Kasese Desertation PDF

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INSTITUTE OF RURAL DEVELOPMENT PLANNING

DODOMA

DEPARTMENT OF RURAL AND REGIONAL DEVELOPMENT

PLANNING

CONTRIBUTION OF FISHING INDUSTRIES IN HOUSEHOLDS

POVERTY REDUCTION IN MWANZA CITY: A CASE OF IGOMA AND

IGOGO WARDS

BY

KASESE, J CONSTANTINE

A DESERTATION PAPER SUBMITTED TO THE INSTITUTE OF RURAL

DEVELOPMENT PLANNING IN PARTIAL FULFILMENT FOR THE AWARD

OF BACHELORS DEGREE IN REGIONAL DEVELOPMENT PLANNING OF

THE INSTITUTE OF RURAL DEVELOPMENT PLANNING, DODOMA

TANZANIA

SEPTEMBER, 2010
http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


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ABSTRACT

The study was carried out at Igoma and Igogo wards in Nyamagana District aimed atidentifying the contribution of Fishing Industries in household poverty reduction.

The general objective was to examine the contribution of fishing industries in

household poverty reduction specifically in identifying income rising opportunities

offered by the Fishing Industries, determining the roles played by the Fishing

Industries in social services delivery and identifying the challenges facing Fishing

Industries. A total of 108 respondents selected randomly were interviewed. Various

methods and techniques of collecting data like questionnaires, documentary review

and interview methods were used with SPSS and Excel was used for analysis.

Findings revealed that 30.3% of the respondents earned below 100,000/=, 58.6%

earned an average of 300,000/=, 6.1% of respondents earn below 500,000/= and

5.1% of respondents earned above 500,000/=. Also 67.7% of the respondents who

are fishermen have access to market to the Fishing Industries with price of 3500/= to

3700/= per kilogram and through agents it goes by 2500/= to 2900/= per kilogram.

Also 21.2% of the respondents are being financed by the industries in conducting

their business, while 78.8% have no such support. Social services such as education,

health and cleanness are supported by the Fishing Industries where by 68.7% of the

respondents reported to have access to the services provided by fishing industries.

Some challenges which facing the Fishing industries include high production cost,

government policy and decline of fish in the Lake. The researcher concludes that

low income of respondents was due to the constraints such as low purchasing price

in the market, low salaries quality of products, decline of fish and capital to invest.

The efforts and ways to increase people s income can be through government

interventions in the challenges facing the fishing industries so as to increase income

of the people.


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RESEARCH SUPERVISORS CERTIFICATION

I certify that this dissertation entitled Contribution of Fishing Industries in poverty

reduction submitted to the Institute of Rural Development Planning for the award

of Bachelor Degree in Regional Development Planning, is an independent research

work carried out by Mr. Constantine John Kasese, a student pursued Bachelor

Degree in Regional Development Planning under my supervision and guidance.

Mr. Fadhili Ngalawa,

Research Supervisor,

22 September, 2010.


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ACKOWLEDGEMENTS

Many people have contributed both material and moral support to ensure that this

research work is successfully produced.

First of all I would like to thank the Almighty God for giving me good health during

the whole period of my research in Mwanza City Council and to the moment where

all my objectives were achieved as planned. I m indebted to the family of Mr. and

Mrs. J. Kasese for their financial and moral supports provided to me during the

Research period. Let God bless them and give them everlasting life.

Secondly, I would like to give my special thanks to my Supervisor Mr. Fadhili

Ngalawa for his constructive advice, guidance, devotion, criticisms and helpful

suggestions while supervising me from the primary stage of research proposal

writing to dissertation production.

Third, my grateful thanks go to IRDP staffs, my fellow students; Hamis Lugusha,

Asha Lyoba, Obeid Bulenga, Gasper Misungwi, Angela Magese, Stephen Mpangalaand all Third Year Regional Planning Students (2009/2010), Industrial Official Mr.

J, Kasese (FEM), Ward Executive Officers, Mr. J. Maduhu and Mr. G Bunwenge,

Fisheries Officials Mr. Magere Misana and Doto Maiga, Mwanza city council

management led by Patrick Kalangwa (MCE).

Lastly, I would collectively extend my appreciation to all Institutions, organizations

and individuals who contributed in one way or another to the successful

development and achievement of this dissertation.


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TABLE OF CONTENTS

ABSTRACT............................................................................................................... i

DECLARATION ...................................................................................................... ii

COPYRIGHT........................................................................................................... iii

RESEARCH SUPERVISOR S CERTIFICATION................................................... iv

ACKOWLEDGEMENTS ......................................................................................... v

TABLE OF CONTENTS ......................................................................................... vi

LIST OF TABLES .................................................................................................... x

LIST OF FIGURES.................................................................................................. xi

LIST OF APPENDICES .........................................................................................xii

LIST OF ABBREVIATION...................................................................................xiii

DEFINITION OF KEY TERMS............................................................................ xiv

CHAPTER ONE

INTRODUCTION..................................................................................................... 1

1.1 Background information to this problem .......................................... 1

1.2. Statement of the Problem and Significance of the study........................ ............. 4

1.3 Research objectives .. .................................................... 51.4 Research Questions .. .................................................... 5

1.5 Scope of the study . ................................................... 6

1.6 Conceptual framework ................................................. 6

CHAPTER TWO

LITERATURE REVIEW..........................................................................................7

2.1 An overview ............................................. 7

2.1.1 Fishing Industries and Poverty defined................................... ................... 7

2.1.2 Trend of poverty in Tanzania .................................................................... 8

2.1.3 Relation between Fishing Industries and Poverty ................... ................... 8

2.2 Fishing Industries in various levels .......................................... 9

2.2.1 Fishing Industries in the World ................................................................. 9


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2.2.2 Fishing Industries in Madagascar .............................................................. 9

2.2.3 Fishing Industries in East Africa ............................................................. 10

2.2.4 Fish processing industries in Mwanza ..................................................... 11

2.2.5 Fish processing ....................................................................................... 11

2.3 Fishing Industries and Poverty .. ............................................. 11

2.4 Millennium Development Goals and Fishing Industries .................... ................ 12

2.5 Importance of Fishing Industries .. ...................................... 12

2.6 Challenges facing fisheries industry in Mwanza ............................................... 13

2.7 The goal of the National Fishing Industries Policy.......... .................................. 13

2.7.1 The objectives National Fishing Industries Policy ................................... 13

CHAPTER THREE

RESEARCH METHODOLOGIES.......................................................................... 15

3.1 Selection of the study area ................................................. 15

3.1.1 Location.................................................................................................. 15

3.1.2 Climate ................................................................................................... 15

3.1.3. Population.............................................................................................. 15

3.1.4 Employment ........................................................................................... 16

3.2 Data types and Sources ........................................... 16

3.2.1 Primary Data........................................................................................... 16

3.2.2 Secondary Data....................................................................................... 16

3.3 Research Design .. ........................................... 16

3.3.1 Sampling frame....................................................................................... 17

3.3.2 Sampling Unit......................................................................................... 17

3.3.3 Sample Size ............................................................................................ 17

3.3.4 Sampling procedures............................................................................... 18


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3.4 Data collection methods . ........................................ 18

