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

ABSTRACT The study was carried out at Igoma and Igogo wards in Nyamagana District aimed at identifying 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 peoples income can be through government interventions in the challenges facing the fishing industries so as to increase income of the people.

DECLARATION I Constantine J. Kasese declare that the dissertation entitled Contribution of Fishing Industries in household poverty reduction is my own original work carried out by me under the guidance of Mr. Fadhili, Ngalawa. And it has not been previously submitted for the award of any academic qualification.

Constantine John Kasese 22 September, 2010

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COPYRIGHT No part of this paper report may be produced or transmitted in any form and by any means without permission of the writer or Institute of Rural Development PlanningDodoma.

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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. Im 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 Mpangala and 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.

TABLE OF CONTENTS ABSTRACT......................................................................................................................i DECLARATION.............................................................................................................ii COPYRIGHT..................................................................................................................iii RESEARCH SUPERVISORS CERTIFICATION.......................................................iv ACKOWLEDGEMENTS................................................................................................v TABLE OF CONTENTS................................................................................................vi LIST OF TABLES..........................................................................................................xi LIST OF FIGURES.......................................................................................................xii LIST OF APPENDICES.............................................................................................xiii LIST OF ABBREVIATION........................................................................................xiv DEFINITION OF KEY TERMS...................................................................................xv CHAPTER ONE..............................................................................................................1 INTRODUCTION............................................................................................................1 1.1 Background information to this problem 1.3 Research objectives 1.4 Research Questions 1.5 Scope of the study 1.6 Conceptual framework Figure 1: Conceptual Framework 1 5 5 6 6 6 1.2. Statement of the Problem and Significance of the study.........................................4

CHAPTER TWO.............................................................................................................7 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 2.2.2 Fishing Industries in Madagascar...................................................................9

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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 2.5 Importance of Fishing Industries 11 12

2.4 Millennium Development Goals and Fishing Industries.........................................12 2.6 Challenges facing fisheries industry in Mwanza ....................................................12 2.7 The goal of the National Fishing Industries Policy.................................................13 2.7.1 The objectives National Fishing Industries Policy......................................13 CHAPTER THREE........................................................................................................15 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

3.2.2 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 Table 1: Categories of respondents 18

3.3.4 Sampling procedures....................................................................................18 3.4 Data collection methods 18

3.4.1 Interviews .....................................................................................................18 3.4.2 Observation ..................................................................................................19

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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..........................................................................................................21 RESULTS AND DISCUSSION OF FINDINGS..........................................................21 4.1 Introduction 4.2 Characteristics of Respondents 21 21

4.2.1 Sex of respondents........................................................................................21 Table 2: Distribution of Respondents by Sex 21

4.2.2 Age of the Respondents................................................................................22 Table 3: Age Category of the Respondents 22

4.2.3 Education level of Respondents...................................................................22 Figure 2: Education level of respondents. 23

4.2.4 Occupation of Respondents..........................................................................23 Table 4: Occupation of respondents 24

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 Table 5: Percentage of Respondents employed in the Fishing Industries.....................25 4.3.1.1 Household average income implication................................................25 Figure 3: Distribution of income of the Respondents...................................................26 4.3.1.2 Accessibility of Market by fishermen in the industries........................26 Table 6: Respondents who get market access to the Fishing Industries ......................27 Respondents presented in (Figure 4) reported the price variation between the local fishermen and large fishermen of fishes in the fisheries, the variation came because the
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local fishermen sell the fish through agents at a low price of 2500/= to 2900/= and the large fishermen sell fishes direct to the industries at a price of 3500/= to 3700/=.......27 Figure 4: Price variation among local fishermen and fish business men......................27 4.3.2 Market situation ...........................................................................................27 Table 7: Market situation of Fish in Fishing Industries ...............................................28 4.3.2.1 Trend of price in the market in past five years.....................................28 Figure 5: Trend of price in past six years 28 4.3.3 Financial support from the industries...........................................................29 Figure 6: Respondents who had access to loan from the industries..............................29 4.4 Roles played by the Fishing Industries in social services delivery.........................30 Table 8: Respondents accessibility to social services ..................................................30 4.4.1 Distribution of social services conducted by the Fishing Industries...........31 Figure 7: Distribution of social services supported by 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 Figure 8: Ghand Hall round about in Mwanza City......................................................33 4.4.1.4 Other social services .............................................................................33 4.5 Challenges facing the Fishing Industries in its operations......................................34 Figure 9: Challenges facing Fishing Industries 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............................................................................................................38 CONCLUSION AND RECOMMENDATION............................................................38 5.1 Introduction 5.2 Conclusion 38 38

