The Contribution of Foreign Direct Investments on Agricultural Productivity in Tanzania.

Case of Small Scale Producers in Kisarawe District Coastal Region.

By Steven. W. Magoha

A Research Submitted to Centre for Foreign Relations as a Partial Requirement of the Award of Postgraduate in Economic Diplomacy

TABLE OF CONTENTS TABLE OF CONTENTS..........................................................................................................i LIST OF TABLES...................................................................................................................iv LIST OF FIGURES..................................................................................................................v CHAPTER ONE.......................................................................................................................1 INTRODUCTION....................................................................................................................1 1.1 Chapter Introduction.......................................................................................................1 1.2 Background of the Problem............................................................................................1 1.3 Statement of the Problem................................................................................................2 1.4 Objectives of the Study...................................................................................................3 1.4.1 Main Objective........................................................................................................3 1.4.2 Specific Objectives:-................................................................................................3 1.5 Research Questions.........................................................................................................3 1.6 The Significance of the Study.........................................................................................3 1.7 Limitations of the Study.................................................................................................3 CHAPTER TWO......................................................................................................................5 LITERATURE REVIEW.........................................................................................................5 2.1 Introduction to Literature Review..................................................................................5 2.2 Conceptual and Theoretical definitions .........................................................................5 2.2.1 The Concept of Foreign Direct Investment (FDI)...................................................5 2.2.2 Agriculture...............................................................................................................6 2.2.3 Productivity..............................................................................................................6 2.3 Theoretical Review of Literature....................................................................................6 2.3.1 Agriculture in Tanzania...........................................................................................6 2.3.2 The Role of Foreign Direct Investment...................................................................7 2.4 Review of Studies Done in Tanzania Empirical studies..........................................9 CHAPTER THREE................................................................................................................10 RESEARCH METHODOLOGY...........................................................................................10 i

3.1 Introduction to Research Methodology........................................................................10 3.2 General Research approach Research design...............................................................10 3.3 Population of the Study and Sampling Procedures.......................................................11 3.3.1 Population of the study..........................................................................................11 3.3.2 Sample Frame........................................................................................................11 3.3.3 Sample size............................................................................................................11 3.3.4 Sampling Technique..............................................................................................11 3.3.5 Unity of Analysis:..................................................................................................12 3.4 Data Collection.............................................................................................................12 3.4.1 Secondary Data Sources /Documentary Review...................................................12 3.4.2 Primary Data Sources ...........................................................................................13 3.5 Data Organizing, Analysis and Presentation................................................................13 3.5.1 Data Organizing.....................................................................................................13 3.5.2 Data Analysis.........................................................................................................13 3.5.3 Data Presentation...................................................................................................14 3.5.4 Validity and reliability...........................................................................................14 CHAPTER FOUR..................................................................................................................16 DATA ANALYSIS AND PRESENTATION OF FINDINGS..............................................16 4.1 Introduction ..................................................................................................................16 4.0 Field Work Execution...................................................................................................16 4.1 Demographic Characteristics of Respondents.............................................................16 4.2 Agricultural Production Technology Introduced by FDIs in Kisarawe........................18 4.2.1 Technology used in Farming Activities.................................................................18 4.2.2 Small Scale Farmers Access Financial Facilities in their Area.............................23 4.2.3 FDs Social Responsibility offered in Kisarawe ..................................................24 CHAPTER FIVE....................................................................................................................26 DISCUSSION OF FINDINGS...............................................................................................26 5.1 Introduction...................................................................................................................26 5.2 Discussion on Findings.................................................................................................27 5.2.1 Discussion on demographic factors.......................................................................27 CONCLUSIONS AND RECOMMENDATIONS.................................................................32

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6.1 Conclusion....................................................................................................................32 6.2 Recommendations.........................................................................................................32 6.2.1 General recommendations:....................................................................................32 6.2.2 Policy Implications................................................................................................33 6.2.3 Research Implications ...........................................................................................34 REFERENCES.......................................................................................................................35 APPENDICES AND ANNEXES...........................................................................................38 Appendix 1: Questionnaire for Respondents ...................................................................38 Appendix 2: Research Budget...........................................................................................41 Appendix 3: Schedule of Work/Activity Plan...................................................................42

iii

LIST OF TABLES

iv

LIST OF FIGURES

CHAPTER ONE INTRODUCTION 1.1 Chapter Introduction This part provides an introduction to the research topic, background of the study, statement of the problem, objectives of the study, research questions, and significance of the study and limitations of the study. The study looked at how the Foreign Direct Investment contributes in improving Agricultural productivity to Small scale Producers in Tanzania. 1.2 Background of the Problem Agriculture is the foundation of the Tanzanian economy. It accounts for about half of the national income, three quarters of trade in exports, source of food and provides employment opportunities to about 80 percent of Tanzanians. It has linkages with the non-farm sector through forward linkages to agro-processing, consumption and export; provides raw materials to industries and a market for manufactured goods. Agriculture in Tanzania is dominated by smallholder farmers (peasants) cultivating average farm sizes of between 0.9 hector and 3.0 hectors each. About 70 percent of Tanzanias crop area is cultivated by hand hoe, 20 percent by ox plough and 10 percent by tractor. It is rain fed agriculture. Food crop production dominates the agriculture economy 5.1 million ha. are cultivated annually, of which 85 percent is under food crops. Women constitute the main part of agricultural labor force. The major constraint facing the agriculture sector is the falling labor and land productivity due to application of poor technology, dependence on unreliable and irregular weather conditions. Both crops and livestock are adversely affected by periodical droughts. Irrigation holds the key to stabilizing agricultural production in Tanzania to improve food security, increase farmers productivity and incomes, and also to produce higher valued crops such as vegetables and even flowers. Urban agriculture has flourished as a household level initiative to cope with economic hardships encountered as a result of raising cost of living. Urban agriculture that consists of raising and growing of vegetable and food crops is found in Tanzanian towns and cities

where the ready markets for Agricultural products are found. Producers of vegetables, milk, broilers meat and eggs sell to private households and to school, hotels, hospitals, bars, cafeterias and restaurants. Tanzania has laid out new agricultural initiative KILIMO KWANZA in order to fasten the involvement of the private sector in the development of agriculture whereby it emphasize the critical importance of the private sector participating actively in agricultural production, provision of agricultural inputs, crop marketing in the agricultural value chain. The initiative will lead to provide food security, promote sustainable development and generate economic growth and opportunities by emphasizing the role of science and technology in order to enhance poverty reduction to the majority of people through the influence of Foreign Direct Investment. Foreign direct investment (FDI) refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy. It plays an important role in promoting economic growth, raising a countrys technological level, and creating new employment in developing countries (Blomstrom and Kokko, 2003; Klein et al., 2003; Borenzstein et al., 1998). It has shown that FDI works as a means of integrating developing countries into the global market place and increasing the capital available for investment, thus leading to increased economic growth needed to reduce poverty and raise living standards (Rutihinda, 2007; Dollar and Kraay, 2000; Dupasquier and Osakwe, 2005). In Tanzania, the FDI has been argued to improve opportunities for upward social and economic mobility basically through agricultural sector channel. Since agriculture traditionally has been a labor intensive sector FDI may absorb significant part of the rural labor force and provide a steady income for the rural communities. 1.3 Statement of the Problem Even with the various benefits and opportunities provided by FDI in transforming Agriculture activities in Tanzania, still small scale producers are failing to engage themselves profitably due to lack of opportunities and accessibilities of Agriculture incentives these include among others, lack of enough land for farming activities, modern

cultivation tools and technology, expansion of local markets and control of product price. The study will look at how the Foreign Direct Investment contributes in improving Agricultural productivity to Small scale Producers in Tanzania. 1.4 Objectives of the Study