3.4.1 Interviews ............................................................................................... 18

3.4.2 Observation ............................................................................................ 19

3.4.3 Documentary review ............................................................................... 19

3.5 Data processing, analysis and presentation . ................................... 19

3.5.1 Data Processing ...................................................................................... 19

3.5.2 Data analysis........................................................................................... 19

3.5.3 Data presentation .................................................................................... 20

3.6 Limitation of the Study ........................................... 20

CHAPTER FOUR

RESULTS AND DISCUSSION OF FINDINGS ..................................................... 21

4.1 Introduction .. .................................................. 21

4.2 Characteristics of Respondents ....................................... 21

4.2.1 Sex of respondents .................................................................................. 21

4.2.2 Age of the Respondents .......................................................................... 22

4.2.3 Education level of Respondents .............................................................. 22

4.2.4 Occupation of Respondents..................................................................... 23

4.3 Opportunities for rising income offered by the Fishing Industries to the

local people............................................................................................... 24

4.3.1 Employment status of people in the Fishing Industries ............................ 24

4.3.1.1 Household average income implication ............................................ 254.3.1.2 Accessibility of Market by fishermen in the industries...................... 26

4.3.2 Market situation...................................................................................... 27

4.3.2.1 Trend of price in the market in past five years .................................. 28

4.3.3 Financial support from the industries ...................................................... 29


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4.4 Roles played by the Fishing Industries in social services delivery.......... ........... 30

4.4.1 Distribution of social services conducted by the Fishing Industries ......... 31

4.4.1.1 Education services............................................................................ 31

4.4.1.2 Health services ................................................................................. 32

4.4.1.3 Cleanness of City Surrounding......................................................... 32

4.4.1.4 Other social services......................................................................... 33

4.5 Challenges facing the Fishing Industries in its operations ................................. 34

4.5.1 Decline of fish ........................................................................................ 34

4.5.2 Production Cost ...................................................................................... 35

4.5.3 Government Policy ................................................................................. 36

4.5.3.1 Size of Nets and Fishes .................................................................... 36

4.5.3.2 Double Taxation............................................................................... 37

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION........................................................ 38

5.1 Introduction ................................................ 38

5.2 Conclusion .................................................. 38

5.3 Recommendations . ................................................. 39

REFERENCES ....................................................................................................... 41

APPENDICES ........................................................................................................ 43


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LIST OF TABLES

Table 1: Categories of respondents .. ..... .... ..... ..... .... ..... .... ..... .... ..... .. 18

Table 2: Distribution of Respondents by Sex ............................................... 21Table 3: Age Category of the Respondents .................................................. 22

Table 4: Occupation of respondents ..................................................... 24

Table 5: Percentage of Respondents employed in the Fishing Industries................. 25

Table 6: Respondents who get market access to the Fishing Industries ................... 27

Table 7: Market situation of Fish in Fishing Industries ........................................... 28

Table 8: Respondents accessibility to social services .............................................. 30


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LIST OF FIGURES

Figure 1: Conceptual Framework . .. ..... .... ..... ..... .... ..... .... ..... .... ..... .... 6

Figure 2: Education level of respondents .. ..... .... ..... ..... .... ..... .... ..... .. 23

Figure 3: Distribution of income of the Respondents .............................................. 26

Figure 4: Price variation among local fishermen and fish business men.................. 27

Figure 5: Trend of price in past six years ..................................................... 28

Figure 6: Respondents who had access to loan from the industries.......................... 29

Figure 7: Distribution of social services supported by Fishing Industries ................ 31

Figure 8: Ghand Hall round about in Mwanza City............... .................................. 33

Figure 9: Challenges facing Fishing Industries ........................................ 34


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LIST OF APPENDICES

Appendix 1: Household Questionnaire .................................................... 43

Appendix 2: Questionnaire for Weo And Veo .... ....46

Appendix 3: Fisheries Officer .................................................. 47

Appendix 4: Questtionnaire for Indistrial Official . ...................................... 48


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LIST OF ABBREVIATION

BMU Beach Management Unit

EU European Union

FAO Food and Agriculture Organisation

GDP Growth Domestic Product

HBS Household Budget Survey

IRDP Institute of Rural Development Planning

IUCN International Union for Conservation of Nature

LVFP A Lake Victoria Fisheries Processer Association

MCC Mwanza City Council

MCE Mwanza City Economist

MDGs Millennium Development Goals

NPES National Poverty Eradication Strategy

NPFL Nile Perch Fisheries Limited

SPSS Statistical Package for Social Science

URT United Republic of Tanzania

VEO Village Executive Officers

WEO Ward Executive Officers


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DEFINITION OF KEY TERMS

Poverty it refers to the state of being extremely poor, or is the renunciation of the

right to individual ownership of property.

Industry refers to an economic activity concerned with the processing of rawmaterials and manufacture of goods in factories.

Household refers to a house and its occupants regarded as a unit.

Fishing refer to an organized effort by humans to catch fish and other aquaticspecies and rear fish.


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CHAPTER ONE

INTRODUCTION

1.1 Background information to this problem

Fishing Industries is the dominant economic activities that contribute largely to the

income of the Mwanza region as the region itself is found along the shore of Lake

Victoria. Most of the seven fish processing industries that are present in Mwanza

today have been established in the 1990s (MCC, 2008).

The present seven fish processing industries in Mwanza today have been established

in the 1990s. The industries contributes significantly to the foreign exchange

earnings of the country, in 1994 earning from fish was estimated to about US $ 14

million (Maembe, 1997),and this continues to rise as the number of the processing

industries are increasing now to about seven (7) industries in 2010 which are Nile

Perch Fishing Industries Limited, Vic Fish Limited, Tanzania Fish Processors

Limited, Omega Fish Limited, Mwanza Fishing Company Limited, Tan perch

Limited and Tanzania Fishing Industries Development Company Limited (NICO) as

compared to 2 in 1994 in Mwanza.So due to this one of the major occupation of the

inhabitants along the shores of Lake Victoria in Mwanza region is fishing. Lake

Victoria provides freshwater fishing potential for the region. Fishing in the Lake is

always done by local artisan fishermen using planked boats and dug-out canoes

(Maembe, 2006).

Principal fish caught are the Nile perch and Dagaa . Other important species

include tilapia, African lungfish and catfish .It is only in recent years that the great

potential of the Lake is being fully realized through the establishment of organized

fish marketing and processing. Annual fish harvests of 200,000 tons can be achieved

from the Lake Victoria without endangering the fish population. Recorded figures

for 1992 were 93,327 and recorded weight in 1993 was over 129,000 tons, but

declined to 74,133.8 tons in 1994 and 75,086.7 tons in 1995 and to 80,083 in 1996

(Maembe, 1997).


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found below the food poverty line. This trend represents a small decline of about 2%

in the proportion of the poor on both the measures of 2000-2001 and that of 2006-

2007 Household Budget Survey (URT, 2007). All this has been caused by high

population growth in Tanzania since 2000 and 2007.


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1.2. Statement of the Problem and Significance of the study

The development of fisheries processing industries came as the result of the Nationalinvestment policy of 1996 the emphasized on the promoting development and

growth of small and medium scale industries which will serve both the domestic and

export market (URT, 1996). Most of the fish processing industries in Mwanza

started in 1990s based on the established companies. Presently, there are 7 fish

processing industries that process fish for exportation. It is estimated that Fishing

Industries generate about 1.7 billion to the government in a year. Fishing Industries

provide employment for over 400,000 locals and outsiders and generated income of

Tsh.182 million to local fishermen from selling fish to the processing plant in a day

(MCC, 2008).

A study conducted in the area showed that 66% of the beneficiaries from Fishing

Industries earn 100,000/= to 300,000/= in a month that does not satisfy them to meet

their needs as compared to the findings of the Household Budget Survey of

2006/2007 that show that national poverty line is Tshs. 10,219 for food and Tshs.

