SUPPLY/ DEMAND CHAIN ANALYSIS OF CHARCOAL/ FIREWOOD IN DAR ES SALAAM AND COAST REGION AND DIFFERENTIATION OF TARGET GROUPS Prepared by: Napendaeli Sem Dar es Salaam April 2004 ACKNOWLEDGEMENTS I wish to express my gratitude to Tanzania Traditional Energy Development and Environment Organization (TaTEDO) for offering me the opportunity to undertake this study, which was challenging and interesting. I would like to sincerely thank the Executive Director, Mr. E. N. Sawe together with all TaTEDO staff. Specifically, I would like to mention a few whom I worked closely with, namely; Mr. S. Sago and Ms. G. Ngoo of Energy Environment Initiative Section, Mr. F. Songela and L. Pesambili of Bio-energy section and the SEECO staff. They all provided valuable information and cooperation. I am also grateful to HIVOS and particularly Mieke Hartveld, their critical comments on the draft report provided valuable input for this report. My grateful thanks also go to the following institutions and key resource persons: The Ministry of Natural Resources and Tourism, Forestry and Bee-keeping Division for their cooperation, provision of valuable information on woodfuel supply and modalities for paying government royalties. Special thanks go to Professor Iddi, Mr L. Lyimo, Mr Mkea, Mrs. Mugheni and Ms. T. Ntemo. The Ministry of Energy and Minerals; Eng. N. C. X. Mwihava and Mr. Fadhili Kileo for their valuable guidance and valuable information on Tanzania‟s energy supply and demand. Tanzania Commission for Science and Technology; Dr. M. L Raphael for providing guidance and valuable information on improved cookstove development in Tanzania. Department of Chemical and Process Engineering, University of Dar es Salaam; Dr. L. M. P Rweyemamu (improved fuelwood stove specialist) for his valuable contributions to the outcome of this research. The guidance received from Dr. Rweyemamu is acknowledged with thanks. The success of this study is greatly attributed to many other institutions, individuals and various actors in the woodfuel demand/ supply chain (charcoal producers, dealers, wholesalers/ retailers, improved stove fabricators, and stove traders) in Dar es Salaam and Coast regions who rendered their invaluable support and time to the study team. I am greatly indebted to all. Many grateful thanks goes to research assistants; Mr. David Mwampanga and Ms. Gladness Foya both fresh graduates faculty of Social Science, Economic Planning, Mzumbe University, and Mr. Innocent Mgalula, an entrepreneur. They were all very instrumental during the whole research period i.e. from data collection, through data analysis and report writing. Last but not least my special thanks goes to my father; Mr. N. G. Sem (a long-term served forest officer) for his valuable technical backstopping and moral support during the whole research period. ii TABLE OF CONTENTS ACKNOWLEDGEMENT ................................................................................................................ii TABLE OF CONTENTS ................................................................................................................ iii LIST OF ABBREVIATIONS ........................................................................................................... v EXECUTIVE SUMMARY.............................................................................................................. vi 1.0 INTRODUCTION .................................................................................................................. 2 1.1 Objectives of the Study ..................................................................................................... 2 1.2 Study Methodology ........................................................................................................... 3 1.3 Analysis and Report Writing ............................................................................................. 3 1.4 Scope and Limitations ....................................................................................................... 3 1.5 Presentation of the Rest of the Report ............................................................................... 4 PART ONE ....................................................................................................................................... 5 2.0 BACKGROUND INFORMATION ....................................................................................... 5 2.1 Related Supportive Policies .............................................................................................. 6 2.2 Tree varieties suitable for charcoal burning ...................................................................... 6 3.0 WOODFUEL CONSUMPTION IN TANZANIA ................................................................. 9 3.1 Woodfuel consumption in Dar es Salaam ....................................................................... 10 4.0 ANALYSIS OF WOODFUEL SUPPLY AND DEMAND ................................................. 13 4.1 Factors affecting woodfuel supply and demand .............................................................. 13 4.1.1 Factors affecting demand of charcoal .................................................................. 13 4.1.2 Factors affecting supply of charcoal .................................................................... 13 4.1.3 Factors affecting demand of firewood ................................................................. 13 4.1.4 Factors affecting supply of firewood ................................................................... 14 4.1.5 Women as energy suppliers and users ................................................................. 14 4.2 The charcoal supply and demand chain map................................................................... 15 4.3 The functions and participants ........................................................................................ 15 4.4 Marketing Functions ....................................................................................................... 21 4.5 Technologies ................................................................................................................... 24 4.6 The Chains ...................................................................................................................... 26 4.7 Business services in the supply chain ............................................................................. 29 5.0 REGULATORY AND INSTITUTIONAL FRAMEWORK ............................................... 31 5.1 Regulatory Policies Supportive or Hindering Development in the Woodfuel Supply /Demand Chain .......................................................................................................................... 31 5.1.1 The Legal Framework .......................................................................................... 31 5.2 The policy environment which may hinder or slow down development in the woodfuel supply/ demand chain ................................................................................................................ 32 5.2.1 The Forest Sector ................................................................................................. 32 5.2.2 The Energy Sector ............................................................................................... 33 6.0 SUPPLY CHAIN DYNAMICS ........................................................................................... 34 6.1 Driving forces ................................................................................................................. 34 6.2 Local policies .................................................................................................................. 34 6.3 Points of leverage ............................................................................................................ 35 6.4 Policies ............................................................................................................................ 36 7.0 ANALYSIS OF CONSTRAINTS AND OPPORTUNITIES .............................................. 38 7.1 Analysis of Constraints ................................................................................................... 38 7.2 Analysis of Opportunities ............................................................................................... 39 7.2.1 Identified Opportunities ....................................................................................... 41 7.2.2 Proposed Leverage............................................................................................... 41 8.0 CONCLUSIONS AND RECOMMENDATIONS .......................................................... 42 8.1 Proposed recommendations for TaTEDO interventions ……………………… …42 8.1.1 Promote the formation of producer associations or marketing cooperative societies ......................................................................................................................... 42 8.1.2 Lobby for tax/levy reduction ............................................................................... 44 iii PART TWO .................................................................................................................................... 45 9.0 OVERVIEW OF BIOMASS ENERGY AND IMPROVED STOVES TECHNOLOGIES 45 10.0 IDENTIFICATION OF DIFFERENT TARGET GROUPS AND BENEFICIARIES OF TaTEDO IMPROVED STOVES AND OVENS AND THEIR SPECIFIC NEEDS ...................... 48 10.1 Types of Improved Stoves Available to Beneficiaries ............................................... 48 10.2 Target Groups and Beneficiaries ................................................................................ 48 10.2.1 Beneficiaries in the Rural Areas .......................................................................... 49 10.2.2 Beneficiaries in the Urban Areas ......................................................................... 49 10.3 Specific Needs and Preferences of the target groups .................................................. 49 10.3.1 Specific Needs and Preferences for Urban and Rural Households ...................... 50 10.3.2 Specific Needs and Preferences of the Institutions .............................................. 54 10.3.3 Specific Needs and Preferences of the Micro and Small Enterprises (MSEs) ..... 58 11.0 ANALYSIS OF ADOPTION LEVEL OF IMPROVED BIOENERGY TECHNOLOGIES AMONG THE IDENTIFIED SUBGROUPS .................................................. 60 11.1 Current Adoption level of improved bioenergy technologies..................................... 60 12.0 OTHER DETERMINING FACTORS FOR UPTAKE AND ADOPTION OF STOVES AND OVENS.................................................................................................................................. 61 12.1 Level of Accessibility/Availability of Improved Stoves/Ovens ................................. 61 12.2 Identification of Key Target Group and Beneficiaries of TaTEDO Improved Stoves and Ovens ......................................................................................................................... 61 13.0 IDENTIFICATION OF POSSIBLE MODIFICATIONS OF THE EXISTING PROTOTYPES ............................................................................................................................... 62 14.0 DEVELOPMENT OF STRATEGY FOR INCREASED UPTAKE AND ADOPTION OF IMPROVED STOVES AND OVENS ...................................................................................... 64 14.1 Strategies for increased uptake and adoption ............................................................. 64 14.2 The Supply and Demand Chain Analysis ................................................................... 65 14.2.1 Functions and Participants ................................................................................... 65 14.2.1.1 Research and Prototype Development ....................................................... 65 14.2.2 Marketing Functions ............................................................................................ 68 14.2.3 Technologies ........................................................................................................ 68 14.2.4 The Chains ........................................................................................................... 69 14.2.5 Business Services in the Supply Chain ................................................................ 71 14.3 Supply Chain Dynamics ............................................................................................. 72 14.3.1 Driving forces ...................................................................................................... 72 14.3.2 Points of Leverage ............................................................................................... 72 14.4 Analysis of Constraints and Opportunities ................................................................. 73 14.4.1 Analysis of Constraints ........................................................................................ 73 14.4.2 Analysis of Opportunities .................................................................................... 74 14.4.3 Proposed Leverage............................................................................................... 76 15.0 CONCLUSIONS AND RECOMMENDATIONS .......................................................... 77 15.1 Summary of Constrains faced by SMEs in Tanzania and SME development policy 2002 ......................................................................................................................... 77 15.2 Proposed Recommendations for TaTEDOs Interventions .......................................... 78 15.5.1 Marketing Strategies for Improved Stoves and Ovens ........................................ 79 15.5.2 Conclusions.......................................................................................................... 80 16.0 REFFERENCES CITED ................................................................................................. 82 APPENDICES ................................................................................................................................ 84 APPENDIX I: TERMS OF REFERENCES ................................................................................... 84 APPENDIX II: LIST OF TABLES (From PART TWO) ............................................................... 90 APPENDIX III: CHAIN MAPS ................................................................................................... 101 APPENDIX IV: LIST OF PEOPLE CONTACTED .................................................................... 