well as production of leaflets, radio and other media programmes. The aim is to support experience sharing through farmer field days, exchange visits, study tours and commercial fairs as well as publishing and sharing of experiences through different media.


Foundation agri-business knowledge and skills Targeted result 1.2 Targeted farmers have improved understanding and skills in sustainable and

profitable agricultural production

1.3 Farmers / entrepreneurs/ business community have improved understanding, skills and networking for business development

How • Conservation agriculture (CA) is a complete, in Zambia well tested concept for transformation of small scale farming to commercial production levels. Conditions in Zambia are similar to Newala and Liwale, thus the CA approach is highly relevant to provide a clear way forward to improve productivity. Promotion of CA is also an effective strategy to mainstream climate change adaptation into farming. This responds to priorities indicated in the National Adaptation Programme of Action (NAPA 2007).

• Empowering women and men from subsistence farming towards commercial production will be targeted in CA promotion. The project will initially target at gender balance of 60% female and 40% male in CA groups. Cooperation with primary schools and the major vocational training institute for extension officers (MATI) in Mtwara will engage youth into the project.

• LIMAS will provide tailored opportunities for farmer groups to test CA in the field. Commercially potential crops will be promoted in field trials. LIMAS will provide small input packages for the establishment of the trial plots. A CA Handbook will be provided in Kiswahili. Group learning, facilitated by lead farmers will be encouraged. Divisional demo plots will be managed by extension officers to serve as learning sites especially during field days. District agricultural staff will train the lead farmers and monitor and backstop the farmer groups’ activities. Mainstreaming of cross-cutting issues in activity implementation will be included in the trainings. LIMAS will provide materials, Training of trainers (ToT) and other technical support. Linkages to Conservation Farming Unit (CFU) in Zambia, CARE International and Aga Khan Foundation, which promote CA in Tanzania, will be created and identified synergies utilized.

• VICOBA - a well tested and established concept for savings, basic fund management and business planning. There are several thousand VICOBA groups active in Tanzania, 26 of them operating in Newala. VICOBA will be implemented through District Community Development Department. Social and Economic Development Initiative of Tanzania (SEDIT) will be consulted and their experienced trainers will be contracted to assist in capacity building of voluntary community facilitators.

• VICOBA offers a good start for “beginners” in business by providing increased knowledge and awareness. VICOBA group activities will ease access to information and skills development especially for women and other groups that may be less privileged or experienced in the society when it comes to business development. Advanced groups can link up with LIMAS “Business Building” activities.

• HIV/AIDS concerns will be included in VICOBA programme. When possible, local associations that have specialized in counseling on HIV/AIDS mitigation will be used as service providers.

• Business Development Services will initially be provided by LIMAS through contracted service providers. As LIMAS will support development of a number of business plans, the long term target is to get private service providers to establish themselves on a self-sustaining basis in the districts.

• Business and production information meetings (local business forums), study tours, training and mentoring farmers and other entrepreneurs and effective exchange of lessons learned will be encouraged. Participating in agricultural events and fairs together with groups (e.g. NaneNane) will be done. Providing access to relevant information and production of manuals or work books will be done according to needs.


Conservation Agriculture Conservation Farming/Agriculture (CF/CA) is a cultivation practice that has increasingly been implemented throughout the world to improve productivity and profitability of agriculture. It is also widely promoted as a means to strengthen rural communities’ resilience to climate change.

The main benefits from CA: Increased yields, improved nutrient utilization, improved profitability, enhanced food security. Supports adaptation to climate change: improves soil structure, fertility and resilience to drought and

water stress, helps maintaining nutrients and also sequestering carbon in soil. Conservation agriculture is by FAO considered as one of the “climate smart” agricultural production systems that sustainably increases productivity, resilience (adaptation), reduces/removes greenhouse gases (mitigation), and enhances achievement of national food security and development goals. Conservation Agriculture is based on conservation of the soils and

improved water harvesting. The major features: Minimum tillage, preserving land coverage. Crop residues are left in the fields, no burning. Crop rotation with nitrogen fixing legumes. Early land and planting basins preparation Early planting utilizing the nitrogen flush. Precision plant spacing. Precision application of inputs. Early and continuous weeding.

CA has for many years been successfully promoted and implemented in Zambia. Climate, soils and other conditions in Newala and Liwale are to a great extent similar to those in most parts of central Zambia. CFU Zambia has authorized LIMAS to translate the ‘CF Manual for and Hoe Farmers’ into Kiswahili. The manual will be a central tool for the extension officers and farmers when testing and exercising conservation agriculture in Newala and Liwale. Below an example of how hand hoe practices are described in the CF manual.


VICOBA Scheme

In most cases, larger groups have failed to achieve significant economic growth simply because they have too many members to collaborate effectively at their initial stages. On the other hand, larger groups (societies) formed through unification of VICOBA are likely to maintain their good performance because their building blocks (individual VICOBA groups) consist of well-trained and experienced members.

(Table 1 continued)

Land information and formalisation Targeted result 1.4 Increased number of villages with land use plans and village land certificates in

Newala and Liwale

How • Legalized rights to land and forest are seen as a fundamental prerequisite for sustainable and productive use of such resources and in the long-term adaptive capacity to climate change. Land use planning and support to village land certificate process will initially be limited to Liwale District, with the intention to be extended for implementation in Newala. Development of appropriate by-laws for land management will also be included.

• Women and vulnerable groups will be a priority target group when promoting land use planning and acquisition of land certificates. The proportion of female headed households in Mtwara and Lindi regions is about 24 %. They tend to be poorer than male headed households, relying on only one crop for income generation. Customs

VICOBA - Village Community Banks is a Village Saving and Credit scheme promoted in Tanzania since 2002. The scheme is made up with groups of 25-30 members that know each other well and have common interest of poverty alleviation.

VICOBA targets at fostering grassroots community’s ability to innovate and manage viable income generating activities and better their livelihoods. Central to it is a group bank, where members save and get loans on rotational basis. Participants are both owners and customers of that bank. They manage themselves all bank transactions on voluntary basis.

VICOBA members meet once per week for capacity building and funds mobilisation for their group. A community facilitator assists the group during weekly meetings. The group’s capacity to manage their own saving and loans and develop and run business initiatives gradually increases.

The effectiveness of VICOBA scheme is due to its special features and operation principles emphasizing Self-help initiatives among the group members, Community capacity building and

local resources mobilization, Community ownership and shared

leadership, Transparency and effective information sharing, Voluntary accountability Good governance Other qualities of this scheme include its ability to build strong groups with limited number of members, who can collaborate effectively and bring significant economic growth within a short time.


in the targeted regions do not favor women’s ownership of property. Village Land registration and land use planning for villages in Liwale and in Angai area will be done in collaboration with the District Land Office with LIMAS support for improved land use planning process. The land registration and land use planning are necessary steps in order to develop forest management plans in Angai area.

General business development Targeted result 1.5 Agricultural and forestry value chains and related enterprises and business

opportunities identified, analysed and documented.

How • This result area includes all aiming at identifying potential income opportunities within agriculture and forestry in the two targeted districts, analysing their markets and feasibility potential, and give recommendations on the way forward.

Table 2. Summary of LIMAS component 2 results and indicative activities.

COMPONENT 2: Sustainable Agriculture production, processing and marketing

Covers the support to the actual implementation of the business ventures identified and assessed as financially viable and institutionally sound under Component 1.

Specific business building: agricultural production / processing / marketing business entities Targeted result 2.1 Potentially viable agribusiness entities supported with studies and business

plans 2.2 Agricultural production/ processing/ marketing business type 1 improved (e.g.

Cashew production and processing) 2.3 Agribusiness type 2 (e.g. sesame production and processing) improved.

2.4 Agri-business types 3, 4, 5 etc. improved

How • These activities will be developed along the process, to meet the identified needs

and to best exploit the identified opportunities as they appear.

• Forms and modalities for support to out-grower schemes will be developed. Apart from Newala and LIwale, other districts may be included in the scheme support when needed, in order to meet the supply requirements of contracting companies.

• Processing units, groups and other business entities will be assisted with technical support as well as consultancy in developing managerial practices, quality assurance, customer management and marketing. LIMAS can also provide specific mentoring support to groups, buyers, processors as identified and within the scope of the project. Long-term mentoring by byers/processors will be the most preferred option for sustainability. The generic principles and forms of support to private business entities and related modalities will be developed, to be scrutinized by the LIMAS SC.

• Men and women will have equal opportunities to access LIMAS supported business development services, including skills and production training, entrepreneurship knowledge and information, legal support and guidance when acquiring credit.

• The needed business trainings will be principally tied to investments of the specific businesses, and curriculums will be developed as part of the business plans. The potential of commercial buyers to provide tailored trainings and other business support will be utilized.

• Technical support for the implementation of component 2 activities will be provided by LIMAS project staff as well as contracted Service Providers.


Table 3. Summary of LIMAS component 3 results and indicative activities.

COMPONENT 3: Sustainable forestry and beekeeping production, processing and marketing

Focuses on creating a practical community driven institutional model for Participatory Forest Management (PFM) that can respond effectively to market opportunities for commercial forestry as they arise, and improve income and employment opportunities at household level.

Angai Village Forest Targeted result 3.1 Angai Village Land Forest Reserve (AVLFR) villages have attained legal rights to

utilise and sell forest products

3.2 Forest management plans operationalised: i.e. institutions for management and harvesting functioning.

How • Ensuring tenurial security and building capacity to manage land use will be the key foundation activities of this component. Preparation of simplified plans and systems whilst mentoring Village Natural Resources Committees and building awareness of legal rights for formal utilisation are central to prepare the villagers to the point where they can engage in specific commercial forestry activities.

• Increasing productivity and income per area of forest will be prioritised in order to ensure improved income to the communities. This is expected to limit the pressure to convert forest into agricultural land in a hope of better economic returns, and in the long run reduce deforestation and its associated impacts whilst securing resilence to climate change and access to critical eco-system services. This will actively engage communities in fire management activities which is a key adaptation priority also outlined in the NAPA 2007.

Specific business building: forestry and beekeeping production / processing / marketing business entities Targeted result 3.3 Potentially viable forest based business entities supported with studies and

business plans 3.4 Forest product / value chain business type 1 (timber or non-timber production /

processing / marketing as applicable) improved. 3.5 Forest product / value chain business type 2, 3, 4, etc improved.

How • This activity includes feasibility studies, business plan development and specific

support to identified opportunities. Mentoring and other support will be provided according to justified needs of the specific business.

• Technical support for the implementation by communities will be provided by LIMAS project staff as well as contracted Service Providers. District officials will facilitate activities related to approval and monitoring of management plans and regulation of movement of wood products according to The Forest Act (2002).

2.4. Assumptions and Risks

LIMAS will be highly dependent on the continued support for business development and improved business environment provided from many levels of the Government of Tanzania as well as donors. LIMAS is built assuming that effective implementation of government policies enabling development of business ventures will be present. Similarly, it is assumed that no major disturbances in financial market dramatically affect the entities operating in targeted sectors.

Rising energy prices are anticipated. At the same time, improved prices and market for food is expected due to increasing demand, thus strengthening the position of food and energy producers.


The targeted districts are a challenging area for agribusiness creation due to many reasons: limited exposure to and experience in market oriented farming or forestry based initiatives, low productivity, long distances and challenging roads, lack of skilled labour, mixed interpretation of the core functions of the various actors involved, and even mistrust in the accountability of private businesses. The ability and willingness of potential investors to take risks in such an environment has obvious limitations.

There is in general a high risk of failure for a specific business enterprise in the first years as there always are a number of risks and opportunities that are outside the control of the specific business. This will be acknowledged and included in the risk assessments for each supported entity.

Another risk that the project may face a backlash from project sponsors in respect of the focus on more progressive farmers and producers. The focus on the “early adopters” and more progressive producers is natural in business development but may still be a sensitive issue for advocates having a strong poverty orientation.

The assumptions will be monitored and regularly updated during the project implementation in Steering Committee meetings.

3. IMPLEMENTATION LIMAS will be implemented as part of the bilateral cooperation between Finland and Tanzania. The Competent authorities are the Ministry for Foreign Affairs (MFA) of Finland and the Ministry of Finance (MoF) of the Government of Tanzania. The project will function under the general agreements between the two countries. A specific agreement concerning LIMAS has been signed between the two Governments.

LIMAS has been planned for four years. The inception phase started in August 2010 and lasted for 11 months, leaving three years for implementation and completion. The possibility of further extension depends on attained results.

The main implementing partner for LIMAS in the Component 1 is the District Councils of Liwale and Newala, with LIMAS staff and private service providers assisting as facilitators or trainers. Local vocational training institutes, some primary schools and prisons will also be included as target groups and partners in information dissemination and capacity building. Major part of Component 1 activities will be integrated into Districts’ annual work plans and budgets, and will be managed, monitored and reported as part of the Districts’ overall operations.

In Components 2 and 3 linkages between private farmers, groups and private sector actors will take place, principally based on outcome of activities carried out in Component 1.

The project has office space both in Newala and Liwale Districts at the Districts’ premises. A Regional office will be established in Mtwara to serve as the hub for services to the two Districts as well as the main contact point for private sector actors.

4. COMPATIBILITY AND SUSTAINABILITY

4.1. Development policies

LIMAS approach and implementation strategy are lined up with the main development policies of the two partnering Governments. References to the most important ones are found below.

4.1.1. Finnish Development Policy The Finnish Development Policy (2007) states: “The most important goal of development policy is to eradicate poverty in line with the Millennium Development Goals which were set in 2000. A global


development partnership should be created involving the public and private sectors in both developing and developed countries. Eradicating poverty is possible only if progress made in developing countries is economically, socially and ecologically sustainable.”

The policy further states:

“Development can be considered economically, ecologically and socially sustainable when developing countries:

rely on their own natural resources for economic development, and particularly on renewable natural resources,

systematically reduce poverty, aim at a high level of knowledge and education for the entire population, look after public health, adopt the latest technology suited to local conditions, integrate themselves into the international economy, protect their environment, maintain external and internal security, respect human rights, promote social equality, practise democratic decision-making and follow the principles of good governance and the rule of law”

The Finnish Development Policy Programme 2007 directs the integration of three cross-cutting themes - rights of women and girls, rights of groups that are easily marginalised, combating HIV/AIDS as a health and social challenge - into all development projects and programmes. In addition, sustainable development is emphasized.

4.1.2. Tanzania Development Vision Tanzania prepared and adopted the “Development Vision 2025” in 1999 and the National Poverty Eradication Strategy (NPES) in 1997. They spell out a vision for a society free of abject poverty and with improved social conditions. During 2003/04 the government realised that there was a need for a national approach to development at the local level, as many bilateral donors were working in different sectors and regions of the country, creating considerable coordination challenges. Donor co-ordination has been harmonized through the creation of a Local Government Capital Development Grant (LGCDG) Fund.

