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Academic staff turnover at selected institutions of higher learning in Tanzania
(University of Dar es Salaam, 1993) Munishi, Anthonia Gaspar
This study attempts to discover salient reasons which have propelled academicians to abandon their institutions of Higher Learning (IHL) in Tanzania. Academicians at IHL are trainers of high level manpower whose demand is yet to be met. The study is Behaviorally approached using Vroom's Expectancy Theory to Motivation. Some literature reveals that the way incentives are administered and provision of adequate remuneration and working conditions are extremely important to realize better services in an organization hence, the control of turnover trend. Based on a sample of 186 teachers, it was largely found out that academicians were incapable of subsisting on their monthly earnings. Moreover, most of the IHL encountered inadequate working conditions. Such a situation sparked off teachers' low morale and lack of commitment to work which in turn influenced high rates of departure. Findings concretized that availability of higher remuneration jobs outside the country extensively contributed to high turnover. Shockingly, it was also found out that 64% of the total attrition comprised of senior academicians. Those who were motivated to remain at their institutions were apparently influenced by desire of attaining higher status (senior academic rank) through long service. To them, higher remunerations and adequate working conditions as factors to induce their staying did not play a significant role as it appears in Tables 3.5 (a) and 3.5(b).To wind up the study it is widely envisaged that the national dismal economic performance is the root cause of influence of teachers' departure. To ameliorate the situation, the government needs to provide higher budgets to the IHL.
Behaviour of demand for money function: a case study of Tanzania 1967-1990
(University of Dar es Salaam, 1994) Kihaule, Arnold M
This study aims at investigating the behaviour of demand for money function in Tanzania during the period of 1967-1990. The purpose of the study is to examine the conduct and effectiveness of monetary policy in Tanzania. Particular attention is drawn on the policy reform measures which were introduced effective from 1986 to address the economic crisis which Tanzania has been experiencing. The examination was carried out by testing the hypothesis that demand for money function has been unstable during the period under study. Stability of demand for money function is significant because its volality affect the velocity and as result the transmission mechanism of change in money supply becomes unpredictable and thus creates problems in the effectiveness of monetary policy. In this study, the Econometric estimation technique of Ordinary Least Squares has been used to estimate the demand for money function in Tanzania. The estimated demand for money function has been subjected to stability test in ascertaining its behaviour. The stability tests used are Chow, the Dummy Variable Approach (also referred to as Guota Test) and the Theil Inequality Coefficient test. The results have, according to the Chow and Dummy Variable Approach tests, confirmed the hypothesis that demand for money function in Tanzania is an unstable function. However, the results of the Theil inequality coefficient test reject the hypothesis. The empirical results obtained from this study and those obtained from the recent previous study suggest that the behaviour of demand for money function was characterized by instability during the 1967-1990 period. Why the demand for money function in Tanzania is unstable may be attributed to the change in economic agents behaviour in relation to the desire to holding real money balances. Particularly the response of individuals to changed economic environment, and the price rigidities inherent in economy and/or the inadequate policy measures adopted in the period of the above mentioned factors, influence the behaviour of demand for money. In this regard, the study thus recommends that the conduct of monetary policy in Tanzania should aim at influencing individuals' inflationary expectation formation process in the direction which may be useful for the effectiveness of the policy to be realized. Thus, it is recommended that a package of monetary policy which strive to ensuring financial market liberalization, avoidance of selective credit policies and the use of interest rate in containing the inflation should be adopted. Furthermore it is suggested that institutional framework for supervising and regulating financial market by monetary authority should be instituted. Moreover, there is a need for ensuring that the conduct of monetary and other policies creates and allows efficient allocation of resources using price mechanism. To realize this monetary authority should strive to ensure price stability. This will have a far reaching impact desire to hold real money demand and consequently, the conduct of monetary policy shall be enhanced. Furthermore, when such an emphasis on monetary policy formulation is made, there is however a need for monetary policy to be accompanied by a package of other policy measures such as exchange rate and fiscal policies, so that these policies supplement each other in their course of realizing the intended policy targets.
