A socio economic analysts of modern irrigation projects under small -scale farming: a case study of the lower MCSPI Irrigation Project in Kilimanjaro Region

Dissertation

This study analyses the socio-economic aspects of the Lower Moshi Irrigation Project in Kilimanjaro Region, Tanzania. Financial and economic analyses are performed to determine if th® investment is a justifiable us® of the scarce resources available in Tanzania for investment. Survey results show that the project is doing well th average yields per ba of 6.5 tons for paddy and 2.5 tons for maize. A benefit-cost ratio of 2.5, net present worth of shs 614 million and internal rate of return of over 50 percent is obtained from the financial analysis •.•.’hen. costs and benefits are discounted at 18 percent. Results from economic analysis show a benefit-cost ratio of 2.3, a net present worth of shs 1028 million, and an internal rate of return of 49.25 percent when a 12 percent discount factor is used. Both the financial and economic analyses therefore, judge the project very profitable to the farmer and the economy as a whole. This study also attempts to evaluate the impact of the project on employment, cropping patterns, yield levels of principal, crops, farm income and land values. It is revealed that, the provision of irrigation facility has increased labour employment in the study area. Impacts of the project on cropping patterns, yield levels, farm income and land values show positive results when compared to the same in the non-project area. This study also .looks into the problems that hinder •project dev:-’.oniunnt arid -expansion. These .include problems of drought; high unit rater requirements: illegal use of water outside the project area and institutional problems such as those of farmers’ ignorance of the farming operations under modern irrigation. The following are the recommendations: 1. There is a need to improve the knowledge about modern irrigation practices at the farmer’s level. 2. .Water User Groups should be separated from other political and administrative bodies in the project area : 3. There is a need to look for alternative •.-.•ays of increasing water supply in project area during drought years and also solve the water shortage problem. A example is that of using boreholes to increase water supply. At present there are boreholes for this purpose in the project area. only few boreholes for this purpose in the project area.

Swedish Agency for Research Cooperation with Developing Countries (SAREC)