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

REFERENCES...............................................................................................................41 APPENDICES ..............................................................................................................43 APPENDIX ONE; HOUSEHOLD QUESTIONNAIRE .............................................43 APPENDIX TWO QUESTIONNAIRE FOR WEO AND VEO FISHERIES OFFICER 45 45 46

QUESTIONNAIRE FOR INDISTRIAL OFFICIAL....................................................47

LIST OF TABLES Table 1: Categories of respondents18 Table 2: Distribution of Respondents by Sex..Error: Reference source not found Table 3: Age Category of the Respondents....Error: Reference source not found Table 4: Occupation of respondents.. Error: Reference source not found Table 5: Percentage of Respondents employed in the Fishing Industries................Error: Reference source not found Table 6: Respondents who get market access to the Fishing Industries. Error: Reference source not found Table 7: Market situation of Fish in Fishing Industries.........Error: Reference source not found Table 8: Respondents accessibility to social services. Error: Reference source not found

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LIST OF FIGURES Figure 1: Conceptual Framework. Error: Reference source not found Figure 2: Education level of respondents......Error: Reference source not found Figure 3: Distribution of income of the Respondents. Error: Reference source not found Figure 4: Price variation among local fishermen and fish business menError: Reference source not found Figure 5: Trend of price in past six years.. Error: Reference source not found Figure 6: Respondents who had access to loan from the industries........Error: Reference source not found Figure 7: Distribution of social services supported by Fishing Industries...............Error: Reference source not found Figure 8: Ghand Hall round about in Mwanza City....Error: Reference source not found Figure 9: Challenges facing Fishing Industries.....Error: Reference source not found

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LIST OF APPENDICES Appendix 1: Household Questionnaire..Error: Reference source not found 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 EU FAO GDP HBS IRDP IUCN LVFP A MCC MCE MDGs NPES NPFL SPSS URT VEO WEO Beach Management Unit European Union Food and Agriculture Organisation Growth Domestic Product Household Budget Survey Institute of Rural Development Planning International Union for Conservation of Nature Lake Victoria Fisheries Processer Association Mwanza City Council Mwanza City Economist Millennium Development Goals National Poverty Eradication Strategy Nile Perch Fisheries Limited Statistical Package for Social Science United Republic of Tanzania Village Executive Officers 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 raw materials 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 aquatic species 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). Form 1990s to present there have been a high rate of growth of investment in the Fishing Industries processing industries in Mwanza as a result of the increase of

demand and expansion of market in the fish products in Northern countries. As a result of this there is a big competition between the factories to an extent that many of the factories began to use illegal means for catching fishes. Though there are authorities who are responsible on this, poor payment to them leads to increase in corruption at different levels and this leads to poor management of the Fishing Industries resources in Lake Victoria (Jansen, 2006). So the development of the fish processing industries in Lake Victoria is mostly determined by the integration between the available authorities, national and international investors in the fishing sector. All this is because the alternatives that will be foregone by this sector have direct effects to employment opportunities to the people, living standard of the people and food for the communities who are depending on fishing as their dominant activity for survival. As most of the investors are profit oriented, if it occurs that there is a decline in the fish stock they tend to shift to other areas where there is abundant fishes and as a result it affects and exposes much the local population to poverty trap since they depend much on fish resources as their source of income. To a greater extent the most Fishing Industries oriented industries has brought a greater challenge among the traditional Fishing Industries. An equal trend about the ownership and management of fishing operations is connected to the increased among the Fishing Industries factories that seeks to secure efficient fish supply. Form the Poverty and Human Development Report (URT, 2005), it was estimated that about 36% of the Tanzania population was living below the poverty line in 20002001.Where in rural areas 39% of the population was found in rural areas though there was a decrease from 41% in 1991-1992 to 39% in 2000-2001.Basing on Tanzania Households Budget Survey (HBS) of 2006-2007,about 34% of the Tanzanians are now falling below the basic need poverty line and about 17% are 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.