13,998 for basic needs per adult equivalent (Bilame, 2009). As a result of this most

of the people from the industries do engage themselves in other small activities such

as subsistence farming, casual labour and small business such as retail shops (Kiosk)

so that they can earn their living. So the question comes, why this situation is still

prevailing in the study area despite of the presence of the industries? Therefore this

study aims to provide critical fact related to the contribution of fish processing

industries in poverty reduction.

Therefore, the findings and recommendations from this study will be used as an

important tool for policy and decision makers in ensuring that good fisheries

industrial policy are formulated to enable the community to benefit from the present

established Fishing Industries. Also this research can act as the base for further

researches on Fishing Industries and poverty reduction. Furthermore, this study will

be a partial fulfillment of my Bachelor Degree in Regional Development Planning

(BDRDP) from the Institute of Rural Development Planning (IRDP) as per

Institute s almanac.


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1.3 Research objectives

The general objective was to assess the contribution of Fishing Industries in

households poverty reduction a case study of Igoma and Igogo wards in Mwanza

City.

Specific Objectives

i.To identify income rising opportunities offered by the Fishing Industries to the

local people.

ii.To determine the roles played by the Fishing Industries in social services

delivery.

iii.To identify challenges facing Fishing Industries in daily operation.

1.4 Research Questions

i. What are the opportunities for rising income offered by the FishingIndustries to the local people?

Variables

Employment Market Financial support

ii. What roles do the Fishing Industries play in social services delivery?Variables

Health services Education services Cleanness.

iii. What are the challenges facing the Fishing Industries in its operations?Variables

Decline of fish Quality of products Government policy


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1.5 Scope of the study

This study is proposed to be conducted in Mwanza city council, Nyamagana district

specifically in Igoma and Igogo wards with the aim of accessing the contribution of

the available Fishing Industries in household income reduction.

1.6 Conceptual framework

The conceptual frame work is an analytical tool that tries to show the relationship

between the variables that will be assessed during the research; it is divided into

three groups of the independent, intermediate and the dependent variable. Basing on

the study this conceptual frame work tries to distinguish clearly different types of

variables that will be studied and showing the relationship that exist between the

variables. It can be in the form of narrative statement or mathematical equation.

Figure 1: Conceptual Framework

Independentvariables

Intermediatevariables

Dependentvariable

Income generation Investment Employment

opportunity

Saving Fishing input

accessibility

Financial support Price Storage system

Poverty reducedat householdlevel

Market Policy Technology Capital Fishing

education


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CHAPTER TWO

LITERATURE REVIEW

2.1 An overview

Fishing Industries are a source of income for over 100 million people. The

majorities are employed in small-scale Fishing Industries in the developing world;

90% are from Africa and Asia, where poverty among coastal and rural communities

is often particularly high. In many developing countries, Fishing Industries and

poverty are synonymous. But although many fishers are poor, Fishing Industries are

also capable of generating great wealth. For Fishing Industries to contribute to

poverty reduction, the distribution of that wealth must be addressed. However, too

much fishing pressure is causing overexploitation of fish stocks and threatening the

contributions they can make to poverty reduction (FAO, 2000).

2.1.1 Fishing Industries and Poverty defined

Fishery

Fishery this refers to an organized effort that is done by people in groups or an

individual to catch fish and other aquatic creatures for the aim of generating income

or sometimes as foodFishing Industries refer to areas where the Fishing Industries

products are taken for processing and packaging mostly for commercial purposes

within or without the country(Shechambo, 2004).

Poverty

Poverty refers to deprivation, however, it is now viewed as encompassing both

income and non-income dimension, thus poverty is not only lack of income and

other material means but also lack of basic social amenities such as education,

health, clean and safe water as well as lack of personal security (Shechambo,

2004).So ever lack of effective participation of individuals and ability to handle

shocks are also increasingly to be recognized as the key dimension of poverty.


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2.1.2 Trend of poverty in Tanzania

In Tanzania, the definition of poverty has been evolved from simply focused on the

cost of meeting basic needs necessary for maintaining minimum standards of living

(URT, 2005). Recently, the definition for income poverty has been strengthened by

including the ability of people to access social and economic services such as

education, health and clean and safe water (URT, 2005).

Tanzania is classified as one of the poorest countries in the world; this is based on a

wide range of monetary indices such as Gross Domestic Product (GDP) and Gross

National Product (GNP) per capita per year, and USD per capita per day. According

to the Household Budget Survey of 2000/01 the proportion of the population below

the national food poverty line is 18.7 percent and that below the national basic needs

poverty line is 35.7 percent. Poverty remains overwhelmingly in rural areas where

87 percent of the poor population live, and is highest among households who depend

on agriculture. As the population is growing, the absolute number of the poor raises

concern (URT, 2005).

The Tanzania government has adopted and formulated various intervention

measures which address the issue of poverty both at national and individual or local.

In addressing the key challenge of reducing income poverty Tanzania prepared and

adopted Development Vision 2025 in 1999 and the National poverty Eradication

strategy (NPES) in 1997, which spell out a vision for the society with object poverty

and improved social condition. The NPES that was adopted in 1997 aimed at

providing guidance to all stakeholders in identifying, formulating, implementing and

evaluating their poverty (Ravalion, 2000; Sen. 1999).

2.1.3 Relation between Fishing Industries and Poverty

According to Bene (2003) reviewed at the perceptions that was embraced by various

international agencies, elites and practitioners who tried to identify the relation that

exist between poverty and Fishing Industries in developing countries and then he

tried to identify the underlying concept that have structured the perceptions. The


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review was based much on two things which are economic (income poverty) and

biological (overexploitation of fish stocks) aspects of the prevailing problem. His

review was based on the perception that was made from other sectors with regard to

the poverty as it is proposed by various international communities. The review

showed that the inclusion of the recent research on poverty that helps to show how

various social-institutional mechanisms governing the access by people to Fishing

Industries resources rather than the resources themselves play such a role in

vulnerability to poverty.

2.2 Fishing Industries in various levels

2.2.1 Fishing Industries in the World

According to the Food and Agriculture Organization (FAO), the world harvest in

2005 consisted of 93.3 million tones captured by commercial fishing in wild Fishing

Industries, plus 48.1 million tones produced by fish farms. In addition, 1.3 million

tons ofaquatic plants (seaweed) were captured in wild Fishing Industries and 14.8

million tons were produced by aquaculture.

2.2.2 Fishing Industries in Madagascar

Madagascar is an island east of the African continent. Its economic policy has

centered on a strategy of privatization and liberalization since the mid 1990s, with

considerable loans from the World Bank and IMF. This strategy has placed the

country on a slow and steady growth path from an extremely low level. Agriculture,

including fishing and forestry, is a mainstay of the economy, accounting for more

than one-fourth of GDP and employing four-fifths of the population. Current GDP is

about US$ 5.5 billion or US$ 240 per capita. Although GDP growth averaged only

2.1% between 1990 and 2003, GDP growth rebounded after the crisis year 2002 and

increased to 6% in 2003. Madagascar s export grew with a remarkable 121 % in

2003 and averaged US$ 852 million in that year (Rojat and Chaboud, 2004).
http://en.wikipedia.org/wiki/Tonnehttp://en.wikipedia.org/wiki/Commercial_fishinghttp://en.wikipedia.org/wiki/Wild_fisheries_of_the_worldhttp://en.wikipedia.org/wiki/Wild_fisheries_of_the_worldhttp://en.wikipedia.org/wiki/Fish_farmhttp://en.wikipedia.org/wiki/Aquatic_plantshttp://en.wikipedia.org/wiki/Seaweedhttp://en.wikipedia.org/wiki/Aquaculturehttp://en.wikipedia.org/wiki/Seaweedhttp://en.wikipedia.org/wiki/Aquatic_plantshttp://en.wikipedia.org/wiki/Fish_farmhttp://en.wikipedia.org/wiki/Wild_fisheries_of_the_worldhttp://en.wikipedia.org/wiki/Wild_fisheries_of_the_worldhttp://en.wikipedia.org/wiki/Commercial_fishinghttp://en.wikipedia.org/wiki/Tonnehttp://en.wikipedia.org/wiki/Fishing_by_countryhttp://en.wikipedia.org/wiki/Food_and_Agriculture_Organizationhttp://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


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Since the last five years, the Fishing Industries and aquaculture sector is one of the

three main economic sectors in Madagascar (next to mining and tourism).