104 iv LIST OF ABBREVIATIONS ADF ALAF AREED ATC BEK CAMARTEC CBFM - African Development Foundation Aluminium Africa African Rural Energy Enterprises Development. Appropriate Technology Centre Basic Earth mound Kiln Centre of Agricultural Mechanization and Ruvu Technology Community Based Forest Management COSTECH CSDI DASICO DFOs DSM ERV FDB FINCA GDF - The Tanzania Commission for Science and Technology Centre of Sustainable Development Initiatives Dar es Salaam Small Industries Corporation District Forest Officers Dar es Salaam Excheque Receipt Voucher Forest and Beekeeping Division Foundation for International Community Assistance Gross Domestic Production HH HIVOS IBEK IPI JFM LPG MAI MWEM NGO NORAD RFPP SEECO SIDO SMEs TaTEDO TOE TShs - - - Household Humanist Institute for Corporation with Developing Countries. Improved Earth mound Kiln Institute of Production Innovation Joint Forest Management Liquefied Petroleum Gas Mean Annual Increment Ministry of Water Energy and Minerals Non-Governmental Organization The Norwegian Agency for Development Cooperation Ruvu Fuel wood Pilot Project Sustainable Energy and Environment Consultancy Company Small Industry Development Organization Small and Medium Enterprises Tanzania Traditional Energy Development and Environment Tones of Oil Equivalent Tanzania Shillings v EXECUTIVE SUMMARY E.1: Background This study was commissioned by Tanzania Traditional Energy Development and Environment Organization (TaTEDO) in order to carry out an independent analysis of, firstly, the existing woodfuels demand/supply chain within TaTEDO programme area and to analyse and determine the primary constraints and opportunities that exists in the whole chain in order to lay groundwork for identifying support initiatives that can promote the development of the sub-sector and recommend the most appropriate method of assessing environmental impact associated with woodfuels production and use; and secondly, to analyse the various sub-groups within the overall target group for improved stoves and ovens and their respective needs and wishes. The Terms of Reference for the Study are included as Appendix I herein. The study has analysed the pattern of woodfuel supply and consumption to and by various target groups both in the rural and urban households, institutions, micro and small enterprises by examining the supply and demand chain/conditions, and also identified the specific needs and preferences of these groups. The study has also analysed the current adoption level of the improved stoves technologies among targeted groups and finally identified possible modifications for the existing prototypes and developed the strategy for increased uptake and adoption of TaTEDO improved stoves and ovens. E.2: Methodology and Approach The study is based on information collected from primary sources in the field where a total of 170 respondents were interviewed. The secondary data included the review of available documented reports, information and studies that were thought of relevance to this study. Field survey and visits provided useful information in the form of questionnaires filled. In addition, various key resource persons in the woodfuel sub sector supplied invaluable information. E.3: The Main Findings of this Study are the following: E.3.1 Although the average daily consumption of charcoal in Dar es Salaam is estimated to be 24,000 bags per day, this study has revealed that only 10 – 20% of this amount passes through legal checkpoints and thus earning the government the revenue. E.3.2 The main types of stoves used by urban dwellers are charcoal stoves and ovens, while rural dwellers use mainly firewood stoves, which are dominated by inefficient traditional three-stone fireplace. E.3.3 Low-income communities located both in rural and urban areas form a potential user group of charcoal and woodstoves. The study has established that none of those who are earning less than TShs. 45,000 per month is using electricity as main energy type. vi E.3.4 The price of improved cookstove has been seen to be the most important factor impacting adoption of improved stoves by users especially the rural households. Survey results have revealed that affordable stoves are those with prices ranging between TShs.1,350 to TShs.5,000, which are Bellbottom, Straight, Sazawa, Miguu Mitatu. E.3.5 While in most regions, fuelwood is still largely free (i.e. people depend on what they can gather themselves), in urban areas fuelwood is largely purchased. The success of improved stoves in the urban areas will depend on how much the user will cut down fuelwood requirements. By using improved charcoal stoves the survey has recorded the savings among the user up to 50 percent. E.3.6 Most of the stoves are not durable and the major factors attributed include usage of low-quality raw materials especially poor quality iron sheets, scrap material and ceramic liners as well as poor workmanship by unskilled artisans who operate informal businesses in the informal sector and have not attended prior stove fabrication training from TaTEDO. E.3.7 Interviewed users of improved stoves reported that, the use of improved stoves contribute a lot to the improved kitchen environment especially with regard to cleanliness and health, and that the amount of smoke that was being produced by the traditional stove has been reduced tremendously and hence the level of coughing, headache and eye irritation has been reduced. E.3.8 There are still a very little number of institutional stoves on the market than the domestic stoves. Artisan fabricators have no technical and financial capacity to produce institutional stoves of high standards. E.3.9 There is a big potential for improved institutional stoves to reduce fuel consumption in the community centres and thereby reduce the deforestation as well as health hazards appreciably. E.3.10 The most commonly used fuel in the institutional stoves is firewood, however the availability of the fuel is uncertain the factor which keeps potential users asking on the possibility or option of using charcoal in the institutional stove. E.3.11 Most users especially those in small food processing and catering business have expressed their concern on the unavailability of larger sizes of charcoal stoves, which are capable to meet their operating requirements. E.3.12 Field observations have indicated that the improved institutional woodstoves which was designed using the knowledge from the University of Dar es Salaam and installed at some schools in Tanzania that have indicated little fuelwood consumption, with fuel saving between 60 to 80%. E.3.13 The adoption level of improved stoves is higher in the urban households as compared to rural households. According to findings of this survey the majority of the urban users have used at least one type of improved stoves. Stove prices seems to be affordable to the targeted users in the urban areas vii where woodfuel (particularly charcoal) is purchased hence users are interested to save fuel. E.3.14 It has been observed that the uptake and adoption of improved stoves and ovens depends on the user‟s cooking requirements both for households and institutional level. In the school survey it could be established that the adoption of improved institutional stoves depended on some key factors such as availability of fuel type, the price of the fuel and the type of foods prepared. E.3.15 Needs and wishes of potential beneficiaries do at a large extent determine modification aspects that should be considered for successful adoption of stoves. Through this study it has been established that durability of the stove is the main aspect of concern and should be taken as a base when planning future modifications. Advanced stove technologies will have to include new materials in order to produce a ceramic liner, which can withstand higher temperature fluctuations and mechanical stresses. E.3.16 The study has revealed that for increased uptake and adoption of improved stoves and ovens the strategies should include constant follow-up throughout the whole stove chain involving stove components manufactures, retailers, users, researchers, and policy makers and/or stoves programs facilitators. E.3.17 From the literature sighted during this study it was revealed that simple traditional kilns are capable of making charcoal at a conversion rates ranging from 2 – 5.20 bags of charcoal from 1 cubic metre of fuelwood (2 – 3bags) and (2.84 – 5.20). If this statement is true, then TaTEDO will need to find ways of improving its technology in order to produce kilns that are more efficient than the traditional earth mound kilns. E.3.18 From the interview it has been ascertained that charcoal dealing is a purely male dominated activity as no women dealers were found during the research period. Further investigations reveal reasons for non-participation of women as charcoal dealers, as that business operation is done during the night when women are supposed to be at home caring for children and other members of the family. Furthermore, because of poor road conditions and poor state of the vehicles used in charcoal transportation, women consider this as risk factor in this business. E.3.19 Apart from many factors that constrains the growth of the charcoal supply / demand chain, there are also many positive factors that provide opportunities for growth and hence strong reasons for TaTEDO and other support organizations to focus their activities in the supply chains. viii E.4 Recommendations E.4.1 For TaTEDO to promote successfully improved technologies, the organisation should take steps to make interventions which are aimed at directly impacting beneficiaries through increasing their income and creating employment. For example to assist charcoal producers establish producers association. E.4.2 TaTEDO should lobby for government supportive policies in order to order to reduce tax on charcoal trading. E.4.3 TaTEDO to link artisans Business Development Service providers to assist the formation of legally registered artisans‟ association of producers. E.4.4 TaTEDO should lobby for government supportive services in order to put in place infrastructure and operating environment, since most of operators do not have approved premises to conduct their businesses. E.4.5 In order to achieve high quality products, TaTEDO should link producer associations to funding organizations (e.g. AREED, ADF) so that they can get an access to finance or supplier of credit for raw materials. E.4.6 TaTEDO should collaborate with University researchers to develop and put into the market the stove materials / components, which have better working properties so that to enhance the performance of the stoves as well as their durability. ix 1.0 INTRODUCTION Tanzania Traditional Energy Development and Environment Organization (TaTEDO) is a renewable / rural energy national development NGO based in Dar es Salaam Tanzania. For more than twelve years, TaTEDO has implemented various undertakings aimed at promoting and disseminating renewable energy technologies and practices on conserving environment in Tanzania. TaTEDO has been undertaking programs and projects in five1 regions, and recently has added two2 more regions. With support from its development partners, in particular HIVOS and NORAD, TaTEDO has initiated a three-year programme on integrated Sustainable Energy Services for Poverty Reduction and Environmental Conservation in Tanzania (July 2003 to June 2006). The three-year programme‟s main goal is to contribute to poverty reduction for the target groups and environmental conservation by enhancing the opportunity for increased productivity through increased uptake and usage of improved energy technology. The programme‟s main objective is to increase uptake and usage of renewable energy technologies and services in the programme areas. TaTEDO woodfuels related products are (i) efficient charcoal production kilns (ii) energy efficient firewood stoves (iii) efficient charcoal stoves and ovens and (iv) efficient tree planting and management practices. TaTEDO provides the following services to its target groups: (i) to lobby for supportive policies that enhances provision of better energy services, (ii) to facilitate/strengthen the development of renewable energy related to SMEs through business support and in partnership with financial institutions, (iii) to provide technical extension services and (iv) to facilitate SMEs linkages with technical/business/market development and training institutions. 1.1 Objectives of the Study This study has two main objectives: 1. To study the existing woodfuels demand/supply chain within TaTEDO programme area and to analyse and determine the primary constraints and opportunities that exists in the whole chain in order to lay groundwork for identifying support initiatives that can promote the development of the sub sector and recommend the most appropriate method of assessing environmental impact associated with woodfuels production and use. 2. To analyse the various sub-groups within the overall target group for improved stoves and ovens and their respective needs and wishes. 1 2 Mwanza, Shinyanga, Kilimanjaro, Coast & Dar es Salaam Arusha, Tanga 2 1.2 Study Methodology Sampling and Data Collection The study has used both primary and secondary sources of data. 1.3 (a) The secondary data included the review of available documented reports, information and studies that were thought of relevance to this study (reference list is provided at the end of this report). (b) Primary data was collected from 170 respondents in Two Forest Management Projects i.e. 20 tree growers, 25 charcoal producers, 21 charcoal/firewood wholesalers/ retailers, 9 charcoal dealers, 26 artisans, 9 traders of woodfuel stoves and 60 users of woodfuel stoves. The sampling was done randomly with assistance from TaTEDO staff (Department of Energy Environment Initiatives & Bio-energy Sections). (c) Key resource persons in the woodfuel sub sector supplied valuable information (see Appendix IV). Analysis and Report Writing Simple statistical methods using Microsoft access software data analysis program has been used to analyse responses from the respondents to the questionnaires. The analysis focus was on the various actors within the supply / demand chains and their relationships, with a particular focus on micro enterprises and other players. It indicates the forces that are driving the changes in the supply/ demand chains, and the role that can be best played by TaTEDO in strengthening the micro enterprise growth (increased income and employment opportunities) within the supply /demand chains. The analysis provides insights into the driving forces, the points of leverage and the roles for different actors with woodfuel products. 1.4 Scope and Limitations It is important to note that time allocated was short compared to the areas to be covered and the degree of details required to be captured. While a good view of the charcoal production and stoves/ovens fabrication areas that were visited is represented in the report, it is possible that there are other production and marketing systems that are not captured in the study because they were not observed or were not identified in other documents. This study took place during the farming season when there was not much of charcoal production and trading taking place. The best period would have been between June and September (when harvesting of field crops has been completed and just before land preparation activity for the next agricultural cycle). The areas studied covers Coast region (woodfuel supply side) and Dar es Salaam region (demand side). 3 It is also important to note that quantitative information is largely absent in Tanzania it was difficult to get figures on the quantities traded through different channels in the demand supply chain. 