Recently the Government of Tanzania has given the agriculture sector a particular focus with a theme of “Agriculture First”, or Kilimo Kwanza in Swahili, as the agricultural sector is lagging behind other sectors and has been identified as having the largest growth potential for poverty reduction.

Kilimo Kwanza underscores the critical importance of the involvement of private sector in the development of agriculture. It directs (through planning and budget guide) the respective Ministries, Regions and Local Government Authorities to allocate more resources to the agricultural sector as a strategy for increasing rural incomes. More land should be put under irrigation and important inputs such as fertilizer, pesticides, improved seeds and implements should be made easily available to the farmers. The earlier mentioned SAGCOT initiative is one of the high profile results of this policy initiative.

In the National Strategy for Growth and Reduction of Poverty (MKUKUTA) especially gender biases, environmental issues and HIV/AIDS are mentioned as cross-cutting issues that often negatively impact on poverty.

The approach and the implementing strategy of LIMAS, based on working in coordination and integration with local government system, is in line with these general policies and requirements. The requisite to integrate and coordinate the activities with other development partners active in the


regions, and in particular in the target districts also responds to the policy to harmonize and coordinate the various interventions, in order to avoid overlapping and contradictions.

4.2. Economic and Financial Feasibility

LIMAS will promote activities which aim at increasing incomes to farmers and rural communities. This will be done through a dual approach of working through the District Council and private sector providers.

Work with agricultural and business extension activities through the District Council extension service will form a basis for understanding the rural communities and the underlying causes to the low production and productivity today.

In parallel the work with the private sector will gradually build understanding of why the private sector today is reluctant to invest in agriculture and forestry. The gradually increased understanding of market dynamics and development of more targeted activities will strengthen the basis for positive business development, as the market consists of private actors and understanding and addressing their needs is the key to unlocking their potential for investments.

LIMAS will strive to develop a foundation for business through activities targeting both at underlying basic conditions, such as clear legal rights to the production resources, as well as at development for more opportunities such as better market linkages.

The guiding principles for LIMAS to ensure economic and financial sustainability of interventions under the various components include the following:

Clear tenurial rights to the resources used for the business is a necessary condition for sustainability

Interventions shall be demand driven and business plan led, but should become self-sustaining within the project period;

Linkages to credit facilities rather than direct credit: the program does not extend credit or loans but rather provides technical assistance to link entrepreneurs to appropriate credit agencies or loan facilities;

Entrepreneur/producer/farmer contributions will be required: where requests for support are received they should be matched by contributions in the form of time, effort, inputs and money or combinations of the contributions;

Written agreements: the program will need to obtain written agreements between parties defining roles, responsibilities, obligations and penalties for non-compliances to ensure that participants adhere to the agreement; and,

Monitoring and performance evaluation: where requests for support are received, the partner and/or recipient should be committed to regular monitoring and performance evaluation to ensure that lessons learnt are captured.

4.3. Institutional Capacity

The institutional capacity to create a supportive environment for agri-business development and growth in Tanzania is inadequate as can be noted from the lack of agricultural and forestry business development. Neither are the roles of the various governmental and private entities very clear.

One of the targets of LIMAS is strengthening the capacity of stakeholders to support agri-business development. The realization that different actors, public and private, have different and complementing roles is important to state and needs to be stressed.

The Government institutions have an important role to play to enable business development. LIMAS will facilitate capacity building within the District Councils to develop their extension function as well as to deliver services such as land and business registration. Close dialogue will be promoted with Regional


and National level government authorities, as several issues regarding land, forestry and market and business development are dependent on support and policy guidance from authorities.

As for private actors, LIMAS will support business development by conducting market and investment feasibility studies, done in cooperation with private service providers and companies. Business planning is another area where private service providers will play an important role.

Other development actors such as NGOs will be consulted and collaboration sought when there are complementary activities. In many cases the NGOs are fully engaged in their own activities and do not have spare capacity to offer services outside or their objectives may not be fully supporting LIMAS’s business orientation. It is anticipated that in many cases LIMAS will have to look for additional long or short term local or international service providers in response to identified business development needs.

Finally the capacity among several local groups such as farmer organisations or women groups will be strengthened as they will bear an important role in production, processing and other agri-business activities.

4.4. Participation and Ownership

A number of communication and information channels will be developed to ensure that the targeted rural communities, decision makers and authorities are informed and knowledgeable about the

There are a number of actors working to improve farmer’s incomes in Newala and Liwale, cooperating with District Councils. LIMAS will coordinate its operations with these projects and entities to ensure cost effectiveness and sharing of experiences and to avoid overlapping.

• Naliendele Agricultural Research Institute supports the Districts in the field of agriculture with a focus on cashew, cassava and sesame. It also provides support in training of trainers as well as studies on various other potential crops.

• Aga Khan Foundation operates in most districts in Mtwara and Lindi Regions in the Coastal Rural Support Programme Tanzania. It aims among other activities to support the specific value chains of rice and sesame, promote conservation agriculture and community savings groups.

• CARE International is planning to start a project in Mtwara and Lindi regions addressing women in agriculture, having focus is on cassava and sesame value chains. Conservation agriculture will be promoted even in this project.

• The One UN programme operates out of Mtwara and supports the District Council efforts to improve its services.

• The Districts participate in the national programmes for support to agriculture and forestry such as the Mama Msitu campaign for better forestry practices as well as national initiatives in other areas such as HIV/Aids prevention.

• In the context of Angai Village Lands Forest Reserve (AVLFR) in Liwale the Clinton Climate Initiative, University of Helsinki and Mpingo Conservation Development Initiative that have established contact through PFM related activities in the Angai villages. NAFORMA is also operating in Angai as a national level initiative for forest inventory and carbon assessment and has a mandate to assess forest cover in Angai as a proposed national Carbon Geo tracking site.


activities implemented and offered. This will ensure that village planning methods used today, regarding services from the Districts, will reflect that additional needs that will develop from more business developments. These needs will through this planning process be directed to the relevant district and government authorities.

The ownership of LIMAS is assured through a management and decision structure made up of the Supervisory Board (MOF and MFA) as the supreme decision maker followed by the Steering Committee as the body for the regular project plan, budget and report approval. The Steering Committee is made up of the representatives from the Supervisory Board as well as PMO-RALG and Agricultural Council of Tanzania. They are supported in their decision making role by two separate Advisory Boards, one for the Public and one for the Private sector.

The Steering Committee will in addition select members of an independent Tender Board to assist and guide LIMAS management in procurement activities.

5. PROJECT MANAGEMENT The implementation phase of LIMAS will start on July 1st 2011, as a smooth continuation to the inception phase of 11 months. The project has currently offices both in Newala and Liwale Districts. A Regional office will be established in Mtwara to serve as the hub for services to the two Districts as well as the main contact point for private sector actors. This LIMAS Advisory and Management Unit office will provide access to good communication and networking opportunities and make contacts with private sector and service providers more effective while facilitating services to the two districts.

The project will be implemented by the public sector, represented by the Districts of Liwale and Newala through their respective Councils, as well as by contracted private sector actors. The overall guidance for the project will be given by the Steering Committee and Supervisory Board while the LIMAS Project Advisory and Management Unit will manage the daily contacts with the implementing partners.

LIMAS shall follow a planning and reporting cycle that is synchronized to the extent possible with the institutional planning cycles of the local authorities (July-June cycle), to assure that the project interventions are in line with the plans of the Districts. It is extremely important that the activities under the joint support from the project and the two Districts are reflected in the District Annual work plan and budget, to ensure that the financial as well as human resources are available.

The Technical Assistance provided by the project will include a Chief Technical Advisor (CTA) and a number of international and national consultants. The CTA will be responsible for project planning and coordination. He/she shall support the participating local authorities in preparing specific work plans for the various project components.

5.1. Decision Making Bodies

The general implementing structure is described in the organogram in Figure 1. It is composed of three levels: (a) the decision-making level, (b) the executive level and (c) the implementing level.

5.1.1. The Supervisory Board The Supervisory Board (SVB) is the highest decision making body in LIMAS, involving representatives of the Government of Tanzania (MoF) and the Government of Finland (MFA or/and the Embassy of Finland).

The SVB decides of the strategic outlines, oversees that the bilateral agreement on LIMAS is applied and that the project demonstrates appropriate progress. The SVB monitors the project’s overall progress, budget allocation and absorption capacity, and gives directions and strategic guidance on the same while approving the Annual Plan and Budget for the coming fiscal year. SVB also approves the completion report in the end of the project.


The SVB should convene once a year and then be able to approve the Annual Work plan and budget (tentatively early June). To facilitate the approval of the Annual Work Plan (AWP) for the coming year in the absence of the Monitoring Report of the previous year, the SVB shall at the time of AWP approval be availed tentative results of the progress and fund expenditure during the elapsed part of the on-going fiscal year. The Steering Committee (SC) will in September review and approve the Annual Report on behalf of the SVB, and the approved report will be availed to SVB for information.

5.1.2. The Steering Committee The role of LIMAS Steering Committee (SC) is to monitor the project’s performance and give guidance to the executive organs. In addition to approving quarterly and annual reports, the SC discusses the Annual Work Plans and budgets before they are availed to the SVB for approval.

The LIMAS Steering Committee's responsibilities include:

Effective monitoring of the Project’s progress by approving the quarterly progress and financial and annual monitoring reports

Addressing problems and constraints that emerge in the course of LIMAS implementation; guidance for effective corrective actions; guidance to implementing units to carry out their mandate of managing and coordinating the programme.

Reviewing the annual work plans and budgets (including both Government of Tanzania and Government of Finland contributions), giving recommendations on the same to the SVB.

Ensuring the alignment with other national and regional initiatives and programmes Any other issue related to its mandate.

Two separate Advisory Boards/Groups, one made up of public sector and another made up of private sector actors, will assist the Steering Committee. The boards will be consulted in particular when reviewing progress and preparing annual work plans.

Figure 1. LIMAS Steering Committee and project executive and support organs.


Composition of the LIMAS Steering Committee:

Representative of the Ministry of Finance of Tanzania (MoF); Representative of the Ministry for Foreign Affairs of Finland (MFA) Representative of PMO-RALG Representative RAS office, Lindi region Representative RAS office, Mtwara region Representative of the Agricultural Council of Tanzania (ACT)

Reporting members and secretariat:

District Executive Directors / District Project Coordinators LIMAS TA team (CTA, IAG, FAM)

The SC will meet quarterly, four times a year. The meeting schedules will be adjusted to enable incorporation of the Districts’ results to the project progress and monitoring reports.

Extraordinary SC meetings may be requested at any time, through the chairperson or by any of the permanent members of the board. If decisions are needed between the SC meetings, email commenting and approval process can be applied.

The executive organs of the project are responsible for overseeing the preparation of the Annual Work Plans and Budgets and Annual and quarterly reports, and ensure that these are available at least two weeks before the SC meetings.

5.2. The Executive level

5.2.1. LIMAS Advisory and Management Unit (PAMU) The LIMAS Advisory and Management Unit (PAMU), headed by the CTA, will have the overall responsibility for coordination of the project with District level implementation (public sector) and private sector service providers. On the absence of the CTA (on leave or long-term duty travel), the acting role will be given to the IAg, or alternatively, the consultancy company may provide a Deputy Technical Advisor among the staff members or from outside, so to ensure that the project has a competent Technical Adviser in place 12 months a year.

5.2.2. District Project Management Teams At district level the main responsibility of the implementation of the public sector initiatives is with the Project Management Team (PMT), composed of a senior officer representing the District (as the head of the team), District Project Coordinator, and selected District officers, who are specialised on issues relevant to project implementation. The DED nominates the District representatives. LIMAS staff including the CTA will participate as advisors. Meetings are held monthly.

The Management Teams of the two Districts may invite visiting specialists and staff members to the meetings as deemed appropriate in accordance with the agenda of each meeting. The Management Teams can also organise joint meetings between Newala and Liwale when seen to benefit the project implementation. It is recommended to quarterly organise a joint meeting to assess the progress of the project implementation in the two districts.

5.3. The Implementing Level

5.3.1. Technical Assistance The project is assisted by international and national experts that will form the Technical Assistance (TA) team. They include the following:


International experts (N/B: the list below is according to the original PD from April 2010, on which the consultancy contract is based):

Chief Technical Adviser (CTA) 1 person; 48 months International Agronomist (IAg) 1 person; 33 months Forester 1 person; 8,5 months Procurement Specialist 1 person; 5 months Expert in food processing 1 person; 8,5 months Expert in cooperative business development 1 person; 8,5 months Functional Capacity Analyst 1 person; 1 month Junior Expert IT and database management 1 person; 21 months Junior Expert Agriculture 1 person; 21 months

The original Project Document included an option of substantial outsourcing of activities to external entities, like NGOs or to other actors, at an early stage of the project, on which the allocation and scheduling of consultant inputs was based. The assessments done during the inception phase suggest that outsourcing of major parts of the project components is not justified at the moment.

In order to ensure adequate TA support, the remaining TA consultancy months will therefore be reallocated. The allocations will be detailed in Annual Work Plans.

In addition, LIMAS will through service procurement acquire additional work force from companies, NGOs and individual consultants. The present ST consultants have already a good insight in the prevailing situation, have created network nationally and locally, which will enable smooth continuation of the work. Persistent and committed facilitation and lobbying will be required to move further and attract partners that are willing to cooperate and able to invest in the two districts.

National experts: Financial and administrative manager 48 months, in Newala Assistant financial administrator 48 months, in Liwale Information and Technology Expert 48 months, mainly Newala Agronomist specialised in water conservation 48 months, Newala and Liwale Community development expert 48 months, Newala and Liwale Business development expert 48 months, Newala and Liwale Forest Utilisation / Business facilitator *) 36 months (max), Liwale 4 drivers 48 months, Newala and Liwale

*) Adding a LT TA post for Forest Utilisation/Business facilitator has been approved during the inception phase.

The job descriptions for the international and national team members are presented in the Annex 8.

5.4. District Council staff

The District Executive Directors will have the following responsibilities:

Appoint the required specialised officers and extension officers according to work plans (Agriculture, Forestry, Livestock/ Veterinary, Water engineering, Community development, Cooperative Development, etc).

Nominate the District project coordinator and other District specialised officers to the Management Team according to main activities to be implemented.

Allocate enough time to the officers to carry out the project duties Provide transport to the officers as necessary in order to carry out project activities according to

scheduling. Guarantee the normal salary to the officers. Allocate office space for the project and for the Business Information Point.