1.2. Statement of the Problem and Significance of the study The development of fisheries processing industries came as the result of the National investment 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 Institutes almanac.

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. social services delivery. iii. operation. 1.4 Research Questions i. What are the opportunities for rising income offered by the Fishing Industries to the local people? Variables ii. Variables iii. Variables Decline of fish Quality of products Government policy Health services Education services Cleanness. Employment Market Financial support To identify challenges facing Fishing Industries in daily To determine the roles played by the Fishing Industries in

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

What are the challenges facing the Fishing Industries in its operations?

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.

Independent variables

Intermediate variables Income generation Investment Employment opportunity Saving Fishing input accessibility Financial support Price Storage system

Dependent variable

Market Policy Technology Capital Fishing education

Poverty reduced at household level

Figure 1: Conceptual Framework

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 food Fishing 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.

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 review
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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 socialinstitutional 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 of aquatic 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. Madagascars export grew with a remarkable 121 % in 2003 and averaged US$ 852 million in that year (Rojat and Chaboud, 2004).

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. Kenyas 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 and

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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 people. The majorities are employed in small-scale Fishing Industries in the

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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 (FAO, 2005). 2.4 Millennium Development Goals and Fishing Industries Fishing Industries provide an important source of revenue for many developing countries Net Fishing Industries exports amounted to US$17.4 billion in 2002 in foreign exchange earnings for developing countries, more than the net exports of coffee, cocoa, sugar and tea combined. The total export value of the world trade of Fishing Industries and aquaculture products was US$58.2 billion in 2002, half of which accrued to developing countries (FAO, 2000).

2.5 Importance of Fishing Industries Source of employment and hence income: The Fishing Industries Sector employs about 150 000 full time artisanal fishermen. About other 2.0 million people make their livelihoods through various Fishing Industries-related activities. Such activities include boat building, net mending, fish processing, food vendors, and other petty business (URT, 2007). Source of Government Revenue: The Fisheries industry Division collects revenue from the sector activities at different levels of the government. The money collected is used to develop the sector in terms of management, training and monitoring of the resource utilization. Some of the revenue is also used for human resource development in the Fishing Industries sector (URT, 2007).

2.6 Challenges facing fisheries industry in Mwanza

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Lack of Fishing Industries experts to manage the industry effectively, ranging from 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 place for 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 production so 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 sustainable use of the fish stocks and aquatic resources. To protect productivity and biological diversity of coastal aquatic ecosystems through prevention of habitat destruction, pollution and over exploitation. Improved involvement of fisher communities in the planning development and management of fishery resources.

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Pursue a continuing integrated program for Fishing Industries in the coastal zones 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 selfemployed, 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 1+17022 (0.1)2 n = 99

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Table 1: Categories of respondents PLACE AND SAMPLE SIZE IGOGO IGOMA TOTAL WEO VEOs WEO VEOs 1 2 1 2 49 1 1 TOTAL 1 50 1 2 108 6 99

NO. 1 2 3 4

CATEGORY O F RESPONDENT WEOs and VEOs Fishermen and Employees from Industries Fisheries officer Fish agent

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 methods used. 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 is very 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 of time 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 Male Female Total Percent 92.9 7.1 100

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4.2.2 Age of the Respondents Table 3 below shows the age composition of the respondents. The age was ranged from 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) 36-45 25-35 46-Above Total Percent 48.5 42.4 9.1 100

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 employed in
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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.

% 80.0
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Education level Secondary Primary College

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

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to the Fishing Industries. The study also revealed that agents of fish 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 Fishing Business of fish Employment( driver, store, accountant) Total Percent 52.5 15.2 32.3 100

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

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people in the area so that they can conduct their living. Thus 33% of the 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 Yes No

Percent 33.3 66.7

Total 100

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 average income 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 shows the

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distribution of income of the respondents in percentage from those with high income to low income earners.

70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Income category Below 100,000 Average 300,000 Below 500,000 Above 500,000

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.