1.5 Presentation of the Rest of the Report This report is presented into two parts: Part 1 discusses demand and supply chains of charcoal/ wood and is organised in 8 chapters (i.e. chapters 1 to 8): Part 2 discusses differentiation of target groups and beneficiaries for TaTEDO interventions and is organised in 7 chapters (i.e. chapters 9 - 15). 4 PART ONE 2.0 BACKGROUND INFORMATION Woodfuel accounts for about 10 percent of the total energy used in the world. It provides about 20 percent of all energy used in Asia and Latin America, and about 50 percent of total energy used in Africa3. However, it is the major source of energy, particularly for domestic purposes, in poor developing countries. More than half of the total wood harvested in the world is used as woodfuel. In Tanzania, woodfuel is the principle source of energy, quantitatively accounting for 90 percent of the total energy consumed. The dependency on woodfuel is expected to continue for the foreseeable future but the supply of woodfuel potential is dwindling in all regions. Tanzania is covered extensively with Forests and Woodlands. The bulk of these resources (between 30 and 40 million hectares) are comprised of extensive dry woodlands, primarily of miombo type, which provide critical wood resources and other forest products both to rural communities and the urban centres, and perform other important services, e.g. as watershed catchments and as dry season grazing reserves4. The bulk of these woodlands are not legally protected as forest reserves, hence vulnerable to uncontrolled harvesting, agricultural expansion, fires, livestock grazing and other human activities5. In contrast, the country‟s tropical moist forests accounts for a relatively small percentage of the total, they are mainly found in the mountain forests and in the narrow strips of forest along the coast, which in total comprise less than 5 percent of the total forest area. Tanzania forest and woodlands are extremely important for mitigating the impact of rural poverty. The rural poor are heavily dependent on resources derived from woodlands and deforestation and trees degradation poses a significant threat to rural livelihood. Recent studies has shown that fully 50% of total household consumption in some rural area is accounted for by forest and woodland products such as woodfuels, construction materials, wild fruits and other foods (a point noted in Tanzania’s Poverty Reduction strategy paper). The bulk of charcoal and firewood for the rural and urban household in Tanzania is produced from the woodland forests, which are primarily of the miombo types, which are very resilient and regenerate freely after disturbance if left alone or protected and properly managed. Moreover the study on “Impact of charcoal extraction to the forest resources of Tanzania; the case of Kitulagulo area”, by R.E.Malimbwi, S.Misana, G. 3 Arnold, 1991, Murray and De Montalembert, 1992 World Bank report No. 22743 – TA, FCMP Project Appraisal, January 2002 5 The Tanzania National Forest Policy 4 5 C.Monela, G.Jambiya and E. Zahabu found out that standing wood volume and basal area of the miombo species. in the study area are lower in public land compared to forest reserves, while stem numbers shows a reversed trend suggesting regeneration of these species in public land. These woodlands are estimated at 32.3 million hectares6. There are no reliable data on deforestation; however Forestry and Beekeeping Division estimates a range from 130,000 to 500,000 hectares per annum (approximately 1.55% of the woodlands7). There are many reasons for deforestation taking place in the country, major reasons being clearing for subsistence agriculture (shifting cultivation), fuel wood and charcoal production for cooking, fuel wood for firing bricks for home construction and timber use for house and furniture construction. At this rate of deforestation if there are no interventions, it would take only 64 years to destroy all the woodland forests Some individuals and non-governmental organizations like TaTEDO have realized this danger and have introduced various renewable energy technologies like improved charcoal kiln and improved cookstoves. TaTEDO develops prototype stoves, ovens and grills that are using less wood and charcoal, for household, commercial and institutional use. 2.1 Related Supportive Policies Forest Policy Statement: Objective is to ensure sustainable supply of forest products and services by maintaining sufficient forest area under effective management. Policy Statement (3) is to enable participation of all stakeholders in forest management and conservation, through Joint Forest Management agreements, with appropriate user rights and benefits. Joint Forest Management agreement with communities living adjacent to forests will ensure proper management and protection of the forest resources in those forests and therefore mitigate the rate of current deforestation trends. The National Forest Policy 1998, supported by the National Environmental Policy 1997 and the National Energy Policy 1992 (revised 2003) are tools intended for mitigating the current deforestation trends and ensuring sustainable supply of wood resources to the woodfuel supply/ demand chain. 2.2 Tree varieties suitable for charcoal burning Indigenous wood tree species commonly used for charcoal production as mentioned by charcoal producers in the surveyed areas are summarized in the table below: 6 The Tanzania National Forest Policy, Woodfuel Strategy, December 2002 by Kaale B.K and Sawe E.N 7 The Tanzania National Forest Policy 6 Table 2:2: Trees commonly used for charcoal production LOCALITY Vigwaza/Ruvu area Ikwiriri Rufiji Ruvu Kibaha LOCAL NAME BOTANICAL NAME 1Muyombo/Miombo/Myombo 2.Mlama 3.Mtete 4.Msama 5.Mkulo 6.Mnango/Munango 7.Mtanga/Mkungu/Mkenge 8.Mkwaaju/Mkwazu/Mkwaju 9.Mkongolo 10.Msewe 11.Mseju Brachystegia species (sp) Combretum . zeyheri Hymeocardia ulmoides Manilkara mochisia Spirostchys africana Hymenaea verrucosa Albizia versicolor Tamarindus indica Combretum sp Albizia sp Unknown 1.Mnepa/Mlepa 2.Mnangu 3.Mpugupugu 4.Mkwaju 5.Mungo 6.Mwimbilia 7.Mtonga 8.Mkungo 9.Mtongatonga 10.Mtasi 11.Mchonda 12.Mnyakambi 13.Mpelepele 14.Mkorwa 15.Mkulo 16.Mbondolondo 17.Mndolindli/Mninga maji 18.Mperapori 19.Mkwanga 20.Mnango 21.Topetope 22.Mpogopogo 23.Msolu Pteleopsis myrtifolia Byrsocarpus boivinianus Markamia abtusifolia Tamarindus indica Unknown Unknown Strychnos innocua Unknown Strychnos cacculoides Baphiopsis Acacia sieberian Unknown Unknown Unknown Spirostachys africana Unknown Unknown Unknown Unknown Unknown Annona senegalensis Unknown pseudolachnostylisMaprouneaefolia 1.Mkuruti 2.Mkangowe 3.Mgovu 4.Mlama 5.Mtebeti 6.Mkenge 7.Mpuya 8.Mkangazi Unknown Unknown Unknown Combretum sp Camptopus goetzei Albizia verrsicolor Unknown Khaya sp 7 LOCALITY LOCAL NAME 9.Midamudamu 10.Mng‟oko 11.Mtete 12.Mngogi 13.Msagati 14.Myombo 15.Mlawilila 16.Mkole 17.Namrama 18.Mfiru BOTANICAL NAME Unknown Unknown Hymeocardia ulmoides Unknown Unknown Brachystegia sp Unknown Unknown Unknown Unknown Source: Survey Findings, February 2004 According to research findings, 84 percent of respondents reported that trees for charcoal production are easily accessible while 16 percent seemed to be worried that the trees are becoming scarce due to intensive charcoal burning activities, which are on-going in the areas. They said the reason for this indiscriminate tree felling is because there is no royalty paid for felling trees used for charcoal burning (fees are paid for charcoal sold). This could lead to disappearance of the forests in quite a short time. They suggested that the Government assisted by NGOs should create more awareness for forest protection and tree planting (TaTEDO has already started the awareness campaign). 8 3.0 WOODFUEL CONSUMPTION IN TANZANIA High woodfuel consumption in Tanzania is ascribed to low per capita income and limited investment in alternative energy supplies. Yet still the vast majority of woodfuel consumers cannot afford the high investment costs associated with those alternative commercial energy sources8. Availability, reliability of supply and cheaper prices renders fuelwood more preferable than alternative sources of energy. Households consume about 97% of wood energy mostly for cooking, heating and cottage industries while industrial sector is the second to household sector. Most of the industrial wood energy is consumed by small-scale industries which include food processing industries and service sectors such as brewing, fish smoking, salt production, baking, restaurants, schools, hospitals and food vending; agro-processing industries such as tobacco curing, tea drying and beeswax processing; and production of building materials such as burnt bricks, lime, smiths, foundries, pottery and ceramics. In rural areas where charcoal is produced, people use mostly firewood for their cooking energy requirements. In 1999 it was found that 40.4 million m3 of wood, of which 26 million m3 of wood were consumed in rural areas as fuel wood (24 million m3 of wood consumed for household cooking and 2.03 million of wood were consumed in rural industries whose priority list include tobacco curing, fish smoking, salt production, brick burning, tea drying, processing of beeswax) and 13.4 million m3 of wood were consumed in the urban areas mainly as charcoal9. The majority of urban households depend on charcoal, kerosene and firewood, for their energy needs. In 1988, 31 percent in Dar es Salaam had electricity connections. By 1995 the figure had actually fallen, to 28.2 percent10 In any case not all households with electricity have regular connections which can be used both for light and domestic appliances. Access to electricity is concentrated among the high-income groups. It was estimated in 199911, that, countrywide, 6.7 million urban residents were using charcoal. In Dar es Salaam the proportion of households depending on nonelectric fuels has not gone down since 1998. Increased demand of charcoal and firewood has accelerated deforestation in rural areas with environmental consequences. However, little is known about the actual extent of deforestation due to urban charcoal use, the social and economic patterns, which determine the exploitation, or the policy options available to mitigate the problem. According to FAO Forest Resources Assessment deforestation is defined as a change of land use with depletion of tree crown cover to less than 10 percent. Furthermore the extent of forest resource, use impact, their growing stock and Mean Annual Increment (MAI) are not known with any degree of precision. The 8 Impact of charcoal extraction to the forest resources of Tanzania: the case of Kitungalo area, Tanzania. 9 C. Pesambili, F. Magessa and N. Mwakabuta: Sazawa charcoal stove designed for efficient use of charcoal. 10 Saad S. Yahya, Woodfuel and change in urban Tanzania 11 Kaale and Sawe, Woodfuel Strategy Options, 2001 9 understanding of the potential of forests to supply firewood and charcoal over a medium time perceptive is limited. This has implications on the country regarding its ability to design and implement appropriate energy policies that can intervene in the charcoal sectors. Rational decisions in management of natural forest depend on information available on their growing stock. Acquisition of forest growth information is prerequisite to any forest management system and sustainable land use12 3.1 Woodfuel consumption in Dar es Salaam The main market for charcoal from Coast and other regions is the Dar es Salaam City. About 90 percent of the Dar es Salaam population depend on charcoal as first choice for domestic energy. Dar es Salaam possesses a large number of petty food vendors, local brew producers, cottage industries, hotels & restaurants, and various other institutions. Moreover, Dar es Salaam‟s population is growing at a significant rate to the extent that within the last two decades where it has almost doubled e.g. the 1988 census showed population to be 1.8 million people, but currently various estimates put it at about 2,538,100 million people13. There is huge migration of people from rural Tanzania into urban areas, Dar es Salaam, in particular. The majority of the migrants live in squatters in suburbs of Dar es Salaam city practising typical rural life. Consumption of woodfuel by these people is high particularly as source of energy. The average daily consumption of charcoal is estimated to be 2.8 kg per household and the total consumption is estimated to be 24,000 bags of charcoal per day14. The data collected from four main checkpoints (Maili Moja Kibaha, Vikindu, Boko and Gongo la Mboto) indicates that 1,021,167 bags (or 2,798 bags per day) of charcoal passed through the four checkpoints in its way to Dar es Salaam during 2003 (the below charts indicate three years trend of charcoal going to Dar es Salaam from four major checkpoints as recorded by the officers at the government checkpoints. To avoid double counting data from Ruvu Fuelwood project was not counted). According to information from various sources, the amount recorded is only between 10 – 20% of actual amount of charcoal bags transported to Dar es Salaam each year. „About 80 – 90% bypasses the government checking points. Main reasons being to evade government levies/taxes (Central Government Levy – TSh. 400 per bag, District Levy TSh. 200 per bag). These levies can virtually wipe out the whole profit under certain circumstances, such as for truck transport of a load of charcoal that has been purchased at high production costs in the dry season15. From 15,000 to 20,000 bags of charcoal enter Dar es Salaam every 24 hours, everyday of the year, and an equal amount enters the other major towns combined. The amounts 12 Impact of charcoal extraction to the forest resources of Tanzania: The case of Kitungalo area, Tanzania 13 The World Gazzetteer, current population figures for cities, towns and places of all countries, 2004. 14 Final Report CHAPOSA Research Project, Tanzania 15 Final Report CHAPOSA Research Project - Tanzania 10 sold adds up to nearly one million tonnes of charcoal per year, for which trees have to be cut from 3,320 square kilometres of forests”16 TaTEDO as one of the stakeholders in the development of renewable energy technologies have designed and promoted improved energy saving cook stoves and efficient charcoal production kilns. TaTEDO cook stoves would reduce consumption of charcoal by 50% (using the Sazawa stove). Traditional earth mound kilns make charcoal at conversion rate of 2 –3 bags of charcoal from 1 cubic metre of fuelwood. According to findings of this survey, TaTEDOs improved kilns would improve efficiency by 34.3% (table 4:3). Sources of charcoal/ firewood that pass through the four main checkpoints were mentioned by the check point officers as follows: Maili Moja Kibaha: Ruvu Fuel Pilot Project (RPPP), Chalinze, Mkata, Mdaula, Mseyu, Ngerengere, Vigwaza, Mlandizi and Msata. Vikindu: Ruhoi, Kazamoyo, Mkuranga, Mbunju Mvuleni, Kiwagwa, Namkutwa, Tamburu, Ngumburuni, Mtanza and Kiwengoma. Boko: Muzoka, Msata, Mbwewe and Mkata. Gongo la Mboto: Pugu, Mkamba, Msanga, Kisarawe and Chanika Chart 3:1 Record of charcoal, which passed through four checkpoints from 2001 - 2003 Records of charcoal which passed through four check-points from 2001-2003 700000 Amount recorded. 