Those LIMAS activities that will be implemented by the Districts, will be incorporated into the Districts’ annual work plans in order to ensure the availability of the needed staff and resources. The practical arrangements will be stipulated in a MoU between the Districts and LIMAS to be endorsed by the members of the Supervisory Board. Through their structures (agriculture, forestry, veterinary departments, cooperative offices, community development offices), the Districts will provide their respective services as part of LIMAS implementation.

The Districts authorities will in cooperation with the project staff identify training needs for their extension officers in project related areas. Specific aspects of the project, in particular business plans development, financial management and technical skills in agriculture and forestry, are potential areas for capacity building.

5.5. Service procurement and outsourcing of service provision

There are a number of identified activities that will require services provided by different external actors. Some of these activities were identified during the inception phase, but the majority will come up during the implementation period, after the first steps of the business development processes have successfully been taken.

It is reality that not all business ideas that are explored will bring about profitable businesses, and the processes may need to be terminated based on feasibility assessments and risk analyses. The stepwise process approach will enable meaningful decision making and acquiring service providers for the specific needs that arise when moving further along the process.

There are other projects active in the regions implemented, for example Aga Khan Foundation, Action Aid, CARE International, Tanzanian Private Sector Foundation (TPSF) in partnership with Small Industries Development Organization (SIDO), Trade Aid NGO, UNIDO, Clinton Foundation, and One-UN supporting District activities. Communication and networking with these entities will be done on a regular basis. When proven fit the agendas and resource allocation of LIMAS and other project organizations, implementation of selected LIMAS activities or sub-projects can be outsourced to such entities. Any major outsourcing is not considered justified in the very beginning of the implementation phase, but can well come into picture at a later stage.

LIMAS will follow procurement regulations stipulated in the contracts between the two Governments, and the contract between MFA and the contracted consultant company.

5.6. Office space and logistics

The LIMAS main office is today in Newala, with a sub-office in Liwale. Most of the Technical Assistance team, including the CTA, are based in Newala. As Mtwara is more strategically located, the project will establish a Regional office in Mtwara in order to get better access to communication and to facilitate networking with business and service providers in the region and nationally.

The project will have sub-offices of Liwale and Newala. The location of each staff member will be determined according to his / her job description and specific tasks. Further adjustments in staff location will be made according to needs and work plans to ensure that the project can perform.

The project offices and/or districts will allocate temporary office space for hosting the external service providers for the periods of their activities.

5.7. Coordination with other projects and organizations

The project will coordinate with other projects (ref Chapter 4.3 and 5.4) working in the Districts and sharing areas of intervention, to avoid any overlaps or conflicting implementation strategies. LIMAS will strive to reach shared understanding of the objectives for business development with other actors in the area through District coordinated meetings with private sector and other stakeholders in agriculture and forestry.


LIMAS may face challenges in Angai forest, where a number of researchers, NGOs, FBD and donor actors have been active, most of them with a conservation agenda. As LIMAS will look into how to sustainably move into income generation from the forest, a number of issues are expected to be raised among the actors and the villagers about the way forward.

5.8. Studies

The original project document stated that there was no need to carry out more studies in order to be able to move on with interventions. However, it has during the inception phase become obvious that business related studies are needed to facilitate implementing LIMAS approach, development of sustainable business opportunities. For example, the profitability of sustainable harvesting of forest production in Liwale as compared to clearing the forest for example for sesame production has to be assessed to enable the owners of the resource make rational decisions about the land use.

5.9. Timetable

The project duration is in total four years. The project started in August 2010 with an inception phase, the duration of which was extended from the initial five months to eight and ultimately to 11 months, ending in June 2011.

A Mid-Term Review (MTR) shall be carried out and the project activities shall be streamlined accordingly. Provided that the project demonstrates desired impact, the competent authorities will make appropriate preparations for a subsequent phase. It is desired that no gap in between the first and the possible second phase of LIMAS occur. The conclusions of the MTR have to be available so that decisions can be made by mid-August 2013 at the latest.

In case of a negative judgment by the MTR, the project shall be closed down over a closing period of six months February-mid-August 2014 according to the exit strategy. The decision on the closing of the programme or launching a new phase will be made at the latest one year before the end of the programme period.

5.10. The Exit Strategy

The overall project has been planned for a four year time frame, and only activities that can be concluded within the four-year period shall be considered and undertaken; longer activities can be considered if clearly integrated in the District Development Plans so that they can be sustained after the end of the project.

An exit strategy shall be prepared and approved by the SC by August 2013 at the latest. The stakeholders (including beneficiaries and local authorities) shall be informed and made aware from the very beginning about the project duration. The applied methodologies shall be systematic and clear, expected results clear and achievable by stakeholders, and the lines of authority must be clear.

The final destination of the procured equipment is stipulated in the two Governments’ agreement framework.

The closing of the programme is preceded by the preparation of the completion report and the inventory of the assets for the handing over to relevant local authorities.

5.11. Budget and financial management

The total budget for the project, including its inception and the implementation phases, will consist of a Finnish contribution of 9 million Euros and a Tanzanian contribution of about 5% of this amount. The original Project Document stated (p. 47) that “Tanzanian contribution will be finalized during the inception phase and can provided in the form of funds directed to support the project activities (as cash payments, officer working time, office, telephone and internet facilities, etc.), or of services provided in kind. Daily allowances, travel and accommodation costs of the government official in connection with


activities related to the project implementation will be considered as in kind contributions. On the other hand, the districts can support the project activities by directing parts of their development budgets to activity areas that clearly contribute to the achievement of the project objectives.”

Planning and budgeting for LIMAS will be done according to the rules and procedures stipulated in the MFA Financial Guidelines, the LIMAS Agreement and the rules and regulations of the Tanzania’s Public Procurement Act of 2004.

The decision making bodies of LIMAS will be responsible for prudent financial management and for overseeing procurement of goods and services according to management guidelines approved by the SC. The SVB will approve the release of funds based on approved work plans.

The Finnish contribution will consist of a technical assistance component through which technical assistance (TA) services are bought from the contracted company. The consultancy company will be responsible of the financial management of the Finnish funds.

The overall coordination of planning and budgeting activities will be done by LIMAS TA staff. An indicative budget of LIMAS in 2010-2014 is presented in Annex 2.

LIMAS funds can directly be disbursed by the MFA to the Districts when deemed justified. The disbursement, reporting and auditing modalities of the Districts shall in advance be approved by the competent authorities.

6. PLANNING, MONITORING, REPORTING and EVALUATION

The MFA guidelines for project planning, monitoring and reporting will be used as the guiding documents. These operations will, to the extent possible, be integrated within the local government system.

6.1. Planning

The strategic planning of the program should reflect the policies of the Governments of Tanzania in the context of MKUKUTA II, the TDV 2025 and the Finnish Development Policy.

This project document describes the goals and central strategies of LIMAS. Should major amendments to the project approach and strategy be required, the SVB or SC shall discuss and approve those, and the Project Document shall be updated accordingly.

The operational planning of the project will be done using the Annual Work Plan (AWP) as a key instrument. The AWP shall be based on the Project Document and its logical framework, and give a clear and concise picture of the expected results, planned interventions and the proposed fund allocations during the period.

Annual result targets will be set to guide achievement of the overall work plan. The annual budgets will be prepared as part of the AWP in a table format, with accompanying justifications and explanatory notes.

6.2. Monitoring and auditing

During the inception phase of LIMAS an internal monitoring system was designed to enable verifying the project advancement and efficiency of implementation. Indicators and verification data will be drawn from the regular surveys carried out by the Central Statistics Office, from district based statistics as well as from the baseline survey of DESEMP-PP, and from project’s baseline assessments and monitoring data. A number of baseline assessments among the targeted beneficiaries will be done to specify their actual situation before launching the implementation of activities.


In addition, LIMAS will through focus group discussions and other relevant methods annually assess the progress, major successes and failures, and the attribution of the identified changes. As creating substantial economic development is likely to take much more than three years, the focus in the end of the first phase of LIMAS will be at project purpose level.

The project management will regularly assess the implementation and fund expenditure against the AWP and budget and the logical framework. The monitoring needs to be followed by a process of updating planning and proposing actions on the basis of lessons learnt and/or the changing environment.

Project accounts will annually be subject to audit to assure stakeholders that funds are spent according plans. Annual audits will be undertaken at the end of the financial year of the consultant company, using services of an audit firm that is represented in Tanzania, is of international standards and accepted by LIMAS competent authorities. Management letter and annual report of the Auditor will be submitted to the SC with a summary of any actions required to address audit queries and a timetable for their completion. Where necessary, a special committee will be established to review the audit report before it is submitted to the SC. In addition, MFA reserves the right to commission separate audits.

6.3. Reporting

The Annual Reports are based on the AWPs. The annual reports reflect the achievements towards the project purpose and the project overall objective. The report also discusses the efficiency of the implementation, and summarises recommendations for changes when deemed needed. MFA guidelines direct the report format.

Quarterly progress reports summarise the achievements during the quarter against the AWP, and make proposals for changes in the work plan, budget or project implementation when deemed necessary.

The information will be disaggregated by gender and by district, with further definitions when relevant.

Information captured in the reports will be compiled by the District Administration for District implemented activities as well as from LIMAS outsourced activities. The District Management Teams with support from TA will complete quarterly progress and Annual Reports to be presented to the SC.

6.4. Evaluation

The Mid-Term Review (MTR) of the project will be carried out after two cropping seasons of implementation. The decision concerning the actual timing and ToR for the review is to be made by the SVB/SC.

The main focus of the MTR is to assess the project performance in general and the progress towards the achievement of the project purpose and objective. The review will thus take a fresh look at the programme intervention logic, design and performance, including verification of the relevance, sustainability and effectiveness of activities. Progress will be measured against the established indicators. The review will also include an examination of financial and audit reports.

MTR will recommend ways forward for the Project. The MTR will furthermore guide on the priorities for work during the remaining implementation period, especially in terms of allocation of resources. All major stakeholders will to the extent possible be involved in the MTR.

Final MTR report will be issued within one and a half months of the completion of the review, by July 2013 at the latest. It will be circulated to all concerned stakeholders and will include a summary in Kiswahili.

The MFA reserves the right to organise an ex post evaluation within five years from the completion of the project.


ANNEX 1: LIMAS Logical Framework Table (Dec 2011)

Project Description / Hierarchy of Objectives

GOAL / OVERALL OBJECTIVE Key Indicators Baseline 2011 Data source / Assessment

To contribute to economic development in Liwale and Newala Districts through agriculture and forestry production, processing and marketing enterprises.

10 % increase in production volumes of main marketable

agricultural commodities in Newala and Liwale by 2014 10 % increase in volumes of marketed agricultural and

forestry commodities in Newala and Liwale by 2014 Reduced poverty levels (according to Govt surveys)

Crop forecasts (by

CSO) Post-harvest surveys

(CSO) District statistics

(records of production levies)

PURPOSE Key Indicators Baseline 2011 Data source / Assessment

Assumptions (Outputs to Purpose)

To generate increased income for rural population in Newala and Liwale through exploiting viable and sustainable opportunities for competitive agribusiness.

Increase in the volumes of sales by targeted farmers by 2014 15 % in sesame 40 % in legumes 50 % in honey

50 % increase in value of sales from agricultural processing

supported by LIMAS by 2014 2 companies providing of out-grower contracts for

agriculture and forestry related production by 2014 10 % of Angai villages engaged in new forms of income

generation from forest products, supported by LIMAS, by 2014

Data will be collected in early 2012 from the targeted farmers /producers. No out-grower schemes in 2011. None in 2011

Project monitoring

records (Baselines to be established during start-up of activities)

GoT and donors continue

improving favourable policy environment for private business oriented agriculture and forestry sectors

Demand for and price of food increase

No major economic crisis in Tz


COMPONENT 1: Business and rural development environment and foundation RESULTS: Key Indicators and targets by 2014 Baseline in

2011 Data source / Assessment

Assumptions

Collaborative learning and information sharing strategy: public-private sector mutual understanding 1.1: District decision makers have

improved understanding of the private sector and are more supportive of private sector development

Improved understanding of and support to private sector development by district decision makers by June 2014 by percentage to be derived from first survey result

Improved understanding of sound land management in relation to climate change adaptation

Reduced negative attitude towards HIV/AIDS affected in targeted communities

{*}

{*}

{*}

Survey among key decision makers (with scored ranked responses) at start, middle and end of project

LGAs have sufficient funding to provide the necessary services to business entities.

Foundation agri-business knowledge and skills 1.2 Targeted farmers have improved

understanding and skills in agricultural production

50 % average adoption rate of key recommended practices by targeted farmers

1000 ha in Newala and 500 ha in Liwale under conservation agriculture in 2014

70 % of lead farmers satisfied or very satisfied in extension service for CA groups by 2014

Improved gender balance in household decision making among targeted farmers

60% of LIMAS supported CA groups’ members are women 30% of LIMAS supported CA groups are led by women Improved understanding of CA in relation to climate

change adaptation Reduced negative attitude towards HIV/AIDS affected in

targeted communities

0 %

0 ha

{%}

{*}

N/A - 0 N/A - 0 {*}

{*} {Assessments will be done in early 2012}

Activity monitoring records

Qualitative assessments by LIMAS among targeted farmers; Baseline assessed at the start-up of activities

Qualified extension staff available.

1.3: Farmers / entrepreneurs/ business community have improved understanding, skills and networking for business development

500 million TSH loan capital accumulated in VICOBA groups 2014

Improved gender balance in household decision making among targeted groups

50% of leadership positions in VICOBA groups with women Reduced negative attitude towards HIV/AIDS affected in

targeted communities Business Development Service established (one by 2014) At least one private business sector forum operating (4

meetings annually)

0 TSH

{*}

{%} {*}

None None {Assessments will be done in early 2012}

District Reports Project records Qualitative

assessments by LIMAS

Qualified staff available.


Land information and formalisation 1.4: Increased # of villages with land

use plans and village land certificates.

Land use and land management data is available at both District Councils by 2014

24 Angai villages with land use plans and land certificates, 5 villages in Newala by 2014

-

None

District reports Qualitative

assessments by LIMAS

General business development 1.5: Agricultural and forestry value

chains and related enterprises and business opportunities identified, analysed and documented.

10 value chains have been studied with adequate analysis and documentation by 2014

- Project records.

COMPONENT 2: Sustainable agricultural production, processing and marketing Specific business building: agricultural production / processing / marketing business entities RESULTS: Key Indicators and targets by 2014 Baseline 2011 Data source /

Assessment Assumptions

2.1: Potentially viable agribusiness entities supported with studies and business plans

20 bankable small-scale business plans developed by 2014 At least 50% of initiatives female driven 1 large scale business plan prepared 3 contract farming scheme plans prepared 1 plan for a physical market facility prepared Roadmap for a business plan competition prepared

- Project records.