Coping up in a town: the case of low income households in Mvuleni (Manzese)
(University of Dar es Salaam, 1991) Mwami, Joachim A. L.
The onslaught of the economic crisis threw Tanzania in disarray both at macro- and micro at the household level it was marked by a high incidence of poverty and an intolerable deterioration in the material conditions of life of ordinary people. Due to a growing reduction in Purchasing power, the shortage of basic necessities and the lack of adequate public services, the burden OT poverty of the poor was shifted wholly into themselves. The majority of people were hard pressed to feed, clothe and shelter their families. And yet they needed incomes. In the absence of employment opportunities, they had to create their own employment out of little or no capital. The niches open to them were in the production and sale of immediate consumption goods where earnings were low and irregular. In the light of this entire people increasingly resorted to the employment of social resources. The focus of this study has been to investigate the nature and type of social and cultural resources and in particular the institution of mutual help and the manner in which they are utilized by the urban creatively low income households in their struggle for survival. The first chapter is an outline both of the worsening economic conditions in Tanzania and also of the major objectives of the study. In the second methods of data collection are discussed. In the third and fourth chapters field data is presented and analyzed. The third chapter describes the economic and social strategies employed by Mvuleni households; and in particular how the former are informed and circumscribed by the latter. The purpose of chapter four is to explore the way in which kin and neighborhood social networks are strategically employed in the daily lives of the low income households in Mvuleni. Chapter five is summary and conclusions.
The economic history of Bagamoyo 1885-1950
(University of Dar es Salaam, 1977) Shemhilu, Salatiel Togolai
Bagamoyo is one of the historic towns in the East African littoral, whose early history needs to be uncovered and analyzed. The word "Bagamoyo" comes from the Swahili words, bwaga moyo, which is commonly translated as "rest one's burden" or some variation of this. There are number of theories as regards the origin of this word but the most plausible explanation is that which is connected with the early porters in the central caravan route with Bagamoyo as its terminus. The main aim of this study is to examine the dynamics which led to the dramatic rise and fall of Bagamoyo town and its consequent station. Compared to other ancient East Afrioan towns such as Kilwa, Mombasa, Zanzibar, Pemba, Kaole and Malindi, Bagamoyo is relatively younger. However, Bagamoyo is relatively older than Dar es Salaam. Before the nineteenth century, Bagamoyo was either non-existent or obscure; however, from its infancy as a fishing and trading village, it gathered momentum during the later half of the nineteenth Century in which period it attained its peak as a commercial centre only next to Zanzibar. But its hey day was relatively short-lived. By the end of the century it began to decline at a tremendous rate so that by the early decades of the twentieth Century it represented only a shadow of its former self, and has not recovered to date. The complexity which shrouds the Bagamoyo "phenomenon" cannot be explained by focusing on Bagamoyo town alone, but by examining the strategic position Bagamoyo held in the Zanzibar economic System. It is therefore the duty of this study to attempt to explain the rise of Bagamoyo within the framework of the Zanzibar economic system, which includes the penetration of Asian merchant Capital. The growth of Bagamoyo, therefore, is associated with both, its being an outport of Zanzibar and an entrepot of East and Central Africa.The fate of Bagamoyo came with the penetration of European capitalism which was spearheaded by German imperialism. German imperialism imposed a new Colonial economic system which brought about the collapse of the then prevailing Zanzibar system. Bagamoyo and indeed the mainland was reduced to a "periphery" which served the "centre" (Germany and Europe). Attempts to forstall the imposition of German imperialism failed because of the superiority of the capitalist economic system over the Zanzibar system and the consequence was the collapse of the latter together with Bagamoyo. The shift of the seat of government from Bagamoyo to Dar es Salaam and the construction of the central line from Dar es Salaam to Ujiji by the German administration were relevant to the collapse of Bagamoyo as a commercial centre. The British period saw attempts to accommodate Asian commercial capital in the changed fortunes of the town, this never prevented the rapid deterioration of the town since the majority of the Asian capitalists, who were the dynamic force of the town's economic life, left for other towns where they could play their intermediary role in commerce. The collapse of Bagamoyo is related to the rise of Dar es Salaam since the role