News and Publications
The IIJD 2007 Newsletter Archive:
Faida Mali: Promoting Agribusiness Sustainability |
By Amy Ullman |
December 14, 2007 |
Faida Mali is a Tanzanian based non-profit consulting firm, that acts as a facilitator between small hold farmers and the marketplace. In so doing, they have created a sustainable business mode, to increase economic development in one of the world’s poorest countries. |
The December 6th issue of the Economist Magazine has boasted the end of cheap food, claiming that food prices have gone up by almost a third in the past year, which could be an economic disaster for many countries [1]. Yet the Economist article goes on to say that there are some countries and communities that might benefit from an increase in food prices. Agricultural exporters could see a massive improvement in their terms of trade – all that is needed is a either a production boost or an improvement in infrastructure involved in bringing products to the market – improved transportation. |
Such forecasts are quite relevant to a country such as Tanzania which, according to the CIA world Fact book, is one of the poorest countries in the world. “The economy depends heavily on agriculture, which accounts for almost half of GDP, provides 85 percent of exports, and employs 80 percent of the work force [2].” This makes the emergence of a group such as Faida Mali, all the more relevant and timely. The Faida Market Link Company (Faida Mali) was created in 2003, and currently serves four districts in the North East of the country. Their mission of is “to empower women and men in rural Tanzania to access markets through capacity building of community based organizations and the implementation of the market linkage methodology in order to increase income and create employment opportunities in rural areas [3].” |
Faida Mali acts as far more than a middle man between farmers and the marketplace. Their primary function is to provide the “market linkages” – assisting potential business partners through every phase of the partnership process. This includes grouping local farmers to achieve appropriate economies of scale to see a healthy profit; finding appropriate clients to whom farmers can offer their services; offering aid in the drawing up of contracts between business and farmers, and acting as mediator in the presence of disputes. Faida Mali also provides services for farmers and agribusinesses independently. For instance, the organizations conducts research to determine which crops are most appropriate for sustainable economic and environmental development; it trains farmers in appropriate business practices, such as accounting, marketing, in addition to farming, so that they may continue such partnerships unaided. |
Faida Mali’s work has resulted in three successful collaborations since the organization’s inception in 2003: “The first between 3600 small holder farmers in Amani, Tanga with Unilever for AB Nuts; the second with 480 small holder farmers in Babati, Manyara with Kibori Millers of Moshi for Sunflower and the third between 1727 small holder farmers in Hanang, Singida, Hai and Babi with Quality Food Products Ltd [4].” |
Projects like Faida Mali provide just the sort civic engagement that the IIJD believes is necessary in order to achieve enduring, meaningful change in Africa: a novel, bottom-up initiative that responds to and incorporates the needs of some of a country’s least-empowered citizens. Faida Mali offers a sustainable business model to the rural poor, “the sort of human-centered development which enhances Africans’ capacity for self-reliance. [5].” Additionally, Faida Mali incorporates women as part of their business model. Among the findings at the International Conference on the State of Affairs of Africa (ICSAA), participants concluded that, “Africa has yet to recognize the importance of women as integral partners in the social, political, and economic growth of the continent. African countries ought to promote policies that facilitate access for women to credit, land, education and healthcare [6].” The growth of organizations such as Faida Mali, and duplication of similar projects throughout Africa act as a crucial step in the eradication of poverty in the continent. |
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[5] “International Conference on the State of Affairs of Africa: Conference Findings, Resolutions and Recommendations” October 2006 ICSAA p. 10
[6] ibid. p6
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