1.4.1 Main Objective The main objective of this study was to examine the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region. 1.4.2 Specific Objectives:(i) To analyze the technology provided by FDIs to small-scale farmers in the study area. (ii) To assess the financial facilities provided in their area. (iii)To identify social services offered in the area. 1.5 Research Questions This research was guided by the following research questions. (i) What technology does FDIs provide to small scale farmers in Kisarawe district? (ii) How do small scale farmers access financial facilities in their area? (iii) What social responsibility does FDIs offer in the area?

1.6 The Significance of the Study Several studies have been conducted on the impact of Foreign Direct Investment focused on promoting of economic growth, raising a countrys technological level, and creating new employment in Tanzania, but little attention has been revealed on how FDI contribute to the support of small scale agriculture activities including technological transfer and marketing of agricultural products that will increase rate of economic growth in a Country. Findings focus on benefits and constraints of FDI to small scale agriculture Producers in relation to socio-economic issues in rural areas. 1.7 Limitations of the Study The study covered only Prime Ministers Office - Tanzania Investment Center (TIC) and 3

Kisarawe district Pwani region.

CHAPTER TWO LITERATURE REVIEW 2.1 Introduction to Literature Review

This chapter gives the critical reviews of the relevant literature findings, both theoretical as well as empirical, concerning training and employees performance. The chapter reviewed related literature on the conceptual definitions, supporting theories from various literatures, review of empirical analysis, and the conceptual frame work.

2.2 2.2.1

Conceptual and Theoretical definitions The Concept of Foreign Direct Investment (FDI)

Foreign direct investment (FDI) refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy. It has been shown to play an important role in promoting economic growth, raising a country technological level, and creating new employment in developing countries. Investment (or capital) flows1 is also referred to as relative economic strength forecasting: The focus is on investment flows, which follow strong economic growth trends that attract foreign investments, and thus, increase demand for the local currency. Capital flows represent investments by countries or companies in another country. The flow of money to a particular destination tends to increase demand for the target destination's currency. This increase in demand causes the currency to appreciate (increase in value). Foreign direct investment is in cash flow investment in another country's assets. The direction and size of FDI is important to understand the growth of production within a country and the potential currency changes from that flow. If FDI is expected to increase significantly, then the currency of the receiving country should increase in value; the opposite is also true.

http://www.wikiwealth.com/dictionary:investment-flow

2.2.2

Agriculture

Agriculture accounts for the bulk of employment in developing countries and contributes significantly to national income and export earnings. Given its dominance in the economy, it will remain a primary source of growth and means of poverty reduction for some time. It remains the backbone of the rural economy, and employs the majority of the worlds poor people. The proportion of poor people remains highest in sub-Saharan Africa, where slow economic growth has left millions at the margins of survival. In sub-Saharan Africa alone, more than 314 million people continue to live on less than USD 1 a day. And in most regions poverty remains a largely rural phenomenon. 2.2.3 Productivity

Productivity is a measure of output from a production process, per unit of input. For example, labor productivity is typically measured as a ratio of output per labour-hour, an input. Productivity may be conceived of as a metric of the technical or engineering efficiency of production. As such, the emphasis is on quantitative metrics of input, and sometimes output. Productivity is distinct from metrics of locative efficiency, which take into account both the monetary value (price) of what is produced and the cost of inputs used, and also distinct from metrics of profitability, which address the difference between the revenues obtained from output and the expense associated with consumption of inputs (Courbois & Temple, 1975; Gollop, 1979; Kurosawa, 1975; Pineda, 1990; and Saari, 2006)

2.3

Theoretical Review of Literature 2.3.1 Agriculture in Tanzania

The Government recognizes the pivotal role of the agricultural sector both in terms of economic growth and poverty reduction. Also the strong influence of factors outside the sector such as infrastructure, rural financial services, land ownership and good governance is recognised. Priority actions include: The pursuit of macroeconomic policies that will motivate investment in agriculture by smallholders and large scale commercial farmers. 6

Creation of an enabling environment and provide proactive support to private operators, farmers organizations, NGOs and CBOs supplying inputs and credit to small farmers and ensuring a strong regulatory mechanism.

Concentration of budgetary allocations in agriculture research and extension. Provision of special support to investments in agricultural processing particularly in fruits and vegetables and accord top priority to implementation of new Land Act.

Today, farmers are allowed to sell their crops both to cooperatives and to private traders and, as a result of increased competition, normal producer prices for food and export crops have also increased, making it easier for farmers to sell their products at a faster pace. Currently, the private sector has absorbed much of the responsibility for the production and processing functions, while the Government has maintained its position in the facilitation of regulatory and public support functions. (Tanzania Invest, 2010) 2.3.2 The Role of Foreign Direct Investment

Over the past decade there has been a renewed interest in the globalization process which reflected into the emergence of new forces of globalization. One of recently identified important forces of globalization has been private foreign direct investment (FDI). FDI inflows in the past decade have increased significantly worldwide. For example, in 2000 global private FDI inflows reached US$1.1 trillion compared to US$159 billion in 1991 (Bora, 2002). Compared to international trade in goods and services, in 2002, the world stock of FDI generated sales by foreign affiliates of an estimated $18 trillion, against world exports of $8 trillion (World Investment Report, 2003). This rapid growth and performance of FDI has generated a number of policy issues regarding benefits and costs to the economies of both home and host countries. At the macroeconomic level, FDI is believed to bring new capital for investment, contributing to the balance of payments, adding to the countrys capital stock, and potentially adding to future economic growth. FDI is also cited as a more stable type of capital flow, and thus is arguably more appropriate and development-friendly for low-income countries than portfolio flows. There is also some evidence that foreign investment can contribute to raising exports and integrating into global economic networks. At the microeconomic level there are also a range of purported benefits,

especially higher productivity through new investment in physical and human capital, increased employment, enhanced management, and the transfer of technology. However, there are various costs associated with FDI as well. Among the costs include those related to countries competing for FDI; market failures in the investment process and the possible divergences between foreign companies and national interests. For example, promotion of FDI has been very expensive as developing countries often make major concessions in terms of special incentives to foreign investors in order to compete for foreign investment with other countries. These incentives include among others lower income taxes or income tax holidays, import duty exemptions, and subsidies for infrastructure. Market failures such as information and coordination failures in the international investment process; infant industry considerations in the development of local enterprises, which can lead inward FDI to crowd out these enterprises; static nature of advantages transferred by FDI where domestic capabilities are low and do not improve over time, or where FDI is not sufficient enough to raise the relevant capabilities; and weak bargaining and regulatory capabilities on the part of host government, resulting in the unequal distribution of benefits or abuse of market power by the foreign companies, are also a major concern for developing countries. It is significant that the complexity of the FDI package also means that there may be trade-offs between different benefits and objectives. For instance, countries may have to choose between investments that offer short as opposed to long-term benefits; the former may lead to static gains but not necessarily to dynamic ones. A large inflow of FDI can add to foreign exchange and investment resources in a host economy, but it may lead to a crowding out of local firms or create exchange rate problems. The desire to generate employment may lead governments to favor labor-intensive, lowtechnology investments, while that to promote technology development may favor more sophisticated investors. Similarly, the desire to upgrade technology may call for heavy reliance on technology transfer by the foreign firms, while the desire to promote local innovation and deepening may require more emphases on arms length transfers to indigenous firms. There can be many such trade-offs, and there is no universal answer to how they should be made. As noted, there is no ideal policy on FDI that applies to all countries at all times. 8

