COMMUNITY ANALYSIS: KKTT

TABLE OF CONTENT PAGES

1. Introduction…………………………………………………………… ..2
2. Community profile……………………………………………………… 2
3. Current Economic conditions……………………………………………..4
4. Components of the community which are growing rapidly………………6
5. Components of the community which are either
declining or performing poorly………………………………………… .7
6. Investment opportunities……………………………………………….....9
7. Tools use in Community Economic Analysis…………………………...11
8. Conclusion and recommendation………………………………………..13
9. Reverences………………………………………………………………13
























1. INTRODUCTION
Community Economic Analysis is an examination of how a community functions economically. The central purpose of carrying out community Economic analysis is to establish how to help a community do something about its job and income situation.
In this paper we shall provide economic analysis for Kikatiti division, in Meru district, Arusha region. In our analysis, we shall first explore current economic conditions in the area before examining the components of the community which are growing.
We shall then, provide the components of the community which have been either declining or performing poorly before thoroughly examining the investment opportunities in the area. To make our analysis complete, we shall also provide the tools or techniques used in the data collection before concluding and making recommendations.

2. COMMUNITY PROFILE
The community hosting the project is Kikatiti ward. It is located 23 kms east direction of Arusha town along the Great north road. Kikakiti ward is within Meru districts Council. Other wards in the same division are Sakila, and Njeku. Other neighbouring villages are Maji ya Chai in the West and Kia in the far East.
Administratively, Kikatiti Division is headed Divisional Secretary. Below him are Ward Executive officers. Other administrators are ward councilors, Village heads and Sub-village heads. Other supportive administrators are Education officers, health officers and agricultural extension workers.
Some of the committees in place include the environmental committee, security committee, food security committee, health committee, and infrastructure committee.
Kikatiti is located in the equatorial type of climate but its climate is highly influenced by the presence of Mount Meru. It lies in the eastern part of Mount Meru; here it is on the wind ward side. It lies in the eastern part of Mount Meru, hence it is on the wind ward side. It therefore receives orographic type of rainfall which falls heavily in the months of February, March and April and Moderate in October, November and December. It is estimated to receive about between 1200 to 1500mm of rainfall per year. The temperature in area is high up to 32oC during hot seasons. Humidity varies with temperature.
The Northern part of Kikatiti is gentle slopping and some parts have undulating land. In Southern part, there is low land with rolling plain as well. The rugged surface of the land in the North has been due to heavy rainfall.
Kikatiti division has population of 12781 people composed of 5970 males and 6811 females. The children are 8460 while adults are 4321.

SUMMARIZED POPULATION TABLE
S/N
WARD
MALE
FEMALE
TOTAL
1
Kikatiti
3119
3235
6354
2
Njeku
1264
1350
2614
3
Sakila
1597
2216
3813


5980
6801
12781






Source: Kikatiti Division Office


The demographic structure of Kikatiti Division can be summarized in the table below:
CATEGORY
AGE
MALE
FEMALE
TOTAL
Children
0 -6
1038
1660
2698
Primary school pupils
7 -14
2397
2245
4624
Secondary school students
15 – 19
625
495
1120
Youth
20 – 35
809
1274
2083
Middle-aged
36 – 55
669
1209
1878
Old
56 - 100
65
313
378


5980
68801
12781
SORCE: Kikatiti Divisional Office

Kikatiti division has one government school and private school. It has also six government Primary schools and one private primary school. Thee secondary schools have 1120 student as shown above.
It is estimated that 70% of the population above 19 years are primary school dropout, 25% were able to study up to secondary school level. The remaining 5% are not able to read and write in any language.

Kikatiti Division is predominantly an agricultural region with over 80% of the population engaged in agricultural activities. The rest of the population is in the self-employment with few civil servants. The agriculturalist earn between TShs. 40,000 to TShs 60,000.00 per year while the majority of the self-employed people people earn between Tshs. 150,000 to 200,000 per month. However, the civil servants earn much higher amount of salary per month, the minimum being TShs. 80,000 per month.
Kikatiti division is divided into two parts by Great North road. The murram feeder-rods are also available, joining the three villages of Kikatiti that is, Sakila, Njeku and Kikatiti ward.
Electricity and water is available in the area but there are several houses without electricity due to lack of funds. Other social services available in the area include seven primary schools, two secondary schools, two dispensaries and a police post. Mobile phone in the area have really facilitates communication. Very few households are still lacking these gargets.
Environmentally, Kikatiti is still poorly managed. Large unplanned dumps of garbage in Kikatiti trading centre is a clear testimony of this. The large dustbin, in which garbage is dumped, sometimes over flows inviting the community of flies, rats, goats, people and dogs. Meru District council has the responsibility of collecting and disposing garbage but the frequency in which is done is still wanting.
The data displayed in the divisional office shows that out of 2215 household, 824 have poor latrines and 38 households still lack toilets.

