Kibaigwa: A tale of killing the goose that lays the golden egg

Kibaigwa. In December last year, Mr Paniel Lyimo, the chief executive officer (CEO) of the Presidential Delivery Bureau celebrated Kibaigwa Ward as the example of how agriculture can help to eradicate extreme poverty.

At the panel discussion during the launch of World Bank Tanzania Economic Update entitled “Raising the Game, Can Tanzania Eradicate extreme poverty?”

The CEO, who is tasked to oversee the implementation of Big Results Now (BRN) initiative, said about two years ago farmers at Kibaigwa were selling sunflower seeds, but after coming together and formed small factories they are now selling sunflower oil.

“They have boosted their income, and now through Big Results Now, the government aims at encouraging these farmers to transform into mid scale oil producers in the near future. Their success story can make a good example to small scale farmers across the country,” he said.

As he was giving the remarks it is clear that he didn’t have a clue of what was happening at Kibaigwa at the time. It’s true that in the recent past the farmers there graduated from selling seeds to oil production, but that development is negative, not positive, and is for a reason.

The Citizen on Sunday recently toured Kibaigwa where more than three-quarter of available 27 maize milling machines have been closed. It is not that there is shortage of supply, but the farmers and traders are in protest over new agricultural cess rates which they claim to be high.

The scales set by Kongwa District Council which Kibaigwa fall under, was adopted in August last year. The tariffs are, not only faulted by sunflower traders and farmers, but also stakeholders of the Kibaigwa International Crop Market, which drives the economy of the district.

A sack of maize, which before August the district charged Sh500 is now at charged Sh1,000 per 100 kilogramme bag; on sesame the rate has increased from zero to Sh7,000, ground nuts are charged Sh500 from zero and after popping the pods it goes for Sh3,000 from Sh1,000.

With sunflower, there are three separate tariffs; a sack of sunflower seeds is now charged Sh1,000 a bag from Sh500. Before August, the seeds were the only sunflower products charged, but now the buns are also charged Sh1,000 a bag and as well as processed oil Sh500 for every 20 litres. The money is besides the international maize market, which holds the flat rate of Sh500 for bags of all crops traded in there.

Chairperson of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) at Kibaigwa, Mr Richard Kavella, says neither farmers nor factory owners are opposed to tariffs, but they are against the new amount and the manner the money is collected.

“There is a big foul play in the way they collect the levy…the receipt is valid for only three days, say you buy 100 bags of maize today, you will pay Sh100,000. If you store and decide to transport them next week, you will be forced to pay another Sh100,000, where on earth have you seen such a thing? We all know the importance of the tariffs to the local government and national development, but it should be done in a way that we all benefit from it, but from the way things stand right now, it is us loosing,” he says.

Ms Winna Aziz, Kibigwa’s TCCIA secretary and miller, says now the common talk of their members is to shift their bases from Kibaigwa, “the success of Kibaigwa market attracted most of us here, now these new levies and how they are being collected is only found in Kongwa, all other districts that are surrounding us and our competitors charge on the same level that we were paying before August.”

Ms Aziz says the processing factory owners are now forced to pay the extra tariff in order to maintain their customers. “It is common now for us to pay the Sh500 for the sunflower oil that we are producing, the buyer would tell you he or she can’t pay it because in Singida or any other district in Dodoma, the oil is not charged. We are then forced to pay the money, if he takes 500 gallons, you pay Sh250,000 from your profit,” she adds.

According to her the few oil traders that are remaining have invested their money already and now they can’t back off. “Some traders are going for the seeds to the villages on their own, now they have paid already and their seeds are already here, they have no choice, but to pay the new tariffs.”

Mr Simon Yuda from Dar es Salaam is one of the traders that Ms Aziz talks about. He recently transported 500 gallons to the city and he had to dig deep into his pockets to pay Sh500 per gallon.

“I still have seeds to process, and that is the only thing that is keeping me here. After three seasons of doing business at Kibaigwa, I am forced to move from here, it is no longer profitable,” he says.

The frustration is shared by many other producers and traders. Sesame farmer Shadrack Zebedayo says the new levy of Sh7,000 will discourage traders. “Farmers know that they can sell and buyers know they can get what they are looking for here, but now we are chasing them away,” he complains.

His sentiments are echoed by the leadership of Kibaigwa Cargo Porters Cooperative Society, whose members act as brokers and provide security services at the market. The society, popularly known as, ‘cargo’ believes the major effects are yet to be seen.

Mr Winston Lemunje is the manager of cargo and says the woes in sunflower have been felt because the seeds are no longer exported and the oil is produced in the ward.

“As for maize traders when they flocked here mid last year, the tariffs were not there, now with these rains people are busy farming and the market is not that robust. However, during the harvest season mid this year, they will face the new reality, I foresee chaos. Some will even bypass our market and go to neighbouring districts which are not charging as much as we do”. Kibaigwa has a total of 27 factories for processing sunflower oil. During The Citizen on Sunday’s tour, only five were operational.

Mr Sebastian Msola’s is among those, and he says, “there is no one who invested in this business and wants to see his machines not operating. It’s the authorities wake up and realize that they are hurting us.”

Mr Sebastian had seven permanent workers, and other 35 casual laborers depending on the demand and supply of the sunflower oil. “Now there are only three of them, and they are here for security and making sure the machines are in good shape.”

Mr Yusuf Kiemi invested in ground nuts with his business partners. They have 13 machines for popping ground nut pods. In full production one machine was employing up to nine people, but now they have shut down 10 machines and only three machines are operational with about 30 people working.

“It is hard to tell someone you have been working with all these days that don’t come to work tomorrow. The standard of living here was good compared to all other wards in the district, but these new levies are stealing it all away. Now the business owners are threatening to migrate to other districts, and if that happens what will remain for these residents that do depend on them to earn a living? Crime, which is not that usually experienced here will be on rise,” he says.

The collection of the levy is fiercely resisted by farmers, traders and factory owners. The story in the streets of Kibaigwa is that one agent who collects the levy was stabbed by angry farmer and another agent’s house was torched by a mob of unidentified people. However, the local authority told this paper that those are mere rumours aimed at blowing the problem out of proportion.

This paper however observed the high degree of resentments toward the tariff collectors, the day this reporter paid a visit to cargo offices, the chairman of the society, Mr Amon Mbalawe, was just from meeting the district officials over the same issue.

“The tariffs are to be collected out of the market therefore the collectors are not allowed to operate in here, but yesterday one trader refused to pay them and they had to track him in here, and that angered our boys, they confronted them and they had to get out,” says Mbalawe.

When reached for comment, Kongwa District administrative secretary, Ms Bibie Mnyamagola, said, the levies were not changed for the last ten years and they were low for today’s standards. “One of the six areas that the Big Result Now puts focus on is resource mobilisation and that is what we are doing,” she said.

“We did not rush into this, the ward councillors participated fully in deciding the new rates. We even called the businesspeople to explain the rationale of all this when we introduced them. We have 37 wards and it’s only Kibaigwa that has issues with compliance to the tariffs,” she added.