2.4

Review of Studies Done in Tanzania Empirical studies

In an attempt to get a framework to support the research, studies have been undertaken in different corners of the Tanzania to improve the livelihoods of rural people by different projects. In a research carried out in Makete district in Iringa, unfavourable climatic conditions and poor soils have contributed to poor crop production to some parts of Makete district. As a result food security and the wellbeing of rural people of Makete have been threatened. Responding to this situation, local people of Makete have established tree woodlots as an alternative source of household income (Malimbwi et al., 2009). In another study done in 2009 by MVIWATA, under the support of OXFAM, which generally seek to improve livelihood of small scale farmers through improving market access, financial services and building their organisational capacities. Majority of small-scale farmers in Tanzania are practising traditional and subsistence farming which normally brings insignificant changes in improvement of their living standards. Poor marketing systems including insufficient market knowledge is one of the bottlenecks to smallholder farmers in the country. Considering the serious need to improve agricultural production of small-scale farmers in Tanzania, MVIWATA in its strategic plan has concentrated on the 6 key areas of intervention. Among these six four are: Improving agricultural marketing systems for small holders including their Improving micro financing and rural banking systems; including cereal Strengthening lobbying and advocacy capacity of farmers and enhance their Strengthening Market Access; Lack of proper market is one of the key problems encountered by smallholder entrepreneurship skills and also; banking as means of enhancing their capital generation; participation in processes that determine national and international policies;

farmers in the country. (MVIWATA, 2009)

CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction to Research Methodology

This chapter discusses the methodology used in this study. It explains the research design, methods of data collection, analysis and presentation. 3.2 General Research approach Research design

A research design in a framework for specifying the relationship among the study variables and plan for selecting the sources and types of information to be used in answering the research question. Research design is a plan of action through which a researcher organizes his/her work from data collection, data organization to data analysis (Kothari, 1997). This study chose a case study approach. Robson (2002), defines case study as a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its really life context using multiple sources of evidence. Its characteristic is a single case design, whereas one aspect, that is, Foreign Direct Investment on Agricultural production will be studied so as to see what impacts it has in general in farmers livelihoods. The design of the study was cross-sectional that consists of asking questions to a representative of the population at a single point in time whereby questionnaire and interview method were employed as instruments of data collection. The design is appropriate for descriptive purpose. This is a qualitative method and employed the case study approach. According to Kombo and Tromp (2006) a case study seeks to describe a unit detail, in context and holistically. In a case study, a great deal can be learned from a few examples of the phenomena under a study. Thus, a case study strategy enabled easy collection of both primary and secondary data sources. The case study approach will be of particular interest to you if you wish to gain rich understanding of the context of the research and the processes being enacted (Morris and Wood, 1991).

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The research adopted and relied on several data sources that converge in a triangulating fashion that constitutes an appropriate method of researching a contemporary phenomenon (Yin, 1994).

3.3

Population of the Study and Sampling Procedures

3.3.1 Population of the study To define the population, a researcher specifies the unit being sampled, the geographical location and the temporal boundaries of population. Saunders, Lewis and Thornhill (2009) define population as the complete set of cases or group members. The population of this study was made up of Members of Staff of TIC and Small scale Producers of Kisarawe District. During the study, the researcher used stratified sampling technique whereby the total populations were splat into different groups.

3.3.2 Sample Frame As defined by Saunders, Lewis and Thornhill (2009), sampling frame is a complete list of all the cases in the population, from which a probability sample is drawn. The study has been conducted in Kisarawe district. Thus the sampling frame included farmers as beneficiaries and main stakeholders of agricultural activities conducted in the study area, as well as other key stakeholders drawn from public institutions involved with Investment and Agriculture sectors in the country. 3.3.3 Sample size Sample size refers to the number of items to be selected from the location to constitute a sample. During the study, the researcher used stratified sampling technique to select 4 respondents from among members of staff of TIC, and seventy (70) small scale agriculture producers from Kisarawe district. 3.3.4 Sampling Technique Probability and non- probability sampling are sampling techniques which were used in this study.

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Purposive Sampling Purposive sampling is a deliberate selection of a particular unit of universe for constructing a sample that represents the universe. The researcher does so, so as to get data, which would help in a accomplishing the purpose of a research. Purposive sampling enables a researcher to pick those respondents who will be useful in data collection for research findings (Kothari, 1999). This was employed to select farmers which have direct linkage to the FDIs in their undertakings. 3.3.5 Unity of Analysis: According to Mugenda and Mugenda (1999), unit of analysis refers to that unit we initially describe for the purpose of aggregating their characteristics in order to describe some larger group or abstract of phenomenon. For the purpose of undertaking this study, units of analysis were drawn from the Public sector; Private sector; and the local communities i.e. small scale producers. 3.4 Data Collection

The researcher employed the qualitative data approach (Patton, 2002). The use of qualitative data yields detailed and thick description in the case of observation and capture direct quotations in the case of interviews. Data from both secondary and primary sources were used in order to thoroughly meet the objectives of this study. The main sources of evidence are documentation policy documents, reports, legal documents, archival sources including press articles and elite interview. 3.4.1 Secondary Data Sources /Documentary Review Secondary data collection involved a review of relevant information/published documents on development of farmers, in particular, in Tanzania and globally. Other information was gathered from key institutions involved in the whole aspect of farmers operations. Since there is possibility of not accessing printed documents, other materials were sought from the internet to supplement existing available materials.

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3.4.2 Primary Data Sources In order to fill information gaps, interviews and focus group discussions were conducted. Amongst the interviewees were government officials from Public Institutions closely involved with farmers operation and investment as well. These were key informants for this study whereby guided interviews, formal discussions and consultation were undertaken by the researcher with strong emphasis on institutional analysis. Thus, information collected from the public/government so as to ensure inclusion of policy-making levels and field operation levels. Primary data collection methods that were used included questionnaires, interviews and observation.

3.5

Data Organizing, Analysis and Presentation

3.5.1 Data Organizing The term data organization in research refers to orderliness in research data. This is putting the data into some systematic form (Kombo and Tromp, 2006: 111). In this study, organization included identifying (and correcting) errors in the data, coding the data, and storing it in appropriate form.