Viable agricultural business opportunities are found

2.2: Agricultural production / processing / marketing business type 1 improved (e.g. Cashew production and processing)

Indicators to be selected according to the supported agri-business type. As an example, indicators for roasted cashew nut processing: # of M/F farmer households and M/F entrepreneurs

involved % increase in type, capacity and value of production assets % increase in production volume and efficiency

(volume/unit) % increase in annual sales (volume, income) % increase in % of orders delivered in right volume and

time % increase in Profit ratio Development in % debt of assets % increase in no of business records maintained

Will be assessed when initiating support scheme.

Project records

Access to needed credit, qualified staff etc. Available


2.3: Agri-business type 2 (e.g. sesame production and processing) improved.

As above, according to specific needs of the supported business type.

As above.

2.4: Agri-business types 3, 4, 5, etc improved

As above, according to specific needs of the supported business type.

As above.

Component 3: Sustainable forestry and beekeeping production, processing and marketing RESULTS: Key Indicators and targets by 2014 Baseline 2011 Data source /

Assessment Assumptions

Angai village forest 3.1: Angai Village Land Forest Reserve

(AVLFR) villages have attained legal rights to utilise and sell forest products

24 villages with approved forest management plans AVLFR is declared by District Council 1 community forest reserve declared by District Council

None - -

District records Activity monitoring

records / reports.

Real political / government support for PFM continues.

3.2: Forest management plans operationalized through functioning institutions and active forest management

24 villages with Village Natural Resources Committees in place and operational;

At least 50% of VNRC members are female; 30 % of VNRCs chaired by women All Angai villages with adequate and equitable access to

legal support Institutional model for forest management developed and

piloted in 2 villages 12 villages actively managing forest in accordance to plans

including fire protection

{*}

41% 13% {*}

none

none

Activity monitoring records / reports.

“Joint Annual Stocktaking Assessment” of supported village-based forestry.

Real political / government support for PFM continues

Specific business building: forestry and beekeeping production / processing / marketing business entities 3.3: Potentially viable forest based

business entities supported with studies and business plans

2 bankable business plans developed by 2014

- Project records.

3.4: Forest product / value chain business type 1 (timber or non-timber production / processing / marketing as applicable) improved.

Indicators to be selected to suit forestry business type, when this is identified (Ref Result area 2.2).

- “Joint Annual Stocktaking Assessment” of supported village-based forestry.

Viable forestry business opportunities, market channels and private sector linkages are found.

3.5: Forest product / value chain business type 2, 3, 4, etc improved.

As above according to specific needs of the supported business type.

- As above.


Annex 2. LIMAS Budget 2010 -2014 Item or activity Unit Unit cost Quan-

tity Budget

(REVISED Sept 2011)

Fees Fees/International Long-term experts 1,431,000 Chief Technical Advisor m 16,000 48 768,000 International Agronomist m 15,000 33 495,000 JPO fees (1) m 4,000 21 84,000 JPO fees (2) m 4,000 21 84,000

Fees/National Long-term experts 557,000 Data Base Expert (local) m 2,500 48 120,000 Agronomist Water conservation (local) m 2,500 48 120,000 Business Development expert (local) m 2,500 48 120,000 Community Development expert (local) m 2,500 48 120,000 Forester & Business facilitator m 2,500 28 70,000 Functional Capacity Analyst m 7,000 1 7,000

Fees/Home office Coordination 48,000 Home Office Coordination m 1,000 48 48,000

Fees/International short-term experts m 36.5 573,000 ST consultant (KEH 1/2/3; i.e. M&E) 0 Forester (internat.) 0 Food Processing Expert (Internat.) 0 Co-operative and Agribusiness Expert (internat.) 0 Procurement Specialist (internat.) 0 Functional Capacity Analyst (internat.) 0

Fees/Local Long Term Administrative Staff 218,400 Finance and Administrative Manager m 3,000 48 144,000 Administrative Assistant m 750 48 36,000 Drivers (4) m 200 192 38,400

Staff Fees TOTAL 2,827,400

TA Reimbursables (lump sums)

CTA/ Reimbursables lump 85,400 1 85,400 International Agronomist/Reimbursables lump 54,500 1 54,500 International short term experts lump 173,900 1 173,900 Other costs (bank, courier, office exp.) lump 76,120 1 76,120

TA reimbursable (lump sums) TOTAL 389,920

JPO and Family costs JPO costs 76,000 JPO housing m 1,000 48 48,000 JPO mobilization and demobilization 5,500 4 22,000 JPO home leave travel costs (internat. and local) 3,000 2 6,000

Family Costs 36,100 Travel to/from duty station of spouse and children 8,100 1 8,100 Home leave travel of spouse and children 7,500 1 7,500 Removal costs (Internat LT TA family) 1,250 8 10,000

LIMAS Project Document, FINAL

Education of children 1,500 7 10,500

JPO and Family costs TOTAL 112,100

Investments

Vehicles, motorbikes 165,000 Vehicles 38,250 4 153,000 Motorbikes for the Districts' backstopping 3,000 4 12,000

Office equipment 152,550

Investments TOTAL 317,550

Programme Administration

Car running costs (TOTAL; ) 154,000 Fuel and maintenance 2,000 48 96,000 Major repairs 30,000 1 30,000 Insurances and legal fees 4,000 7 28,000

Services 195,200 Electricity and water 200 48 9,600 Telephone 400 48 19,200 Internet 800 48 38,400 Services and materials for project guesthouses 80,000 1 80,000 Other services (i.e. office security,office cleaning; cargo) 1,000 48 48,000

Consumables 96,000 Office stationery 700 48 33,600 Other office consumables 1,300 48 62,400 Meetings 111,700 Regional, district and other admin meetings 500 20 10,000 SC & SVB meetings 6,000 14 84,000 Workshops/ seminars/ events 17,700 1 17,700

Progamme Administration TOTAL 556,900

Travel expenses

Local travel, internat. long term experts 136,000 Local travel (flights, taxi etc) (internat. LT TA) 40,000 1 40,000 Hotel accommodation (internat. LT TA) 50,000 1 50,000 Per diem (int. LT TA) 20,000 1 20,000 Other travel costs (int. LT TA) 26,000 1 26,000

Local travel, local staff and consultants 126,000 Local travel (flights, taxi etc) (local TA) 30,000 1 30,000 Hotel accommodation (local TA) 30,000 1 30,000 Per diem (local TA) 40,000 1 40,000 Other travel costs (local TA) 26,000 1 26,000 Travel expenses TOTAL 262,000

Project Activity Costs

Component 1 related costs 1,040,000 1.1. District decision makers have improved understanding of private sector Meetings/ events with District Council, Districts' staff 1,000 10 10,000 Networking/ national and regional 4,000 5 20,000


Networking/ international LUMP 20,000 1 20,000 1.2. Targeted farmers have improved understanding and skills in agricultural production Study tours, exposure visits/ national, international LUMP 40,000 1 40,000 ToT trainings of Extension Officers 15,000 2 30,000 Lead farmer trainings 50 1000 50,000 Farmer groups' field opreations & materials 100 1000 100,000 Demonstration plots/ divisional & farmers' 300 30 9,000 Districts' backstopping for farmer groups 30 1000 30,000 Cooperation with schools 300 100 30,000 Agricultural fairs, field days 20,000 3 60,000 Information materials, printing costs 40,000 1 40,000 Monitoring/ surveys 30 1000 30,000 1.3. Farmers/ entrepreneurs/ business communities have improved understanding, skills and networking for business development Ward information meetings 800 50 40,000 VICOBA ToT trainings 35,000 2 70,000 Formation, trainings and backstopping of VICOBA groups 600 150 90,000 Support to commodity business forums 500 12 6,000 Study tours 4,000 7 28,000 Information materials 10,000 1 10,000 Monitoring/ surveys 40 150 6,000 1.4. Increased number of villages with land use plans and land certificates Material procurements (maps, related) 100,000 1 100,000 Service procurement (analysis; legal support; other) 20,000 1 20,000 Community meetings 10,000 1 10,000 Networking (local, regional, national) 4,000 4 16,000 Study tours, exposure visits 4,000 2 8,000 Information materials 10,000 1 10,000 Monitoring/ surveys 200 30 6,000 1.5. Agricultural and forestry value chains and related enterprises and business opportunities identified, analysed, and documented In-house value chain analyses, surveys 1,000 10 10,000 In-house support for out-grower schemes LUMP 20,000 1 20,000 Networking LUMP 40,000 1 40,000 Service procurement (market surveys, analyses, other) LUMP 71,000 1 71,000 Information materials 10,000 1 10,000

Component 2 related costs 2,000,000 2.1. Potentially viable agribusiness entities supported with studies and business plans In-house support to business plan preparation 1,000 20 20,000 Service procurement (BP, other) 200,000 1 200,000 Exposure visits & fair tours, study tours, networking 100,000 1 100,000 Access to legal advise, registrations 40,000 1 40,000 Access to market information 40,000 1 40,000 Technical and management trainigns 200,000 1 200,000 Test-production, test-marketing 100,000 1 100,000


Promotion events/ materials/ other costs 50,000 1 50,000 Other costs 50,000 1 50,000 2.2 Agricultural production/ processing/ marketing business type 1 improved Tentative allocation 300,000 1 300,000 2.3. Agribusiness type 2 improved Tentative allocation 300,000 1 300,000 2.4. Agribusiness types 3, 4, 5 improved Tentative allocation 600,000 1 600,000

Component 3 related costs 830,000 3.1 AVLRF villages have attained legal rights to utilise and sell forest products Support to land registration LUMP 30,000 1 30,000 Land use planning in Angai LUMP 40,000 1 40,000 3.2. Forest management plans operationalised Management plan development LUMP 50,000 1 50,000 VNRC support (incl. legal support) LUMP 50,000 1 50,000 Forest management trainings LUMP 20,000 1 20,000 3.3. Potentially viable forest based business entities supported with studies and business plans Village consultation on management options LUMP 60,000 1 60,000 Market surveys/studies LUMP 100,000 1 100,000 Exploring PPP 10,000 1 10,000 Support to preparation for business plans 100,000 1 100,000 3.4. Forest product/ value chain business type 1 improved Tentative allocation 100,000 1 100,000 3.5. Forest product/ value chain type 2, 3, etc improved Tentative allocation 270,000 1 270,000 Communication

Communication 111,000 Printed information materials 25,000 1 25,000 Radio programmes, production and broadcasting 500 40 20,000 Video production 8,000 2 16,000 Other communication 50,000 1 50,000 Monitoring and evaluation

Monitoring and evaluation 240,000 Impact assessments 100,000 1 100,000 M&E costs (Incl. Audits, MTR, MFA visits) 140,000 1 140,000 Research grant Research grant 30,000 1 30,000 Contingency

Contingency 313,130 TA contingency 70,000 1 70,000 Other contingency 213,130 1 213,130

EXPENSES TOTAL, EUR 9,000,000

LIMAS Project Document, 2011

LIMAS Project Document, REVISED 2011, ANNEXES 1 (26)

N/B. The Annexes provided here derive from the original LIMAS Project Document from April 2010. Small updates have been made in the ToR of the Steering Committee only. The Annexes may therefore contain information which after the revisions in the project strategy would require corrections. Should any of the annexes be in conflict with the content of the Project Document, the Project Document text overrules.

ANNEX 3 (Source: LIMAS Project Document, April 2010)

Brief presentation of Lindi and Mtwara regions and Newala and Liwale Districts

General physical and socio-economic setting

Lindi and Mtwara Regions are located in Southern Tanzania, close to Mozambique and sided by the Indian Ocean. The regions are in the midst of major developmental changes, which are envisaged to continue long into the future.

The discovery of natural gas at Songo-Songo and Mnazi Bay, new roads and bridge/ferry connections north to Dar es Salaam, south to Mozambique and west towards Malawi will open up new opportunities for business development and markets to and from these regions.

There is no doubt that wide range of economic potentials exist in Lindi and Mtwara, but these remain relatively unexploited. The traditional sectors increasingly compete on the basis of low commodity prices, which are defined by external markets, and over which local producers have little or no control. This leaves regional economies vulnerable to external price shocks, and in some cases causes family units, particularly female headed households, to catapult into structural poverty, which closes developmental options for the next generation.

Most sectors are dominated by informal enterprises that lack the financial and technical backing for survival and growth. These MSMEs face a number of problems ranging from poor

information flows, lack of quality control, lack of market linkages, low commodity prices and low incomes, while at the same time dealing with bureaucratic red-tape, complicated taxation regimes, restrictive tariffs, and poor transport and communications networks. Therefore there is urgent need to empower the people financially, technologically and with timely information flow, so to enable them to use the existing resources to generate income and to raise the standard of living.

It is worth noting that poverty in the regions of Lindi and Mtwara, as in most parts of Tanzania, remains largely a rural phenomenon. About 80 % of the people of these regions live in rural areas where they depend mostly on crop production, from which they are able to produce only a limited amount of cash and food crops that are insufficient to meet basic household needs. Unemployment and underemployment, particularly for young population, are high in rural areas and even in urban areas due to lack of income-generating employment opportunities, and lack of skills and work experience.

Figure 1. Lindi and Mtwara regions with respective Districts.



Administrative structure of the two Regions

The administrative structure of Lindi Region consists of one Town Council (Lindi) and five District Councils (Kilwa, Lindi Rural, Liwale, Nachingwea and Ruangwa). That of Mtwara Region consists of one Municipal Council (Mtwara-Mikindani) and Five District Councils (Masasi, Mtwara Rural, Nanyumbu and Tandahimba). The population of the two regions by district is shown below

Table 1. Population in Mtwara Region (2002) - Source: Census 2002

District Population Number of Households Mwara 200,000 40,000

Masasi 400,000 116,000

Nanyumbu 147,614 35,263

Newala 183,930 49,726

Tandahimba 204,648 53,790

Total 1,136,192 294,779

Table 2. Population in Lindi Region (2002) - Source: Census 2002

District Population (Census 2002) Number of Households

Lindi Rural 214,882 56,299

Lindi Urban 41,955 4,017

Ruangwa 124,516 33,321

Nachingwea 161,475 41,086

Liwale 75,546 14,162

Kilwa 171,850 39,468

Total 790,224 188,353

Profile of Newala District

The following information has been provided by the District Council.

Newala is one of the six Councils of Mtwara Region. It is between 390 - 400 East and 100 – 110 South, at an altitude from 200 to 900 metres from the sea level. The district is subdivided into three divisions, 21 Wards, 144 Villages and 480 hamlets, with a population of 200,000 inhabitants. Its headquarter is at Newala Town which is 140 KM and 600 KMs from Mtwara and Dar es Salaam respectively. The Council has 28 Councillors, 12 Heads of Department. The Newala District council has the obligation to promote the development of all the people in its area of Jurisdiction. The Council development plans were initiated using Opportunities and Obstacles to Development exercise (OandOD) from village level, ward and Council.