3. CURRENT ECONOMIC CONDITIONS
3.1 Agriculture
Kikatiti Division is predominantly an agricultural region with over 80% of the population engaged in agricultural activities. The rest of the population is in the self-employment with few civil servants. The people involved in agriculture earn between Tshs 40,000 to Tshs 60,000 per year. The major income-earning crops grown in the area include maize, beans, bananas, coffee and rice.


3.2 Industries
Kikatiti region is not very much endowed with large industries but the majority of the population practice handcraft. Such industries activities include welding, carpentry, and tailoring. These are basically done on very small scale and earnings are basically for subsistence use.
3.3 Trade
Kikatiti is also a business centre with a lot of business activities conducted in the area. The major business activities includes restaurants, wholesale and retail trade, bars, butchers, stationery, groceries, furniture and guest houses. These trade activities are facilitated by the Great North Road which pass across the area.
Kikatiti has also two major market days. These are Tuesdays and Fridays. Major items sold in the market include agricultural products produced in the area and livestock such as sheep, goals, donkey and cattle.
3.4. Quarrying
Kikatiti is also endowed with sand and stones which are extracted for sale either is the community or in the neighboring communities. Big lorries and trucks loaded with stone and sand are the common sight in the area.
3.5.Transportation
The presence of Great North road and the feeder roads the rural part of Kikatiti makes transportation a very lucrative business in area. It serves as a terminal area for most of the small passenger vehicles playing from Arusha town to Kikatiti shopping centre. Big passenger vehicles also stop at Kikatiti to collect passengers from Dar es Salaam and Moshi regions.
3.6. Pastoralism
In the lowland, people keep a large number of cattle, sheep, goats and donkeys. This is generally encouraged by large communal pasture in the area. In the upland, people keep few animals and the majority keeps two or three cows for milk. The product which is generally milk is sold locally for household consumption.



3.7. Lumbering
The indigenous forest found in the community facilitates lumbering activities in the area. However, with the strict government regulation, this activity is confined to exotic trees which are artificially planted.
3.8 Social activities
The social activities available in the Kikatiti community include 7 primary school and one secondary school, Police Post, two dispensaries three mosques and twelve churches. The presence of these social activities accelerates the presence of economic activities such as trade.
3.9. Tourism
The presence of hills and indigenous forest in the region encourages both local end foreign tourists in the region. Kiktiti is only but 5 kilometers from Kilimanjaro International Airport – the major tourist receiving centre in Arusha region and only but 3 kilometres from Ngurdoto Hotel. These two tourist centres encourages tourism activities in the Kikatiti region.
3.10.Horticuture
The climatic conditions in the area enable the growth of flowers in the area. This has attracted many investors and provides employment to the majority of people in the community.

4. COMPONENTS OF THE COMMUNITY WHICH HAVE BEEN GROWING

4.1 Housing
The construction of houses in the shopping centre is growing very fast. This is due to available construction materials in term of stones and sand. Though the high cost of cement in the region curtails the constant growth of housing activities, the immigrants still improves the capital availability.
4.2. Micro financing
There are quite a number of micro financing institutions in the area which provide loans under very reasonable terms and conditions. These financial institutions include Pride Tanzania, compassion, CRDB, Akiba Cormmercial Bank, Bracs foundation and SEDA.
4.3.Investment
Most of the immigrants do so with intention of establishing mall and medium enterprises. Most of these investors are encouraged by the rapid population increase in the area which provides market for their products.
4.4. Employment Aspect
As a result of rapid increase in economic activities, the majority of Kikatiti community members are employed in various sectors. However, the earning is still very low and averages TShs 40,000/= per month
4.5.Agricultural Supplies
The improved economic activities have encouraged the farmers to improve their agricultural products due to ready market available in the area. The crops which have experienced rapid growth are maize production, tomatoes, onions and green vegetables.
4.6. Informal sectors
The majority of the youth with or without formal business skills readily engage in informal sectors as a source of livelihood. The itinerant traders are common sight in the area. The small scale food vendors have also been on the increase.