3.5.2 Data Analysis Analytical approaches (both qualitative and quantitative) were employed to analyse the data. The descriptive and statistical analyses were conducted basing on data and information collected from primary and secondary sources. Quantitative data were analysed through Computer software (Microsoft Excel) to compute percentages, tabulation and cross-tabulation of responses. This was chosen because it can take data from almost any type of file and use them to generate tabulated reports, charts, perform descriptive statistics and conduct complex statistical analyses.

Qualitative Analysis2
2

The analysis will vary with the purpose of the research, the complexity of the research 13

This based on information obtained through interview and discussions. More generally the thematic analysis was a working tool.

3.5.3 Data Presentation Data have been presented by using a combination of both statistical and graphical techniques include but not limited to; frequency distributions, pie charts, histograms, measures of central tendency and dispersion.

3.5.4 Validity and reliability A conclusion of any study can be affected by either a researchers bias or subjective judgment in the data collection process (Yin, 1994). I had to carry out interviews and discussion with relevant respondents. This was done in order to avoid subjectivity in the data collection process. According to Nachmias and Nachmias (1996), the researcher must provide supporting evidence that a measuring instrument does, in fact, measure what it appears to measure. Thus, interviewing single respondent at a time and doing the Focus Group Discussion. Reliability, on the other hand, is the central concern to social scientists because the measuring instruments they employ are rarely completely valid. Nachmias and Nachmias (1996) refers reliability as the extent to which a measuring instrument contains variable errors, that is, errors that appear inconsistently from observation to observation during any one measurement attempt or that vary each time a given unit is measured by the same instrument. Sample selection was done in order to boost the reliability in the existing local farmers who enjoy the benefits of the presence of FDIs. Triangulation for the collected data and information was done through carrying out of interviews to different stakeholders from the farmers, as well as officials from the TIC and from district. This on the other hand helped to check out the reliability. This enhanced design and the extent to which conclusions can be reached easily (Orodho & Kombo, 2002:116 cited in Kombo & Tromp, 2006) 14

triangulation of data and information and hence and on the other hand guaranteed reliability.

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CHAPTER FOUR DATA ANALYSIS AND PRESENTATION OF FINDINGS 4.1 Introduction

This study examined the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region.

The target population of this study was farmers in Kisarawe district in Coastal region and government officials from Public institution (TIC) closely involved with FDIs operations. There were guided interviews, formal discussion and questionnaires given to respondents.

The main of objective of the study was to examine the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region. The research questions guided the analysis of the study findings and were used in accomplishing the objectives of the study.

4.0

Field Work Execution

The field work exercise comprised of distribution of questionnaires, interviews and collection of secondary data and it took five weeks from 19th June to 21st December 2011. Questionnaires were distributed to the staffs that were selected randomly from the organizations mentioned departments/units. The questionnaires which were distributed were 80, only 73 questionnaires were returned which was just above the sample size which was anticipated before as 70 respondents. Also 10 scheduled interviews were conducted with Government officials, Extension officers and Ward Executive Officers. Respondents were guaranteed confidentiality.

4.1

Demographic Characteristics of Respondents

It was important for this study to get information on the demographic characteristics of the respondents that is information based on gender, age, marital status as well as educational qualifications of respondents. 16 The summary of distribution response is as

given in Table 4.1 below. TABLE 4.1: RESPONDENTS PROFILE- DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS
Dimension Age Frequency 18-25 26-35 36-45 46+ Males Females Primary Secondary Advance level Others 1-10yrs 11-20yrs 21-30yrs 3140yrs Number 18 23 18 14 39 34 58 11 0 4 43 16 6 8 Percentage 25% 32% 25% 18% 53% 47% 79% 15% 0% 6% 59% 22% 8% 11%

Gender Education

Duration of farming

Source: Researchers field data, 2011. The demographic factors show that, the highest respondents questioned were between the ages of 36 - 45 years representing 32%, and the lowest was those with 46years and more by 18%.Those with the age of 18-25 and 36-45 each had 25%(18).

Some of the above results are represented graphically on Figure 4.1 FIGURE 4.1: RESPONDENTS AGE DISTRIBUTION

Source: Researchers own findings, 2011.

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Gender was equally distributed among the respondents; the male were high by 3 percentage points. This is presented in Figure 4.2.

In the villages surveyed, most of the respondents education level was at the primary stage by (58)79%, Secondary level by (11)15%, others level of education such as vocational trainings and religious education were 6 % and none had reached Advanced Secondary level education(form five and six). This is represented in the pie chart in figure 4.2. FIGURE 4.2: RESPONDENTS LEVEL OF EDUCATION

Source: Researchers findings, 2011. For 43(59%) of the respondents reported that they have practiced farming activities for periods between 1 10 years while few (8%) had practiced for 21 years to 30 years. By (16) 11% have practised farming activities for 11-20years and only (8)11% have been farming for 31-40years. 4.2 Agricultural Production Technology Introduced by FDIs in Kisarawe 4.2.1 Technology used in Farming Activities

This section answers the research question of what technology does FDIs provide to small scale farmers in Kisarawe district. According to Socio-economic profile of Coast Region (URT, 2007), Annual economic survey of Tanzania shows that about 60 percent of Coast GDP is derived from agricultural sector. However, the available arable land is not fully utilized. This reveals that fertile land is not yet wholly used. On district basis, the situation is worse. As most of the districts except Mafia do not utilize the arable land at reasonable

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level. For example, Bagamoyo uses only 6.7 percent, Rufiji 20.7 percent, and Kisarawe 27.1 percent. In Kisarawe the percentage distributions of the Population who engage in Agriculture is 87%, and the cultivated area per district is 83,645(44%). The major food crop is Cassava besides being a food crop, cassava is also a cash crop especially when there is surplus and is second after cashew nuts. Other food crops are Rice, Millet, Legumes, Maize and Sweet Potatoes. They produce 6.0 Hectors per Tons of Cassava, 0.8 Hectors per Tons of Paddy, 1.3 Hectors per Tons of Maize, 7.0 Hectors per Tons of Sweet Potatoes and 1.0 Hectors per Tons of Sorghum. . The status of the areas suitable for irrigation (Ha) is 6,400, the area which is under cultivation (Ha) is 93 and the percentage of utilization is 1.4 According to regional agricultural statistics, the major food crops grown are maize, paddy, sorghum, cassava, sweet potatoes, legumes, pulses and bananas all these are grown in Kisarawe though the trend of acreages fluctuated from year to year. Maize is also grown in the region. The major cash crops grown in Kisarawe district are cashew nuts, sesame and coconuts. An ambitious programme for scaling down poverty known as National Strategy for Growth and Reduction of Poverty (NSGRP) being implemented in two phases over a ten-year period (2005 2015) has come hardy to make farming more meaningful for many farmers. NSGRP focuses on outcome oriented on three clusters namely, growth and reduction of income poverty; improved quality of life and social wellbeing as well as following up governance and accountability. Kisarawe district agricultural and livestock officer (Daldo) Ayoub Isere is optimistic that 15 power tillers distributed early this year to each of the 15 wards forming the district council will revolutionise smallholder farming. In addition to the 15 power tillers, for Msimbu and Marui wards The Council has added two tractors for each after learning that the demand is relatively high there. The number of small tractors supplied to farmers groups in Kisarawe, slightly over 200, is equivalent to 10 per cent of a total 2,154 distributed to different districts in the country by mid last year, according to the latest budget speech of the Ministry of Agriculture and Food Security. The DALDO further says that in order to ensure sustainability of the initiative whose implementation is in line with the governments Agricultural Sector Development Programme (ASDP) and the Agriculture 19