Economic sectors - The main economic activities of Newala are agriculture, livestock production, commercial business, transport and communication. The District has per capita income of Tshs. 40,000/= per year 2009.

a) Agriculture. About 85% of the people depend on Agriculture for their livelihood. Main crops produced are roots (mainly cassava), maize, Millet, Paddy, vegetables, legumes and fruits. Currently a cashew nut tree produces an average of 3 kg, whereby target is to achieve 15kg per tree. The District produces between 6000 to 10,000 tonnes of cashew nuts out of which about 500 tonnes of are processed locally by women groups. Every family has been ordered to produce at least one acre of cassava, in order to address water scarcity and food security. In the year 2008/2009, the district produced a surplus of 17,000 tonnes of cassava. There are 12 women groups that are processing cassava and mill cassava flour. The District has 2100 Ha of land suitable for irrigation agriculture mainly along Ruvuma valley. At the moment only 1200 Ha are used for production of paddy and vegetables.



b) Livestock production. The District has about 3000 Cattle, 300,000 goats, and 900,000 Chickens. People are interest to keep more cattle, however the shortage of water remain the obstacle. There are initiatives going on to improve the local breeds of chickens and goats.

c) Commercial Business. There are several commercials businesses at Newala. There are 32 Agricultural marketing cooperative societies (AMCOS), 23 SACCOS, Agricultural inputs Trust Fund and NMB Bank. There are three Cashew nut processing Industries, sundries, hardwares shops, women groups Processing cashewnuts and cassava flour.

Transport and communication

a) Road Transport – There is a road network of 760KMs across the district. 200 KMs belong to the Region (Tanroads) and 460 km belong to District Council. The road network is passable throughout a year.

b) The means of Communications are through telephones, internet Services, postal Services, cellular phones and radio.

Social services

The Social Services provided in Newala are related to Education, Health and Water.

a) Education - Education service provided are; Primary education, secondary education and adult education.

Primary Education: There are 117 Primary Schools, with 45.635 pupils. There are 797 teachers, and shortage of 354 teachers. The drop out, particularly to girl pupil is higher than normal (%). The Council is using laws and by laws to enforce registration and attendance. The Construction of School Infrastructures is financed by parents, district Council and central government.

Secondary Education:- There are 28 Secondary Schools-with 7.128 pupils.

Adult Education: About 23 percent of the Adults are illiterates.

b) Water. The main sources of water are springs found at the foot of Makonde Plateau and deep wells found at Kitangari Valley. There is acute shortage of water at Newala. The actual need of water is 7000 cubic metres a day. The production is 2170 M3, which equal 31%. The shortage of water according to local authorities is caused by inadequate power supply (electricity) and infrastructures due to tear and ware. However, the main causes are related to very sandy soil nature, that cannot retain moisture, and by the unsustainable utilisation of water for agricultural purposes, beside climate change trend, that have reduced the ground water table; the major direct consequence is that now more power is required to pump up the water, the major indirect consequence will be that the drought standing plants like Cashew that have been until now able to capture water even to a low depth, are now starting to suffer the inadequacy of water availability with consequences in quantity and quality of production, as reported by the District Agricultural Officer.

Profile of Liwale District

General information on the District (provided by District Authorities)

Geographical location - Liwale District is in Lindi Region and lies between Latitude 800’ to 10050’ South of Equator and 36050’ and 38048’ Longitudes East of Greenwich. Rufiji district is at the North East, Ruangwa and Kilwa district in the East, Nachingwea and Tunduru district in the South and Ulanga district is in the West. The distance from the Regional Headquarter is 319 km (Liwale via Masasi to Lindi) and 279 km (Liwale via Nanganga to Lindi).

Topography - Topographically, altitude ranges from 360 meters to 900 meters above sea level. The land is flat with sandy and loam soil. Furthermore, there are few areas with fold mountainous which are Ndapata, Mlembwe, Mpengere and Mpigamiti and are almost evergreen all the year. Liwale District has one permanent river called Liwale with nine permanent tributaries. Mpigamiti spring is the main source of this river. Other



rivers are temporary. They are Mbwemkuru, Ruhuhu and Mihumo River. There is low water table at Kibutuka division and Kichonda Village.

Climate - Temperature ranges between 20OC and 30OC. The average temperature is 25OC per annum. The district rainfall season starts late November and ends at April with annual rainfall that ranges from 600 mm to 1,200 mm. Rainfall decreases from higher highlands to lower ones. However, there is short dry spell in February followed by the wettest period in March. The driest period is between July and October.

Table 6: Rainfall from 2000/01 to 2008/2009 in Liwale

Year Rainfall (mm) Days of rains 2000/01 959.3 61 2001/02 1012.3 58 2002/03 823.7 51 2003/04 1216.8 57 2004/05 1219.9 74 2005/06 800.5 41 2006/07 899.5 48 2007/08 1,036.8 53 2008/09 1031.3 43 2009/2010 169.5 (Nov. to Dec 2009) 9 Source: Water Department – Liwale, 2009

Soil characteristics - The soil type is sandy loam. It generally favors the growth of food and cash crops grown in the District. The common grown food crops are cassava, sorghum, maize, and legumes and cash crops are cashew nuts and sesame.

Vegetation – In general, Liwale district is a forestland. There are large areas of miombo woodland and cashew nut trees that take wide part of the forest around the district. Other land is covered by tall wooded grassland, bushes and swampy areas.

Land use - Total area of the District is 38,350 km². The settlement area is 883.1km² (2.3%) in which according to 2002 census, the area has the population of 75,546. Area for agriculture is 3,556.1km² (9.3%) and buffer area is 4,266.98km² (11.1%). Selous Game Reserve occupies about 25,586 km², which is 66.7%. Selous Game Reserve covers two third of the District total area. Angai forest covers 1,415.5km² (3.7%), Nyera/Kiperere forest reserve covers 870km² (2.2%) and the remaining 1,802.02km² (4.7%) is the area for future development.

Settlement pattern - The settlement pattern largely follows the road network. Liwale ‘B’, Mikunya, Kiangara, Kibutuka and Nangano have linear settlement facing the regional road to Nachingwea and others on the feeder roads within the area such as Liwale-Mihumo road. Other places have nuclear houses particularly at the centre of Liwale where services are available. Other settlements along forests track the fertile soil for agriculture and lumbering activities.

Housing condition - The houses are in different conditions, some are in good conditions, and most of these are new developments. At the periphery of the town, the houses are in poor condition and some of them are dilapidated, but even in some areas in the town centre are also dilapidated.

Road network - The road network has the total distance of 506km while feeder roads cover 384km length. Accessibility to the district is not easy due to poor road condition and the geographical location of the area, which is at the centre of Selous Game Reserve together with Angai and Nyera/Kiperere forest reserve. Unclear mapping of the road network in the area led most of the houses becoming inaccessible by cars. Earth roads and a few gravel roads serve Liwale district. There are many footpaths, which join the streets and provide access to the houses in the periphery areas. The roads network system at the town is gridiron network.

Nature and Intensity of development - The area is generally not well developed; this can be viewed in the aspect of commercial activities that are conducted also the level of infrastructure provision like roads, hospital, water supply, electricity, all of these services are provided at a lower standard and some are hardly available. Along the major road, there is housing intensity that comprise of commercial residential buildings, there also



activities that conducted along the road (district road) these includes carpentry, small shops, petty traders, and garages. Therefore, most of development activities are along the major roads and in some few inner streets, but at the periphery, there are local small shops with day-to-day household needs.

Administration - The District has 3 divisions, 16 wards and 41 villages.

Population - According to the national census of 2002, the District’s population is 75,546. Average population growth rate in the district is 2.6 an average house hold size is 5 persons; 98% of the people depend wholly on agriculture sector activities for their daily livelihoods and by the end of 2009 the District is estimated to have 89,915 people.

Ethnic Groups - The predominant ethnic group in Liwale district Council is Ngindo tribe; other tribes are Mwera, Makonde, Yao, Ngoni and Makua. Actually, other tribes are few.

Income and income distribution - According to socio-economic survey through household questionnaire conducted at Liwale district, individual income differs from one another due to different factors employed or engaged in economic activities. The estimated income per capital is 75,000 shillings.

Economy - Out of the various economic activities engaged at Liwale district there are some that have a higher potential than the others due to their contribution to the Liwale income as shown below:

Table 7: Contribution of Economic Activities to the District Economy.

S/N ACTIVITIES CONTRIBUTION TO INCOME 1. Agriculture 93 2. Trade and Commerce 4 3. Office Works 2.3 4. Forest, Tourism and others 1 TOTAL 100% Source: Planning department, 2008

Agriculture

About 98% of Liwale population depends on Agriculture to make their living and they are normally practicing shifting cultivation, characterized by small poorly managed farms. Manifestation of this situation is high risks of food insecurity, malnutrition and limited ability to enhance family education. About 35% of the population suffers from food insecurity for at least 3 months (December, January and February) of the year. Agriculture is the corner stone of the District economy; therefore, it could play a big role in eliminating poverty and food insecurity among the community. Liwale District has a wide chance for both crop and Livestock Development.

Basic features of Liwale Agriculture:

• Small and poorly managed farms per family • Low production per unit area • Poor farming tool (81% of farmers use only hand hoe) • Poor farming practices (shifting cultivation) • Minimum investment in Agriculture (Little use of inputs, improved seeds/animals and appropriate

technology) • Pests and diseases to both crop and livestock

The resultant of these features is poverty among farmers (Income poverty). Due to this, the observation is that majority of the farmers fail to comply with new agricultural innovations provided by Extension staff since they fail to afford the associated Agricultural costs.

Infrastructures

Roads - Accessibility by roads is an important capital for Agriculture Development as good roads facilitates smooth transportation of agricultural inputs and products. The inter-district roads are more accessible during dry season than during wet period.



Banking - The only Bank operates in Liwale is the Micro Finance Bank (NMB). It is the only Bank that provides services to government institutions in the district, NGO`S Private Sectors, and Individuals.

Cooperative and marketing Infrastructure - The District has 15 saving and Credit Societies, and 12 Crop Primary Societies.

Livestock infrastructure - There are five cattle dips and three veterinary centers all of them need major repair and maintenance. Livestock population - according to the table below.

Table 8: Livestock Population. Type of Livestock Number Cattle 455 Goats (Local) 4,300 Dairy goats 67 Sheep 170 Chicken 197,800 Pigs 500 Ducks 4,314 Dogs 573 Guinea fowls 945

Irrigation and water management - The district has eight (8) river basins, which are potential for irrigation. They are Ngongowele, Mtawango, Mtawatawa, Mangirikiti, Nduruka, Kipule, Mpengere and Mlembwe. Out of eight River Basins, Mtawatawa, Mtawango and Ngongowele have been surveyed. The construction of Diversion Weir is ongoing at Ngongowele River Basin. The process of preparing documents to request DIDF funds is ongoing for Mtawatawa, Ngongowele and Mtawango basin.




Cashew nut production in Mtawra and Lindi

As it was shown by the DESEMP-PP Baseline survey, the great majority of households in the regions of Mtwara and Lindi (80%) is engaged in farm activities; the main factors constraining economic performance are lack of investment capital and lack of know-how in many areas of production and marketing.

Cashew nut is one of these areas where a targeted support can make a difference. Cashew production, in fact, is the main sensitive production sector in Mtwara and Lindi. Produced by smallholders, it is mainly grown for export, with a very small proportion of the crop processed and consumed domestically.

Production of cashew nuts has never been stable over time. Besides hectic production and hectic prices, major threats to the recovery of this crop are effective operating factories, quality control and organisation of primary procurement.

The cashew nuts industry is regulated by the Cashew nut Board of Tanzania, which is, according to URT (Government) Economic Surveys, the weakest crop board in the country in terms of knowledge, manpower and information on market opportunities and access, regulatory responsibilities on quality and market price determination and support to the majority of poor farmers.

The main export market is by far India, in competition with cashew nuts produced in Brazil and Vietnam, besides India. In Africa, countries such Ivory Coast and Guinea-Bissau have emerged as major cashew nut producers in the region.

New niche but promising markets are the organic and fair trade labels. The local consumption is negligible, due mainly to habits and the high cost, hardly affordable by local population.

The cost of cashew production is higher in Tanzania in comparison to world average; reasons are, among others, the harsh climate, long distances, difficult topography, small-scale structures, high cost of inputs, high labor incidence, low management of orchards, lack of capital access for investments and deficiencies in appropriate technical assistance. Indeed, to be rewarding, the production of cashew is becoming more and more demanding with high input costs and investments requirements.

In Mtwara and Lindi the productivity per tree by small farmers stands at only 8-10 kg, while improved tree husbandry may bring the production as high as 12 - 25 kg per tree. Since in the last years prices having been hectic and markets out of control, penalising the producers, the Government, through the Cashew Board, set up a Warehouse Receipt System, similar to the model developed for coffee.

Tanzania exports almost all its cashew production but only a fraction is exported as kernels, since the perishability of the product increases significantly after de-shelling. For instance in 2006/7 season out of a total crop of approx. 71,000 tons, only 22,000 tons was exported as kernels whilst the remaining 49,000 tons were exported as raw nuts. The major local processors interviewed during the 2007/8 value crop analysis exercise, all expressed their concern about their ability to compete under the new WRS. Therefore there has been a renewed interest and commitment to grass-roots cashew nuts semi-processing.

A brief overview of the new Warehouse Receipt System (WRS)

The objective of the WRS is to give farmers a better price through the auction system, such as the WRS for coffee and cotton. Under the WRS the farmers are supposed to be paid 60 % of the market value at the point of sale, the second payment after the product is sold through a weekly auction, and the final payment after the cost calculations at the end of the season.

The indicative price for 2007 as established by the Cashew Board of Tanzania (CBT) was Tsh. 610/= per kg of raw cashew nuts. The Primary Cooperative Societies (PCS) have taken up loans from banks through the Cooperative Unions (CU) to pay for the 60 % initial payment. The CU facilitates the transfer of funds from the bank to the PCS and handles the logistics of transporting the raw cashew nuts from the PCS to selected



warehouses. The CBT establishes and supervises the auction days (currently twice a week). The buyers and exporters buy the cashews using secret bids after getting the quality specifications of every lot from the PCS. After the auction the buyers have to transfer cash to the PCS account within a week. The PCS draw the money and pay the farmers the second payment.