600000 500000 Vikindu 400000 Kibaha 300000 Boko Gongo la Mboto 200000 100000 0 2001 2002 2003 Years 16 Destroying cheap forests to buy expensive water, by Zephania Musendo. 11 Chart 3:1 Record of firewood, which passed through four checkpoints from 2001 - 2003 Records of firewood which passed through four check-points from 2001-2003 Amount recorded 1400 1200 1000 Vikindu Kibaha Boko Gongo la Mboto. 800 600 400 200 0 2001 2002 2003 years 12 4.0 ANALYSIS OF WOODFUEL SUPPLY AND DEMAND 4.1 Factors affecting woodfuel supply and demand 4.1.1 Factors affecting demand of charcoal In urban areas, the household sector relies mainly on charcoal for cooking, supplemented by kerosene, electricity and gas. In many cases charcoal is the first choice fuel energy used in most urban households. Charcoal is mostly used due to many factors: i. Its price as compared to alternative commercial sources (kerosene, electricity, gas); ii. Its availability and convenience. Charcoal is easily accessible in the Dar es Salaam city and other major towns. Most households obtain charcoal from a variety of charcoal stores that are located nearby, between 1 – 5 minutes walk to get to a selling point; iii. Charcoal has a higher calorific value per unit weight than firewood (about 31.8 MJ per kg of completely carbonised charcoal with about 5 percent moisture content as compared to about 16 MJ per kg of firewood with about 15 percent moisture content on dry basis17; iv. Transport. It is more economic to transport charcoal over longer distances as compared to firewood; v. Storage. Charcoal takes less room as compared to firewood; vi. Demand fluctuations: Some households have a high level of charcoal consumption in the months of June/July and December/ January, mainly because most of the children especially those attending boarding school are at home. Therefore, there is a lot more cooking and at a large quantities18. 4.1.2 Factors affecting supply of charcoal One of the major factors affecting supply of charcoal is the price difference between the dry and wet seasons. Price during the wet season is linked to the increase in transportation cost, which is passed on to the consumer. 4.1.3 Factors affecting demand of firewood i. 17 18 Its availability. In the rural areas, the household sector depends almost exclusively on firewood for cooking and heating purposes. Traditionally foods are cooked on simple inefficient stoves, the three stone firewood, usually for single-family groups. As long as wood and twigs which are used as fuel for cooking are in plentiful supply, there is no great incentive to introduce improved more efficient cooking methods, e.g. by using charcoal (which is more cleaner); Kaale and Sawe, Woodfuel Strategy, December 2000 CHAPOSA, Dar es Salaam Charcoal Consumer’s Study 13 ii. Type of stove. The most commonly used fuel in large stoves (especially institutional stoves) is firewood. Even where gas or electricity is available supplies can be unreliable and wood is often cheaper; iii. Institutional large amount requirements: One of the schools visited (Makongo Secondary school) monthly requirement was reported to be about 1,200 pieces of one metre long billets. Three small-scale textile production businesses (producing batik and tie & dye) reported monthly consumption of between 5 – 8 billets (they use a combination of charcoal and wood), also fish fryers at the Dar es Salaam Integrated Fish Market complex reported a monthly consumption of between 50 – 60 billets; iv. Prices. Prices for firewood are reasonably cheaper as compared to other commercial fuels. Price range as reported by respondents is between TShs. 300 – 1,500/billet depending on seasonality (dry and wet season effects). During the rainy season demand for firewood goes down because the wood is wet and hence too smoky; v. Demand fluctuations: for example during special occasions like Christmas and Ramadhan price of firewood goes up; Fore more information, also refer part two of this survey “differentiation of target groups”. 4.1.4 Factors affecting supply of firewood i. Scarcity: In the past, the supply of firewood was abundant in rural areas and it was regarded as a free good, the only cost input to the product being labour spent to collect it. In the predominantly surplus rural areas e.g. Ikwiriri, the opportunity cost of such labour used to be almost zero. Today, supply sources of firewood in some rural areas have been depleted creating scarcity of firewood. Main consequences of firewood scarcity include increasing distances and time for collecting firewood. Firewood, which was once a free commodity, is now a traded commodity both in rural and urban areas; ii. Weather: Bad weather and poor road conditions affects supply; iii. Agricultural activity circles: During intensive agricultural activities, firewood supply declines hence prices goes up. 4.1.5 Women as energy suppliers and users Women as suppliers of energy, collect wood to meet their household needs and participate in commercialisation of wood. Firewood trading is done by both men and women and is a major source of income to some households especially in rural areas and semi-urban areas. 14 Women know which tree burn slowly and which burns fast, which smokes and which kindles easily. 4.2 The charcoal supply and demand chain map The charcoal supply/ demand chain map is a visual presentation of the way that charcoal flows through different channels from production sites to the markets. The map is divided between the different functions that are carried out in getting the charcoal from production sites to the end markets. The participants are divided into channels based on their forward and backward linkages and their use of technologies that differentiate them from one another. 4.3 The functions and participants There are five different functions in the charcoal supply /demand chain within the Coast and Dar es Salaam regions. The major functions start with the forest resources management related services within the studied areas, the production of charcoal, transport to Dar es Salaam City, its storage, and the sale through various intermediaries to the final consumer. All totalled, charcoal often changes hands 4 to 5 times between the charcoal producer and retailer who eventually sells it to the final consumer. Forest projects and tree planting initiatives The new National Forest Policy promotes the participatory forest and woodland management concept. The term participatory forest management implies, any forest management regime, which involves other stakeholders, co-managing with conventional forest resources management, forming the management team of a particular forest area. It embraces the concepts of Joint Forest Management [JFM] and Community- Based Forest Management [CBFM]. JFM as defined in the National Forest Policy means, involvement of local community or non -governmental organizations in the management and conservation of forests and forestland with appropriate user right as incentives. CBFM as defined in the Community Based Forest Management guidelines, {produced by the Forest and Beekeeping Division (FBD)}, refers to any forests management regime in which local people plays a major role. This may be developed in respect of still un-reserved forest in village or general lands or in respect of government forest reserves (National Forest Reserve or Local Authority Forest Reserves). Both of the two Forest Management Projects (for the supply source) visited are located in Coast Region. These are: 15 (i) (ii) Ruvu Fuelwood Pilot Project (RFPP) located in North Ruvu Forest Reserve in Kibaha District; and Mbunju Mvuleni Village Forest Reserve at Ikwiriri in Rufiji District The Ruvu Fuelwood Forest Project (started in 2000) is a Strategic Integrated Joint Forest Resources Management initiative, located in the North Ruvu Forest Reserve. The North Ruvu gazetted forest reserve has 32000 hectares, but the JFM area occupies only 1900 hectares (approximately 6 per cent of the gazetted area). The remaining area, approximately 30,100 ha are under Conventional Forest Resources Management. The prime goal of RFPP is to increase production of forest products in order to provide sustainable supply of woodfuel to meet the demand for the increasing population in the Dar es Salaam City and Kibaha. Project activities are such as: provision of extension services, training, documentation, seedling production, rotational woodlots, natural forest management, promote efficient production & use of bio energy, research, promote income generating activities. There are 400 households from four villages surrounding the forest, involved and committed in the management scheme of the project. Benefits and responsibility sharing between RFPP and the 400 households, include: Free access to the forest resources (land & wood standing volume); Forest regeneration through rotational woodlots (320 farmers have been allocated with 3ha plot per household which have been earning surplus food from cassava, sweet potatoes, pigeon peas, maize and rice); Provisional of inputs to facilitate seedling production for regeneration; Continuing education to stakeholders; Securing markets for forests products (tree seedlings, honey); Protection of the forest reserve through holistic approaches e.g. beekeeping, construction of water ponds; TaTEDO, which is also an important stakeholder in this project has introduced in a pilot scale, more efficient charcoal production kilns for improved wood carbonisation (70 households) and wood saving stoves (45 households). The Mbunju Mvuleni village forest reserve is wholly owned by the village under the CBFM regime. The reserve was gazetted in April 2003 and is comprised of 6,222 hectares. It is divided into two parts i.e. an area set aside for total protection and another for utilization of forest resources including charcoal production. TaTEDO provided training on tree growing with the objective of imparting the participants with the knowledge on tree -growing and management techniques to enable them establish private tree-nurseries using local initiatives. TaTEDO has also introduced more efficient kiln in this village since 2001. 16 Charcoal production Charcoal burning as an economic activity, using the traditional technologies, started way back since urbanisation began in Tanzania. Traditional knowledge has been passed from one generation to another through parents, relatives and friends. TaTEDO interventions both at Ikwiriri and Kibaha started in 2001 and 2002 respectively; by introducing the Improved Earth mound Kiln. At Ruvu, seventy (70) charcoal producers were trained in improving carbonisation using the Improved Basic Earth mound kiln. At Ikwiriri 15 househols (10 men & 5 women) were trained for the same purpose. It was learned that, apart from TaTEDO, no any other organization has done similar initiatives in both of the areas studied. Trial production by TaTEDO and charcoal producers was done on both production sites and results were very promising, as indicated in the table below: Table 4:1 Trial burning site Ikwiriri Kaskazini Village Mkuza Village Productivity comparison between technologies during trial productions. Kiln Billet Stack design length volume (m) (m3) BEK 1 –2 8.9 IBEK 1 – 2 8.9 BEK IBEK 1–2 1–2 two charcoal production Number Duration Productivity of Bags of burn (bags/m3) (days) 10 18 1.12 18 4 2.0 9 9 8 21 7 3 0.8 2.3 Source: TaTEDO Annual Report 2002/2003 Literature sighted during this study revealed that simple traditional kilns are capable of making charcoal at a conversion rates ranging from 2 – 5.20 bags of charcoal from 1 cubic metre of fuelwood (2 – 3bags)19 and (2.84 – 5.20)20 If this statement is true, then TaTEDO will need to find ways of improving its technology in order to produce kilns that are more efficient than the traditional earth mound kilns. Other trial production carried out by the Ruvu Fuel wood Pilot project indicates productivity (bags/ m3) of some exotic and indigenous species applying improved earth mound kiln. Table 4:2 Spp Eucalyptus terreticornis Pithecelobium dulce Productivity of some exotic and indigenous species using IBEK Age (Yrs) Origin Wood No. of Bags Productivity Volume (bags/m3) 3 (m ) 20+ Australia 4.7 10 2.1 17 Asia 2.6 6 2.3 From author analysis Saad S. Yahya: Woodfuel and change in urban Tanzania 20 R.E Malimbwi, S. Misana, G.C Monela, G. Jambiya and E.Zahabu: Impact of charcoal extraction to the forest resources of Tanzania THA case of Kitungalo area. 19 17 Acacia mangium Combretum spp Senna siamea 12 Australia 1.2 3 2.5 20+ Indigenous 1.9 6 3.2 15 Asia 2.3 5 2.2 Source: RFPP, February 2004 Twenty-five (25) respondents were interviewed for this purpose. The sample was drawn from the Cost region to represent the supply source. Interviews with charcoal producers were conducted in two charcoal producing areas (Ikwiriri – Rufiji and Kibaha) where TaTEDO had introduced improved charcoal production techniques. Both males and female were included in sampling, however the number of males exceeds females by 52 percent i.e. females were 24 percent and males were 76 percent. Sixty percent of the respondents are organized into informal self-employed groups having a minimum of 2 and a maximum of 15 people each, while forty percent operate as sole proprietors. The below table summarises survey findings in relation to increased productivity as a result of using the improved basic earth mound kiln. Table 4:3 Productivity comparisons between two charcoal production technologies by survey respondents. S/n respondent 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Total Average prdn BEK No. of bags 200 20 9 15 7.5 10 3 25 22.5 12.5 20 6 9 4 200 52.5 27.5 10 7.5 661 34.5 IBEK No. of bags 250 23 22.5 20 12.5 17 10 32.5 37.5 17.5 40 9 10 4 250 65 30 15 22.5 888 46.7 DIFFERENCE No. of bags 50 3 13.5 5 5 7 7 7.5 15 5 20 3 1 0 50 12.5 2.5 5 15 227 % 25.0 15.0 150.0 33.3 66.7 70.0 233.3 30.0 66.7 40.0 100.0 50.0 11.1 0.0 25.0 23.8 9.1 50.0 200.0 34.3 Source: Field Survey, February 2003 Data from the nineteen respondents reveal the mean kiln efficiency of 34.3 percent (table 4.3). This value is in the higher extreme as compared to data in table 4:1 and 4:2. 