First initiative, commonly known as Kilimo Kwanza, the local authority has formed special groups to manage the equipment from which the farmers will lease them. A condition has been set for group members that they must have at least two acres of land each to quality for membership, notes DALDO. What make many smallholder farmers even more excited is the fact that the new tools would help a great deal in cutting down farming costs as well as time spent on preparing and tilling the land. Another Kisarawe farmer, Athuman Mdugi, who resides in village known as Kidugalo says, I hope that I will spend less next season. We have been told that between 25,000/- and 30,000/- will be charged per acre. I used to spend around 90,000/- on paying labourers per acre. This is a big relief and should therefore be warmly welcome. Mdugi further explains that he has also been informed by a local extension officer that the power tillers were capable of tilling one acre in a single day. This is incredible, as labours would spend up to two weeks for a similar assignment, he says. A district official charged with the management of the power tillers, Dr Kisamo Minja is optimistic that productivity will go up. The area of land under cultivation is estimated to more than double in the next season. I cant give you the exact figures of what we expect in the coming seasons. However, things will definitely improve because people will spend less time and money in farming and still get bumper harvest if nothing goes wrong, he says. Not a blessing to all! However, for a few, mainly labourers, the power tillers have been a curse rather than a blessing. Minja says application of the equipment has rendered over 200 people jobless. The victims of mechanisation, around 15 in each of the 15 wards, are labours who traditionally are not Coast region natives. Mostly they come from Dodoma, Shinyanga, Tabora and Mwanza region. The only ward without a hope of setting aside the hand hoe is Kiluvya. The area councillor, Anzameen Masawe reports that trials on using power tillers have failed. We wont use them unfortunately, he informed. The land there is comprised of clay soil, which is too compacted to be tilled by power tillers efficiently, he said. Quality: No cause for alarm. One of the key challenges facing the mechanisation initiative is making the equipment sustainable in terms of routine service, availability of spare parts and ensuring that supply meets the growing demand. Mafizi ward councillor Kebo Sangi says, Farmers have been sensitised and I think they will definitely need more in the near future.His concern regarding the supply is echoed by Vikumbulu councillor Mohamed Dihomba and Mzenga extension officer Ally Enzimbali who says a six-acre demonstration form developed 20

in his area has attracted many people. We should brace for increasing demand of the equipment in the very near future. Im not so sure if we are prepared enough to tackle the challenge, he says. District Executive Director (DED) Isaya Moses alley fears that shortage of power tillers will be an issue in future. Plans are underway to bring more power tillers whenever demand goes up. So, this is not a matter of concern, he says, declining to give more details of the plan he is talking about. However, the success of this ambitious programme to mechanise agriculture right from the grassroots will have meaning if it helps in boosting up productivity, increase incomes and improve the wellbeing of the poor majority as targeted under the NSGRP blueprint. The companies and organizations in Kisarawe promote various soil and water conservation technologies: Contour farming ploughing and growing crops along the contour rather than up and down the slope. Grass strips planting grass strips to break the flow of water down the slope. Mixed cropping planting a mix of crops to protect the soil from heavy rain and to maintain soil fertility. Crop rotation of maize, tomatoes, and nitrogen-fixing legumes such as groundnuts and beans to prevent the build-up of pests, diseases and weeds, to improve the soil structure and to maintain fertility. Mulching using crop residues to protect the soil surface prevent erosion and conserve moisture in the soil. Fanya juu a trench dug along the contour, with the soil piled into a ridge upslope to control water flow, prevent erosion, and encourage the natural formation of terraces. The ridges are planted with grass and trees to stabilize them. Fanya juus are useful on gentle to moderate slopes of up to 8% gradient. Terracing moving large amounts of soil to form a series of flat terraces suited for irrigation. Terraces are appropriate for steeper slopes, up to 13% gradient. Check dams barriers across a gully or stream to slow down the flow of water, so preventing further erosion.

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All these technologies aim to reduce erosion, conserve and improve the soil fertility, and keep water in the soil where crops can use it. To use the conservation techniques correctly, farmers have to know how steep the slope is: steeper slopes mean terraces or fanya juus have to be closer together. They also have to mark out contour lines so they can plough along the contour, plant grass strips, or construct fanya juus or terraces. HEM teaches them how to use a spirit level to measure the slope and mark out contours. It also teaches how to use the various soil and water conservation techniques. As summarised in Table 4.2. TABLE 4.2: TECHNOLOGY USED IN FARMING ACTIVITIES
Dimension Farming Technology used Frequency Contour farming Crop rotation Mixed cropping Yes No a) Training of trainers& promotion b) Demonstratio n plots. c) Sales: retail and wholesale. d) Promotions e) Not applicable Yes No Yes No Number 27 18 28 52 21 15 17 16 25 0 Percentage 37% 25% 38% 71% 29% 21% 23% 22% 34% 0%

Awareness of FDIs in your locality Activities/services offered by these FDIs in your area

New farming technology been introduced by these FDIs in your area Any impact in your production as a result of applying the new technology?

48 45 52 21

66% 34% 71% 29%

Source: Researchers findings, 2011 In undertaking this study this research examined the respondents to find out whether farmers are aware of existing FDIs in their area of practice. For 52(71%) of all respondents were aware of FDIs operation in their areas either by seeing or knowledge given by word of mouth by fellow farmers on the brand or by utilising the services directly, whereas the rest 21(29%) were not aware of FDIs operation within their area. This is presented in Figure 4.3

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4.2.2 Small Scale Farmers Access Financial Facilities in their Area This study sought to find out about the availability of financial services to the farmers in the study area. The findings are summaries here below in Table 4.3. TABLE 4.3: RESPONSES ON FINANCIAL SERVICES AVAILABLE FOR FARMERS
Dimension Source of financial facilities available for farming activities in your area Frequency (a) MFIs (b) Commercial Banks (c) SACCOS/VICOBA (d) Other sources (a) Yes (b) No (a) (b) (c) (d) Plot of land Concrete house Immovable assets Others Number 25 17 16 15 60 12 19 23 14 17 16 53 4 Percentage 34% 23% 22% 21% 83% 17% 26% 32% 19% 23% 22% 73% 5%

The accessibility of financial facilities in your area as a result of existence of FDIs Requirements of accessing financial services available

Utilisation the financial availed to farmers

services

(a) Mechanisation

of farming activities (b) Improving Living standards (c) Utilising improve farming inputs

Source: Researchers Findings, 2011 To ensure sustainable livelihoods, Plan Tanzania supports the formation of Village Savings and Loans Associations (VSLAs), which help people typically unable to borrow from commercial banks to save and access credit, enabling them to invest in their businesses and provide for their families. This organization also provides vocational training scholarships and training in income generating projects and entrepreneurial skills for youths. For 60(83%) of the respondents agreed that there is accessibility of financial services in their area of operation The remaining 12 respondents who are 17% have not seen these operations in their area of jurisdiction as illustrated in Figure 4.3

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FIGURE 4.3: THE ACCESSIBILITY OF FINANCIAL SERVICES TO FARMERS

Source: Researchers findings, 2011 The respondents agreed on the increase of productivity, they have seen the changes in their yields, what notified them is that, they now see many people engaging in farming activities by 16(22%), and the majority 53(73%) agreed that their living standards have improved, while the minority 4(5%) the changes which they noticed is that pests are more controlled and are non resistant to the pesticide they use. Shown on below Figure 4.5. FIGURE 4.4: UTILISATION THE FINANCIAL SERVICES AVAILED TO FARMERS.