5. COMPONENTS OF THE COMMUNITY WHICH HAVE BEEN DECLINING OR POOLY PERFORMING

5.1 Carpentry
Carpentry has been facing gradual decline in community despite the fact that there are now more trained personnel in the business than before. This decline has been due to the rapid increase in wood prices, environmentalist and government restrictions on tree cutting and imported wood products.
5.2. Tailoring
Tailoring as one of economic component of the community is also on rapid decline. The reason for this decline is the importation of second hand clothes. Poor working tools have been another cause of the decline.
5.3. Home loans
Despite the fact that there are many micro financing institutions in the region, provision of home loans has not only been on decline but most of the financial institutions have been reluctant to advance loans to home developers.
5.4.Living Wages
The majority of the people employed in the community earn below minimum living wages. Apart from the civil servants, all the rest of employees do not earn substantial amount of salary. These include shop attendants, house servants, waiters machine attendants, tailors and carpenters. This is attributed to low level of training, less profit for the respective sectors, lack of labour union and lack of alternative job opportunities.
5.5.Less affordable Housing
He house rent in the community has tremendously been on increase making the cost of living to increase. The increase on house rent is attributed to rapid increase in population hence increasing demand for housing, high cost of construction materials and shortage of houses.
5.6. Difficulties in filling highly specialized jobs
Most of highly specialized jobs like medicine, high school teachers and engineers are very difficult to be filled by community members. This is attributed to few locally trained personnel, low wages for them as compared to other community and lack of social amenities in some parts of the region.
5.7. Hostile Business Environment
The community has also experienced hostile business environment due to government and District council personnel harassment. The government, through. taxation and licensing regulations, coercively reinforce the payment of dues from the business community. The district council personnel on the other hand, also forcefully obtain the council receipts from the public. The difficulty in operating the business in the community is also due to last of warehousing facilities.



6. INVESTMENT OPPORTUNITIES

6.1 Food Canning
From several bananas and tomatoes produced in the area, an investor can establish a food canning industry and utilize the readily available raw materials. The banana produced in the area can also be used to brew alcohol as it is in the Banana investment. The other resource that is available in the community which can facilitate the establishment of such industry is the cheap labour.
6.2. Garbage Recycling
There is no single industry in the community which is involved in the recycling of garbage. A lot of plastic paper bags are produced in the region but they end up being wasted. The pieces of metals and glasses can also be utilized in the similar manner.
6.3.Poultry Farming
Attempting to keep large chicken farm can be really a lucrative business due to readily available market for such products. The fast growing tourism industry locally and the neighbouring community can easily serve as a market for such products.
6.4. Lumbering
The large pieces of land in the area can facilitate the growing of exotic trees which can serve as a source for lumbering activities. The indigenous forest available in the area can also be economically utilized as raw material for lumbering in the area.
6.5. Animal Product Industry
An Investor can also establish an industry for processing milk, butter and cheese which are at the moment not in place. The large amount of milk produced in the community is basically being used locally for drinking without for processing.

6.6. Brick Making
The community is endowed with red clay soil in the lowland which can be used for brick making on the large scale. The sand and stones quarried in the area can also be utilized for block making. The market in this regard is also readily available due to the construction activities taking place in the region.

6.7. Quarrying and Sand Mining
The stones available in the community can as well be subjected to large scale quarrying and serve the community better rather than doing it on small scale and subjecting the community to poverty. Sand mining can also be done on large scale hence improve the community’s income.
6.7. Education Facilities
There is also an investment opportunity in the education sector. The rapid increase in population and only but two secondary schools available without a college can facilitate the investment in education as lucrative business. The students are forced to travel 25 kilometers from the community to seek the same service from Arusha town.
6.8. Health Facilities
A large health facility in the region can be a good investment due to lack of referring hospital in the area. In the similar manner patients have to be taken either to KCMC or Mt. Meru Hospital or Tengeru about 70 km, 25km and 10km away from the community.
6.10. Tourism Facilities
Tourism in a fast growing industry in the region but there is no single facility in terms of a hotel or a tour guide firm in the community. Because of now readily available market, this venture can improve to be a good investment.
6.11. Transportation Services
The population in the area is rapidly growing and the available passenger vehicles cannot adequately serve the community. So there is also need to invest in this service. The sand mining and quarrying activities also requires big lorries and trucks. These activities can guarantee full operation of the investment throughout the year. There are also two market days in a week and most of the market supplies comes from the neighboring communities hence the need for transportation services.