According to a recent report commissioned by the WB, the data presented reveal that cashew farmers under the newly-introduced system face most unfavourable terms: the farm gate to export price in the last two years has been about 45%, compared to a 65% average during the 1990s. Although potentially beneficial, the implementation of the warehouse system, in its current format, has thus far failed to deliver on its promise of a ‘good’ price for cashew farmers; it has furthermore created substantial contingent liabilities for the Government because of the credit guarantees provided to the primary societies.

The production has been swinging as well as price fluctuations and different marketing arrangements; the difference between export and farm gate prices is, at present, as near its highest level in 20 years, suggesting inefficiencies in the marketing chain. The conclusion of the study is to recommend for the system to allow for more competition to be restored. However, building up on the experience gained on the first two years of the warehouse system implementation, the government is adjusting some of the issues, such as timely payment and the permission to privately sell semi-processed cashew nuts. This last aspect is very important for specific markets such as the organic and fair-trade market, where traceability and direct links with specialised buyers are of paramount importance.

In Masasi District, DESEMP–PP supported for one year the three years project “Increasing farmers’ income through improved farm management, organic certification and fair trade labelling of cashew nut production”. The goal of the project is to generate, deepen and sustain economic impact of proven production and post-harvest technologies of cashew nuts, by facilitating better access to existing and new profitable markets. It involves 1000 cashew farmers organised in groups; activities carried out included groups formation and registration, yield improvement thanks to better farm management practices, lowering costs of production through group management and improved access to credit, agricultural inputs and knowledge, setting up a monitoring and evaluation system. Besides cashew, many other crops are cultivated in a mixed cropping pattern in the orchards; these products can also take advantage of the potentialities of organic market. In 2007, the number of organic registered farmers was 821.

The agricultural extension approach is through Farmer Field Schools. The lessons learnt until now reveal that although impressive results were obtained in terms of improvement of quality and quantity of cashew nuts production and first processing, the real difficulty is to develop a reliable management of groups, and, even more, to have the groups capable to run the cashew nuts processing plant in a managerial way and with a long term sustainability and profitable business plan.




Outline of Sesame Production in Lindi and Mtwara

The DESEMP-PP identified 4 value chain crops in the regions of Lindi and Mtwara, namely cashew nut, sesame, groundnut and cassava, as potential crops for income generation; furthermore it identified the market potential of organic certified and fair trade cashew and sesame. Besides these, other crops with an interest from farmers and a market potential were sunflowers, irrigated horticulture and mushroom production; the list, however is not exhaustive and has room for other crops, such as higher yielding seed production, with the involvement of District Authorities and the Agriculture Research Institute of Naliendele.

TIRDO (the Tanzania Industrial research and Development Organisation) has set up a programme for mushroom farming and spawn (seed) production, for which women groups have expressed interest in order to diversify their income.

One of the objectives of the Agricultural Sector Development Programmes is to continue efforts to diversify from dependence on cashew, with a gain. In fact, cashew farmers in nine established farmer business groups in Mtwara and Lindi Regions have been involved in a diversification program by intercropping cashew with sesame. This is one of the reasons why sesame has been selected as a crop to which provide support, another is related to the high request of organic sesame in the international market.

In this regard, the ongoing attempts to promote organic and/or fair trade products are giving positive results in Tanzania, under the umbrella and active involvement of TOAM, the Tanzania Organic Agriculture Movement and the certification services of the internationally accredited national certification bodies, including the Tanzanian Tancert. Besides the organic cashew nuts pilot project in Masasi implemented by Dutch Connexxion, the Aga Khan Foundation is on the way to sustain a programme in Newala for the production of organic sesame, which has shown interesting market opportunities. In Liwale, the ONG Technoserve has supported the production of organic sesame until last year, with encouraging results, and there are well established groups of sesame production, which have a substantial experience by now. For the past ten years, production of sesame in Tanzani has been increasing primarily because of stable and reliable market. At present, sesame is exported as seed; there are prospects for increased exports of sesame which in turn have motivated farmers to further increase the production.

The main problems related to sesame production are the limited outreach to farmers, the shortage of improved varieties, lack of training on growing methods (sowing density, plant protection and weed control), the limited access to credit, no reward for quality, the lack of processing facilities and suitable storage places so to allow to build stocks of large quantities of improved crop product.

The Agriculture Research Institute in Naliendele has selected high yielding and pest tolerant varieties, such as Bora, Naliendele 92, Zawadi 94 and Ziada 94, that are available to farmers on request. There are already a number of certified organic products exported from Tanzania, which include cotton, sesame, cashew nuts, coffee, pepper, lemon grass, cocoa, cured vanilla, cinnamon and other spices, dried fruit (pineapple, banana, papaya).

The main export markets are the European Union, the USA, Asia and Australia. LIMAS will step in this promising production sector by building on the experience gained by Technoserve, in coordination and integration with Aga Khan operations in the two regions. The only concern is compatibility with the new warehouse receipt system that the Government has in programme to implement on the base of the experience gained with cashew nuts and other crops in the country. As far as the introduction of improved farming practices and technologies, with the availability of agricultural inputs, for this to materialise it is required that (i) inputs are both available and affordable (e.g. through credit), (ii) that there is a reliable market available, and (iii) that there are strong economic incentives combined with a low or moderate risk in the initial stage.




Angai Forest

The Forestry Policy of 1998 emphasizes community participation in the management of forests for sustainable economic growth at the community and national levels. The Forest Act, which was enacted by the Parliament on April 2002, requires that all forests owned by different authorities must have management plans, with management goals and objectives. It also requires that in order for villagers to engage in Participatory Forest Management they must sign a contract with the Central Government or Local Governments or other stakeholders.

The Angai Village Land Forest Reserve (AVLFR) Area is situated in Liwale District and it covers 141,553 ha, consisting mostly of miombo (hard wood) woodlands. The VLFR is owned and surrounded by 13 villages, namely: Nahoro, Nangano, Kibutuka, Kiangara, Kitogoro, Mikunya, Liwale A, Liwale B, Lilombe, Ngunja, Ngongowele, Mihumo and Likombara. These villages have agreed to develop and implement a community based conservation system of the Angai Forest. A union known as “Mungano wa Hifadhi ya Misitu wa Angai” or MUHIMA has been established by villagers to look after the interests of the 13 villages and to participate in further development of forest resources.

The whole surveyed and demarcated village area covers 520, 476 ha. A participatory land use planning has still to be conducted for the village land (General land) outside the AVLFR.

Presently, agriculture contributes to about 93% of income of the villages and is the major subsistence activity; the use of land close to the villages is intensive, based both on shifting cultivation and permanent fields (average size 2 ha), including cashew tree fields. Food crops include maize, cassava, rice, sorghum, sweet potatoes, cowpeas, and pigeon peas, besides hunting and wild collecting, while commercial crops are cashew nuts and sesame. Other economic activities are metalworking, carpentry, pit sawing, pottery, small business and animal keeping,

Liwale District is the most forested area in Lindi region, where forest products offer a generally undervalued source of income. The villagers obtain different products and services from the forest, including timber, charcoal, fuel wood, poles, herbal medicine, forest food (vegetables, fruits, mushroom, tubers, roots, edible insects) and house utensils. The forest hosts also sacred places and it is important to note that the AVLRF area does also serve other nearby villages and towns through critical ecosystem services such as water.

The value chain study of the DESEMP Preparatory Phase estimated that at 0.4 m3/ha/year timber yield, the AVLFR miombo forests give an annual yield of 56,400 m3. Adjusted down to 25 % of this total yield would give an actual annual timber harvest and sale of 14,100 m3. At a conservative US$ 40/m3, this gives a total productive value of US$ 564,000 and if split equally among 13 villages this would be about US$ 43,000 per village per year.

Even if this value might still be an overestimation, it indicates that the potential incomes, which can be generated from sustainable timber management, when proper infrastructure and marketing channels are in place, are substantial. It has been estimated that local people currently capture less than 1% of the value of these products despite possessing strong tenure rights to forests on village lands. It is therefore clearly the greatest untapped local economic opportunity in much of Lindi and Mtwara Regions.

Up to the end of FY 2003/2004, the establishment of the VLFR was supported largely by the RIPS project with financial and technical support from MFA of Finland. From FY 2004/2005 onwards the National Forest Programme (NFP) Coordination Unit Support Programme (CUSP), together with the national Participatory Forest Management (PFM) and FOPIS programmes has facilitated the following activities in Angai:

• Completion of boundary survey for 13 Angai villages • Final physical survey for village boundaries by registered surveyors by Ministry of Lands and Human

Settlement • Survey of Angai VLFR



• Finalization of village land registration certificates for 13 Angai villages

In 2008 the Forest and Beekeeping Division commissioned a participatory forest management planning exercise to consultants, whose tasks was to:

• Conduct a participatory Forest Resource Assessment for 13 Angai Villages • Initiate the preparation of simple village forest management plans (including such activities, as

patrolling, small-scale logging etc) • Building capacity of the Village Natural Resource Committees and MUHIMA to undertake both

Participatory Forest Resource Assessment and management planning.

The Forest Management Plan was completed in 2008, but it was never discussed with the communities and the process still has to be finalised. The plan has plenty of problems including the reliability of the inventory methodology, the lack of maps and the unavailability of raw data. The Embassy of Finland is discussing with the FBD to get hold of the original resource assessment data, while the research project of the University of Helsinki is processing the inventory data collected for its carbon measurements in forest areas of three villages.

Other players such as the Clinton Foundation and the International Union for Conservation of Nature (IUCN) have engaged in developing programmes in the area, in particular to explore the possibilities of earning income through carbon sequestration in the REDD+ framework (Reducing Emissions from Deforestation and Degradation + Conservation). This presents new opportunities for Tanzanian rural communities, while securing long-term carbon mitigation contributions and helping to conserve biodiversity. The alternatives of generating benefits from carbon payments vs. timber sales have to be further studied. Three villages – Mihumo, Ngongowele and Ngunja - have received training in participatory carbon monitoring and have established permanent sample plots in their community reserve, with the support of Sokoine University of Agriculture, Tanzania and University of Helsinki, Finland. The final scope is that capability of the Angai villages to demonstrate their climate change mitigation contributions and secure related payments.

AVLFR is also a test site in the Tanzanian GEO-Forest Carbon Tracking National Demonstration Project that will complement the ground measurements made by the villagers. NAFORMA and Google Earth will be providing remote sensing imagery and maps in the areas by 2-3 years. Tight collaboration with all the other initiatives has to take place if the programme is to succeed.

By now the PFM in Angai has been under progress for over 10 years but few benefits have been created to the villagers. The development of a collaborative partnership between the resource owner and timber buyer (such as through a forest concession) requires Environmental Impact Assessment (EIA), establishment of legal tender process and guidelines for bidders. This would both earn income to villages and contribute to the creation of a critical mass of successful commercialisation of products from PFM areas.

Close contacts need to be established to two other areas where the commercial forestry in VLFRs has already reached the level of harvesting: Suledo in the Arusha region and Kikole in Kilwa district of Lindi region (the Mpingo project). The Mpingo project has been able to establish the first Forest Stewardship Council (FSC) certified timber source in Kikole, whereby the village produces African blackwood (Mpingo, Dalbergia melanoxylon) logs from their own forest. Also the chain-of-custody has been certified as the Sandali Wood Industries sawmill in Tanga obtained the same certification.

LIMAS will also look at the possibility of FSC certification in Angai. However, presently the poverty levels and vulnerability, including food security, remain very high in the 13 villages and capacity strengthening and more resources are needed to uplift the living standards of the population and the effective sustainability of the Angai forest management.

The implementation of the participatory plan can also be an example to be exported to the forest outside the protected Angai, which is presently under serious threat, since are heavily cleared for agriculture; the cultivation techniques are very primitive and the income obtained is much less that the one can could be obtained by a wise management of the forest.




TERMS OF REFERENCE FOR THE PROJECT STEERING COMMITTEE The project decision making level is formed by the Steering Committee; its duty is to give strategic guidance to the programme and approves the annual work plans and annual reports. The Committee has also the authority to modify the project document, should it be needed in order to achieve the set objectives.

Its responsibilities include:

• Overseeing of the project implementation, planning and budgeting, on the basis of quarterly progress reports and annual reports

• Reviewing the annual work plans and budgets before their presentation to the Supervisory Board (including both Government of Tanzania and Government of Finland contributions)

• Reviewing and approving the annual reports • Approving the Terms of References • Effective monitoring of the Project’s progress and deciding on the strategic outlines and operating

principles • Guidance to implementing units to carry out their mandate of managing and coordinating the

programme • Approving the annual project budgets • Guidance for effective corrective actions • Addressing problems and constraints that emerge in the course of LIMAS implementation. • Any other issue related to its mandate

The Chief Technical Advisor will have the secretariat role. The Steering Committee meets at least three times each year; extraordinary meetings can be requested through the chairperson by any of the members of the board at any time.

Each member will have an appointed alternate, who sits in case the nominated member is not able to participate. In the event the two are not available, a representative can be sent. The term in the office is the duration of the project.

Meetings

The meeting is valid when at least half of the permanent members are present, including the Chairperson or deputy.

Invitations to the meetings are distributed, with an annotated agenda and reference material, no later than two weeks before each meeting to the permanent members and to the Ministry for Foreign Affairs in Helsinki.

The decisions are taken by the permanent voting members. Others present are non-voting, but have right to speak on chairpersons invitation.

The decisions are taken at consensus principle.

Each issue is introduced by the persons responsible for the issue in question. Additional information may be provided by the technical assistance staff.

The Board will meet on a quarterly basis, tentatively in November, February, May and August.

Extraordinary meetings for unanticipated urgent matters can be requested by any member and called upon by the Chairperson.

The minutes of each meeting will be approved by the next meeting of the Board, but the decisions become effective upon the closing of the meeting.

The Agenda and approved minutes will be distributed to all stakeholders.

Costs of attending the meeting are born by each party and catering is provided by the project



ANNEX 8 (According to the original LIMAS Project Document, April 2010)

TERMS OF REFERENCE FOR THE TECHNICAL ASSISTANCE

CHIEF TECHNICAL ADVISOR

Duties - The Chief Technical Advisor (CTA) will be responsible for the TA component and the overall project management, in coordination with the District Project Management Teams. He/she will lead and coordinate the technical assistance team of the project as part of Finnish-Tanzanian bilateral cooperation in the regions of Lindi and Mtwara in Tanzania. The incumbent shall play a leading role in the implementation of the project and be responsible of the overall management including the financial management. He /she will be responsible for completing the logical framework indicators with appropriate quantitative and qualitative figures during the Inception Phase, and preparing realistic annual work plans and accompanying budgets based on the total LIMAS budget.

He/she will coordinate the service providing agencies in their planning and together with his team shall provide assistance in the implementation. He/she will assure that all the relevant procedures and laws as well as instructions of the Steering Committee are adhered to. The CTA together with the District Executive Directors assures that the Steering Committee meetings are carried out as planned and that all the required documentation is submitted to the members in time. He/she will be responsible of the achievement of the agreed goals and will report back to the decision making bodies and propose corrective approaches to the implementation, should they be needed.