Madagascar has a big wealth in fishing grounds and the fishing product is rich and

diversified. The shrimp Fishing Industries have been the main growth sector in the

national economy. Shrimp aquaculture is a major export sector for Madagascar and

one of the principal sources of foreign currency. Total output yields around 15 000

tones, and provides US$75 million in foreign exchange earnings. Since 1994, the

Malagasy government has changed fishing policies and introduced a successful

state/fishing industry partnership programmed (Rojat and Chaboud, 2004).

2.2.3 Fishing Industries in East Africa

Kenya started to export fish in the early 1980s, when fish processing factories were

established around Lake Victoria. Thus over the past 20 years, the Fishing Industries

sub-sector has gradually evolved from a domestic consumption oriented industry to

an export oriented industry with value added processing being applied (Boka and

Ikiara, 2000).The Fishing Industries sub-sector provides employment and income to

over 500,000 Kenyans engaged in fish production and related enterprises. In terms

of contribution to the gross domestic product (GDP), Kenya's fishing industry has

accounted for 0.3% of GDP for the period 1999-2003. Kenya s annual average

production for the period 1999-2003 was 171,000 metric tones with a value of

approximately KHz 8 billion in 2003. About 30% of the fish is exported to countries

in Europe and other non-European countries (Abila, 2003).

There are 17 industrial fish processing companies in Kenya all of which are export

oriented and can be classified as either land based establishments or water-based

freezer vessels. These companies mainly produce frozen and chilled fish for export

to European and other non-European markets. These companies deal in different fish

species including Nile Perch, prawns, lobsters, octopus, cuttlefish and squids. The

fish processors industries in Kenya have an installed capacity of 437 Metric tones

per day of which only 213.4 metric tones per day is utilized. The sector is regulated


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and controlled by the Fishing Industries Department, which falls under the Ministry

of Livestock & Fishing Industries (Abila, 2003).

2.2.4 Fish processing industries in Mwanza

There are seven fish processing industries which can process a total of 200 tones of

Nile perch per day-say an average of about 60,000 tons a year. About 40,000 tons of

fish is exported to European Union (EU) countries and Far East countries of Japan

and Australia. A total of 29,630 tons been sold to other regions within the country

and about 28,875 tons is consumed locally within the region (MCC, 2008).

2.2.5 Fish processing

Fish processing delivered by commercial Fishing Industries and fish plants that are

in the region. The larger fish processing companies have their own fishing fleets and

independent Fishing Industries. The products of the industry are usually sold

wholesale to grocery chains or to intermediaries. Fish processing can be subdivided

into two categories: fish handling (the initial processing of raw fish) and fish

products manufacturing. Aspects of fish processing occur on fishing vessels, fish

processing vessels, and at fish processing plants. Another natural subdivision is into

primary processing involved in the filleting and freezing of fresh fish for onward

distribution to fresh fish retail and catering outlets, and the secondary processing that

produces chilled, frozen and canned products for the retail and catering trades (FAO,

2005).

2.3 Fishing Industries and Poverty

Combating poverty is high on the agenda of governments and the international

community. In September 2000, 189 nations committed themselves to work towards

the Millennium Development Goals (MDGs), a set of 8 goals aimed at halving the

number of people living in poverty by 2015. Fishing Industries can play a role in

achieving these goals. Fishing Industries are a source of income for over 100 million
http://en.wikipedia.org/wiki/Fish_processing_planthttp://en.wikipedia.org/wiki/Fish_processing_vesselhttp://en.wikipedia.org/wiki/Fish_processing_vesselhttp://en.wikipedia.org/wiki/Fishing_vesselhttp://en.wikipedia.org/wiki/Grocery_chainhttp://en.wikipedia.org/wiki/Wholesalehttp://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


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2.6 Challenges facing fisheries industry in Mwanza

Lack of Fishing Industries experts to manage the industry effectively, rangingfrom those who would educate fishermen on how to do/perform modern fishing

to bring about sustainable development within fishing industry. The monitoring

and supervision of fishing activities is minimal due to few personnel, lack of

transport and poor communication.

Lack of fishing infrastructure only one industry/workshop which are in placefor making fishing ship, boats Illegal fishing, the use of un authorized

methods/means of fishing example the use of smaller sizes of fishing net which

catches the young fishes not intended /or not allowed; use of drugs to poison

fishing grounds

Presence of lake weeds aeration in the lake waters becomes poor (MCC,2008).

2.7 The goal of the National Fishing Industries Policy

The overall goal of the National Fishing Industries Policy is to promote

conservation, development and sustainable management of the Fishing Industries

resources for the benefit of the present and future generations (URT, 1997).

2.7.1 The objectives National Fishing Industries Policy

To put into efficient use available resources in order to increase fish productionso as to improve fish availability as well as contribute to the growth of the

Economy.

To encourage and support all initiatives leading to the protection and sustainableuse of the fish stocks and aquatic resources.

To protect productivity and biological diversity of coastal aquatic ecosystemsthrough prevention of habitat destruction, pollution and over exploitation.


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Improved involvement of fisher communities in the planning development andmanagement of fishery resources.

Pursue a continuing integrated program for Fishing Industries in the coastalzones to meet the ecological and social economic needs of present and future

generations (URT, 1997).


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CHAPTER THREE

RESEARCH METHODOLOGIES

This section intend to describe how and where the study was conducted ,as it shows

the design of the research, methods and type of data collected and analysis

techniques used in research ,sampling procedures and sample design will be

explained in this section.

3.1 Selection of the study area

This study was conducted in Nyamagana district specifically in Igoma and Igogo

wards, The reason for selecting this study area is because in the two wards there are

three (3) Fishing Industries are located which are Vick fish Limited, Tanzania Fish

Processing Limited and Nile perch Fishing Industries Limited also the two wards are

along the Lake thus it enabled the researcher to get required data easily.

3.1.1 Location

Mwanza city council is situated between latitude 215 south 245just south of

equator and between 3245-3333east.it is among eight districts of Mwanza region.Mwanza city council itself consists of two districts, Lamella and Nyamagana,

21wards, 17 streets and 517 hamlets /Miata.

3.1.2 Climate

Mwanza city receives between 700-1000mm of rainfall per annum with two rain

seasons, short from August October and December May is long rain season.

Average temperature is between 20C to 30c annually. Mwanza is about 1140

meters above sea level. Mwanza has tropical climate and favorable lake wind.

3.1.3. Population

According to the 2002 National Census, Mwanza City has 476,646 (Nyamagana

District 210,735 and Lamella 265, 911). The current population is estimated to be


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500,000 people with an annual natural growth rate of 3.2% and rural to urban

immigration almost 8 % (URT, 2002).

3.1.4 Employment

According to 2008 Mwanza Environmental Profile Report, 4% of people were self-

employed, 32% employed and 27% unemployed. Most of the employed people

work in the service sector, while those who are self-employed are involved in petty

trade, tilling land, micro-fishing activities. The current figure of the employment in

the City (employed and self employed) stands at about 50%. The average per capita

income is about US $21 per month (MCC, 2008).