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Table 6: Respondents who get market access to the Fishing Industries Market Yes No Total Percent 67.7 32.3 100

Respondents presented in (Figure 4) reported the price variation between the local fishermen and large fishermen of fishes in the fisheries, the variation came because the local fishermen sell the fish through agents at a low price of 2500/= to 2900/= and the large fishermen sell fishes direct to the industries at a price of 3500/= to 3700/=

50.0 % 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 5.1

43.4

14.1

1.0 2000-2500 Tsh 2500-3000 Tsh 3000-3500 Tsh 3500-4000 Tsh

Local fishermen

Large Businessmen

Figure 4: Price variation among local fishermen and fish business men 4.3.2 Market situation The researcher also was interested to know the market situation of fish in the Fishing Industries and the study revealed that 42.4% of the respondents reported that the market situation is low due to decline of fishes in the lake. Other respondents who
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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 Low High Not sure Total Percent 42.4 29.3 28.3 100

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 in the market in respective years as follows; Price 4000 3500 3000 2500 2000 1500 1000 500 0

3500 2300 2700 3000

3500

3800

2005

2006

2008

Figure 5: Trend of price in past six years

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2010

2007

2009

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.

%
80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Yes No Yes No

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

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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 Yes No

Percent 68.7 31.3

Total

100

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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 the association of fisheries in Mwanza City.

15% 39%

46% Education Health services Cleanness

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 market both for industrial and domestic consumption.

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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 and dumping 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 , the construction 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. Construction 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 cement and 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 association of Fishing Industries in Mwanza plays part in providing social services to the people around the area.

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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).

% 30
25 20 15 10 5 0 Fish size Production cost Decline of fish

Net size

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 fishermen reported 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 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)

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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 Tanzanias 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 years reaching 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 have direct 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 mesh size 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 4mesh size net. Fishermens 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 of fishes 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 the government. For the case of electricity an industry pays to about 20,000 US$ per
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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 the most 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 to put 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 the duty to watch out

39

that fishing activities are done as stipulated by regulations/laws of the government. (iii) Encourage/establish fish farming technology, this is the technology used in 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 is another 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 of price 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: Kenyan Fish Exports, Nairobi Abila, R.O. and E.G Jansen. (1997). From Local to Global markets; The Fish Exporting and Fishmeal Industries of Lake Victoria-Structure and Socioeconomic Impact in Kenya. Socio-economic of Nile Perch Fisheries of Lake Victoria. Project Report No.2. IUCN-EARO. Nairobi Bagumire, A. (2009) Impact of the Global Financial and Economic Crisis on the Fish Salaam Industry in Uganda and Tanzania. Food Industry Consultant, Dar es Tanzania

Bn, C. (2003). Poverty in Small-scale Fisheries: A Review and Some Further Thoughts, Small-Scale Fisheries, Poverty and the Code of Conduct for Responsible Fisheries Bilame, O. (2009). Contribution of Small-scale Nile Perch to Household Sengerema, REPOA WORKSHOP Dar es Salaam Tanzania income in

Boka, C. and Ikiara, M. (2000). The Macro-economy Of the Export Fishing Industry in Lake Victoria Nairobi, Kenya FAO, (2005). Poverty in Coastal Fishing Communities, Advisory Committee on Fisheries Research (Third Session), Mimeo, Rome, 5-8 December. Jansen, E.G and A, J. Boye. (2006). Sustainable Management of Fisheries resources and the Role of the National and Local Authorities". A paper presented 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 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 (http://www.mwanzaregion.org) sited on 5th May 2010. Region Maembe, T. (2006). Fisheries and Management with references to Lake Victoria A s

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NPFL, (2009). Annual Progress Report . http://www.info@nileperch.org) sited on 10th July 2010 Rojat, D and Chaboud, C. (2004). Co-management of the Shrimp Fishery in Madagascar. No. IIFET 2004 Japan Proceedings. 133, World Bank, Washington, DC. Ravallion, M. (1999). Poverty Lines in Theory and Practice. LSMS Working Paper 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 Tanzania URT, (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

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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). 7. Household size (No.) B: Information related fishing activities 1. Are you engaged in fishing activities 2. If yes, what types of fishes do you fish? (Specify). 3. Do you sell fishes for income generation? 4. If yes, where do you sell them? 1= to middle men 2= to industries 5. If you are selling to the industries at what price do you sell?.......................... 6. If you are selling to middlemen at what price do you sell?.......................... 7. (a) Which species of fish do you mostly sell? 1 = Tilapia, 2= Nile Perch, 3= others (specify).. (b) Give reason for the most sold fishes 8. How do you perceive market for fishes currently? ; 1= low know 2= high 3= Dont 1= yes 2= no 1= yes 2= no 1= Tilapia 2= Nile perch 3= Others