6.12. Flower Industry
Good climatic conditions available, water and cheap labour can be utilized to establish several flower industries in the region.

6.13. Cultural and Artistic Facilities.
Establishment of cultural and artistic activities will be an investment which has never been ventured into in the community. This may include traditional dancing and Christian choirs, wood curving, basket making and mat weaving.

7. TOOLS USED IN COLLECTING DATA FOR COMMUNITY ECONOMIC ANALYSIS
In our attempt to carry out community economic analysis, we applied the following tools to collect the data:
7.1. Participant Observation
This technique of data collection is also known as direct observation. In this method the researcher becomes part and parcel of people under observation. The participant observer commits himself to a group of people for a given time, such as several days, weeks or months.
In our attempt to collect the data for Community Economic Analysis, we applied this method. The method assisted us to collect data relating to types of business activities existing in the area, the means of transportation and, the garbage produced in the community.
In applying participant observation we got to know the ideas of the people we were studying, we were able to record the data as we observed and we were also able to get first hand information.
7.2. Semi – structured Interview
Interview is an oral administration of a questionnaire or an interview schedule. Interviews are therefore face to face encounters. In this tool, a researcher needs to have a maximum cooperation from the respondents.
During our Community Economic Analysis data collection exercise, this method assisted us to collect the data relating to the businesses which are performing well and those that are declining. We were also able to identify the reason for their poor performance as well.
We applied this method because we could be able to compare answers from different respondents to see their validity. It was also possible to use quantitative analysis to analyze the data. The method is also less time consuming.
7.3. Structured Questionnaire
This method of data collection involve preparing questions which are accompanied by a list of all possible alternatives from which respondents select the answer that best describes their situation.
This method enabled us to collect personal data such as the earning for employees, the sales volume for business community and the secrets behind good performance of the businesses.
We applied this method in collection the data for Community Economic Analysis because the data collected was easier to analyze, the method was easier to administer and economical in terms of time and money.
7.4. Focus Group Discussion
This is a technique whereby the researcher convenes a meeting involving people of different profession, skills and qualification. Then the researcher’s work is to brain storm the meeting by asking a question of his interest. As the participants discuss the question, he/she records the resolution.
This technique enabled us to collect data on the investment opportunities available in the community.
7.5. Secondary Data/Documents
This is the past and present literatures and official current or previous investigation reports are consulted. In the process, the information or data are supplemented.
This technique of data collection enabled us to check the reliability of the data obtained. In conducting Community Economic Analysis, this method was necessary in order to establish the number of people in the community.




8. CONCLUSION AND RECOMMENDATIONS
A good Community Economic Analysis can reflect the community’s potential to provide the member with better standard of living. An investor can also identify the community’s investment opportunity through the analysis carried out and invest accordingly. So the importance of Community Economic Analysis cannot be undermined in this regard.
In our analysis, qualitative/description approach was used throughout however, we recommend that other tools of Community Economic Analysis can also be used to give more insight as far as the resources of the community is concerned. Such tools may include: Reilly’s law, input-out analysis, pull factor, Trade area capture, potential sales, Location quotient, Population-Employment ratio, Shift-share: National growth component, Industrial mix component, competitive share component and employment and Income multiplier.

9. REFERENCES

1. Ronald J. Hustedde, Ron Shaffer and Glen Pulver (1993) – community Economic Analysis – A How to Manual Lowa State University Printing Press.
2. Hossea M.M. Rwegoshora, A guide to Social Science Research Institute of Social Work. Dar es salaam. Mkuki na Nyota Publishers Ltd. .o. Box 4216 Dar es salaam –Tanzania.
3. Mutasa F.L. (2003) - Principles of Economics. Tanzania Institute of Bankers. Dar-es-salaam.
4. Center for Community Enterprise. (2003). Tools and Techniques for Community Recovery & Renewal. W.W.W. cedworks. com