His/her duties will include the implementation of the project component related to agribusiness development, in particular (a) training on the pertinent subjects, (b) be responsible for the implementation of the Business information points in Newala and Liwale districts and (c) setting up the Local Economic Development fora in the two districts.When the CTA is on leave or long-term duty travel, the acting role will be given to the International Agronomist Expert, or in alternative, the consultancy company provides a Deputy Technical Adviser, to ensure that the project has a competent Technical Adviser in place 12 months a year.

Qualifications and capacities:

The Chief Technical Adviser (CTA) shall have at least a Master's degree in agribusiness development or other related discipline, with a two year minimum working experience in management positions. He/she shall have excellent command of written and spoken English.

Working experience and knowledge in the agribusiness development projects where 15 years in addition to the minimum requirements gives the maximum points and out of which 8 years are to be acquired in a developing country context

A proven track-record in managing or coordinating multi annual development cooperation programmes in a developing country including developed skills in capacity building and skills transfer

Previous relevant working experience in Sub-Saharan Africa, preferably in East-Africa

Ability to work and communicate in an international environment and in communities of diverse cultures and ability to work in a multi-sectoral team.

Duty station: Newala – Mtwara Region

Duration of the contract: 4 years



INTERNATIONAL AGRONOMIST

Duties and responsibilities

The International Agronomist is responsible for the implementation of all the agricultural component of the project. In particular:

organisation and training on agricultural matters

supervision of all demonstration plots

supervision and advice on the implementation of the organic agriculture component

establishing the performance indicators for the outsourced service provision in agriculture and assist in monitoring of the project activities implemented by Service providers

supervision and advice on the mainstreaming and implementation of the climate change, conservation farming and water harvesting component.

He/she will work in strict collaboration and coordination with the National Agronomist and the Subject Matter specialists of the 2 districts, as well as the other entire TA component, including forestry. He/she carry out any other issue related to its specialisation as requested; and report to the CTA. He/she will act as CTA when required.


The proposed International Agronomist shall have at least master’s degree in agronomy or other related discipline. He / she shall have fluency in both spoken and written English.

Working experience in agronomy, with knowledge in sustainable agriculture, and climate change adaptation, 20 years giving the maximum points, partly gained in developing countries, preferably in Africa

Developed skills in capacity building, extension methods and skills transfer

Ability to communicate in swahili and to work in multi-sectoral teams

Duration of the contract: 33 months

Duty station: Newala, with frequent travels to Liwale.

INTERNATIONAL FORESTER


The International Forester is responsible for the implementation of the entire forest component (Component 3) of the project in Liwale. He/she will write the Terms of Reference for the outsourcing of the Participatory Forest Management component negotiate the contracts with service providers and consequently supervise and monitor their work. S/he will be responsible for establishing the performance indicators for the outsourced service provision.

In addition, he/she will coordinate with all other activities related to forestry, including conservation farming, water harvesting and climate change adaptation.

S/he will work in close collaboration and coordination with the National Forester (to be employed by the service provider), and the District Forest Officers of the 2 districts, as well as the other entire TA component.




Masters degree in forest management, forest economics, natural resources management or other related discipline

experience of participatory / community-based forest management

experience in the sector, including experience in African countries, 20 years providing the maximum points

good communication and interpersonal skill

fluency in spoken and written English language and ability to write clear reports

ability to work in a multi-sector team.

knowledge of Kiswahili will be an asset.

Duration of the contract: (5 months for the inception phase + 15 days missions on a six monthly basis (2 per year: total 7 missions) total time 8.5 months

Duty station: Newala and Liwale

INTERNATIONAL FOOD PROCESSING EXPERT


The International Food processing expert is responsible for the implementation of all the activities related to the food processing component of the project (enterprise development, cassava processing etc). He/she will deal particularly with women groups working on food processing and with associations trading foods. He/she will develop a training programme and related curricula for the different stakeholders and impart the relevant training as required, including training of trainers. He/she will work in strict collaboration and coordination with all the National and International staff, as well as the two Districts’ Project Implementing staff. He/she will be assist in monitoring of the project activities implemented by Service providers. He/she will carry out any other task related to the subject matter area as requested by the CTA and report to the CTA.


Masters degree in Agriculture, Food processing, Business development, Economics or related subject and experience in food processing, with knowledge in sustainable and locally adapted technology / techniques

experience in the sector 20 years providing the maximum points

quality of communication and interpersonal skill

fluency in spoken and written English language

ability to write reports for management

sound experience from developing countries, at least partly gained in a developing country, including experience from Sub-Saharan Africa



Duty station: Newala, with frequent travels to Liwale



EXPERT IN COOPERATIVE BUSINESS DEVELOPMENT


The International Expert in Cooperative Business Development is responsible for the implementation of all the activities related to the group development. He/she will deal particularly with farmers and women groups working on value chain development, helping them to develop business management plans, their implementation and related issues.

He/she will develop a training programme and related training curricula for the different stakeholders and impart the relevant training as required, including training of trainers. He/she will work in strict collaboration and coordination with all the National and International staff, as well as the two Districts Project Implementing staff. He/she will participate in the establishment of performance indicators for the outsourced service provision in group development and business development and assist in monitoring of the project activities implemented by Service providers.

He/she will carry out any other tasks related to his / her subject matter area as requested; and report to the CTA.

Qualifications and capacities

Masters degree in Agriculture, Business development, Economics or related subject and experience in business and cooperative development, with knowledge in sustainable and locally adapted group business management

experience in the sector, 20 years providing the maximum points




sound experience from developing countries, at least partly gained in a developing country, including Sub-Saharan Africa




PROCUREMENT SPECIALIST


The National Procurement Specialist is responsible for all the procurement to the project during the initial 5-month inception phase. He/she shall have the overall responsibility for the follow-up of procurement of investments, preparing the outsourcing procedures and preparing the contracts. He/she will work in close collaboration with the CTA and the National Finance and Administrative Manager. In addition, regular contacts will be kept with the rest of the TA team and the Districts´ procurement specialists. He/she will report to the CTA.

In particular:

In consultation with the LIMAS TA staff and the Districts, prepare a procurement plan for LIMAS

Establish a list of qualified suppliers and service providers for the procurement and outsourcing of components



In consultation with the parties, coordinate the preparation of the Terms of Reference for the outsourced services. Prepare bidding documentation and advertising in the appropriate fora

Initiate the procurement process for service provision and investments. Participate in the selection of the short lists and pre-qualification of suppliers where necessary. Coordinate the response to inquiries, and communicate the results of the evaluation process to the applicants

Coordinate the evaluation of tenders during the inception phase

Negotiate contracts with service providers with the CTA. Prepare the final contracts, including performance monitoring, and ensure timely distribution of all relevant procurement and contract documents to relevant stakeholders

Prepare reporting forms to monitor the service providers´ performance and train them in the utilisation of the system. Establish a performance monitoring database for all suppliers and consultants, and ensure timely updates of the system.

Establish a central procurement filing system, and ensure all related documents are included in the respective files.

Any other duties that may be assigned by the CTA.


Master’s degree in accounting, finance, business, administration, marketing or law

a track record in procurement and negotiating contracts, preferably with donor projects, 10 years providing the maximum points

quality of communication, negotiation and interpersonal skill

sound experience from Sub-Saharan Africa, preferably from Tanzania

fluency in spoken and written English language; knowledge of Kiswahili is an asset


Duration of the assignment: 5 months

Duty station: Newala, with travels to Liwale

FUNCTIONAL ANALYSIS AND CAPACITY BUILDING CONSULTANT - INTERNATIONAL

Duties and responsibilities:

A Functional analysis and capacity building consultancy will be conducted to build a capacity strengthening training programme for the district staff in Newala and Liwale districts.

The assignment will assist the districts to describe their present and future functions and tasks in the fields related to the LIMAS project and to make an assessment of the gap between the capacities of the present staff and the needed capacities. The main output of the assignment is a training plan for the districts in the fields of the LIMAS focus: agriculture, forestry, beekeeping, business development, climate change adaptation, rainwater harvesting.

Under the direct supervision of the CTA and DED of each district, in cooperation with the International and Local Advisors and with the district staff, and together with the national Functional Analysis and Capacity Building Consultant, the international Consultant shall:

Produce a detailed plan for the assignment

Describe the present and future core functions and processes of the departments

Describe the capacity needs for the future core functions and processes

Define the gap between the capacities of the present staff and the needed capacities in future

Produce a training plan for the departments as a part of his/hers Final Report.



Present the study and the training plan in a joint meeting.

Work closely with the DED of each district to ensure the common understanding and future utilization of the output from the assignment.


Sound experience in Human Resource development and Institutional development

Expertise in process and quality management

Experience from developing countries, particularly from Sub-Saharan Africa

Master’s degree in management, economy or related field

Computer literacy (MS Word, MS Power Point, MS Excel, MS Access, MS Project)

Excellent skills of English language in oral and writing

Kiswahili as an asset.

Duration: 1 month

Duty station: Newala and Liwale

INTERNATIONAL JUNIOR EXPERT IN INFORMATION TECHNOLOGY (IT) AND DATABASE MANAGEMENT


The Junior International Expert in information technology will

assist in the implementation of the overall system, including the database management, of the two Business Information Centers (BIC) of Newala and Liwale

the training and organisation of an enterprising group of young people of the two districts to manage the business centers and to take over once the project is concluded

collaborate with the national IT expert in the database management system of the project

assist in monitoring of the project activities implemented by Service providers

carry out any other issue related to his/her specialisation as requested

report to the CTA

He/she will deal with the setting up the information collection system and database management in both districts. An important part of the work is the training of district staff and a group of a viable group of young people to manage the BIC through a formal training programme and mentoring. He/she will work in strict collaboration and coordination with all the National and International staff, in particular the national IT expert, as well as the two Districts’ Project Implementing staff.


MSc in IT or related subject and 2-3 years of experience



interest and willingness to work in rural conditions of a developing country and willingness to learn Kiswahili.

Duration of the contract: 21 months

Duty stations: Newala with frequent travelling to Liwale



INTERNATIONAL JUNIOR EXPERT IN AGRICULTURE/AGRICULTURE ECONOMICS


The Junior International Expert in agriculture/agriculture economics will:

support the activities in the agriculture components of the project

assist in providing/arranging technical expertise and training to extension officers, farmers groups and other stakeholders in the fields of agribusiness, value chain development and sustainable farming related issues

participate in building networks and collaboration with agriculture value chain actors, service providers of the agriculture component and other stakeholders in the region

assist in monitoring of the project activities implemented by Service providers

carry out any other issue related to his/her specialisation as requested

report to the CTA.

He/she will deal with developing agribusiness in both districts. An important part of the work is training of different stakeholders in agribusiness related issues as well as analysing the bottlenecks in the first processing/packing processes. He/she will work in strict collaboration and coordination with all the National and International staff, as well as the Districts’ Project Implementing staff.


MSc in agriculture/agriculture economics or related subject and 2-3 years of experience

Quality of communication and interpersonal skill

Fluency in spoken and written English language

Interest and willingness to work in rural conditions of a developing country and willingness to learn Kiswahili.

Duration of the contract: 21 months.

Duty stations: Liwale with travelling to Newala

NATIONAL FINANCIAL AND ADMINISTRATIVE MANAGER


The National Financial and administrative manager is responsible for the implementation of all the activities related to the project financial management. The incumbent shall have the overall responsibility for the financial and administrative functions of the Programme, including logistical services; he/she will prepare financial management and administrative rules to be followed by all partners and programme staff; he/she will support the CTA in financial planning, budgeting and producing timely expenditure reports, in contract management, including personnel administration. He/she will monitor programme counterpart fund management activities.

In particular:

Practical input in administrative policies and procedures including personnel management

Implement financial planning and budget monitoring in all financial matters (managerial accounting, treasury and control)



Coordinate with the districts on all project´s financial components

Supervise the utilisation of the project´s financial component related to the service providers

Prepare monthly accounts and annual financial reports as agreed in the work plan

Administrative day-to-day support to project management team

Responsible for day-to-day accounting of project expenses

Instruct and monitor the financial and administrative assistant based in Liwale

He/she will work in strict collaboration and coordination with all the National and International staff, as well as the two Districts Project Implementing staff. He/she will report to the CTA.


At least B.Sc. in Accounting, Economics, Financial Administration or related field and experience in financial administration management 20 years providing the maximum points

quality of communication and interpersonal skills

fluency in spoken and written Kiswahili and English languages


Duration of the assignment: 4 years


FINANCIAL AND ADMINISTRATIVE ASSISTANT


Practical input in administrative policies and procedures including personnel management

Implement financial planning and budget monitoring in Liwale (managerial accounting, treasury and control)

Coordinate with the Liwale district on all project´s financial components

Supervise the utilisation of the project´s financial component related to the service providers in Liwale

Prepare monthly accounts and annual financial reports as agreed in the work plan

Administrative day-to-day support to project management team in Liwale

Responsible for day-to-day accounting of project expenses in Liwale

Cooperate closely with the Financial and administrative manager based in Newala

Any other duties that may be assigned by the Financial and administrative manager or the CTA.

He/she will work in strict collaboration and coordination with all the National and International staff, as well as the Liwale District’s Project Implementing staff. He/she will report to the FAM.

Qualifications and capacities

At least B.Sc. in Accounting, Economics, Financial Administration or related field and experience in financial administration management, 10 years providing the maximum points

quality of communication and interpersonal skills




Duty station: Liwale



NATIONAL INFORMATION TECHNOLOGY EXPERT


The National Expert in information technology will implement

the overall information system, including the database management, of the project

support to the implementation of the two Business Information Centers (BIC) of Newala and Liwale, for the matters related to IT

the training of an enterprising group of young people of the two districts to manage the business centers and to take over once the project is concluded on the issues related to the BIC

collaborate with the Districts on matter related to IT

carry out any other issue related to their specialisation as requested

report to the CTA

He/she will develop the training programme component related to IT and pertinent curricula for the different stakeholders and impart the relevant training as required, including training of trainers. He/she will work in strict collaboration and coordination with all the National and International staff, in particular the two Districts´ Project Implementing staff.


At least BSc in IT





Duty stations: Newala and Liwale

NATIONAL AGRONOMIST, WITH SPECIALISATION IN WATER HARVESTING


The national Agronomist will closely collaborate with the international agronomist for the implementation of all the agricultural components of the project, with particular reference to matters related to water management and water harvesting.