Source: Researchers own findings, 2011 4.2.3 FDs Social Responsibility offered in Kisarawe Many farmers in Tanzania traditionally work in groups so they can achieve a common goal that they cannot achieve individually. Groups have many purposes: get better prices for their produce, manage irrigation systems, secure access to land, obtain technical support from the government, and many others. Farmers need information, goods and services if they are to improve their farm production and become better off. Groups of farmers have much to learn from each other, and collectively they are strong enough to lobby the government and attract 24

the attention of the private sector. This is also a case existing in the study area i.e. Kisarawe. Table 4.4 below shows the findings in terms of the contribution brought by the presence of FDIs in Kisarawe district. TABLE 4.4: CONTRIBUTION BROUGHT BY FDI IN KISARAWE
Dimension Kind of social services are offered as a result of the FDIs in your area Frequency (a) Extension services (b) Provision of farming inputs (c) Provisional of farm machineries (d) Support on education and health facilities (a) Farmers know good usage of pesticide (b)Affordable farming inputs at prices all farmers can buy (c) Increase of yields Number 19 23 14 17 Percentage 26% 32% 19% 23%

Contribution of FDI services in increasing smallholder farmers efficiency and their productivity The contribution of social services offered through FDIs in general development of area

18 23 31 18 12 42 27 18 28

25% 32% 43% 25% 17% 58% 37% 25% 38%

(a) Farmers educated in proper

use of farming inputs (b) Availability of social services and markets for products (c) More yield, more productivity (a) Training and education (b) Promotions and sales (c) Demonstration plots

The contribution of FDIs in improving productivity of small scale farmers in Kisarawe district, Coastal region.

Source: Researchers findings, 2011 The finding above answers the third research question, which states as follows how DVA contribute to the increase of yields in Kisarawe district hence productivity.

For 23(32%) of all respondents reported that they are happy with the availability of farming inputs which enable them to engage in good farming practices, while 19(26%) said that they have enjoyed extension services from all companies that are operating in their area, another group agreed by 17(23%) that FDIs support other social services especially on health and primary education sectors while the remained group (19%) have been able to access farming machineries like Power tillers availed to them.

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The respondents were asked about the contribution of FDI services in increasing smallholder farmers efficiency and their productivity, the majority said it was to improve productivity hence increase their yields by 43%, while 32% agreed that FDIs offer products and farming inputs at affordable prices to all farmers and the remaining 25% reported they farmers now know good usage of pesticide. General contributions made by FDIs in agriculture sector in Kisarawe in these farming societies is through Promotions and sales in open markets by 38%, Training and workshops of farmers and extension officers respondents agreed by 37% and the use of having demonstration plots in different areas by 25%. This is shown in the Figure 4.5.

FIGURE 4.5: THE

DISTRICT,

CONTRIBUTION OF

FDIS

IN IMPROVING PRODUCTIVITY OF SMALL SCALE FARMERS IN

KISARAWE

COASTAL REGION.

Source: Researchers own findings.

CHAPTER FIVE DISCUSSION OF FINDINGS 5.1 Introduction

This chapter is a discussion of the findings of the inquiry that examined the contribution of

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the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region.

The objective of this study was to examine the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region..

5.2

Discussion on Findings

5.2.1 Discussion on demographic factors For a long time farmers in Tanzania have used indigenous practices to be successful in their yields, the findings in the Respondents demographic factors show that there was equal distribution of gender. In the study area all men and women participate equally in farming activities. All take agriculture as an occupation they can rely on daily basis.

Many have primary education and few succeeded to secondary level and vocational training. The reason behind is not being able to pay fees for further studies but since ancestors they were made to believe that agriculture is the backbone of the countrys economy. From generation to generation farming was made for generating normal household income for either produce food only for subsistence but very little kept for surplus. So most parents did not invest in education as the key to their success, As soon as children complete primary level they are given a portion of land to cultivate to sustain them in their daily needs.

The respondents chosen many where in the age of 26-35 years, and these farmed in between 1 and 10 years. These respondents fall in the majority of the primary education level, but educated enough to the use of farming inputs in their cultivations. These have also been advanced in practising agriculture for business not only for household use.

The main objective of this study was to answered by the following research questions:

(i)

What technology does FDIs provide to small scale farmers in Kisarawe district?

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Agriculture productivity relies on different factors which are conserved soil and maintenance of soil fertility, protecting the crop from pests. By combining three principles, disturbing the soil as little as possible, keeping the soil covered with cover crops such as crop residues or mulch and by crop rotation or mix crops (planting a cereal such as maize and legume such as pigeon pea).

The study sought to understand the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region. Many factors were listed as the efficacy of the agrochemicals and how well it controlled and killed pests, changes were seen before and after usage of the pesticides; also these generics are not resistant to pests in the crops, many brands after long use they lose their efficacy in terms of the pests tend to build a defensive mechanism of having an extra shell in their bodies which are not affected by that chemical. Also the prices of these products and services and very cheap and affordable to every farmer,

After many farms were modernized by use of advanced methods on farming practices, many have seen positive changes especially in increasing productivity after assessing products/services from FDIs existing in the area. Farmers in Kisarawe have learnt that they have to invest in order to increase productivity, in the previous years if farmers do not receive the subsidized agrochemicals given by the government they leave their crops unattended. But with a lot of private markets around, these farmers are able to always have access to products and services and not totally rely on the ministry of agriculture and cooperatives.

Some of the changes the farmers in the study area noticed are, many people have engaged in farming activities after seeing the changes in livelihoods of their fellow villagers. Also by products and services being accessible this had made them increase back their faith in farming. Another factor is the control of markets for the end products, these has also encouraged them to engage more in farming.

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(ii)

How do small scale farmers access financial facilities in their area?

Very few farmers productivity improved through their annual productivity due to poor farming practices. Even though there were farmers cooperatives after Tanzania independence, few succeeded in providing initiatives, like financial services, farming inputs, machinery and agrochemicals. The government used to finance the agricultural through the former Cooperative and Rural Development Bank (CRDB) as well as buy all agrochemicals from local and foreign companies and sell to the farmers on subsidized prices. These inputs, machinery and agrochemicals were monopolized, not many foreign companies could participate in these tender documents neither did the farmers had much choice in what to use and what not to use. Most of them did not get the training or education on good practices and good usage of these pesticides they used on their crops little did they yield and very little was their livelihoods improved.