3.2 Data types and Sources

3.2.1 Primary Data

These are the data and information that were directly collected from respondents in

the category of households (small scale fishermen, employees in the Fishing

Industries) and from key informant that includes Government officials (Natural

resource officer, Village and Ward Executive Officers, Official Fishing Industries

agent).

3.2.2 Secondary Data

These are written documents from the responsible offices published documents,

reports, files, and other available documents. Records, various literatures related to

poverty and fish processing industries as well as documentary review of files

investment policy and profile of the area of study.

3.3 Research Design

There are two main types of research design which are; experimental and non

experimental design research. This study used non-experimental techniques which

were nominal or ordinal data about the values of the population parameters where

cross sectional, observation and library research methods was employed. The cross


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sectional research method involved asking questions to representatives sample of

different groups at the study areas, observation for assumption was drawn at

random, and library research method was involved the use of written materials from

different sources as libraries, and internet respectively.

3.3.1 Sampling frame

This shows the list of the population that was used in the study, which population

should be of interest to the researcher. This study based on the beneficiaries from the

fish processing industries where a sample of 17,022 households including fishing

communities and employees from two Fishing Industries in the two wards was used

to draw a sample size of 99 respondents.

3.3.2 Sampling Unit

The basic unit of sampling was from household, official (Village Executive Officer

and Ward Executive Officer), Fisheries agent and natural resource officer.

3.3.3 Sample Size

In this a number of unit was selected from the sampling frame to constitute a

sample, the sample complied with regard to; efficiency of doing the research,

representation of the study population, reliability of data and flexibility in executing

the research. This study will consist of 108 respondents; the sample size was

obtained by using the following formula;

n = N

1 + N (e)2

(Yamen,1967)

Where; n

Sample size, N- Number of households, (1702 households) 1- Constant,

e- Error (confidence interval 0.1)

n = 17022 n = 99

1+17022 (0.1)2


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Table 1: Categories of respondents

PLACE AND SAMPLE SIZENO. CATEGORY O F

RESPONDENTIGOGO IGOMA TOTAL

1 WEOs and VEOs WEO1

VEOs

2

WEO

1

VEOs

2 6

2 Fishermen and Employees fromIndustries 49 50

99

3 Fisheries officer 1 1

4 Fish agent 1 1 2

TOTAL 108

3.3.4 Sampling procedures

Both probability and non-probability sampling procedures were used in this study.

For probability sampling sample stratified sampling and random sampling was used

to obtain respondents from each ward and for non-probability the purposive

procedure was used to get information from households leaders, ward executive

officers, village executive officers, natural resources office and one of the fish agent

using rotary and tabling tools.

3.4 Data collection methods

In carrying out this study three techniques of data collection was employed

including, interview, documentary review and observation.

3.4.1 Interviews

This is a method of collecting data by interviewing people by asking questions and

getting reply from them. The main tool used in this method includes questionnaires,

where open and close form questionnaire were prepared according to respondents

oral interview was used were people were directly consulted by the researcher.


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3.4.2 Observation

This helps researchers to validate the collected information through the methodsused. A researcher gathered information or data through observation and noting the

behavior and actions of respondents and community as well as in their day to day

activities.

3.4.3 Documentary review

This was used to get secondary data through the use of checklist. The main tools

used in this method are summarizing and abstracting of the information so as to get

information from the documents found in the respective offices.

3.5 Data processing, analysis and presentation

All the data which were collected were compiled manually and coded accordingly.

Then all data were processed and analyzed by using computer programs like

Microsoft Excel and Statistical Package for Social Sciences (SPSS).

3.5.1 Data Processing

Processing of data includes editing, tabulation, classification and coding of the

questionnaires by developing codes assigning numerals and symbols so as to

answers for limited numbers of categories to reduce a small number of classes which

contain the critical information required for analysis, editing and examining the

collected raw data especially in survey to detect errors and omissions so as to

analyze them using Statistical Package for Social Sciences (SPSS).

3.5.2 Data analysis

A substantial part of the analysis in this study was based on descriptive statistics

analysis. These include frequencies, percentages, means and correlation coefficients

of some variables. SPSS was used to analyze descriptive statistics such as estimates

of frequencies and percentages while Microsoft Excel was used for drawing graphs

and charts from the analyzed data.


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3.5.3 Data presentation

The research findings from the obtained data were presented in tabular forms charts

and other statistical tools analysis such as frequencies, percentages and simple

tables. Therefore, discussion of results, conclusion and recommendations were based

on findings interpreted.

3.6 Limitation of the Study

The researcher faced some limitations when carrying out the study the following are

some of the limitations faced.

Community awareness on the important of providing data and information isvery low some respondents were reluctant in providing data. This was solved

by spending time to convince and teach the respondents on the importance of

conducting research.

The return of questionnaires for respondents took place over long period oftime than the planned time. This forced the researcher to spend most of time

to make dairy follow up for the respondents with questionnaires so that to get

data. Some respondents were not able to read and write this resulted to the

recruitment of more enumerators so that to assist the researcher to collect

data that were to be filled by writing and this resulted to increase cost of

conducting research.


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CHAPTER FOUR

RESULTS AND DISCUSSION OF FINDINGS

4.1 Introduction

This chapter is basically concerned with the discussion of the findings of the

research based on the collected data from various respondents who are involved

directly in fishing activities, employed in Fishing Industries and business people

based on the contribution of the Fishing Industries in poverty reduction at

household.

4.2 Characteristics of Respondents

The general characteristics of the examined respondents include their sex, age,

marital status, education level and occupation of the respondents.

4.2.1 Sex of respondents

Table 2 below shows the distribution of the respondents by sex. The results show

that 92.9% of the respondents were male and only 7.1% were female. This shows

that men are mostly involved in activities concerning fish and employed in Fishing

Industries for income generation of the family while women take a small part

especially in selling of fishes in the market for domestic consumption.

Table 2: Distribution of Respondents by Sex

Sex Percent

Male 92.9

Female 7.1

Total 100


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4.2.2 Age of the Respondents

Table 3 below shows the age composition of the respondents. The age was rangedfrom 25-35 years, 36-45 years and 46-Above years. The result shows that 48.5% of

the respondents fall in the age category of 36-45 years of age that means that at this

age people who are involved in fishing activities own fishing equipments (fishing

gears and boats) because they consider fishing as their source of income and the

only activity that can increase their income. While those employed in Fishing

Industries have their own capital or access to loans to conduct business for income

generation for raising their income. Since fishing is self employment, respondents in

category of 25-36 years of age that is 42.4% this category have low capital and thus

they use local tools in their activities. And lastly those who are in the category three

46-Above years of age that is 9.1% are business people in fishing sector from the

study area were others are selling fish to the industries and others are selling fisher

for domestic consumption.

Table 3: Age Category of the Respondents

Age (years) Percent

36-45 48.5

25-35 42.4

46-Above 9.1

Total 100

4.2.3 Education level of Respondents

Figure 2 below shows the level of education attained by the respondents in the study

area, three levels of education status were identified and these are primary

education, secondary education and college/institute. The study shows that 7.1% of

the respondents where 4 respondents are fishermen and 3 are business men in fish

had attained secondary education; also 71.7% of the respondents had attained

primary education where 48 are fishermen, 12 are fish business men and 11 are


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employed in the fishing industries in loading of cars and guards in the industries.

Lastly 21.2% of the respondents had attained collage/institute education and all

these are employed in the industries in various departments.

Figure 2: Education level of respondents.