18 However, it is important to note that, respondents could not provide actual data related to age of tree, billet length (m) and diameter (cm), stack volume (m3) as well as ash content and waste amount (chenga). It is also important to note the following: Due to lack of record keeping culture, the figures that are given by charcoal producers are only estimates; There are no incentives to increasing production due to low prices offered by dealers at production sites; Charcoal production supplement farming, which is the main economic activity in the surveyed areas. Charcoal producer preparing earth kiln, side; Tanzania (May, after the rains) Survey findings reveals that more of after training follow-up is required in order to increase adoption levels. Apart from that, (it is an opinion of the research team) that an integrated approach (access to working capital, technical training, business management training and access to markets) type of support is also required so that charcoal producers see the benefit of increased production as a result of the new technology. Gender: Although TaTEDO provided training to both men and women, charcoal burning was found to be a male dominated activity and this is due to the following reasons: i. Heavy work associated with tree cutting using hand tools. Charcoal making process involves cumbersome woodcutting, kiln preparation, carbonisation and finally unloading charcoal from kiln; ii. Due to over exploitations of forests, wood raw materials are no longer found in the proximity of villages (in Camps), where women find it impossible to camp away from home; iii. Women have other important household chores to attend including care of children, husbands and other elderly family members. Out of the 25 charcoal burners interviewed in both Ruvu and Ikwiriri, only 6 (or 24 percent) were females. 19 Transport, trading and storage Transport: The research team was interested to find out the kind of distribution systems and costs that are used in the charcoal supply chain. Survey findings indicate that 60 percent of charcoal producers do not ferry their charcoal to the city where it is demanded, instead charcoal dealers come and collect charcoal from production sites. 36 percent of charcoal producers use bicycles to ferry charcoal up to nearby main roads and charcoal dealers come to collect from there. Only 4 percent of charcoal burners do hire transport (lorries & pick-ups) and ferry their charcoal up to wholesalers/retailers in Dar es Salaam city. The major factor that is constraining charcoal producers from ferrying their charcoal to end-user markets where they can obtain higher prices is the lack of collective mechanisms to mobilize large charcoal quantities and make profitable business. This is attributed by the following factors: a. b. c. d. limited access to financing mechanisms for working capital; operating informal businesses; poor business management skills; poor access to market information Trading: As stated above most charcoal producers sell their charcoal to dealers at production sites. Selling prices at production sites are indicated in the first row of the table below: Table 4:4 Selling prices at various points in the supply chain Selling Point Ikwiriri – Rufiji Ruvu fuel project – (TShs./bag)21 Kibaha (TShs./bag) At production site 1,000 1,200 – 1,500 At the nearest main road 1,500 2,500 Wholesalers (from Charcoal 4,500 4,500 transporters) at Dar es Salaam City Retail Price in the City 5,500 5,500 Source: Field Survey, February 2004. Difference in price between the two areas is due to the following factors: i. Distance from the production site to the market place (the nearer the market place the higher the price); ii. Road condition. The poorer the road condition the lesser the price offered to producers. Selling constraints: According to respondents, main factors that are hindering producers from accessing end-user markets are high costs associated with transport (1,500/= per bag from Ikwiriri and between 1,600/= /bag to 1,800/=/bag from Ruvu) and government levies. The following are the requirements that one has to fulfil in order to ferry charcoal to the urban centres: 21 Lower purchase price at Ikwiriri as compared to Kibaha has direct relationship with the distance to the market place, road conditions and availability of trees for charcoal production. 20 Trading Licence, TShs. 50,000 per annum; Central Government Levy, TShs. 400 per bag; District Levy, TShs. 200 per bag. Storage (in DSM): Producers in the rural areas do not store any charcoal as they always do not have excess to store, (they sale all what they produce). 60 percent of the wholesalers/ retailers interviewed in Dar es Salaam, store charcoal in rented premises/ sheds, 33 percent cannot afford renting and therefore they use plastic or canvas materials to cover charcoal from rain water. The remaining 7 percent do sale their charcoal directly to the customers. According to respondents, cost of storage ranges between 3,000/= to 10,000/= per month. Most wholesalers/ retailers complained about poor storage facilities (i.e. roof leakage during rainy season) and theft especially during the night. 4.4 Marketing Functions The marketing of charcoal in the Dar es Salaam City is through the informal market system. Charcoal dealers play a critical coordinating role in the entire process. The charcoal supply / demand chain map presents the relationships between the different actors (charcoal producers, roadside small scale traders, large scale traders/ charcoal dealers, wholesalers, and retailers). Charcoal Dealers Nine (9) charcoal dealers were contacted and interviewed. The interviews took place at checkpoints. According to the findings, charcoal dealing is a purely male dominated activity as no women dealers were found during the research period. Further investigations reveal reasons for non-participation of women as charcoal dealers. These are amongst others: a. Experience shows that business operation is done during the night when women are supposed to be at home caring for children and other members of the family. Most vehicles carrying natural resources products are theoretically not allowed to travel after 6:00 PM. Therefore, it is assumed that once vehicles reach the checkpoints after this hour they should stay until the next morning22; b. Poor road condition and poor state of the vehicles used in charcoal transportation (they are old with several mechanical problems). Women consider this as risk factor in this business. 22 CHAPOSA country scientific report: Tanzania, January 2002 21 The charcoal dealer was found to be one of the most influential actors in the supply/ demand chain and serves a very important coordinating and financing role. To dispose a large load of charcoal bags (e.g. 80 bags), at values up to 4,500/= per bag means that they must go to several wholesalers / retailers located in various places in the City. The dealer pays for transport costs and then offloads charcoal to wholesalers/ retailers both on cash and on credit basis. According to this survey, most dealers (89%) sell charcoal to wholesalers/ retailers, while just a small percentage (11%) sell directly to end-users. Dealers’ volume of business: In order to estimate their volume of business, dealers were asked to state their amount of charcoal bags per trip and number of trips they make per month. The following table indicate their responses: Table 4:5 S/n Volume of business - Dealers No. of bags per trip No. of trips per month Total traded bags per month 1. 50 12 600 2. 70 4 280 3. 80 2 160 4. 52 2 104 5. 60 12 720 6. 80 4 320 7. 70 4 280 8. 23 12 276 9. 65 4 260 Total 56 3,000 Average 6 333 Source: Survey Findings, February 2004 During this survey, no dealers were found to have their own charcoal stores/ warehouses for storing charcoal. As noted stated earlier in the report: Almost all actors interviewed do not keep proper business records, so these figures are estimates only (may be over stated or under estimated); The study took place during the farming period in some areas (Ikwiriri), there were not much of the charcoal burning taking place. 22 Wholesaler The wholesalers buy a number of bags from dealers who offload to them in Dar es Salaam and then sell them to retailers. Some of the wholesalers also do retail (i.e. providing a double function). There are advantages for them to purchase just a few bags at a time, and then to turn this over more quickly, relying on the dealers to supply them on a regular basis with new stock. 80 percent of wholesalers / retailers contacted get charcoal for onward selling through charcoal dealers. They reported to get charcoal from Coast region (Kiwangwa, Rufiji, Mkuranga, Ruvu, Kibaha, Chalinze), Tanga region (Mkata) Morogoro region (Mdaula, Mseyu). 20% of all wholesalers/ retailers buy charcoal directly from production sites. As indicated by respondents, duration from pressing order to receiving charcoal differ depending on seasonality and distance from charcoal production sites. During dry season it takes about a day or two while during the rainy season it may take a week to receiving charcoal. This is due to the fact that, during the rainy season most of the roads are in poor condition and also very small amount of charcoal is produced. Retailer There are two different types of retailers: those who are in Dar es Salaam and those at smaller urban centres closer to charcoal producing areas. In the smaller urban centres (e.g. at Ikwiriri), the retailers purchase directly from charcoal producers and add about 50 percent mark-up and sell charcoal locally. Charcoal retailing in Dar es Salaam is a very well structured system geared for different consumers. In the high-density residential areas, charcoal is easily accessible for almost everyone, not only in terms of location, but also in the amount that one needs to use at a particular time. There are different charcoal measures used in different parts of the city, largely depending on the population‟s socio-economic situation. Some people buy charcoal in a sack, this is because they see it is more economic and makes it easy to budget on a monthly income. Other groups of people prefer buying by the 4-litre tin. People from lower socio-economic ranks mainly use this measure. Poorer households buy by the small heap (mafungu). Those who buy the small heap (fungu), or by tin (kopo) measure tend to buy almost on a daily basis. 23 Gender: Women wholesalers/ retailers comprise of only 16 percent of the wholesalers/ retailers interviewed. Charcoal seller 4.5 Technologies The main differentiating technologies in the way charcoal is produced, transported and marketed are highlighted below: Production The main difference in technology used in charcoal production relate to carbonisation process. Before TaTEDO‟s interventions in the two surveyed areas, charcoal producers were mainly using the low efficient “Traditional Earth mound Kiln”. The field study reveals that 68 percent of the respondents have adopted the Improved Earth mound Kiln technology, while 32 percent, although received TaTEDO training, went back to the Traditional Earth mound Kiln. Current system has no incentives for charcoal makers to adopt efficient production technologies because of various reasons, including: poor access to information on end-user markets; failure to access end-user markets, which offer higher prices; failure to mobilize resources for organizing for large charcoal quantities and high government taxes/levy. Some other reasons specifically for Ikwiriri as observed by the survey team include: the lazy nature of the Coastal people, they fail to follow instructions e.g. arranging billets in an improved kiln; high poverty level hindering them from investing in improved technologies (charcoal producers were complaining about the price of aluminium sheet used as a chimney); low level of entrepreneurship; low literacy level; Ikwiriri people are used to receive free things and even sitting allowances for training which is 24 beneficial for them; the firewood situation is not difficult enough to make it worthwhile for people to change over to a relatively complicated kiln (requirement to properly arrange billets and cut logs of the same size) from the traditional earth mound kiln, which at the moment is adequate for their needs. It was revealed during the survey that, charcoal burning is more of labour than capital intensive. Only simple manual tools are required for this purpose. The main tools mentioned to be used by respondents and their prices23 are listed in the table below: Table 4:6 S/n 1. 2. 3. 4. 5. 6. 7. Tools for tree felling and charcoal production TYPE OF TOOL Axe Bow Saw Matchet (panga) Hoe Rake Shovel Slasher Total PRICE (TShs) 3,000 8,000 1,000 1,500 2,000 2,000 1,000 18,500 Transport Ferrying of charcoal to Dar es Salaam is done either directly from the forests or from local markets located in surrounding villages. In most cases bicycles are used to transport charcoal to the nearest local markets, but for longer distances, especially moving charcoal directly from the forests or local markets to the city, motor vehicles (lorries and pickups) are employed. In the inner edges of Dar es Salaam, the bicycle is used again to deliver charcoal to consumers. Costs of transport from Ikwiriri and Kibaha to Dar es Salaam as reported by charcoal transporters is presented in the table below: Table 4:7 Costs of transport from various points in the supply chain Ikwiriri – Rufiji Ruvu – Kibaha (TShs.) (TShs.) 24 From the forests to the nearest main road 500/=/ day 500/= / day From the forests to the nearest local 500/=/ day 500/=/ day markets From the forests to Dar es Salaam 1,500/ =/ bag 1,600/ - 1,800/bag Source: Survey Findings, February 2004 Quality of transport: Old vehicles with several mechanical problems are the most dominant. The reason for using old vehicles in the charcoal transportation is probably that the charcoal trade does not generate enough profit to pay for the upkeep and capital of new vehicles25. 23 These are current price information collected from hardware stores in Dar es Salaam. Cyclists make between 2 to 5 trips a day at 500/=/day depending on the distances from production sites to the main roads or nearest local markets (i.e. 100 – 250/= per bag). 25 Final Report CHAPOSA Research Project – Tanzania. 