which was formerly played by the former was now taken over by the latter; hence the fall of Bagamoyo and the rise of Dar es Salaam are part and parcel of the same mechanism initiated by European capitalism. Underdevelopment was a process which was associated with the penetration of capital and the exploitation of the majority of African peasants of Bagamoyo was a common denominator in all epochs that the town experienced. However this exploitation became intensified with the onset of European Capitalism. The study ends in I950 not because of any special reason but rather the fact that by that time all the important phases of Bagamoyo have already been experienced and Bagamoyo was decaying. From 1950 onwards there was nothing new in Bagamoyo except the continuation of the decaying process. However this study is not exhaustive because of the limitations posed by the in availability of adequate data for the whole period under study. The pre-colonial history of Bagamoyo is based on secondary sources which were quite sketchy. There are no specific books on Bagamoyo; hence the first chapter is largely based on a few articles and dissertations of Walter T. Brown and Augustus Nimtz Jr. The second chapter too is based on books which deal with the general history of East Africa, which vary in quality as regards their pieces of information about Bagamoyo town. The major limitation in this key chapter is my inability to consult German Annual Reports which are written in German. Only a few of them have been translated so far. Hence a big draws back as regards empirical analysis in the German period. The third and fourth chapters are based largely on primary sources. This includes Bagamoyo files available in the Tanzania National archive and interviews of old man and women in Bagamoyo. Although some old men in Bagamoyo refused to give information since they regarded this information as an economic asset, the amount collected was quite adequate considering the time factor
Foreign aid and economic development in Kenya, 1980-1993
(University of Dar es Salaam, 1995) Waweru, Jimnah
The aim of this study was to examine empirically the impact of foreign aid inflows on savings, investment and economic growth it Kenya in the period 1980-1993. This study was important because to my knowledge no such study had been undertaken in the case of Kenya. The time span of this study (1980-1993) was important because of the growing donor disenchantment with foreign aid in promoting development in less developed countries and also due to the problem of aid stoppage to Kenya in 1991. After employing the use of simultaneous equations model and solving the same using two stage least squares estimation technique (2 SLS), the study came up with several findings of importance viz: i)There was a negative relationship between savings rate and foreign aid inflow to Kenya in the period 19801993. ii) There was a positive relationship between the rate of GDP growth and foreign aid inflow to Kenya in the period 1980-1993. iii) There was a positive relationship between the rate of investment and inflow of aid to Kenya in the period 1980-1993. Whereas the central problem of the study was to establish whether Kenya can do without foreign aid, this study recommends that at the present Kenya can hardly survive economically without foreign assistance. In this vein, Kenya has to wait until she has attained the stage of self sustainable growth before she can do without foreign aid. There is, however, need for the country to reduce her heavy reliance on external resources and to employ incoming foreign aid optimally and efficiently.
Government expenditure and economic growth in Kenya 1975-1995
(University of Dar es Salaam, 1997) Kiptorus, Samuel Kipkoech
This study analyses the contribution of government expenditure on economic growth in Kenya between 1975 - 1995. It is thus a country specific study, unlike past studies done elsewhere that have been cross sectional in nature. In a broader context the study explores the relationship between the magnitude and growth of government expenditure in Kenya and economic growth. In doing so, the study specifically analyzes the relative contribution of various government expenditures to economic growth. Using a modified Denison Model, the regression results reveals that government expenditure on education, health and defence contribute more to economic growth than other variables considered in this study. From the private sector point of view, expenditure on agriculture, commerce and industry, defence, and education crowd in private investment while expenditures on health are negatively related to private investment and so they do crowd out. Despite limitation of coverage, the findings of this study set a good direction on policies pertaining to government expenditure that should be put in place to boost economic growth in Kenya. This will thus be useful guidelines to policy makers when deciding on expenditure allocation and rationalization. The findings will also widen the frontier of knowledge on fiscal policy. Further research is however encouraged in order to get good policy mix.
