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Family Alliance For Development And Cooperation, Tanzania |
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REDRESSING OF THE ECONOMIC DOWN FALL OF KARAGWE DISTRICT- Kagera Region. NW Tanzania.January 2002, at Kayanga- Karagwe.Hon. Benedicto Mutungirehi (MP- Kyerwa, Karawe District) Dr. Rev. Benson Bagonza Introduction:There are many constraints facing the economic development of the district. In response, a number of initiatives are being taken to find a lasting solution. One of these is investment into Microfinancing, empowering grassroot communities with capital injection, so that they are able to start making savings, etc. Of recent there have been some initiatives to alleviate the problems posed by the downfall in prices of coffee (at the world market) but also of the existing monopolistic policies of the local government. Two key persons on this topic: Alternative Financing called together a number of brains to discuss the topic. FADECO was among the invited participants and hereby presents to you the highlights of that discussion. Some of the initiatives are:Research on potential economic sectors and market outlets by Karagwe district Council (on-going) Introduction of micro financing schemes by KAMFI, FINCA, TCRS. RHIF. Others are venturing into building the capacity of local communities to develop the culture of saving e.g. KADERES. However, there is a gap to be filled: THE FINANCING OF THE MEDIUM ENTERPRISES. Financing to the Medium Entrepreneurs (ME) would further boost the economic activities in Karagwe district through the development of agro-based and small scale manufacturing industries. These processing and small-scale industries help to add value to the available agro products, opening new avenues to the market. This helps the peasant community to increase their income through direct sale of their produce to the processors/ industrialists.PROBLEMS WITH EXISTING BANKS: There are two existing banks within KARAGWE DISTRICT: National Micro Finance Bank (NMB) and CRDB Bank Ltd. The policies of these banks do not favour the emergence of agro-based activities and small-scale industries. At this juncture, there has been established an informal Consultative Group which discusses alternative financing solutions suitable for Karagwe district which is financing to Medium Enterprises. And together, we have the following recommendations:- The best idea would be, to establish a FINANCIAL INSTITUTION which can assist the MEDIUM ENTERPRENUERS to get access to loans for the establishment of small-scale industries and agro based processing ventures. And collaborate with medium entrepreneurs for marketing and distribution of agricultural products. Collaboration with existing institutions (e.g. Private Sector development, Banking institutions, Micro Finance organizations and Donor agencies) would be encouraged to make a joint research on how the whole idea can be implemented. We look forward for your comments and input. You are welcome to join this consultative group. The following are members of this informal Consultative Group in Karagwe:1. Mr. Andrew Kazimoto Chairman, Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Karagwe Branch. 2. Dr. Rev. Benson Bagonza General Secretary of Evangelical Lutheran Church of Tanzania, Karagwe Diocese. 3. Mr. Sekiku Joseph Managing Director, FADECO TRADING CO. Ltd. 4. Fr. Didas Kasusura Director, CHEMA 5. Fr. Privatus Karugendo Roman Catholic Diocese 6. Hon. Benedicto Mutungirehi Member of Parliament, Kyerwa Constituency, Karagwe District. 7. Dr. James Karashani Former Managing Director, National Micro Finance Bank (NMB) - Tanzania 8. Dr. Rev. Fidon Mwombeki General secretary, ELCT NW Diocese, Bukoba- Kagera. Member of the Consultative Group of the World Council of Churches. Invitatation:
You are kindly invited to prticipate in this consultative dialogue : redressing the economic situation in Karagwe. |