24 25 It is important to note that in order to increase the profit margins, there is a strong incentive to evade the government levies. Government levies are evaded by either bypassing the checkpoints or overstaffing charcoal bags. 4.6 The Chains The team identified five main chains through which charcoal passes from production to the end consumer. The chains are differentiated by the technologies that they use and the relationships (buying, selling) between the different actors in the supply /demand chain. These chains are not intended to be all encompassing, but represent the majority of the different kinds of relationships that are encountered. The first chain is the producer using the traditional basic earth mound kiln (BEK). Actors in this chain are characterised by low productivity per kiln. As a result of low productivity producers in chain one are less motivated to ferry their charcoal to the nearby main roads. They sell all of their charcoal to either the small-scale bicycle dealers (who collects at production sites) or large-scale dealers from Dar es Salaam. Estimates on returns from this chain: Producer from Ikwiriri: Let‟s say production per kiln is 35 bags (refer Table 4:3, last row – average production BEK & IBEK). Selling price at production site is TShs. 1,000 per bag26 Total Revenue will be 35 bags x TShs. 1,000 = TShs. 35,000/=. Estimated total costs is TShs. 17,000/= Estimated by respondents as follows: 1. Tree felling 7,000/=; 2. Ferrying logs to the production site + kiln construction 5,000/=; and 3. Lunch for helpers 5,000/=. Gross Profit will be: Total Revenue Total Costs 35,000/= 17,000/= 18,000/= Therefore Gross Profit Percentage is: 51.4 Note: This Profit not inclusive of depreciation of tools, royalty for felling trees, owner‟s salary. The second chain, the producer using the improved basic earth mound kiln (IBEK) and sell all of his charcoal at the production site. The difference between Chain 1 producer and Chain 2 producer lies in efficiency level of the kiln. Since Chain 2 producer uses the improved kiln, he gets more charcoal quantities per production as compared to Chain 1 producer. As said earlier, in the report, according to findings, 26 Mkuza Village – Kibaha, selling price is between 1,200/= to 1,500/= 26 those who use the improved kiln get 34.3% more charcoal than those who use the traditional non-efficient kiln. Let‟s assume, we compare two producers, (Chain 1 and Chain 2), who use the same amount of wood and labour, the Chain 2 will get 47 bags (i.e. 35 bags x 34.3%). Therefore; gross profit for channel 2 (for Ikwiriri) will be 47 bags x TShs. 1,000 = TShs. 47,000. The TShs. 12,000 has increased as a result of using the IBEK. Estimated total costs is TShs. TShs. 17,000/= Estimated by respondents as follows: 1. Tree felling 7,000/=; 2. Ferrying logs to the production site & kiln construction 5,000/=; and 3. Lunch for helpers 5,000/=. Gross Profit will be: Total Revenue Total Costs 47,000/= 17,000/= 30,000/= Therefore Gross Profit Percentage is: 63.8 Chain three, the producer using either the traditional basic earth mound kiln or the improved basic earth mound kiln and sell some of his charcoal to dealers at the nearby main roadside and some to chain 4 (i.e. the integrated producer/ trader) at production site. The main different between this chain and the first two chains is that, producer earn extra income by moving his products a bit up the supply/ demand chain. From the production site, normally charcoal is transported using bicycles to the main road or to the rural urban centres. Transport usually costs about 100/= - 250/= per bag. Selling price at the main road or urban centre at Ikwiriri (Rufiji) is 1,500/= per bag and at Vigwaza main road (Kibaha) is 2,500/=. Estimated total costs is TShs. TShs. 17,000/= (as above) Let‟s assume producer sells 50% of his/her charcoal at production site and 50% at Ikwiriri main road. Gross Profit will be: Total Revenue Total Costs 58,500/= 17,000/= 41,500/= Therefore the Gross Profit Percentage is 70.9 Chain four, the charcoal dealer. The dealer purchase charcoal from producers at production sites, ferry it to the City and sell to wholesalers/ retailers. 27 Let‟s consider that dealer purchase and sell 300 bags of charcoal per month (refer Table 4:5 last row – average traded bags per month). His profits margins will look as follows: Costs: 1. 2. 3. 4. 5. Price per bag TShs. 1,000 (Ikwiriri) Trade Licence TShs. 50,000 (per annum) District levy TShs. 200 per bag Central Government levy TShs. 400 per bag Transport costs TShs 1,500 per bag. Therefore: Cost of purchase TShs. 1,000 x 300 bags 300 bags x 600/= (levies) 300 bags x 1,500 (transport costs) 50,000/12(monthly licence fee) Total costs = = = = = 300,000/= 180,000/= 450,000/= 4,167/= 934,167/= Total revenue is 300 bags x 4,500 Less total costs Gross Profit = = = 1,350,000/= 934,167/= 415,833/= Therefore Gross Profit Percentage is: 30.8 Chain five is the integrated producer/ trader. Though the integrated producers/ traders are very few, their business is the most profitable one. One integrated producer/trader interviewed during the survey indicated to be getting gross margins of about TShs. 664,833. He sells to wholesalers/ retailers about 100 bags of charcoal to Dar es Salaam three times per month. Selling price at wholesalers/ retailers in Dar is 4,500/= per bag. He incurs the following costs: 6. Trade Licence TShs. 50,000 (per annum) 7. District levy TShs. 200 per bag 8. Central Government levy TShs. 400 per bag 9. Transport costs TShs 1,500 per bag. Therefore per month income will be: 100 bags x 3 per month = 300 bags Production costs 300 bags x 600/= (levies) 300 bags x 1,500 (transport costs) 50,000/12(monthly licence fee) Total costs = = = = = 51,000/= (estimated – refer Chain 1; 17,000/= x 3) 180,000/= 450,000/= 4,167/= 685,167/= Total revenue is 300 bags x 4,500 Less total costs = = 1,350,000/= 685,167/= 28 Gross Profit = 664,833/= Therefore Gross Profit Percentage is: 49.2 Other important actors in the supply/ demand chain are the wholesalers/ retailers. They play a very important role of onward selling to final consumers, they also enjoy much profits as compared to producers The Wholesaler purchasing from Dealer 1. Purchase price from Dealers TShs. 4,500 per bag 2. Renting of storage shade TShs. 10,000 per month Therefore; profit margin calculation will be as follows: 300 bags x 4,500/= (purchase price) = 1,350,000/= Renting of storage shade = 10,000/= Total costs = 1,360,000/= Total revenue is 300 bags x 5,500 = Less total costs = Gross Profit = 1,650,000/= 1,360,000/= 290,000/= Therefore Gross Profit Percentage is: 17.6. From the above calculated gross profit percentages, it is clearly that the percentages only cannot be relied to provide data that indicates the most profitable Chain. It is wise to also consider aggregate data (business total volume) before drawing any conclusions. When combining gross profit percentages and aggregate data, indication is that the most profitable Chain is Chain 5, the integrated producer/trader. 4.7 Business services in the supply chain Many different services are being provided to charcoal producers. As noted earlier in the report, there as many as 5 to 6 different cash transactions that can take place in the process from selecting trees suitable for charcoal production to the point of sale of the charcoal to the final consumer. Table 4:8 Business services in the supply chain Function Activity Business Tree nursery Research, seed management multiplication, extension services Tools supply Sale of charcoal Hardware stores production tools Charcoal production Site selection, Tree & selecting trees, tree services, Business Development Service to charcoal producers Provision of Extension Services Access to finance or supplier credit for tools cutting Provision of kiln technical training 29 Function Packing Activity cutting, logging, drying of logs, kiln construction. Local trader Move to main road, (bicycle trader) rural centres Dealer (Regional Re-pack (overstuffing Trader) bags), move to market, Trading Re-pack again, selling to wholesaler/ retailer Wholesale and Market storage, Retail security, transport, selling Business Business Development Service to charcoal producers on improved kilns construction services Transport Transport, bags sales Access for working capital empty Shed rental, Access to working security, transport capital for storage Taking into account that there are many business activities taking place in the supply/ demand chain, any intervention by TaTEDO or any other development organization must take into consideration the effect that these will have on those businesses. In addition, looking to the long term sustainability and success of any identified solutions, TaTEDO or any other development organization must see how they can involve and use the private sector to actually implement the solutions, by facilitating their involvement. 30 5.0 REGULATORY AND INSTITUTIONAL FRAMEWORK 5.1 Regulatory Policies Supportive or Hindering Development in the Woodfuel Supply /Demand Chain Policies Overall Regulatory Policies in the Forestry, the Environmental and Energy Sectors have recently been formulated27. All three sectoral Policy Statements are supportive of each other in the areas of: Ensuring sustainable supplies of forest resources for meeting basic needs for present and future generation (woodfuel is a basic need for most Tanzanians); Ensuring/ maintaining sufficient forest cover under effective management, preventing deforestation, and any form of unnecessary vegetation losses; Enhancing national capacity to manage and protect forests and related environmental renewable energy, in collaboration with other stakeholders including individuals and community participation and raising public awareness. 5.1.1 The Legal Framework Legislation is one of the main instruments by which the Government steers and control its policies. The Forest Act 2002 has already been passed by the Parliament and received the President‟s assent on June 4, 2002. The 1992 National Energy Policy was revised in 2003, the revision of the legislation is underway but yet to be finalised. Regarding Environmental Legislation, Policy Statement Para 70 states that the framework environmental legislation shall be designed to organise various agencies of Government charged with aspects of environmental protection to promote coordination and cooperation among them, and shall define environmental management tools of general scope that facilitate an even degree of policy and enforcement. Sectoral legislations shall be designed in such a way as to factor environmental policy objectives in their area of coverage. In conformity with Para: 70 of the National Environmental Policy, section 18 of the Forest Act 2002 requires Environmental Impact Assessment for certain development proposed in any forest land i.e. forest reserves, private forests or sensitive areas including water sheds. 27 The National Environment Forest Policy 1997, the National Forest Policy 1998 and the National Energy Policy 1992 (revised 2003). 31 Conclusions With regards to sustainable supply of woodfuels in the supply / demand chain, it is our opinion that existing sectoral policies and their respective legislations (when completed) are sufficient (if properly implemented) to guarantee efficient, reliable and affordable wood energy to the population in the rural and urban centres in Tanzania. Gender Issue The National Forest Policy (1998) emphasises of participatory gender balanced forest management and decentralisation; The National Energy Policy 1992 (revised 2003) state as follows: “The involvement of women at all levels of the sector shall, therefore be prioritised to better utilise available potential, competence and capacity. Training and incentives for increased female participation as decision makers at all levels need to be encouraged”. The National Environment Policy (1997) state as follows: “Women are the natural resource managers in our society. Their knowledge, experience and traditional skills in the management of resources stocks and household should be tapped for increased environmental actions. The role of women in environmentally-related activities will be recognised and promoted with a view to achieving increased women‟s involvement and integration in all environmental management areas”. The current study noted that although TaTEDO has done a commendable job in training both women and men, the participation of women in the supply/ demand chain of charcoal is still low. 5.2 The policy environment which may hinder or slow down development in the woodfuel supply/ demand chain 5.2.1 The Forest Sector An ineffective system of decentralised forest administration, which places the role of enforcement and management of the bulk of the woodland forest resources under the District Forest Officers (DFOs) (most of the unreserved woodland forests are within the jurisdiction of the district councils), who are not answerable to the key policy custodian (Forestry and Beekeeping Division) in the ministry responsible for forest management. DFOs are answerable to the District Council; the District Councils are in the portfolio of the Ministry of Regional Administration and Local Government in the President‟s Office. When operating in this kind of environment, conflicts on priorities and emphasis may occur. The technical and financial capacity for the Local Government on forest activities has been weak. As the funding for natural resources management at the district level is generally inadequate, over-exploitation of forest resources has been practiced to try to alleviate the critical shortage of revenue. This kind of environment does not guarantee sustainable supply of wood resources in the woodfuel supply/ demand chain. 32 5.2.2 The Energy Sector Legislation is one of the main instrument by which the government may effectively implementing its policy. The 1992 Energy Policy was revised in 2003. The legislative process, which is meant to provide the basis for implementing the revised policy, is yet to be finalised. 33 6.0 SUPPLY CHAIN DYNAMICS Tanzania is committed to free market economy, which means that private sector should take the lead in creating income, wealth, employment and growth. The government role is to be the regulator and facilitator of private sector development. Micro, Small and Medium-sized Enterprises (SMEs) in most sub sectors including the charcoal sub sector are the emerging private sector in Tanzania. Though the sub sector possesses high employment potential, it is largely informal, under-performing and in need of considerable assistance to overcome disadvantages and barriers. Since late 1990‟s there has been major policy changes that create enabling environment for private sector to take charge of all productive activities. Various Non Governmental Organizations including TaTEDO have recently played major roles in supporting micro enterprises especially in rural areas to improve household incomes and employment creation. It is clear from the supply/ demand chain map, that TaTEDO interventions in the target group through the introduction of the improved charcoal carbonisation, the traditional charcoal producer using the BEK (in Chain 1) is being shifting to Chain 2 (IBEK) and benefit from increased income as a result of improved productivity. Most of the charcoal produced is passing through Chain 4 (Dealers), this can increase or shrink depending on the future interventions in the supply /demand chain. Chain 5 (integrated production/trading) is the emerging chain and the most profitable one. There are possibilities for actors in chains 1, 2, & 3 to shift to chain 5. 6.1 Driving forces A number of different forces are driving the dynamics within the supply/ demand chain. These forces range from market prices, weather, technologies, transport, and competition from other economic activities (farming). The relationship of these forces and how they impact on the decisions of the actors within the supply / demand chain provide very important insights into the best kinds of activities that the support organizations can implement to have impact on micro enterprises. Market prices of charcoal The Coast Region charcoal market is primarily focussed towards Dar es Salaam. There is huge difference between selling prices at production sites (between 1,000/= to 1,500/=per bag) and end user price in Dar es Salaam (5,500/=). 