Recommendations

The assessment has shown that potential for regional trade between Tanzania and Zambia to enhance food security in Zambia exists. However, it seems that currently this potential is not used to the extent that might be possible, for the advantage of all stakeholders involved.

Within this Chapter, recommendations are presented which are derived from analysing the political and institutional context (see Chapter 5.1) and the situation of farmers and traders (see Chapter 5.2). Recommendations are given on the

163 Interview, SIMON KITOJO, TCCIA, Mbeya, August 2009.

164 Interview, DAVID O.ROBINSON, IMF, Dar es Salaam, 06/08/2009.

Assessment of the Field Survey Results 69 national, national, and regional levels. This follows the different levels of investigation within the AF. Recommendations on the sub-national level are mainly derived by converting weaknesses into strengths and threats into opportunities.

Recommendations on the national and regional levels are mainly derived from the policy matrix. The recommendations are directed towards policy-makers, farmers, and traders.

Recommendation on Sub-national Level:

(1) Develop an effectively functioning price information system

The limited availability of market price information was seen as a threat for farmers in their effort to increase production. To strengthen the farmers’ position, a market price information system needs to be implemented. It is important to empower farmers and to strengthen their bargaining power. In the Tanzanian context, this is crucial, because policy makers usually argue that lifting the export ban would benefit only traders and not farmers. To enable farmers also to benefit from cross-border trade, access to market price information is crucial. A good example of how farmers in remote areas are able to obtain market price information regularly is by the use of mobile phones, since these are very common, even in remote areas. (AMIS 2009).

MYHR (2006) showed that fishermen located in rural Tanzania managed to enhance their bargaining power through the increased access to market information obtained by the use of mobile phones.

(2) Improve access to extension services and adapt the package according to the needs of farmers

To convert the insufficiency of extension services into an opportunity, the improvement of existing services is needed. Field survey results indicate that production consultancy already functions quite well, even though it is not spread sufficiently on the village level. But farmers severely lack marketing consultancy.

First, it is necessary to spread extension services more widely so that farmers in remote areas also have access to them. The Kilimo Kwanza demonstrates first steps in this direction. This process has to be strengthened so that the goal can be realised in the medium term. Secondly, the extension service package needs to be adapted to the farmers’ needs. Therefore, the inclusion of marketing aspects is recommended in extension services.

(3) Strengthen the self-organisation of farmers

This recommendation refers to different weaknesses and threats. The access to markets could be enhanced by better self-organisation of farmers, for example, if farmers themselves organised the transport to the market. Also the creation of

70 Assessment of the Field Survey Results marketing co-operatives is facilitated with a higher level of self-organisation. For the establishment of credit groups (see Recommendation 4), self-organisation is necessary. This process could be pushed by incentives for organising or by workshops to train farmers and to raise their awareness.

(4) Improve access to credits for farmers

The lack of access to credits is seen as a threat for farmers. The establishment of microfinance institutions to enhance their access to credits is one possibility. The establishment and efficient functioning of microfinance institutions are facilitated by Recommendation (2) and (3) as organisation in extension service groups and self- organisation in co-operatives create a structure that might be needed for the group- lending components of a microfinance programme. This aspect probably cannot be tackled in the short run, but could be a medium- and long-term possibility. It is a crucial component in strengthening the bargaining power of farmers, since they would not be forced any longer to sell their produce right after harvest.

(5) Use irrigation potentials

Some farmers mentioned reduced production, for example, due to changes in rainfall patterns. The consequences of this situation could be faced by using existing irrigation potentials. Water harvesting might be one option, showing how irrigation potentials could be used in the short run, since costs for establishment are low.

However, to introduce a well-adapted strategy to use irrigation potentials, further research is needed.

(6) Improve infrastructure

Farmers lack physical access to markets due to bad roads, especially in Rukwa Region. Therefore, in the long run it is essential to improve the existing road network.

Also for traders, infrastructure is a problem as it is difficult to transport crops to central and northern Tanzania.

Recommendations on National Level:

(7) Reduce barriers for formal trade

Several NTBs exist which constrain cross-border trade. To create a more favourable situation for cross-border trade, the barriers for formal trade need to be reduced. This general recommendation consists of at least four interrelated recommendations. The first step is to create a situation allowing formal cross-border trade from a practical point of view. Therefore, (7.1) the export ban needs to be lifted. Simultaneously, (7.2) the incentives for formal trade have to be increased. Therefore, (7.3) it is necessary to reduce costs of formal trade by abolishing other NTBs. It would be helpful (7.4) to

Assessment of the Field Survey Results 71 decentralise licensing to simplify customs procedures. ¹⁶⁵

(8) Increase the co-operation between food reserve agencies in Tanzania and Zambia

Several indicators have been found that the co-operation between NFRA and FRA is rather weak. Improved co-operation between the Agencies could enable an ad-hoc compensation for a food deficit in either country - this is one task of both institutions.

A constant exchange of information on the national production level and corresponding food security status has to be institutionalised and strengthened.

Thus, co-operation on an institutional level would facilitate a faster and more efficient reaction to food deficits in both countries, and the prevention of a food crisis at the national level would be enhanced.

(9) Adjust the floor price of the food reserve agency to the market price By adjusting the floor prices to the market prices, market distortions resulting from the higher floor prices of NFRA and FRA could be diminished. On the one hand, this creates more incentives for the private sector to participate in agricultural market development and to push agricultural growth in the long run. On the other hand, farmers might have the opportunity to decide when and at what price to sell in conditions when they have access to reliable market prices and sufficient credit (see Recommendations 1 and 4).

(10) Facilitate the dialogue between Government and the private sector For market development it is necessary that government policies and measures are predictable and reliable for market actors. Here, it is necessary to assist the trust building process between the Government and the private sector. A best practice is the workshop implemented by the World Bank that created awareness and mutual understanding among different stakeholders in Zambia. Enhanced mutual trust between the government and the private sector would facilitate further the consultation process with one another. It is also necessary to strengthen confidence building measures to institutionalise consultation processes among major stakeholders in the agricultural sector. The Stock Monitoring Committee in Zambia can be mentioned as another best practice.

165 Regarding the export ban it has to be kept in mind that even before implementation informal trade took place to a large extent.

72 Assessment of the Field Survey Results Recommendations on Regional Level:

(11) Strengthen the co-operation of national food reserve agencies on the SADC level

The co-operation of national food reserve agencies would help to ensure food security within SADC countries. During times of shortages, this would enable Tanzania to compensate for food shortages with the support of other food reserve agencies.

(12) Promote a regional food security strategy

To promote a regional food security strategy it is necessary to facilitate the development of a common agricultural policy. In turn, this would strengthen regional co-operation through the implementation of this common policy and the development of regional agricultural markets. Furthermore, it is necessary to strengthen the implementation of the SADC Protocol on Trade and set aside national exceptional rules.

Source: Own compilation (2009).

Figure 11 describes the chronology of recommendations that is advised for their implementation. A number of recommendations are interlinked and based upon one another. Therefore, implementation is necessary in a specific time order; this is illustrated by the three boxes, one upon the other. Other recommendations are

Figure 11: Recommendations in Time Context

Assessment of the Field Survey Results 73 independent regarding a time schedule and therefore can be tackled at any point in time. This is illustrated by the left-hand phases. The different colours represent the different levels of recommendation.