IICD supported project: Agricultural Business Information Services (ABIS) - Cromabu component - Tanzania

Countries: Tanzania [TZ]
Sectors: livelihoods

Summary

The CROMABU (Crops Marketing Bureau) project was set up in Magu on the shore of lake Victoria, where the most important sources of income are cotton farming and fishing. In the project a telecentre ,a public place where people can access computers, is set up. Through the centre, farmers have access to information about prices and trade flows. This information helps the farmers to make informed decisions about buying and selling and thereby increases their profits. The CROMABU initiative does not only apply to farmers, but also aims to build ICT capacity within the rest of the community, particularly among young people and women. For the price information service CROMABU has linked up with another IICD project - Business Information Services (BIS) - which compiles and analyses agricultural information. The Cromabu project benefits approximately 55,000 people.

Update

Updated: 2008-08-21

The telecentre component of the project faced great difficulty with severe interruptions of electricity and high costs for bandwidth. When internet provider TTCL moved in with ADSL, the satellite connection became obsolete and the business plan was revised entirely. The new business case is based on subcontracting the telecentre at a flat annual rate with a gradual increase as business picks up.

CROMABU operates a growing community development programme. Community development strongly relies on women and youth groups. Activities include sales of seed for which farmers formerly had to travel 60 kilometres, peer consult with other sites and farmer training in ICT.  A new activity is information on human rights and HIV/AIDS.

CROMABU is a member of Tanzania Telecentre Network, established in 2007, and benefits from knowledge sharing between different telecentres in Tanzania, on themes like sustainability and agricultural content.

The telecentre has been operating for over five years now. The access to weekly price information and the community development activities have increased the income and reduced poverty of the farming community around Magu, benefitting around 5,500 people.

Introduction

The telecentre is located in a rural and poor area and the only one in an area with 40,000 inhabitants.

Read more about IICD’s Tanzania Country Programme.

Objectives

CROMABU has three objectives:

• To provide local people with access to ICT services, e-mail and internet
• To improve the economic development of farmers, micro businesses and small and medium-sized enterprises (SMEs) by providing them with information on prices, volumes, logistics, best practices and intermediate services
• To build ICT capacity within the community through organised group meetings and training

CROMABU is centred in the Lake Zone where much of the cotton is cultivated. It ensures outreach to the grass root level through youth clubs and women’s groups. It also facilitates a two-way flow of information within the region and helps local groups to find the information they want. The concept will first be developed in Magu and will be replicated later on in other districts.

Development Impacts

Development impact is substantial, especially through the empowerment of youth groups and the reduction of poverty due to price information. There are examples of farmers whose income has tripled, because they now know what price they can ask for their crops, and are not dependent on middlemen anymore.

Read more about IICD’s approach towards Livelihoods.’

Lessons learned

Cotton marketing and a break down of the international prices structure was estimated to be of interest to users as Magu is a cotton growing area with a weak marketing structure. Therefore relations were initiated with BIS that establishes consumer price indexes based on local market surveys. However local prices of vegetables turned out most important. Moreover the national marketing structure is weakly integrated, hampering regional trade. Therefore the project started to work with volunteers on bikes, to collect and disseminate price information of markets nearby. Local price information proved very successful and an effective measure against poverty.

Budget

€ 160.000

Project Owner : Crop Marketing Bureau (CROMABU)

Project Contact : IICD