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9. What are constraints to fishing activities do you encounter in your area?...................... C: Opportunities and financial support from the industries 1. How do you perceive accessibility to credit services 1= easily accessible 2 = not easily accessible 2. Have you ever received loan for fishing activities . 3. How do the Fishing Industries support you in accessing loans? 4. What are the opportunities do you have from the industries? a). b). c) 5. Do the industries support you to get access to social services? 1 Yes If yes, what services do you get? a). b). c). 6. Are there any by laws in conducting your activities? 1. Yes 2.No If yes, mention them a). b). D: Income and Family Expenditure 1. What is the average income from activities or from fishing? Below 100,000 Average of 300,000 Below 500,000 Above 500,000 1= yes ( ) 2=no; if yes, where/

2= No

2. What are the basic family needs? . . 3. What is the Rank/ Place of fishing activities in solving the problem of food shortage at the household? 1= first, 2= second, 3= third, 4= fourth, etc..

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APPENDIX TWO QUESTIONNAIRE FOR WEO AND VEO 1. Name of respondent. 2. Age of respondent 3. Sex of the respondent 1=Male 2= Female 4= Divorced 4= Degree ( ) ( ) ( )

4. Marital status of the respondent 1= Married 2=Single 3= Widow

5. Education level of the respondent. 1= Secondary 2= Certificate 3= Diploma 6. Position of the respondent 1=VEO 2= WEO

7. Is there any fish processing industry in your area? If yes, mention them by names.. .. 8. How many households in your ward are involved in fishing activities?.............. 9. How many people from your place are employed in the Fishing Industries present in your area? 1= 0 100 2=100 - 500 3= Above 500 ( ) 10. What other economic activities have emerged as a result of the establishment of the fish processing industries in your area? 1) 2) 3) 4) 11. To what extent do the Fishing Industries contribute in the income of your ward/village? .. .. .. ..

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APPENDIX THREE FISHERIES OFFICER 1. Name of respondent. 2. Age of respondent 3. Sex of the respondent 1=Male 2=Female ( )

4. Marital status of the respondent 1= Married 2= Single3= Widow 4=Divorced ( ) 5. Education level of the respondent.1= Certificate 2= Diploma 3= Degree ( ) 7. What are the problems caused by Fishing Industries in the area? 1). 2) 3) 8. What are the environmental measures undertaken by Fishing Industries to conserve the environment in the area? 1).. 2). 3). 9. Are there any measures in conserving fishing bleeding sites undertaken in the area? 1 = Yes 2 = No If yes, mention them . .. 10. What are the most dominant species of fish that found in your area? 1) 2) 3) 11. What is the rate of change of prices of fish in the past five years? YEAR 2005 2006 2007 2008 2009 PRICE PER KILOGRAM

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APPENDIX FOUR QUESTIONNAIRE FOR INDISTRIAL OFFICIAL 1. Name of respondent 2. Age of respondent 3. Sex of the respondent 1=Male 2= Female ) 4. Marital status of the respondent1= Married 2= Single 3= Widow 4= Divorced ) ( (

6. Education level of the respondent.1= Certificate 2= Diploma 3 =Degree 4= Others ( ) 7. Position of the respondent 8. What are the main activities carried out in the industry? 9. What has been the level of production from your industry in five years from 2005 to 2009? YEAR 2005 2006 2007 2008 2009 10. What is the average income earned by the industries from 2005-2009? YEAR 2005 2006 2007 2008 2009 11. Who are the main buyers/consumers of your products?
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AMOUNT IN TONNS

AMOUNT EARNED

 12. How many people are employed in your industry? ....................... 13. Do you involve in any environmental conservation activities? If yes, how.. ... If no, why. 14. Are there any measures in conserving fishing bleeding sites by the Fishing Industries? If yes, mention them . .. .. 15. Do you provide any social services to the area around? If yes, what are they.. ... If no, why. 16. What are the challenges facing production in your industry? . 17. Are there any by laws which hinder you in your daily activities of production in the industries? If yes, mention them.. .. .

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