Sunday, July 15, 2018

On June 20th I was at Mgera and Mkwawa


Today we are visiting Mgera and Mkwawa.  Mgera is the name of the area.  The SACCOS was initially registered as the Kitapalimwa SACCOS.  We met at Mlangali, which I was told is one of the “Hamlets” nearby. 

This was a special visit for me, since I first visited Mlangali in 2014 and 2016.  I was part of a group representing Zion Lutheran Church in Cottage Grove, Minnesota, which is the partner congregation of the parish at Kitapalimwa.  We helped to establish the SACCOS at Kitapalimwa in 2014.  While we were there, we visited the 12 “Preaching Points” near Mlangali, holding medical clinics at a different village every day. 

We stayed at the home of Pastor Regina Kibasa in Mlangali.  She graciously shared her home with us.  We had many pleasant evening meals there, followed by many evening checkers games with members and officers of the SACCOS and many of the Evangelists of the Preaching Points and translators including Kelvin Mwano and Goodluck Kihongosi.

It was good to see Jomo Mahenge, the Chairman, Ayoub Mtweve, the Treasurer, Howa Sanga, the Secretary, and Mary Sanga, again.  There were hugs all around when we met again.



Kitapalimwa is preparing to register their AMCOS.  When we described how the AMCOS and the SACCOS would interact together, there were many questions.  The officers of both he SACCOS and the AMCOS were present.  There are currently 61 members of the SACCOS and the AMCOS.  This includes 29 women and 32 men.

We discussed the importance of obtaining the forecast for the demand for farming input supplies.  The officers of the SACCOS are looking forward to completing the construction of the new Integrated Development Center (IDC) at Mlangali which will include warehouse space.  They inquired about the availability of the new PICS bags that will enable them to store their maize without losing part of the crops after harvest due to insect damage or mold.  We told them that we expect the PICS bags to arrive in the next week.

The meeting at Mlangali.  Howa Sanga (behind Ayoub Ayoub Mtweve) SACCOS Secretary, Ayoub Mtweve, SACCOS Treasurer, Jomo Mahenge, SACCOS Chairman, Mary Sanga, member of SACCOS and AMCOS, Sophia Kalonga, AMCOS Secretary and Lawrence Msigala, AMCOS Chairman


It was nearing the time when we had to depart for our next visit, Mkwawa.  We just had time for one interview.  We spoke to Mary Sanga, who we had interviewed in the past, but she loves to talk about how the SACCOS has made a difference in her life. 

Mary Sanga is married and has three children.  The first two children are already married and her third child is in secondary school, Form 3 (equivalent to our Junior year in high school).

Mary farms 10 acres of maize, 2 acres of tomatoes, and 2 acres of sunflowers.  This is a lot to farm.  She hires a team of oxen to cultivate the land, and she hires laborers to help her to farm.  In 2014, the first year of the SACCOS, she took a loan of TZH 500,000 (about $220).  In 2015 she took a loan of TZH 1,000,000, followed by loans of TZH 1,000,000 in both 2916 and 2017.  With the profits from her loans, she has sent her children to school and bought additional property.  She intends to buy 2 milling machines and provide a contract service of milling maize to flour.

When the IDC is completed, she plans to use the warehouse to store grain, so as to obtain the higher market prices some months after harvest.  She is looking forward to having the AMCOS registered and in operation.  She thinks that the AMCOS is going to improve her productivity.  She looks forward to having the farm inputs available on time.  When she has purchased the inputs from distributors in town, the supplies are not always available when she needs them.  She also said that she looks forward to the AMCOS helping her to market her crops.  In the past, when she has sold to a middleman, she has gotten lower prices than the market prices that she will receive using the AMCOS.  It is always a pleasure talking to Mary.  She is a very good businesswoman.

We then drove on to Mkwawa.  Mkwawa is close to Iringa, and many of the members have jobs in Iringa as well as farming small plots of land near their homes in Mkwawa.  The AMCOS is a registered member of the Joint AMCOS but has not yet completed registration with the government.  There are 43 members of both the SACCOS and AMCOS.  This includes 23 women and 20 men. 

Again there was a lively discussion during the presentation of the AMCOS/SACCOS interaction process with many questions.  There were some “What if” questions as members tried to anticipate the kinds of situations that may arise and they would be called on to manage.  One member asked whether a member of an AMCOS who did not want to become a member of a SACCOS but wanted to purchase supplies through the AMCOS by paying cash, would be allowed to do that.  We said that it was our experience that every member wanted to be part of the SACCOS so that they could take advantage of taking loans.  We asked whether they had actually encountered such a situation.  They said no.  This is not a situation that we expect to encounter.

A member suggested that they could charge fees for storing crops in the warehouse.  We responded that the local AMCOS was in charge and could decide locally whether to charge fees such as that. 

Another question was asked that has recurred several times. “What happens when there is no market available at any price?”  This is part of the concern that the price of maize has fallen to TZH 330/Kg, when it was TZH 1200/Kg as recently as May 2017, a drop of nearly 75%!  There have been many questions about finding more marketplaces that can purchase maize from farmers.  This is an issue that we will continue to investigate. 

We are also being asked about whether the AMCOS could enter into value-added processing of milling maize into flour.  We have considered this, however, we will be investigating other sources of milling buyers in the short term.  In the longer term we will need to consider all options.

The discussions lasted long, so we are headed back to Iringa. 

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