4.2.4 Occupation of Respondents

The respondents of the study area have various occupations which help them to get

day to day basic needs, where by 52.5% of the respondents are directly involved in

fishing activities as their main source of income, 15.2% of the respondents are

involved in fish business from fishermen to the industries (Agents) of fish in the

industries and lastly 32.3% of the respondents are employed in the Fishing

Industries found in the study area. As the study itself that looks on the contribution

of Fishing Industries in poverty reduction at household level, the results revealed

that all the three categories of the respondents are benefited from the industries in

one way or the other whether by selling direct fishes to the industries and others by

being employed to the Fishing Industries. The study also revealed that agents of fish

0.0

10.0

20.0

30.040.0

50.0

60.0

70.0

80.0%

Education level

Secondary Primary College


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are benefiting much more than the fishermen because they do purchase fishes at low

price from the local fishermen and sell to the industries at high price as compared to

purchasing price from the local fishermen. All this is because the agents are more

selective to the fish that are required by the industries and thus it becomes difficult

for the fishermen to deal with other fishes that are not required as a result they sell

them to local market at a low price. (Table 4) below shows the distribution of the

occupation of the respondents in the study area.

Table 4: Occupation of respondents

Type of occupation Percent

Fishing 52.5

Business of fish 15.2

Employment( driver, store, accountant) 32.3

Total 100

4.3 Opportunities for rising income offered by the Fishing Industries to the

local people

In this objective the researcher aimed at determining the extent Fishing Industries

have offered opportunities to the community in the study area. In determining the

contribution of the industries the researcher tried to solicit on three things which are

employment status, market chances and financial support. So with the three

opportunities that are offered by the industries in the study area the researcher came

up with the following findings of how the Fishing Industries contribute to poverty

reduction.

4.3.1 Employment status of people in the Fishing Industries

Table 4 below indicates that 33.3% of the respondents are working in the industries

at various departments such as accountants, drivers, loaders, store keepers, guards

and cleaners. This shows that the industries are providing employment opportunities

to the people in the area so that they can conduct their living. Thus 33% of the


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respondents reported that the income generated was helping them to meet their

necessities and in so doing combat poverty. Compared to the study conducted by

(MCC, 2009) it shows that since the introduction of the business in the early 90s, the

statistics shows that an industry employment increased from 30,000 to 400,000.

About 300,000 people work part time jobs in the fisheries processing industries in

Mwanza City. So this does not vary so much with the finding that show the trend of

employment offered by the Fishing Industries to people in the study area because the

findings from MCC shows that Fishing Industries employ to about 3% of all the

people in the City.

Table 5: Percentage of Respondents employed in the Fishing Industries

Employed in Fishing Industries Percent

Yes33.3

No66.7

Total100

4.3.1.1 Household average income implication

Household income of the respondents have direct link to the occupation of the

respondents, all the respondents in the study are reported that the income generated

helped them meet their family basic needs. Where by 30.3% of the respondents

earned below 100,000/=, 58.6% earned average of 300,000/=, 6.1% of respondents

earn below 500,000/= and 5.1% of respondents earned above 500,000/=. This does

not differ much with the study conducted by (Bilame, 2009) that shows the averageincome earned by the local fishermen in Mwanza ranges from 100,000/= to

300,000/= and few respondents earned about 1,650,000/= monthly. So despite of

low income earned respondents are able to pay for school fees for their children and

renting house and other construct houses. The respondents further reported that they

spend a large share of their income in buying food requirements. (Figure 3) below


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shows the distribution of income of the respondents in percentage from those with

high income to low income earners.

Figure 3: Distribution of income of the Respondents

4.3.1.2 Accessibility of Market by fishermen in the industries

Respondents presented in (Table 6) below shows the market situation offered by the

fisheries processing industries to the local fishermen in the study area. So the

findings from the study shows that 67.7% of the respondents who are fishermen

have access to market to the Fishing Industries through agents who are purchasing

fishes from the local fishermen and sell to the industries, the respondents also added

that it is more profitable to sell to the industries directly rather than through agents

because the purchasing price of agents differ from that of the industries since selling

direct to the industries goes by 3500/= to 3700/= per each kilogram and through

agents it goes by 2500/= to 2900/= per each kilogram. Other 32.3% of the

respondents are not fishermen thus they are involved in other activities like

employment and business.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0%

Below 100,000 Above 500,000

Income category

Average 300,000 Below 500,000


42/63


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account 29.3% said that the market situation is high because of the increase in the

number of industries in the study area thus there is high demand of fish in the

industries. And lastly 28.3% of the respondents had no idea about the trend of fish

market in the Fishing Industries. (Table 7) below present the market situation as

reported by respondents who were traced.

Table 7: Market situation of Fish in Fishing Industries

Market situation Percent

Low 42.4

High29.3

Not sure 28.3

Total 100

4.3.2.1 Trend of price in the market in past five years

The trend of price of fishes in the market varied year to year due to decline of fish

and demand of fish in the market. (Figure 5) shows the trend of variation of price inthe market in respective years as follows;

Figure 5: Trend of price in past six years

23002700

3000

3500 35003800

0

5001000

1500

2000

2500

3000

3500

4000

2005

2006

2007

2008

2009

2010

Price


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4.3.3 Financial support from the industries

The findings from the study area show that 21.2% of the respondents are being

financed by the industries so that they can conduct their business and increase their

income, while 78.8% had no access to such loans. But for a person to qualify for the

capital offered by the industries he/she must be accessed to have capacity to return

the amount given in an appropriate time as required. Some qualification measure

includes land, house or car as a bond to be repaid for compensation. Also according

to the study conducted by (Bilame, 2009) shows that shows that large scale

fishermen have direct mutual link to the fish processing industries, they therefore,

have access to all the necessary facilities for fishing (gill-nets, credit supply and

transport vessels) from the fish processing factories. Thus the study by (Bilame,

2009) have direct link to this study because financial support from industries have

helped many people to increase their capital and thus increase their income.

(Figure 6) shows the findings of the responses about access to credit/ loan from the

industries.

Figure 6: Respondents who had access to loan from the industries

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.080.0

YesYes No

%


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4.4 Roles played by the Fishing Industries in social services delivery

This question was developed by the researcher so that to identify and see to the

extent to which the Fishing Industries involve in social services delivery to the

people in the study area. The findings from the respondents shows there are three

main services that are offered by the Fishing Industries and these include health

services, education and cleanness of the City surroundings, where by 68.7% of the

respondents said that they have enjoyed services that are provided by the Fishing

Industries like education and health services where the association of Fishing

Industries have contributed to construction of one school in called Nyangulungulu

Secondary school, contribution in rehabilitation of Sekou Toure Hospital,

construction of Hindu Union hospital in Igogo ward and construction of Igogo road

to Bugando Hospital (NPFL, 2009). So the report written by NPFL shows the

involvement of the fisheries industry in social services delivery to the people who

are working in the industries and the community at large.

Table 8: Respondents accessibility to social services

Response Percent

Yes 68.7

No31.3

Total100


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4.4.1 Distribution of social services conducted by the Fishing Industries

(Figure 7) shows the distribution of social services that are provided by theassociation of fisheries in Mwanza City.

Figure 7: Distribution of social services supported by Fishing Industries

4.4.1.1 Education services

Findings show that 39% of the respondents had access to education services which

have been in one way or the other a result of the Fishing Industries in the study area.

Where by Nyangulungulu Secondary school is much considered because it have

been constructed by the association of the Fishing Industries. Also training about

good methods of fishing is another type of education that is offered by the Fishing

Industries so that to assure sustainability of fish products. This helps to reduce

poverty among the community because as the fishermen gets education they increase

their income through quality products which will have greater demand in the marketboth for industrial and domestic consumption.