Impact of inflation on domestic savings: the case of Tanzania
(University of Dar es Salaam, 1985) Mpatila, Francis A
This study addresses itself to the controversy which exists on the relationship between inflation and the rate of domestic saving in the Tanzanian context. It is argued that most of the developing countries are poor and highly dependent on foreign assistance. Nonetheless, the assistance is not coming in required quantities and time, rendering it inevitable for these countries to recourse to inflationary financing means. However, there seems to be no general consensus on the overall effects of inflation on domestic saving. Those who find merit on inflationary financing argue that inflation will help raise domestic saving and hence growth since it redistributes income from low savers to high savers. Those opposed to it argue that inflation will discourage saving since it reduces the purchasing power of money and hence the purchasing power of the income set aside. From the above, it can be seen that the effect of inflation on domestic saving is a priori indeterminate. However, this study argues that if inflation is classified according to its cause, its ultimate effect on the rate of domestic saving can be distinguished. Thus, rather than to king inflation as a general rise in the price level, the study distinguishes between demand-pull and cast push types of inflation. Under this classification it is hypothesized that demand - pull inflation will encourage the rate of domestic saving whereas cost-push inflation will discourage it. This main hypothesis is tested in the study. Various literature on the existing controversial relationship between inflation and domestic saving is critically reviewed under the Keynesian, monetarist and structuralist approaches; after which a brief overview of the Tanzanian inflation is presented. Econometric techniques are applied as a tool of analysis, and the study further presents the simultaneous equations model which hints on the simultaneous dependence between the saving rate, investment rate and growth of Gross Domestic Product. The model when estimated has somehow validated our hypothesis that demand-pull inflation will encourage domestic saving whereas cost-push inflation will discourage it. However, the multiplier analysis has documented the total negative impact of inflation on domestic saving irrespective of its source. Pursuant to the above, the study recommends that the government should try as much as possible to reduce and control its expenditure so as to control the deficits which prompts its increased borrowing from the banking system in the process fuelling inflation, also productive investment of the funds is highly recommended.The study also underscores the point that efforts should be launched to effectively mobilise domestic savings rather than depending on "uncertain" foreign aid.
Industrialization and urban development in Tanzania 1969 - 1981: the case of Arusha and Morogoro towns
(University of Dar es Salaam, 1983) Gambishi, Bernadetta N. J
The aim of this study has been to investigate the effects of industrialization on urban development. This study has been carried out in light of the implementation of the industrial dispersion policy of the Second Five Year Plan (1969-1974); which was tied to the growth centre strategy. The study has confined itself to Morogoro and Arusha towns only, but would have benefited more if all the nine towns designated as growth centres were considered. But limited time and funds forced the author to pick two towns. The methods used involved extraction of information in documentary sources. Because of paucity of data on industrialization and urbanization there has been heavy dependency on the few sources available. The data used was obtained in government statistical sources and in a survey in the respective towns. Also informal interviews and discussions were conducted. This study is divided into five sections: Chapter I has explored the background to the study giving the reader the problem area. Chapter II has explored the literature review and stated the working hypotheses. Chapters III and IV are the core chapters and have each analysed one hypothesis which have examined industrial and urban population growth respectively. Chapter V is the concluding chapter. Results have shown that both industrialization and urbanization have taken place with varying intensities. Industrialization has been seen to be taking place in the right direction and it has influenced urban growth by increasing their population. Finally the study recommends that more studies on the effect of industrialization on urban development should be carried out to enable the Government to formulate concrete industrial and urban development policy.