6.2 Local policies The main policies affecting the supply/ demand chain relate to the local levies (cess) and transport (the time during when charcoal is transported to the City). Vehicles carrying natural resources products including other forest products are theoretically 34 not allowed to travel after 6:00 PM). Although the precise effect of each of these is difficult to assess, we note that they lead to change in behaviour: High levels of cess lead to traders either evading paying it completely by bypassing the checkpoints or cheating (by overstaffing bags) in order to reduce the tax burden. Weather The weather is an important element to look at, since charcoal production slows down during raining and farming seasons. Since charcoal is a cash product, proper planning is crucial in order to make a good balance between food production and production of cash products. The weather is an important factor to look at. During the rains it is more difficult to transport charcoal and especially from the kiln site to the main roads. This difficulty results in reduced supply of charcoal and is reflected in the higher prices (the low of supply and demand). Transport The cost of transport, particularly on bad roads such as those at the forests, are major factors in forcing down the price of charcoal to the producers to factor in the added costs associated with the bad roads. 6.3 Points of leverage The points of leverage are those points in the supply/ demand chain where applying a small amount of pressure will lead to a fairly large impact. This is extremely important when trying to work with micro and small enterprises (MSEs), which are very difficult to reach on an individual basis. There are generally three main sources of leverage in the charcoal supply/ demand chain: System nodes, or those points in the supply chain where a single firm is in contact with a much larger number of firms; Geographic clusters where there are large concentrations of targeted firms; and Policies, where a decision taken at a central level has a broad reaching impact on a large number of firms in the supply/ demand chain System Nodes The dealers: Charcoal dealers serve as important points of contact within the supply/ demand chain as they each deal with large numbers of actors (charcoal producers, government officials through checkpoints and wholesalers/ retailers). Geographical clusters Charcoal producers tend to be clustered into geographic areas that are particularly appropriate for charcoal production. The two charcoal producing areas visited by the 35 survey team (Kazamoyo forest in Ikwiriri and the North forest) are the examples of geographic clusters. 6.4 Policies It was noted that, policies related to taxation (cess) and transport play an important role in affecting charcoal prices. This though needs further analysis. Table 6:1 Impact of tax on total costs. S/n COST per bag TShs. 1. Purchase 1,000.00 2. Transport 1,500.00 3. Levies 600.00 4. Registration fee 13.89 Total 3,113.89 % Total Cost 32.11 48.17 19.72 100.00 Source: Field Survey, February 2004 Policy/institutional framework for licensing and other payable fees The forest Ordinance Cap 389 of the principle legislation empowers the Director of Forest and Beekeeping to license extraction of forest products from central government forest reserve and general lands, while local authorities are empowered to license forest products from local authority forest reserves. The Minister responsible for Forests determines and prescribes charges and fees for forest products and services from time to time. The fees and royalties for Forestry and Beekeeping Division are paid when forest products from central government forest reserves and general lands are removed from these forests by license. Other areas from which fees are collected include establishment of sawmills in the forest reserves, installation of any commercial facility in the forest reserves, camping, research, grazing, grading of forest product prior export, registration of forest produce dealers, fines etc. District Forest Officers (DFO) on behalf of Forest and Beekeeping Division collect the revenue from central government forest reserves and general lands, except for Morogoro and Tanga regions where collection are done by regional Catchments Forest Officers. DFOs also collect revenue for their respective districts (local authorities). Payable fees or levies for charcoal and firewood in the Dar es Salaam and Cost regions To enter into forest product dealership, an annual registration is required which carries an annual registration fee of TShs 50,000 [fifty thousand shillings only] as first step .A general collection license for firewood and charcoal (License No 3) is then purchased from the DFO at the fee rate of TSh 3,000 per cubic metre in case of 36 firewood and TSh 400 per bag in case of charcoal. An Exchequer Receipt voucher (ERV) is then issued for the actual quantities collected (m3 or bag). In addition, levies are collected payable to the Local Authority at the rate of 5 percent of the prescribed fees in respect of firewood and TShs. 200 per bag in case of charcoal. 37 7.0 ANALYSIS OF CONSTRAINTS AND OPPORTUNITIES 7.1 Analysis of Constraints There are many constraints facing micro enterprises and the growth of the supply/ demand chain. Most constraints present opportunities for TaTEDO and other support organizations for designing and implementing solutions. CATEGORY CONSTRAINTS Procurement of Raw Materials and Inputs Market Development Seedling diseases Technology / Product Development Low selling price (at production site) No customers for tree seedling during dry season Poor working tools Low productivity Poor charcoal quality led by poor carbonisation (high waste and ash contents) Long waiting periods from ordering to receiving charcoal especially during rainy season which might be caused by the long time taken to produce charcoal (up to 18 days BEK) Poor/No business records (production, sales records) Low awareness on environmental conservation Lack of information on types of trees with high calorific values Low capital base Non existence of financial institutions that provide loan support to charcoal producers (some women at Ikwiriri accessed loans from FINCA through other types of businesses) High levels of cess lead to traders either avoiding paying it completely by by-passing the checkpoints or cheating (overstaffing bags) in order to reduce the tax burden Transport time during when charcoal is transported to the City (vehicles carrying natural resources products including forest products are theoretically not allowed to travel after 6:00 PM). Business Skills Development Finance Policy Environment ACTORS AFFECTED Tree growers Charcoal producers Tree growers Charcoal producers Charcoal producers Dealers/Wholesalers/ Retailers Wholesalers/ Retailers ALL Charcoal producers Charcoal producers Tree growers Dealers 38 CATEGORY CONSTRAINTS Operating Environment/ Infrastructure ACTORS AFFECTED The Traditional BEK produces a lot of Charcoal producers smoke, causes respiratory problems (coughing, eye irritation) Lack of reliable sources of water at some localities, hinder establishment and Tree growers development of community nurseries Poor transport quality (old vehicles) & poor road conditions (feeder roads leading to Dealers charcoal production areas, lead to unnecessary delays to reach markets) Poor storage facilities Wholesaler/ Retailer High transporting costs Dealers Source: Survey Findings, February 2004 7.2 Analysis of Opportunities CATEGORY TYPE OF CONSTRAINT Procurement of Raw Materials and Inputs Market Development Seedling diseases Low selling price (at production site) No customers for tree seedling during dry season Technology Product Development Poor working tools Low productivity Poor charcoal quality led by poor carbonisation (high waste and ash contents) Long waiting periods from ordering to receiving charcoal especially during rainy season which might be caused by the long time taken to produce charcoal (up to 18 days BEK) Poor/No business records (production, sales records) Low awareness on environmental conservation Lack of information on types of trees with / Business Skills Development PROPOSED OPPORTUNITY FOR INTERVENTION Penetrate to high value markets Organized into formal groups and lobby for better prices Organized into formal groups in order to gain access to financial services. Provide more technical training. Provide storage facilities at production sites Provide business training Provide more awareness creation. 39 CATEGORY TYPE OF CONSTRAINT Finance Policy Environment Operating Environment/ Infrastructure high calorific values Low capital base Non existence of financial institutions that provide loan support to charcoal producers (some women at Ikwiriri accessed loans from FINCA through other types of businesses) High levels of cess lead to traders either avoiding paying it completely by bypassing the checkpoints or cheating (overstaffing bags) in order to reduce the tax burden Transport time during when charcoal is transported to the City (vehicles carrying natural resources products including forest products are theoretically not allowed to travel after 6:00 PM). The Traditional BEK produces a lot of smoke, causes respiratory problems (coughing, eye irritation) Lack of reliable sources of water at some localities, hinder establishment and development of community nurseries Poor transport quality (old vehicles) & poor road conditions (feeder roads leading to charcoal production areas, lead to unnecessary delays to reach markets) Poor storage facilities High transporting costs PROPOSED OPPORTUNITY FOR INTERVENTION Organized into formal groups in order to gain access to financial services. Establish Association/ Lobby group The Government should intervene More training, after training follow-up and encouragement to use IBEK Construction of water ponds for fish, seedlings and vegetable production28 The Government should intervene (e.g. through collected cess) The Government should allocate working premises for MSEs Formation of Associations/Lobby groups to have more bargaining power. Source: Survey Findings, February 2004 28 Already done at some areas (at RFPP) 40 It is important to note that, all of the proposed interventions are being done in some degree. There is therefore a gap in each that needs to be tackled and overall there is need for coordinated effort (integrated approach). 7.2.1 Identified Opportunities Apart from many factors that constrains the growth of the charcoal supply / demand chain, there are also many positive factors that provide opportunities for growth and hence strong reasons for TaTEDO and other support organizations to focus their activities in the supply chains. Some of the positive factors can be summarized as follows: Availability and already introduction of the improved charcoal carbonisation process in some major production sites (the TaTEDO improved BEK); Any intervention will have a longer-term impact since woodfuels dominate the energy balance for Tanzania. All the three policy statements are supportive of each other and they support the development of the charcoal supply/ demand chain; There are many geographic clusters, where charcoal producers have organized themselves into informal groups; There are many different services available although are not well coordinated; Charcoal has a long storage life, can be stored and sold during the rainy season when roads are impassable and production is low; Ferrying charcoal from the production site to Dar es Salaam (consumption area) is more profitable than selling at the production site; 7.2.2 Proposed Leverage Leverage points can be identified at three main areas: 1. Increased productivity through the following measures: (i) Encourage the use of IBEK; (ii) Provision of credit facilities; (iii) Establishment of charcoal storage facilities at production sites. 2. Penetrate into higher-value end-user markets 3. Lobby for tax/cess reduction 41 8.0 CONCLUSIONS AND RECOMMENDATIONS Abundant evidence of the charcoal and firewood trade is visible throughout Tanzania. A visit to almost any forest reveals the presence of charcoal makers. Highways are lined with charcoal bags for sale from the production sites. About 20,000 bags of charcoal enter Dar es Salaam every 24 hours, every day of the year. Summary of Constraints faced by the actors in the supply/demand chain that hinders conservation and sustainable utilization of forests Major constraints in the demand /supply chain can be summarized as: Low selling price (at production site); Poor charcoal quality led by poor carbonisation (high waste and ash contents); Long waiting periods by wholesalers/ retailers from ordering to receiving charcoal especially during rainy season which might be caused by the long time taken to produce charcoal (up to 18 days BEK); Poor/No business records (production, sales records); Low awareness on environmental conservation; Lack of information on types of trees with high calorific values; High government levy/taxes. 8.1 Proposed recommendations for TaTEDO interventions As earlier noted, an integrated type of support to the actors in the supply/ demand chain is required in order for TaTEDO to achieve its objective of conserving the environment through higher adoption level of improved technologies as well create positive impacts to intended beneficiaries in terms of income generation and employment creation. Several issues that require more in-depth analysis arise before deciding what to do and how to do it. These can be: Promotion of producer associations and/or marketing Cooperatives (which will provide to its members an integrated approach type of support such as access to finance, Business Development Services, technical training, lobbying, etc); Lobby for tax/levy reduction. 8.1.1 Promote the formation of producer associations or marketing cooperative societies Charcoal production in Tanzania is known to contribute substantially to the economy of rural people as well as to the government in the form of revenue collection. Charcoal production is not an illegal business as long as it is practised at non-reserved areas and also if there are no illegal and wasteful harvesting practices. Joint Forest Management is the best tool for participatory forest management practices whereby 42 the government and the public (charcoal producers /traders) share the responsibilities and benefits Within the foreseeable future charcoal will remain the most important source of energy fuel for all Tanzanians due to its affordable prices to the majority of the population as well as its availability. The charcoal producers association to be formed will bring together small-scale charcoal producers to consolidate and collectively sell their charcoal in the most progressive and producer – beneficial manner possible. The association will seek to become a model of a progressive; village based charcoal producers service organization; and a catalyst for better standards of service within the charcoal industry in Tanzania. The association will move from a situation where its members depend on selling to lower – price production site buyers, to selling its charcoal to Dar es Salaam (or other major towns) at better prices. During survey period, production site prices were TShs. 1,000/bag and TShs. 1,500/bag at Ikwiriri and Kibaha respectively. Selling prices at Dar es Salaam were ranging between TShs. 4,500/ bags to 5,500/ bags. Charcoal producers will benefit from collective marketing. The larger the volume the association can mobilize and market, the less per unit cost and hence better returns to charcoal producers. Adequate stock will also put the association in better negotiating terms with buyers in Dar as it can assure them delivery of economic quantities. It is expected that producers will join the association based on economic, environmental and social incentives that members will get from the association. The economic incentives include access to working capital and better charcoal prices, access to more technical training on improved technologies that results to improved quality and quantity (more charcoal per cubic metre), and access to business training. Other economic benefits as a result receiving better prices will be such as ability to send children to school and improve housing conditions. Socially, charcoal producers will act as a bigger family and will have access to social services such as improved health facilities (medical, water and sanitation). Environmentally as an association, members will have an increased awareness on environmental concerns through environment awareness creation workshops. Members are expected to be more aware of protecting their environment and forest resources. As a result of understanding the benefits of using the improved kiln, they will reduce tree cutting and therefore forest conservation. The association will collectively, with assistance from TaTEDO lobby for levy/tax reduction and sharing of forest revenues with the government. Through this model the government will also benefit because it will know where to collect revenues. The efforts will have direct connection with TaTEDO‟s initiatives of promoting improved cookstoves that uses less woodfuels i.e. up to 50% efficiency (the Sazawa stove). 