39%

46%

15%

Education Health services Cleanness


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4.4.1.2 Health services

Researcher also finds that 46% of the respondents enjoy health services which have

been as a source from the Fishing Industries, where by workers in the Fishing

Industries reported that they do access health services from the industries in ensuring

safety and health at work. So ever the association of the Fishing Industries has

contributed to the construction of Hindu Union hospital with $ 30 million in Igogo

ward that will help people to access health services easily also the association have

contributed to the rehabilitation of Ilemela District hospital (Sekou Toure Hospital)

with Tsh 30 million. This can be compared to the study by (Kimaryo, 2009) in

Kenya that shows how association of fisheries industry assist health services in three

East African countries. As health services an important element that ensures good

health of people that leads to effective performance of activities that increases

income in the house so people have been benefited from the health services

supported by the Fishing Industries.

4.4.1.3 Cleanness of City Surrounding

Cleanness of City surrounding is among the services which is offered by the

association of the Fishing Industries where by there are several gardens anddumping bins which are serviced by the association of the Fishing Industries such

as, Ghand hall square, Station road square and Nyerere round about which are under

the association of the Fishing Industries. This contributes to poverty reduction

among the community because there are people who have been employed to

maintain and care those sites and thus they earn income to sustain their living in

such way rather than being idle in the streets. (Figure 8) shows one of the famous

gardens which is serviced by the Vickfish Processing Industry in Mwanza City and

this have employed a number of people who are paid for servicing the garden.


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Figure 8: Ghand Hall round about in Mwanza City

4.4.1.4 Other social services

The research findings also showed that there are other services that were supported

by the Fishing Industries in the study area and this include; Police post , theconstruction of one police post in Nyakato ward was assisted by the Nile Perch

Fisheries Industry Limited (NPFL) so that to enable people to get access to that

service easily. Constriction of court in Mkolani ward also is among the service that

was assisted by the organisation of the Fishing Industries in Mwanza. This was

constructed so that to enable people to access court services in the nearby place

despite of going to town at high transport cost. Construction of Igogo road to

Bugando Hospital also is among the services that was promoted by Vickfish

Processing Industries Limited were by the road have been constructed by cementand stones and the road covers about 1.5 kilometers. This is also found in the Lake

Victoria Fisheries Processor Association (LVFPA) annual report where by services

provided by the fisheries processing industries are analyzed and mentioned which

are the same as that the researcher finds in the study area. So this shows that the


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association of Fishing Industries in Mwanza plays part in providing social services

to the people around the area.

4.5 Challenges facing the Fishing Industries in its operations

Under this question the researcher wanted to know if there are any challenges which

are facing the Fishing Industries in their daily operations. The main three challenges

which are facing the fisheries processing industries are described in the (Figure 9).

Figure 9: Challenges facing Fishing Industries

4.5.1 Decline of fish

Findings from the study are shows that 27.8% of the respondents who are fishermenreported that there is a decline of fish in the lake because of illegal fishing (use of

smaller sizes of fishing net which catches the young fishes not intended, use of drugs

to poison fishing grounds, fishing in restricted areas such as breeding areas).

Environmental destruction by pollution, extensive agricultural methods resulting to

siltation of the lake, deforestation along lake shores is also among the reasons for the

0

5

10

15

20

25

30

Fish size Productioncost

Decline offish

Net size

%


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decline of fish in the Lake reported by the respondents in the study area. This study

resembles to a report by the International Union for Conservation of Nature (IUCN)

that shows in August 2009, there was a sharp dwindling of Nile Perch population in

its territory of Lake Victoria, posing a threat to $200 million annual exports from

Fishing Industries. The Nile Perch stock in Tanzania s territory of Lake Victoria

plummeted by 50 % reaching 200,000 tonnes between January and August sharp

dwindling of stock amounting to 100,000 tonnes in the period of nine months

(Titchaz,2010). This have direct impact to increase of poverty among the people

because the decline of fishes in the Lake may lead to closure or redundancy to some

people who are depending heavily in fishing activities and those employed in

Fishing Industries.

4.5.2 Production Cost

The respondents in the Fishing Industries who account to 21.7% reported that

production cost in the Fishing Industries is the main challenge that affects

productivity in the industries , all this is because the most useful utilities (water, fuel

and electricity) in the industries are charged at higher rates. In the Fishing Industries

water is used to wash fishes which are processed from one stage to another so the

resource is needed all the times because processing of fishes passes to about four

stages where at each stage fishes are to be washed. Fuel is used much in transporting

fishes from the industries to the market places whether by flight or by road, so the

consumption of fuel is at high rate always. The study conducted by ( Bagumire,

2009)shows that the impact of high fuel costs in fish processing plants among many

users affected outputs because at a minimum, energy accounts for 10% of the total

production costs. The company spends over 20,000 US$ per month on electricity

alone. The electricity tariff charges in Tanzania have increased over the yearsreaching a high of (0.11 US $) 145 TSZ per unit KWH. This can be compared to the

findings of this study because as the production cost increases profit earned by the

industries decreases because the price in the world market does not vary with the

variation of price of fuel in the local countries. So the increase in production cost

leads to low salaries to workers in the industries.


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4.5.3 Government Policy

The findings from the research also showed that available government policy havedirect impact to the Fishing Industries in the study area. 50.5% of the respondents

who are working in the Fishing Industries reported that government policies affects

much productivity in the Fishing Industries, two of the policies include size of the

fishes and size of nets used in fishing.

4.5.3.1 Size of Nets and Fishes

26.3% of the respondents reported that the government laws allow only fish with not

less than 5 centimeters long are the one to be catched. This was largely brought

about by a regulation to control fishing of immature fish by enforcing a slot size

restriction of 40-85cm for Nile Perch fishing. Prior to January 2008, the slot size for

fishing Nile perch was 42, a year later it was increased to 50cm. This increase in slot

size for fishing Nile perch reduced the production of most companies by 30 %. Most

companies had complied with the slot size requirement for about 6-9months, yet

according to most of them there was still no observed increase in fish. The study

conducted by (URT, 2002) revealed that high prices of legal gear such as 6 meshsize gill nets are prohibitive. For example, 6 mm fishing net requires an investment

of about Tshs. 2 million compared to about Ths.400, 000 Tsh. 700,000/- Tshs for

the illegal 4 mesh size net. Fishermen s incomes can only allow them to own part

or all of the illegal 4 gill net, but the 6 gill nets are too expensive so this affects

production in the industries because fish of that are caught by nets of less than the

required size are not accepted in the foreign market. So this have impact to the

industries because it takes a number of years for fishes to regenerate to the actual

size required by the government laws that is a fish of 50cm and above.


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4.5.3.2 Double Taxation

So ever 24.2% of the respondents reported that double taxation on fish licenses offishes from places where they are collected (landing sites) from local fishermen to

agents there are several taxes such as boats levy and land site levy. This is also is

among the challenges which are facing the Nile Perch Fishing Industries as reported

by the official from Nile Perch Fishing Industries Limited. This is because the

agents of the company are charged from point to point where they are taking fishes.

Example for those who are taking fishes from Magu they are charged at each check

point on the way to Mwanza where there are about three check points.


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CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 Introduction

This chapter presents conclusion and recommendation based on the research

findings in chapter four.

5.2 Conclusion

Generally, respondents in the study area reported that they do realize the

contribution of the fishing industries in poverty reduction as they mentioned the

opportunities which are offered by the Fishing Industries though there are limitations

such as low salary, unfavorable price to local fishermen, high production cost and

government policies that hinder fishing activities.