Problems and prospectus of development in Moshi Disrict
(University of Dar es Salaam, 1975) Lyimo, Francis Fanuel
This study attempts to examine the problems and prospects of socialist development in Moshi district. It tries to see how socio-economic local conditions i the district affect the implementation of the Ujamaa Vijijini policy. The field work was conducted in April and May 1975. Data collection was mainly by participant observation method. Informal interviews were conducted. In addition files at the district office, TANU branches, villages and co-operative primary society ware used to get quantitative data related to the survey. This dissertation is a result of the help of many people who participated at various stages of its preparation without whose help in one way or another this work would not have been completed in the present from. I would like to express my gratitude to the peasants of Moshi district who contributed most of what is contained in this report; to party and government leaders in the district who assisted at various levels in the study; to Kivukoni College and the Kilimanjaro Native Co-operative Union Ltd. For sponsorship. I am indebted to my supervisor Mr. H. Bernstein for his invaluable comments and criticisms throughout the preparation of this dissertation.
The role of the cooperative movement in the economic development of Uganda
(East Africa University, 1968) Okereke, Okoro
An attempt is made in this thesis to present a general survey of the role of the Uganda Co-operative Movement in the economic development of the country, as a springboard for a possible further investigation of particular aspects of the movement’s activities in the development effort. The important role being played by the movement in the development of Uganda’s agriculture and other activities which are ancillary to agriculture has been analyzed in this work. The main areas of inquiry covered those aspects of the movement’s activities connected with economic growth, those concerned with efficiency and equity and those relating to the political power structure. The study covers the main period of growth of the movement from 1945 onward. The investigation has been primarily at union level. In most underdeveloped countries, great importance is attached to the development of co-operative as a means of improving the economic and social status of people through increased efficiency and social justice. Hence, development must be directed towards the objective of raising people’s incomes through providing opportunities for earning incomes co-operative undertakings, it is assumed, would provide, not only opportunities for earning incomes, but for raising the level of such incomes. On the part of developed and industrialized countries, fostering co-operative development in low-income countries is means of providing effective aggregate demand for the goods of the former, through an increase in the income of earning capacity of the latter. This objective of earning a higher income may however, be frustrated by poor administration in the management of the movement itself. Also, the objective of a movement may be seen at different points of view. Government, for example, may use co-operatives as a means of achieving, not only economic satisfaction, but of other ends, too. Hence, there may be a divergence between economic, social and equity considerations from the national point of view. Before the advent of co-operatives in Uganda, the market structure in the cotton and coffee industries was monopolistic. The two industries were controlled by non-Africans. One way to challenge this dominance was by the emergence of co-operatives of peasant farmers as a “countervailing power”. Conditions of monopoly and exploitation favour co-operative development in order to enhance the market power of those subject to those conditions. The main target of attack was the profit making cotton industry which was the mainstay of the economy of the country at that time. At first, co-operative endeavours and African participation in the processing industries were restricted by the earlier administration, but since the post-war period, co-operative development has been encouraged to the extent that the indigenous Government, since the post-Independence period, has adopted the movement as an instrument to effect social and economic changes. As the economy of the country is broadly based on agriculture, the activities of the movement are in the field of crop marketing. Owing to the Government’s policy of Africanizing the economy through co-operatives, the movement has, by 1967, acquired nearly 100% take-over of cotton ginning in the country, at the expense of the private sector; similar attempts are being contemplated in the coffee industry. At the moment, however, there is competition in both coffee and minor crops industries. By the 1965/66 year, co-operatives were marketing about 65% of the country’s cotton crop and ginning about 60% of it. In coffee robusta, primary societies, by 1964/65, marketed 42% of the country’s crop and processed 42% of it, but by 1965/66 the figures had come down to 31% and 29%, respectively, owing to competition from the private sector, in Arabica coffee, co-operatives are providing and processing over 80% of the country’s crop, most of which comes from the Bugisu societies. The movement’s role in the development effort calls for a diversification of its activities beyond crop marketing. Hence co-operatives engage in activities ancillary to marketing, such as thrift, credit, and farming (through credit and group farming schemes), as well as general trading, through consumer and supply societies. Other services of the movement include education and publicity. Under the credit and group farming schemes, Government has injected considerable capital