With regards to the obstacles facing farmers today, the findings were as expected. From 1980s when Tanzania liberalized the markets including the agriculture sector many foreign businesses invested in Tanzania. This was the outcome when Tanzania economy deteriorated in the late 1970s and early 1980s.

The presence of FDIs in Kisarawe just proves to us, the changes and transition Tanzania has gone since post Arusha declaration. Foreign business being introduced in Tanzania, the farmers now have a wide range of accessing financial services from existing Microfinance Institutions in the study area which in turn facilitates farmers to acquire agrochemicals, inputs and machinery from many different companies originating mostly from China, Germany, India, Spain, Israel and France. Now there are more than 100 registered products used in crops.

Now farmers have awareness of the existence of the business and have accessibility to the products. They access these products during training of trainers which is conducted by the foreign companies themselves to train extension workers, regional distributors, agents and farmers themselves. These people are trained in various topics including how to acquire

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loans for agricultural purposes, the right applications of pesticides to be used on the crops, the correct way of spraying the crops and also first aid to give to an injured person affected by these pesticides.

These findings proved that there is no difficulty for foreign companies to operate in the agricultural production areas.

Most of the farmers have managed to build modern houses made of blocks and aluminium sheets, they have improved their transport facilities from riding bicycles to motorcycles and others even have managed to buy second hand cars. Others have even managed to send their children for higher education in different parts of the country.

(iii) What social responsibility does FDIs offer in the area? The findings in the study showed that the services which FDIs provides has brought increase in yields in Kisarawe district, these are:-

One of the strategic way of penetrating farming business in the farming society in Kisarawe district is by establishing demonstration plots in different villages in every ward. As the old saying goes, seeing is believing. The farmers trust on the efficacy of agrochemicals, inputs and machinery only when it is tried on their crops or farms.

Other farmers from other areas are notified of the demonstration plots, locate them and trace the availability of products from different providers. Groups of farmers were formed and every group divided up responsibility for each plot. Each week, a subgroup checked on the crops in their plot, and then reported back to the whole group. The whole group monitored the differences among the plots, discussed each sub-groups findings and solutions, and agreed on what to do.

FDIs organise study visits for village leaders and extension officers to train farmers in each 30

village they have their activities how to implement the various technologies. They provide practical training on one of the participants farms. A group of farmers gets together in one of their own fields to learn about their crops and things that affect them when using different pesticides of different companies. They learn how to farm better by observing, analysing and trying out new ideas on their own fields. The farmers meet regularly weekly from planting to harvest, to check on how the crops are growing, looking at the amount of moisture in the soil, and counting the numbers of pests (scouting).

Foreign investors also collaborate with NGOs working in the area, and pass this information to the extension officers. This information may be in form of brochures or newsletters and regular visits of agronomists. These Foreign investors produces training manuals and easyto-understand printed information materials in both Swahili and English for distribution to farmers in the villages, as well as to other business partners who distribute their products and NGOs who are engaged in agriculture and educational institutions working on similar issues elsewhere in Tanzania. This helps spread the techniques and approaches developed.

The study findings illustrate the main reasons which influenced these farmers in Kisarawe district in Coastal region to utilize these services. The main reasons were to improve productivity of their crops hence their livelihoods, Most of the farmers who properly used these services have doubled their yield, income and improved their standards of life. Others have utilized these services by controlling pests in the farms who were destroying their crops, which reduced the amount of yield they harvested annually and lowered their income. This made them experience hardships in maintaining their living standards hence improve their livelihoods.

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CHAPTER SIX CONCLUSIONS AND RECOMMENDATIONS 6.1 Conclusion

As in most low income societies, it has been very hard for farmers to get credit in banks or other financial institutions, when granting credit, have the requirement that the potential lender business should have a current account or collaterals. Many cannot access restrictive requirements such as large deposits, formal employment, significant collateral, age and high level of minimum loans. These farmers are not able to increase their capital, move from manual ploughing to machinery use of tractors . Another factor is the long and complicated procedures and bureaucracy before the release of loans which exist among different banks. These delays acquisition of loans to the poor farmers and if it comes, it is too late for the season. We recommend farmers to use wisely the Savings and Credit Cooperatives (SACCOS). It is much easier for banks to grant loans through these cooperatives than to individual farmers. But other challenges which hinders farmers from getting credit is that these SACCOS have poor quality of human resources, operating systems, procedures and practices and supporting services. Still rural areas have problems in operating them; hence lack the qualities for getting good loans in financial institutions.

Benefits obtained in the research is the farmers have many traditional practices and have developed innovations that have not been documented or shared with others, this could be asset for future developers.

6.2

Recommendations

6.2.1 General recommendations: In rural areas where there is a poor infrastructure, should be improved especially during rainy season. This is to encourage more companies intervene their business in the remote areas of the country where most farmers are located. So that the supplies of farming inputs are available at the right time of the season hence increase productivity.

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It is recommended that more companies should be established in Kisarawe district to allow better accessibility of agrochemicals and other inputs. Also these companies should sell along with the products protective gears to prevent harm during spraying. And for the government the tenders should be announced early so to allow the supplies during the season to be much faster and on time for spraying.

Marketing; Marketing of food and cash crops is a problem for many farmers, leading to a glut in the market and low prices for perishable commodities. Possible solutions includes identifying new markets, forming a marketing group to sell the produce to more distant buyers, processing the crops (drying the tomatoes), switching to other crops with a more reliable price, planting and harvesting at different times to avoid having to sell at low prices during the peak harvest period, signing contracts with buyers for a guaranteed price, and so on. 6.2.2 Policy Implications As conservation agriculture is suitable for farmers of all income groups, but poorer people adopt faster because they need to make sure they have enough food, and conservation agriculture enabling them to save money to pay for labour.

Training and development could help entrepreneurs to obtain management skills, including skills in preparing business plans and financial statements, which could, furthermore, bridge the gap in the inequality in granting credit by the banks. In addition, awareness campaigns should be held so that women entrepreneurs could have knowledge about those organizations with the result that they could then utilize their support and facilities.

Both government and non-governmental organizations in Tanzania should undertake a responsibility of training, educating and conducting workshops of farmers from time to time. and not leaving this to foreign companies alone. As more yield means more raise in the GDP of the country.

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Limited markets: Farmers have to do extra work for sustainable or organic production, prices for their products in the local markets is low. Unlike local markets, foreign markets offer premium prices for organically grown produce. But accessing the export market is very difficult for smallholders without outside support. Improved access to higher- value markets would motivate many more farmers to invest work in sustainable agriculture.

6.2.3 Research Implications The study focuses on examining the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region. Apparently there are other key issues which also can be studied as to see their impact on effecting farmers productivity in Developing countries like Tanzania. One can undertake a study on the following areas: (i) How would the Foreign businesses in Developing countries, provide a common platform to discuss the issues, opportunities and challenges on the interface of livelihood and their (foreign businesses) interventions as well as identifying strategies for further state intervention. (ii) There is a need for conducting further studies to assess the financial and technical strength of the existing foreign businesses. This will reveal the actual situation on the current coverage size and the support received by the clients (i.e. farmers) (iii) Future researchers can conduct these study or replicate this study in other regions were farming activities are popular such as the southern highlands, and use other foreign companies to research on how they have succeeded in improving farmers livelihoods.