Despite of the employment opportunities offered by the fishing industries most of

the workers 58.6% in the industries reported that they were paid low salary that

ranges from 100,000 Tshs to 500,000 Tshs for most of the workers in the industries

thus the income can not satisfy to meet all the basic family needs.

Market for fish also is another opportunity offered by the industries to the people but

this has not helped them much to increase their income because of low price that lies

between 2500 Tsh to 3000 Tsh paid by the industries to the local fishermen. All this

is because the local men have no capital to invest in buying advanced storage

facilities (refrigerators) that could preserve for a long time. So the local fishermen

do sell their fishes daily as they can not store them for long time.

The findings from the study area show that only 21.2% of the respondents are being

financed by the industries so that they can increase their income for poverty

reduction. This shows a small number because there are hard conditions so that to

get loan from the industries where a low income people can not afford to access

such loans.

High production cost in the fishing industries also affects much productivity in the

industries because the most used resources in the industries are charged very high by


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the government. For the case of electricity an industry pays to about 20,000 US$ per

each month that is very high and this leads to decline of profit in the industries as the

cost continues to increase.

Finding from the study also revealed that decline of fish in the Lake is the main

challenge facing fishing industries this is because the product is the only raw

material that keeps the industries survives despite of decline as time goes. The

survival of the industries also is because of the increase in demand of the fish

products in Europe, America and Far East.

Government policies such as taxation system and levy are the challenges that face

the fishing industries and local fishermen because the respondents reported that there

are several taxes that are imposed in the whole process of fishing and transporting

fishes to the fishing industries.

5.3 Recommendations

The researcher recommended the following from the findings of the research.

(i) Reduction of production cost by the government in the industries to themost used utilities in the Fishing Industries that are water and power

should be put focused because they are the most useful than any other

utilities in the industries. So as the price of the utility is high the

production cost in the industries increase and thus low profit is generated

by the industries that lead to low salaries to the workers in the Fishing

Industries. Reducing local taxes such as landing site tax, fish boat tax and

royalty tax should be cut off as in Uganda and Kenya.

(ii) Protect/ control illegal fishing. The Local government authorities has toput in place by laws to stop illegal fishing, environmental destruction.

This can be managed by establishing a strong and workable Beach

Management Units (BMUs) in every local communities (villages)

bordering the lake or in the islands. These BMUs should be charged with


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the duty to watch out that fishing activities are done as stipulated by

regulations/laws of the government.

(iii) Encourage/establish fish farming technology, this is the technology usedin most of the developed countries to control deficit of fishes in the

fisheries processing industries. The government should put measures to

start/establish fish farms in all places where fishing activities is

undertaken, this will help to control overfishing in the Lake and thus

leave chance for fishes to generate to the appropriate size required by the

government. This will be helpful because it will reduce the problem of

decline of fish as seasonal fishing will be conducted in the Lake and in

the farm as well.

(iv) Reduce restriction in financial support, financial a constraint also isanother challenge that face most of the local fishermen because they use

local tools in fishing. So by reducing restriction in provision of credits

from industries to local fishermen will enable them to purchase fishing

gears, good boats and engines that will be used in fishing and thus

increase their income as they will be catching fishes in large quantity

when using engine boats in fishing activities.

(v) Strengthen the capacity of local fishermen association in negotiation ofprice of fishes in the industries is another recommendation the researches

noted that will be helpful in increasing the income of local fishermen. All

this is because the price charged to the local fishermen by the agents is

very low as compared to large fishermen who sell fishes directly to the

industries. So the local authority should restructure reasonable price that

will be favorable to all local and large fishermen this will assist market

assurance at reasonable price to both local and large fish businessmen.


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REFERENCES

Abila, R. (2003). Food Safety in Food Security and Food Trade Case study: KenyanFish Exports, Nairobi

Abila, R.O. and E.G Jansen. (1997). From Local to Global markets; The FishExporting and Fishmeal Industries of Lake Victoria-Structure and Socio-economic Impact in Kenya. Socio-economic of Nile Perch Fisheries ofLake Victoria. Project Report No.2. IUCN-EARO. Nairobi

Bagumire, A. (2009) Impact of the Global Financial and Economic Crisis on the

Fish Industry in Uganda and Tanzania.Food Industry Consultant, Dar es

Salaam Tanzania

Bn, C. (2003). Poverty in Small-scale Fisheries: A Review and Some FurtherThoughts, Small-Scale Fisheries, Poverty and the Code of Conduct forResponsible Fisheries

Bilame, O. (2009). Contribution of Small-scale Nile Perch to Household income inSengerema, REPOA WORKSHOP Dar es Salaam Tanzania

Boka, C. and Ikiara, M. (2000). The Macro-economy Of the Export Fishing Industryin Lake Victoria Nairobi, Kenya

FAO, (2005). Poverty in Coastal Fishing Communities, Advisory Committee onFisheries Research (Third Session), Mimeo, Rome, 5-8 December.

Jansen, E.G and A, J. Boye. (2006). Sustainable Management of Fisheriesresources and the Role of the National and Local Authorities". A paperpresented to the Norwegian Centre for Development and the Environment,University of Oslo.

Kimaryo, M. (2008) Policy constructive forum on health livelihoods of fishing

communities of Lake Victoria, Environment Liaison Centre International.

Nairobi Kenya

Maembe, T. (2006). Fisheries and Management with references to Lake Victoria A

s summary report prepared for the presentation at ICEDA/UNITED

NATIONS INVERSITY Workshop on Fisheries and Aquaculture in Southern

Africa, Development and Management-Windhoek.

MCC, (2008). Socio - Economic Profile of Mwanza Region(http://www.mwanzaregion.org) sited on 5th May 2010.
http://www.mwanzaregion.org/http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


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NPFL, (2009). Annual Progress Report . http://[email protected])

sited on 10th July 2010

Rojat, D and Chaboud, C. (2004). Co-management of the Shrimp Fishery inMadagascar. IIFET 2004 Japan Proceedings.

Ravallion, M. (1999). Poverty Lines in Theory and Practice. LSMS Working

Paper No. 133, World Bank, Washington, DC.

Shechambo, F. (2004). Learning from the Coastal Ecosystem; the Case of

Tanga. Paper Presented on the Workshop on learning About Livelihoods at

Paradise Hotel, Bagamoyo.

Titchaz, A. (2010) How Congolese plunder Lake Victoria resource, Mwanza

TanzaniaURT, (2003). Fishing Industries Act No. 22 of 2003 Government Printers Dar es

Salaam

URT, (1997). Fisheries Policy and Strategy, Government Printers Dar es Salaam

URT, (2002). Tanzania Participatory Poverty Assessment, Government Printers Dar

es Salaam, Tanzania

URT, (2005). Household Budget Survey Government Printers Dar es Salaam

URT, (1996). Investment promotion Policy, Government Printers Dar es Salaam

URT, (2007). National Fishery Sector Overview, Food and Agriculture Organization

of The United Nations

URT, (2005). Poverty and Human Development Report, Government Printers Dar es

Salaam

Yamen, T. (1967). Statistic, An Introduction Analysis, 2nd

Edition Harper and Raw,New York
http://[email protected]/http://[email protected]/http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


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APPENDICES

APPENDIX ONE; HOUSEHOLD QUESTIONNAIRE

A: General information

1. Location: Ward ..Village

2. Age of respondent (Years) ..

3. Sex 1= male 2= female

4. Marital status 1= married 2= Single, 3= Widow, 4= Separated, 5= others

(Specify)

5. Education level 1= None, 2= Primary, 3= Secondary, 4= College and above

6. Major income generating activities; 1 = fishing activities, 2= Farming, 3=

Business 4= others (specify) .

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