In particular in:

organisation and training on agricultural matters

supervision of all demonstration plots

supervision and advice on the implementation of the organic component

ensuring that climate change, conservation farming and water harvesting are mainstreamed in all agricultural programmes, supervision and advise on these issues

collaborate with the international agronomist in writing reports.

He/she will work in strict collaboration and coordination with the international Agronomist and the Subject Matter specialists of the 2 districts, as well as the rest of the TA component, including the forestry. He/she will carry out any other issue related to the subject matter as requested; and report to the CTA.



Qualifications and skills:

At least BSc in agronomy, with knowledge and experience in water harvesting




ability to write reports

knowledge and experience in climate change adaptation will be an asset.

Duration of the contract: 4 years Duty station: Newala, with frequent travels to Liwale

NATIONAL COMMUNITY DEVELOPMENT EXPERT


The national Expert in community development is responsible for the implementation of all the activities related to the development of groups, under the supervision of the CTA. He/she will deal particularly with farmers and women groups working on value chain development, helping them to develop group capacity in business management and related issues, including registration of associations. He/she will develop a training programme and related curricula for the different stakeholders and impart the relevant training as required, including training of trainers. He/she will work in strict collaboration and coordination with all the National and International staff, as well as the two Districts´ Project Implementing staff. He/she will carry out any other issue related to the subject matter as requested; and report to the CTA.


Degree in community development and experience in cooperative and group development, with knowledge in sustainable and locally adapted business management.





experience with women groups and credit and saving associations will be an asset.

Duration of the contract: 4 years Duty station: Newala, with frequent travels to Liwale

NATIONAL BUSINESS DEVELOPMENT EXPERT


The national Expert in business development is responsible for the implementation of all the activities related to the project´s business development component, under the supervision of the CTA. He/she will deal particularly with farmers and women groups working on value chain development, saving and credit groups development, helping them to develop business management and related issues. He/she will develop a training programme and related curricula for the different stakeholders and impart the relevant training as required, including training of trainers. He/she will actively participate in the set up and management of the two information business centers, in collaboration with the international Junior Experts and the National IT expert. He/she will participate and oversee the training, on the issues related to the BIC, of an enterprising group of young people of the two districts to manage the business centers and to take over once the project is concluded. He/she will work in strict collaboration and coordination with all the National and International



staff, as well as the two Districts´ Project Implementing staff. He/she carry out any other issue related to the subject matter as requested; and report to the CTA.


Degree and experience in business development, with knowledge in sustainable and locally adapted business management





experience with cooperatives and associations will be an asset


Duty station: Newala, with frequent travels to Liwale.

FUNCTIONAL ANALYSIS AND CAPACITY BUILDING CONSULTANT - NATIONAL

Duties and responsibilities:

A Functional analysis and capacity building consultancy will be conducted to build a capacity strengthening training programme for the district staff in Newala and Liwale districts.

The assignment will assist the districts to describe their present and future functions and tasks in the fields related to the LIMAS project and to make an assessment of the gap between the capacities of the present staff and the needed capacities. The main output of the assignment is a training plan for the districts in the fields of the LIMAS focus: agriculture, forestry, business development, climate change adaptation etc.

Under the direct supervision of the CTA and DED of each district, in cooperation with the International and Local Advisors and with the district staff, and together with the International Functional Analysis and capacity Building Consultant, the national consultant shall:

Produce a detailed plan for the assignment

Describe the present and future core functions and processes of the departments

Describe the capacity needs for the future core functions and processes

Define the gap between the capacities of the present staff and the needed capacities in future

Produce a training plan for the departments as a part of his/hers Final Report.

Present the study and the training plan in a joint meeting.

Work closely with the DED of each district to ensure the common understanding and future utilization of the output from the assignment.


Sound experience in Human Resource development

Sound experience in Institutional development

Expertise in process and quality management

University degree in management, economy or related field; Master degree preferable.

Computer literacy (MS Word, MS Power Point, MS Excel, MS Access, MS Project)

Excellent skills of English and Kiswahili languages in oral and writing

Duration: 1 month; Duty station: Newala and Liwale




LIMAS Inception Phase according to the original Project Document from April 2010 The original LIMAS Project Document stipulated a number of activities that were to be completed during the Inception Phase. This is a summary of the assignments indicated, following the structure of the Project Document.

CHAPTER: Executive summary

The initial Inception phase will take five months, during which the staffing will be completed, project offices will be established, procurement and outsourcing of services will be initiated and roles and responsibilities defined.

Most outsourcing will be tendered during the inception phase.

The exit strategy of the project is based on the Work Plan that will be finalised during the inception phase: the activities shall be clearly defined and planned to be completed within the allocated time.

The Tanzanian contribution will be defined during the inception phase of the project and it will include the office space and maintenance, salaries of District staff and some operational costs.

CHAPTER 3 - Definition of the intervention

The indicators will be quantified during the inception phase and approved in the first Steering Committee meeting.

Specific implementation details will be identified and developed during the 5-month inception phase.

Details of conducting the outsourced capacity building and certification processes with Angai villages will be developed during the inception phase. The organisation that wins the outsourcing contract, will also be responsible for employing a Tanzanian forester.

The support to be provided will be outsourced to external service providers. The possible service providers include the Mpingo Conservation Project, Clinton Foundation, IUCN and TFCG. The arrangements will be finalised during the inception phase. It is, furthermore, envisaged that LIMAS will negotiate with the Aga Khan Foundation to start the creation of VICOBAs in the Angai villages.

Result 1.6.

The project will act as a facilitator for the creation of Local Business/Economic Forums in both districts. The feasibility of such fora will be explored further during the inception phase.

CHAPTER 6 - Implementation

The project will be implemented by joint management of LIMAS Technical Assistance and the Districts of Newala and Liwale, through their respective Councils, under the guidance of the Steering Committee. The project will be mobilised in August 2010, starting with a five-month inception phase. The inception phase will cover at least the following activities:

• establishment of project offices both in Newala and Liwale • definition of roles and responsibilities of all partners • appointment of district coordinators and other responsible persons • selection of all national staff before the end of month 2 and employment before the end of month 3 • signing of Memoranda of Understanding between the project and districts • quantification of indicators to be approved in the first Steering Committee meeting



• elaboration of a detailed work plan jointly by the Project Team and districts, including a stepwise timing plan for the implementation

• preparation of related implementing procedures, as well as a budget required by both sides (to be submitted to the Steering Committee)

• setting up of financial, procurement and outsourcing management and monitoring • final identification of activities to be outsourced to service providers and activities to be

implemented by the TA and district staff • initiation of procurement and outsourcing where necessary • identification of type of off-farm work / employment to be promoted throughout the project

especially for youth in the two districts. Once approved, respective agreements or memorandum of understanding will be prepared and signed with the selected service providers (districts or private service providers). The project shall seek to rapidly synchronize its planning and implementation as much as possible with the institutional planning cycles of the local authorities, to assure that the project interventions are in line with the plans of the Districts. It is extremely important that the activities under the joint support from the project and the two Districts are reflected in their annual work plans and budget, to ensure that the financial as well as human resources are available.

The national technical and other staff will be selected before the end of month 2 to start the project implementation as fast as possible. A team composed of the DED from the two districts, the CTA of the project, the Embassy representative and a representative of the MoFEA will select the staff from three Curricula vitae presented by the consultancy agency for each position.

During the inception phase the project TA and the districts will critically assess the Project document and propose downsizing or changing the time-wise sequencing of activities according to the available resources. The plan will be presented to the first Steering Committee meeting with appropriate justifications for possible revisions of the project implementation scheme.

The Technical Assistance provided by the project will include a Chief Technical Advisor (CTA) and a number of international and national consultants. The CTA will be responsible for project planning and coordination. He/she shall support the participating local authorities in preparing specific work plans for the various project components.

6.2.1 - The decision making level: the Steering Committee and Supervisory Board

The first SC meeting will be organised at the end of the inception phase, to provide timely guidance to the project team.

6.2.3 - The implementing level: Technical Assistance, the District Extension Officers and the External Service Providers

A detailed outsourcing plan will be made during the Inception Phase by the TA and district teams.

Most outsourcing will be tendered during the inception phase, although some only at later stage.

Table 5 lists the proposed main activity packages to be outsourced from the Inception Phase onwards. This list could change based on the results of the Mid-Term Review at the end of Year 2.

CHAPTER 6.5 - Studies

There is therefore no need to carry out additional basic studies in the initial phase of the project implementation. If additional information needs were, however, identified during the inception phase, it is recommended to first approach other research organisation such as the Agriculture Research Institute and Livestock Research Institute of Naliendele where practical research has been carried out on a number of subjects and determine if the necessary information is available.



CHAPTER 6.6 - Tentative timetable

The project shall start in August 2010 with an inception phase of five months.

The first SC meeting at the end of the preparatory/inception phase will discuss at least the following issues:

project management team composition and working modalities

the first annual work plan and budget (covering 12-18 months)

financial management and bookkeeping regulations, vehicle use regulations, allowances, working time regulations, other management regulations

project monitoring and communication strategy, including reporting

a draft Financing regulations of LIMAS to guide the financing, implementation and reporting of the project activities.

The inception phase is not expected to result any proposals for additional activities or additional personnel.

CHAPTER 6.7 - The Exit strategy

The Work Plan that will be finalised during the inception phase shall have activities clearly defined and planned to be completed within the allocated time.

CHAPTER 6.8 - Budget and financial management

The Tanzanian contribution will be defined during the inception phase of the project and it will include the office space and maintenance, salaries of District staff and some operational costs.

The detailed packages for outsourcing of services will be prepared by the TA team during the inception phase.

The Tanzanian contribution will be finalised during the inception phase and can be provided in the form of funds directed to support the project activities (as cash payments, officer working time, office, telephone and internet facilities, etc.) or of services provided in kind.

CHAPTER 7.3 - Monitoring and auditing

During the inception phase an internal monitoring system will be put in place to verify the project advancement and efficiency of implementation, through a number of critical indicators drawn from the baseline survey of DESEMP – PP. The baseline survey will be the basis for comparison; starting the collection of further reference data will be considered and registered for those activities not measured by the survey.

Annex 15 – TOR for CTA

He /she will be responsible for completing the logical framework indicators with appropriate quantitative and qualitative figures during the Inception Phase, and preparing realistic annual workplans and accompanying budgets based on the total LIMAS budget.

Annex 15 - Procurement Specialist

The National Procurement Specialist is responsible for all the procurement to the project during the initial 5-month inception phase. He/she shall have the overall responsibility for the follow-up of procurement of investments, preparing the outsourcing procedures and preparing the contracts. He/she will work in close collaboration with the CTA and the National Finance and Administrative Manager. In addition, regular contacts will be kept with the rest of the TA team and the Districts´ procurement specialists. He/she will report to the CTA.

LIMAS Project Document, Annex 10.

TANZANIAN CONTRIBUTION TO LIMAS The total budget of LIMAS, including its inception and the implementation phases, consists of a Finnish contribution of 9 million Euros and a Tanzanian contribution of about 5% of this amount.

The Project Document from April 2010 stipulates that the Tanzanian contribution has to be defined during the inception phase of the project.The contribution can consist of the costs related to office space and maintenance, salaries of District staff contributing to the implementation of LIMAS, and some operational costs. A contribution of 5 % corresponds to EUR 450,000.

Representatives of Newala and Liwale Districts, together with LIMAS TA team, discussed about the principles of the contribution with representatives from the Ministry of Finance of Tanzania and Ministry for Foreign Affairs of Finland on June 3rd 2011. It was agreed that preparations will be continued based on the presented proposal. It was further agreed that that once the requested 5 % contribution is ensured, whether in a form of “in kind” or as cash, LIMAS can include payment of allowances (no sitting allowances) to District officers according to the Tanzanian Government regulations.

The outcome of the discussisons was presented to the Steering Committee on 2.8.2011. The SC requested that the total contribution shall reach the requested EUR 450,000, and there should be a mechanism to monitor the accumulation of the Districts' contribution.

Enclosed revised calculations of the contribution of Newala and Liwale respectively,The principle in the calculation (ref. attached sheets):

1. The contribution is based on the amount of work (as person days) that the Extension officers and Community Development officers do in LIMAS activity implementation.

2. The value of a person day has been calculated considering the cost of the respective supervisors and a small share of the key administrative personnel as a fixed cost.

3. The number of officers’ actual effective working days is assumed to be 70 % the total working days.

4. In addition, the contribution of the District Coordinators, as well as Forest Officers, has been taken into account.

When taking the above into consideration, the calculations show that the cost of an effective field officers’ working day in Newala is about TSH 59,000 per day, and in Liwale TSH 130,000 per day.

When these figures are multiplied with the number of person days that the field /community development officers are expected to devote to LIMAS funded operations, added with other contributions by the targeted Districts (office space, coordination work), the total sum in three years’ period in Newala counts EUR 254,332 and in Liwale EUR 195,409. In total EUR 458,113.

It needs to be mentioned that the work day allocations are based on the first implementation year’s work plans, and can considerably increase once the field operations are set in full speed.

The Districts will in the quarterly reports detail the accumulated work days per each officer category that have been used for LIMAS activity implementation.

The value of VAT and other tax exemptions for LIMAS procurement, as well as asset depriciation could be considered as an additional contribution of the Tanzanian government to the project implementation.

The proposal was approved (SCM 18.10.2011)

1 (2)

Annex 10, p. 2 (2)

SUMMARY of the District Contributions in LIMAS implementation during 2010 - 2014

Exch rate used in the calculations: 2,150

TSH/year TSH/3 years EUR/year EUR/3 yearsLiwale District Council staff field work time total 115,142,958 345,428,873 53,555 160,665Newala District Council staff field work time total 155,801,074 467,403,221 72,466 217,397

Liwale District Office based officers work time total 23,700,000 71,100,000 11,023 33,070Newala District Office based officers work time total 12,470,000 37,410,000 5,800 17,400

Liwale LIMAS office room rent 1,200,000 3,600,000 558 1,674Newala LIMAS office building 6,000,000 24,000,000 2,791 11,163

Liwale DPC contribution during inception phase 8,000,000 8,000,000 3,721 3,721Newala DPC contribution during Inception phase 8,000,000 8,000,000 3,721 3,721

Liwale other officials' contribution, incept.phase 10,000,000 10,000,000 4,651 4,651Newala other officials' contribution, incept. Phase 10,000,000 10,000,000 4,651 4,651

Total contribution in 4 years, Liwale and Newala, EUR 458,113

Newala total 254,332Liwale total 203,781TOTAL 458,113

Annex 10. TZ contribution, SUMMARY Liw+New 2 (2)

Documents

PROJECT DOCUMENT - tzdpg.or.tz · LIMAS Project Document, FINAL ii (ix) PREFACE Lindi & Mtwara Agribusiness Support project (LIMAS) is a bilateral development initiative, jointly