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REFERENCES Abautagriculture (2008). Priorities for Action in the new Agenda: Increasing the Agricultural 2011) Chambers, R. and Conway, G. (1992). Sustainable Rural Livelihoods; Practical concepts for the 21st century. IDS Discussion paper 296, IDS, Brighton UK. Courbois, R.; Temple, P. (1975). La methode des Comptes de surplus et ses applications macroeconomiques. 160 des Collect,INSEE,Serie C (35). pp. 100. Ellis, F. (2000). Rural Livelihood Diversity in Developing Countries; Evidence and Policy Implications. Gollop, F.M. (1979). "Accounting for Intermediate Input: The Link Between Sectoral and Aggregate Measures of Productivity Growth". Measurement and Interpretation of Productivity, (National Academy of Sciences). Kayunze, K.A. (2003): Social Science Research Methods DS 300 Notes. Development Studies Institute, Sokoine University of Agriculture, Morogoro. (Unpublished) Kombo, D.K. & Tromp, D.L.A. (2006): Proposal and Thesis Writing: An Introduction, Paulines Publications Africa, Nairobi, Kenya. Kothari, C. R (1997): Research Methodology, 2nd Ed. Wishwa, Prakashan, New Delhi, India. Kothari, C. R (1999): Research Methodology, methods and techniques. K.K. Gupta, India. Krantz, L. (2001). The sustainable Livelihood approach to poverty reduction, an introduction Kurosawa, K (1975). "An aggregate index for the analysis of productivity". Omega 3 (2): Sectors Productivity (Retrieved from: http://abautagriculture.blogspot.com/feeds/posts/default?orderby=updated on 27th February,

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157168. Malimbwi, R.E., Katani, J.Z., Zahabu, E. & Mugasha, W.A. (2009). Improving smallholder Livelihoods through Woodlots Management: An Adaptation to Climate Variability & Change in Makete district, Tanzania Mugenda, M.O, & Mugenda G.A. (1999). Research Methods: Quantitative and Qualitative Approaches. Nairobi: ACTS Press. MVIWATA, (2010). Support to Small scale Farmers in Tanzania Financed by Oxfam Ireland (Retrieved from http://www.mviwata.org/content/support-small-scale-farmerstanzania-financed-oxfam-ireland on 27th August, 2011) Nachmias-Frankfort, C. & Nachmias, D. (1996). Research Methods in the Social Science. St. Martins Press, Inc. (5th Edition) OECD, (2006). Promoting Pro-poor Growth Agriculture; Policy Guidance for Donors; Organisation for Economic Co-operation and Development. OECD Publications. Oliver, A. (ed.) (2004). Finding Capital for Sustainable Livelihoods Business. World Business Council for Sustainable Development. Overseas Development Institute (ODI), (1999). Natural Resources Perspectives Number 40, April 1999. Patton, M. Q. (2002). Qualitative evaluation and research methods. (3rd Ed.) Newbury Park, Cal.: Sage Publications. Pineda, A. (1990). A Multiple Case Study Research to Determine and respond to Management Information Need Using Total-Factor Productivity Saari, S. (2006). Productivity. Theory and Measurement in Business. Productivity Handbook (In Finnish). MIDO OY. pp. 272. Saunders, M., Lewis, P. & Thornhill, A. (2009). Research Methods for Business students,

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5th edition. Pearson Education Limited, Essex, England. SIDA; Swedish International Development Cooperation Agency - Division for Policy and Socio- Economic Analysis. Tanzania Agriculture Sector (Retrieved from http://www.tanzaniainvest.com/tanzaniaagriculture on 27th February, 2011) URT (2007). Coast Region Socio-Economic Profile 2nd Edition. Joint Publication by National Bureu of Statistics (NBS) and Coast Regional Commissioners Office Coordinated By: Ministry of Planning, Economy and Empowerment Dar es Salaam, Tanzania. Yin R. (1994). Case Study Research: Design and Methods, Third Edition, Applied Social Research Methods Series, Vol. 5 (Paperback)

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APPENDICES AND ANNEXES Appendix 1: Questionnaire for Respondents The study examines the contribution of the Foreign Direct Investment in improving productivity of small scale farmers in Kisarawe district, Coastal region. Please tick () your answers you consider best reflect your opinion. Your responses and the information you provide will be treated as confidential and will used for academic purpose only and not otherwise. Thus, I am asking for your cooperation in this task to enable me complete my studies at Centre for Foreign Relations. Respondent No A. Personal details of Respondent: 1. What is your Age .. 2. Sex a) Male ( ) b) Female ( ) 3. Marital Status a) Single ( ) b) Married ( ) c) Divorced ( ) 4. Level of Education .; 5. How long have you been farming? a) 1 10 years ( ) b) 11 20 years ( ) c) 21 30 years ( ) d) 31 40 years ( ) 6. Which technology did you use during farming activities? 7. Are you aware of any FDIs in your locality? a) Yes ( ) b) No ( ) 8. What activities/services offered by these FDIs in your area? Please mention them .. Date...

9. Is there any new farming technology been introduced by these FDIs in your area? 38

a) Yes ( ) b) No ( ) 10. If you answered yes to question 6, please mention the technology here below . . . 11. Is there any impact in your production as a result of applying the new technology? a) Yes ( ) b) No ( ) What impact ..

12. What source of financial facilities available for farming activities in your area? . .

13. Do you have an access to financial facilities in your area as a result of existence of FDIs? a) Yes ( ) b) No ( ) 14. What are the requirements for farmers to access them? Please mention them . . . 15. How do you utilize the financial services availed to you? . . . 16. What kind of social services are offered as a result of the FDIs in your area? . . .

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17. How does these services contribute to increasing your efficiency as a smallholder farmers and hence your productivity? Please specify . . . 18. What is the contribution of social services offered through FDIs in general development of area? .. . . 19. General comments on the contribution of FDIs in improving productivity of small scale farmers in Kisarawe district, Coastal region? . Thanks for your Cooperation

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Appendix 2: Research Budget The researcher will be required to have sufficient fund for conducting the study. Source of funds to finance the study will be from financier of the study. ITEM Stationeries Secretarial services Transport Meal TRANSACTION Stationary Typing Photocopy Binding To the Institute To the Field Breakfast (10,000 x 5 days x 10 weeks) Lunch (20,000 x 5 days x 10 weeks) Mobile phone and Internet AMOUNT 300,000 75,000 100,000 50,000 300,000 500,000 500,000 1,000,000 100,00 200,000 TOTAL 300,000/= 225,000/= 800,000/=

1,5000,000/= 100,000/= 200,000/= 3,125,000/=

Communication Other Related expenses GRAND TOTAL

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Appendix 3: Schedule of Work/Activity Plan The study will be conducted from October 2011 to the end of December 2011. The Activities of the study will comprise the following:

Activities
Preparation and submission of Research Proposal Orientation and Formalization to field area Data collection Data analysis Report Writing Submission of the Report

October
4 weeks

November
1 week

December

2 weeks

1 week 1 week 1 week 1 week

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