into rural development programmes through primary societies. The strength of the movement lies mainly in the support it gets from the government for its political and social functions as a device for redistribution of income and economic power; its weakness lies in its economic performance. While some unions have been successful in their market performance and passed on their members regularly, the profits they make, others have not , but rather dissipated their surpluses in extravagant expenses and high overheads. Thus, the co-operative have not been as efficient as expected, and are now faced with that ask of adapting co-operation to the needs of a rapidly developing country, in reconciling economic objectives with social ends. The changes that have been brought about by social and economic circumstances make it imperative that the movement must adjust itself to new conditions. However, the educational value of the co-operatives has been tremendous. The efficiency of the movement has been adversely affected by a number of factors, such as improper management; conflicts between management and committees; capital constraint; rapid growth of the movement and the expanding size of business units being out of proportion to the calibre of management available; political infiltration into union/society administration; and disloyalty of members of the movement. To overcome these problems needs a reappraisal of the policy of Government towards the movement as well as that of the movement itself, in order that the movement may be able to fulfill the major objective of improving the economic and social status of its members.
Rural spatial reorganization on the case of Mlali
(University of Dar es Salaam, 1978) Tuguta, Musa Y
The need for rural re organization for development in many underdeveloped countries is no longer debatable. It is a must. It is indispensable. And yet the question has been how to start and how to do it. Where it has been done as in the case of Tanzania, another question has yet been whether it has been done cording to plan. This study has been directed towards the investigation of these very questions. It is based on field research, field measurements and on intensive interviews with conversant personnel in Tanzania rural area. Spacing of villages has been studied, measure and evaluated production reorganization has been investigated and assessed in the light of national policies. Availability of existing social services has been studied and related to present village location s; finally, on administration reorganization in rural area, the interest has been focused in community administration distance and whether or not it is congruent with desired goals in rural settlement reorganization. Prior to those investigations, African policies on rural reorganization are briefly examined in general. The historical background to spatial organization follows this general; overview of African rural policies in order to put the study in its wide perspectives. Although this study based on intensive investigation of a single rural ward, characteristic similarities of different places of Tanzania rural life make it possible for this study to provide basic necessary knowledge for understanding the present rural situation and for planning. The study cannot claim to be exhaustive, nor can it be underrated. A house is never built of a single brick. Many bricks arranged in an orderly manner make up a beautifully and useful building. This study is a single brick. Where it has not provided exhaustive, further investigation will come to fill the gap.
The structural and spatial features of industrialization in Tanzania 1966-1985: case study of Mbeya region.
(University of Dar es Salaam, 1987) Isote, Gregory
This dissertation investigates the recent structural and spatial features of industrialization in Tanzania with special reference to Mbeya region. The choice of the study is guided by the importance of industrial development in the overall economic growth of the country. The background to the problem, literature review, statement of the problem, tentative hypotheses and research methodology are discoursed in in chapter one. The second chapter deals with the temporal dimensions of industrialization is a recent phenomenon in Tanzania. Chapter three examines the spatial features of industrial development and factors of industrial location in Tanzania. The chapter has revealed that there exists an un even distribution of industrial activities in Tanzania. The dissertation hypothesizes that the structural and spatial features of industrialization observable at the national level would tend to be repeated at regional level. Chapter four seeks to empirically determine the validity of the four tentative hypotheses advanced in the first chapter, namely. Firstly that industrialization is not only recent, but has tented to be localized in Mbeya town: secondly, that most of the industries in Mbeya town are raw material oriented; thirdly, that manufacturing industries contribute significantly to employment creation in Mbeya region. Fourthly, that manufacturing industries have contributed to the creation of significant contiguous industrial districts in Mbeya town. All the four hypotheses are accepted. Structural and spatial patterns of industrialization at the national scale tend to be repeated at the regional at the regional level. Overall it has been revealed that important structural and spatial changes have accompanied industrialization in Tanzania generally and Mbeya region in particular. Outstanding among the structural changes has been the structural shift from the basically consumer to the intermediate and basic goods industrial structure. As regards the spatial changes it has been asserted that industrial growth is an important space forming factor.
