The Iringa Hope Office on the campus of the University of Iringa. The Building was sponsored by the Peter J. King Family Foundation. |
Hello, my name is Norm Siekman. This is my third trip to Tanzania, and my first trip as a member of the Board of Directors of Iringa Hope. During this trip I will assist the staff of Iringa Hope in Iringa in the development of the Iringa Hope Agricultural Marketing Cooperative Society (AMCOS). I will share a description of the functions of that cooperative in the paragraphs below.
First, I will share a little history of my
work with Iringa Hope. My first trip to
Tanzania was in October 2014, as part of a group led by Peggy Howell coming to
Iringa from Zion Lutheran Church to visit our partner parish of
Kitapalimwa. Each of the ten of us
coming to Iringa had a project that we wanted to share with the members of the
parish in Kitapalimwa. My project was to
assist the village of Kitapalimwa in the initial development of their Savings
and Credit Cooperative Society (SACCOS) to provide Micro Finance loans to its
members.
During that two and a half week visit in 2014,
we stayed in the hamlet of Mlangali, at the home of Pastor Regina Kibasa and visited
each of the twelve preaching points surrounding Kitapalimwa. Ryan Engelstad,
the nurse with our group, held a medical clinic in each of the villages,
assisted by other members of the group.
In 2016, I returned to the parish of
Kitapalimwa with the group representing Zion Lutheran Church in Cottage
Grove. This time I spent half of the
time in Mlangali and half of the time with the staff of Iringa Hope as they
were leading training for the officers of each of the Savings and Credit
Cooperative Societies (SACCOS) that manage the Micro Finance loans in each of
33 villages where Iringa Hope has a presence.
I left Minneapolis on Monday, June 11,
arrived in Dar es Salaam on Tuesday June 12, and after an all-day drive from
Dar es Salaam, arrived in Iringa last evening on Wednesday, June 13. So this is my first day in the Iringa Hope
office where I will be working from now through the first week of August. The office is located in the Peter J. King Family
Foundation building on the campus of the University of Iringa. I was greeted on
my arrival by the familiar faces of the staff of the Micro Finance Institute (the MFI has recently been spun off from the University as a non profit called the Community Micro-finance Strengthening Organization - the CMSO). I had met nearly everyone during
my last two visits in 2014 and 2016.
For this visit, I was asked by Dr. Tom
Hendrickson, the Chairman of our Iringa Hope Board of Directors in Minnesota to
come to Iringa to assist the staff in Iringa in the Development of the new
function provided by Iringa Hope, the Agricultural Marketing Cooperative
Society (AMCOS). The SACCOS and the
AMCOS are two types of cooperatives in Tanzania that are registered with the
Tanzania Cooperatives Development Commission (TCDC) established in Tanzania by
the Cooperative Societies Act.
Our first SACCOS location was established in
2008 at the village of Ihemi, under the leadership of Tom Hendrickson. Since then the network of SACCOS offices
providing Micro Finance loans has grown to 33 locations.
In the small villages in the region of
Iringa, farmers are typically farming two to four acres of crops, in most
cases, Maize. They are aware of modern
farming practices, such as using hybrid seeds, instead of the traditional seeds
from the previous year’s crop and using fertilizer, but unless they have the
money saved, or have access to credit, in most cases, they aren’t able to
afford the expense of purchasing hybrid seed and fertilizer.
With the access to credit available through micro
finance provided by the Iringa Hope SACCOS, many farmers can now afford to buy better
seed and fertilizer.
However, access to credit alone doesn’t help
if quality seeds and fertilizer aren’t available at the right time, at a
reasonable price. Each AMCOS
cooperative, managed by officers elected by local members, will, with the
assistance of the Iringa Hope staff, be able to access seed, fertilizer and
other farming inputs. These will be
delivered to their village location, at prices that they would not be able to
have obtained by buying through distributors.
So this year, working with the Iringa Hope
staff, we are assisting villages to organize local AMCOS cooperatives, which are
registered with the government. There is
a Joint AMCOS organization, with its own elected officers and Board of
Directors that coordinates the activities of each of the local AMCOS cooperatives
and aggregates the orders of supplies from each of the separate locations. We then develop contracts with the major
suppliers of farming inputs for the aggregated demand forecasted by each of the
AMCOS.
In our first meeting with the staff we
discussed the objectives for my stay and the objectives for establishing AMCOS
organizations in potentially each of the 33 SACCOS locations offering micro finance
loans. Our plan is to meet with major
suppliers of fertilizer, seeds, herbicides, insecticides, and any other supply
products needed by the members. We are
also meeting with the major buyers of agricultural crops that our members raise
to determine ways to obtain the best prices for their products.