The structural and spatial significance of the small scale economic sector in Kampala city - Uganda
(University of Dar es Salaam, 1987) Mwesigwa, David
This study investigated the structural and spatial significance of the urban small scale economic sector in Kampala. Existing literature revealed an absence of strong empirical evidence to support the structural and spatial significance of the small scale sector in Uganda. This study, therefore, aimed at overcoming this weakness looking at Kampala city. Three hypotheses were formulated and empirically tested. Firstly, it was hypothesised that the small scale economic sector in Kampala was expanding more rapidly than the Large scale economic sector {1973-85). Secondly, it was postulated that the rapid expansion in the small scale economic sector could be explained in terms of rural-urban migration into Kampala, few employment opportunities in the large scale economic sector and rapidly rising cost of living. Thirdly, it was hypothesised that the small scale economic sector had a symbiotic relationship with other urban land uses and had developed significant land use zones. The analysis of growth rates indicated faster growth in the Small Scale economic sector in the period 1973-1985, For the second hypothesis, results revealed a positive relationship between population growth in Kampala, and the expansion of the small scale economic sector, a negative relationship between increase in the small scale sector and employment opportunities in the large scale economic sector, and a positive relationship between the expansion in the small scale economic sector and rapid increases in cost of living in Kampala. Information from operators of small scale enterprises and the location of small scale enterprises confirmed a symbiotic relationship between small scale economic activities and other land uses. It has therefore been revealed that, the above factors were responsible for the explosion of the small scale economic sector. The small scale economic sector is an important component of the urban economy in Uganda, as the case of Kampala city has demonstrated. The structural and spatial features associated with this sector should, not only be recognised but should also be incorporated in the programmes for national development.
The TRDB credit programme: a case study in loan recovery problems from smallholders tobacco farmers in Tabora Region 1977-1984
(University of Dar es Salaam, 1985) Musatta, Lawrence Chamikaga
In this study we were concerned with establishing the root causes of loan default among smallholder tobacco farmers in Tabors region, These are the farmers with an avearage of less than one hectre of tobacco per family. Indeed. as Table 2 in the text illustrates, all faxtinersan the region fall under this category. We took the Tanzania Rural Development Bank as the main source of credit to-these farmers. A sample of thirty villages was taken and a survey conducted to establish their loan repayffrent position. Their response on the causes of loan default, together with that of the bank: staff in the region, was noted. The following hypotheses were tested in the study (i) that there is loan default among farmers because the interest rate is high resulting auto the farmers failure to repay the principal and the interest on it (ii) that the loans given are not based at a credit worthness criterion of collateral, capacity to repay, the honesty of the farmer and the capital he has before the lean is advanced, (iii) that default is there because the whole project is economically enviable. The results confirmed that there is a high default rate among these farmers (50 percent and above), However, the results disproved the association of default with the unviability of the project. The net present values of the projects in each of the three districts growing tobacco were positive. In the Light of our data, we were able to conclude that there were other factors involved in loan delinquency beside economic ones. Some of those factors were extracted from the farmers themselves. We attempted therefore to give a conceptual framework within which remedial policy could be formulated. We have urged the bank to embark on .a kind of research which would reveal the contributive effect of each cause on default. We feel that after ascertaining this effect on default , the remedial policy can bear fruit.

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