43 Specifically, 8.1.2 TaTEDO would used Business Development Services providers to mobilize charcoal producers and assist them in the formation of producer associations and imparting them with business management skills; TaTEDO would continue providing technical skills in the areas of improved charcoal kilns and environmental conservation awareness training; TaTEDO would link the associations with donor funding organizations sot that they can access working capital. Lobby for tax/levy reduction It was revealed during this survey that there is a strong incentive for most charcoal dealers to evade government taxes/cess in order to increase their profit margins. These levies are evaded either by bypassing the government checkpoints or by overstaffing charcoal bags. With this situation and taking into consideration that charcoal is an important sub sector, the government is loosing a lot of money and on the other side charcoal producers are not motivated to sell their charcoal at the end – user markets where they can benefit from high prices. The current amount of government levy/cess charged per bag of charcoal is TSh. 600 which is considered very high by both charcoal producers and dealers, i.e. almost 60% of purchasing price at the production site. According to information from various sources, the daily charcoal consumption for Dar es Salaam only is 24,000 bags. Other sources also reveals that between 15,000 to 20,000 bags of charcoal are entering Dar es Salaam everyday. Three-year trend data (2001 – 2003) collected from the four major checkpoints reveals that only 2,800 bags (or 12% of consumption) of charcoal are taxed everyday. Through the current system the government is loosing a lot of money in terms of revenue and also those who are paying taxes are not benefiting much in this business. With the current situation, the government is collecting a daily revenue of TSh. 1,680,000. Let‟s assume that levies are reduced to TSh. 200 /bag (i.e. 100/= for the Central government and 100/= for the district council) and taking into account a daily consumption of 24,000 bags for Dar es Salaam. The government would collect a daily revenue of TSh. 4,800,000 and this reduction would have a big financial impact to the target group (66% savings) or increased income as a result of tax reduction. If proper mechanisms are put into practice e.g. collecting levy through registered charcoal associations (refer first recommendation), both the government and charcoal producers will benefit. One of the services that TaTEDO provides to its target groups is to lobby for supportive policies that enhance provision of better energy services. 44 PART TWO 9.0 OVERVIEW OF BIOMASS ENERGY AND IMPROVED STOVES TECHNOLOGIES Biomass is a primary fuel that provides households with energy for meeting basic needs such as cooking, space heating, and energy for small industries largely in the developing countries with the population of about 3 billion being beneficiaries. Domestic cooking makes up a major portion of the total energy used in these nations, (close to 60 percent in Sub-Saharan Africa)29. Biomass can be classified into two main groups: woody biomass and agro-forestry waste (crop residues, animal manure and forestry processing wastes). Various options of utilising biomass for energy purposes include directly utilisation by burning in the combustion devices, production of secondary fuel by converted wood into charcoal through carbonisation process, production of liquid biofuels such as ethanol through fermentation; and production of gaseous fuels by gasification processes (both thermal and biological processes). Since nearly three billion people in the world use traditional stoves to prepare their meals, efforts to improve the efficiency of cookstove and to mitigate health hazards have been on the increasing in the developing world. Improved stoves come in different forms and sizes. Improved cookstove can be designed and built in various ways, depending on the local conditions, which include user‟s requirements and types of fuel and its properties. “At their simplest, improved stoves rely on providing an enclosure for the fire to cut down on the loss of heat and protect it against the wind. In addition, attention can be given to devising methods of controlling the flow of hot combustion gases, so as to increase the transfer of heat to the cooking pot” (Foley and Moss, 1983, pp.16). Many of these stoves are normally made of mud and/or sand and iron sheets since both of the raw materials are almost available. One of the first improved stoves was the “Magan Chula”, introduced in India in 1947. A publication called “Smokeless Kitchens for the Millions30” advocating the health and convenience benefits of increasing efficiency in the burning of biomass further stimulated the promotion of improved cookstove. In recent decades, urban areas in developing nations have experienced higher penetration rates of improved stoves; indeed, many urban households have made the switch to fuels like liquefied petroleum gas (LPG) or kerosene for cooking. Most rural households in these countries, on the other hand, are not endowed with the infrastructure that would bring them cleaner fuels, nor do they have the adequate income to pay for the fuels if they were available. The dissemination of increased-efficiency cookstove households can be a step taken toward curbing indoor air pollution and decreasing time and money spent on woodfuels. Tanzania, for example, with an annual per capita income of only $240 and 29 30 Ergeneman, A. 2003 Raju, 1953 45 with less than one percent of its rural households having access to electricity could greatly benefit from increased efforts in improved cookstove dissemination programmes. In the last 20 years, substantial effort has been directed towards the modernization of small scale and environmentally sound improved cookstove for rural and urban households in sub-Saharan Africa (Table 2.1). In Tanzania, domestic energy demand has grown rapidly due to population growth and the increase in economic activities during the last ten years. The Ministry of Energy and Minerals estimated energy consumption is more than 22 million tons of oil equivalent (ToE) or 0.7 ToE per capita. Energy consumption in the rural areas accounts for about 85% of total national energy consumption. The energy balance is dominated by biomass fuels, particularly woodfuels (charcoal and firewood), which are the main sources of energy to both urban and rural areas. Biomass fuel accounts for more than 90% of primary energy supply. Charcoal is mainly used in the urban areas, whereas firewood is predominant in the rural areas. In the urban areas charcoal is preferred because of its ease of storage, high energy content, and lower levels of smoke emissions. Corresponding major cooking devices are charcoal stoves and three stone fire places, all of which are still employing outdated combustion technologies. Traditional wood and charcoal stoves are used in hundreds of millions of homes. Their redesign can have a dramatic effect on energy usage, the environment and community health. Tanzania has a forested area of about 35.5 million hectares of which about 32 million hectares are woodland, from which the bulk of the household woodfuel is produced. Traditional charcoal production which relies on the traditional and rudimentary earth kiln is considered to be a major contributor to deforestation in many parts of subSaharan Africa. Efforts to improve and modernize small-scale biomass energy systems to ensure environmentally sound use of biomass energy constitute an important component of national energy strategies in many sub-Saharan African countries. In Tanzania such policies are formulated and implemented by responsible Ministries and stakeholders through The National Energy Policy 1992 (revised 2003). The policy objectives are to ensure availability of reliable and affordable energy supplies and their use in a rational and sustainable manner, in order to support national development goals. The National Energy Policy therefore, aims to establish an efficient energy production, procurement, transportation, distribution and end-use system in an environmentally sound and sustainable manner. The vision of the energy sector is to effectively contribute to the growth of the national economy and thereby improve the standard of living for the entire nation in a sustainable and environmentally sound manner, while the mission for the energy sector is stated as to create conditions for the provision of safe, reliable, efficient, cost-effective and environmentally appropriate energy services to all sectors on a sustainable basis. 46 Large volumes of wood are used annually (40.4 million cubic meters were consumed in 199931). The bulk of the woodfuel is used in households for cooking and heating. The traditional charcoal stoves (used in urban areas) and the three stone fire place (used in rural areas) are extremely wasteful, because they use less than 15 and 10 percent respectively of the energy available in the wood. The wasteful use of wood leads to greater demand from the forests. TaTEDO (in collaboration with other stakeholders and partners) has been promoting renewable energy technology development and environmental conservation practices since its inception. The organization was registered in 1990, as a non-governmental, non-profit sharing organization, for spearheading the development of renewable energy technologies and services as well as environmental conservation. The expected outcomes of TaTEDO interventions are: Improved energy production efficiency for a given volume of biomass fuel material; Reduced wasteful exploitation of woodfuel from forests, therefore improved supply and sustainability of forest resources as well as environmental conservation; Improvement in the household economics (poverty reduction), due to less firewood/ charcoal used to prepare the family meals and heating, resulting from the improved charcoal or firewood stoves. 31 Woodfuel strategy Dec. 2000 47 10.0 IDENTIFICATION OF DIFFERENT TARGET GROUPS AND BENEFICIARIES OF TaTEDO IMPROVED STOVES AND OVENS AND THEIR SPECIFIC NEEDS Since 1990 TaTEDO has managed to develop over 19 different designs of improved solid biomass stoves. The developed improved stoves may be categorized in four major groups, namely; improved charcoal stoves; improved charcoal ovens; improved woodstoves; and biowaste stoves. 10.1 Types of Improved Stoves Available to Beneficiaries The main types of stoves used by urban dwellers are charcoal stoves and ovens, while rural dwellers use mainly firewood stoves. Survey findings indicate that “Bell-Bottom” improved stove is the mostly known and widely used stove (72 percent of the surveyed population were found to be using this stove – see table below). Other lesser known types of stoves are “Double Plate Stand” which, is used by 31 percent of the surveyed population, “Straight” used by 13 percent of the surveyed population, “miguu mitatu” used by 13 percent, “Sazawa” used by 10 percent of the surveyed population, “efficient woodfuel brick” used by 5 percent of the surveyed population and “Double Plate Box” used by 3 percent of the surveyed population. However, 13 percent of the user respondents are still using the “traditional metal stove” (Table 3.2a). About 13% of respondents still use the inefficient traditional stove. When asked as to why they preferred the traditional metal stove, the respondents gave different reasons. Price and durability are major elements. According to some of the respondents, traditional metal stoves last longer than improved stoves, mainly because the clay insulation materials tend to be brittle and break quite frequently. 10.2 Target Groups and Beneficiaries Low-income communities located both in rural and urban areas is most likely to benefit from TaTEDO improved stove programmes. According to the survey, the target groups were categorized into three main categories i.e. (i) households (urban & rural), (ii) SMEs (food vending, hotels & restaurants) and (iii) Institutions (schools & training centers). Total user respondents interviewed were 60 (i.e. 46 respondents in urban and 14 respondents in the rural areas). The respondents were categorized into the following target groups: schools & colleges, hotels & restaurants (local & tourists), training centres (textile), cottage industries (textile), households (rural & urban) and food vending (chips fryers, fish fryers, barbeque). Out of the total surveyed population, female respondents were 59 percent and male respondents were 41 percent. This reflects the main purchasers and users of fuel energy. According to responses from urban households, charcoal seems to be the most affordable type of energy fuel as compared to electricity (sold at TShs. 4,500 to TShs 5,500 per bag of 35kg). Out of 13 household respondents who are earning less than TShs. 45,000 per month, 10 of them or 77 percent use charcoal; out of 22 respondents 48 of those earning between TShs. 45,000 to TShs. 100,000 per month, 19 of them or 86 percent use charcoal and out of 11 respondents who earn above TShs. 100,000 per month, 8 of them 4 or 73 percent use charcoal as main type of energy (also in this income level category, 45 percent use electricity). Therefore, within the foreseeable future, charcoal will remain to be the first choice fuel for most urban households, because of its availability, convenience and low price compared to other fuels. Out of 8 respondents who are earning less than TShs. 45,000 per month, all 8 of them or 100 percent use firewood and 3 of them or 37.5 percent use charcoal; out of 5 respondents of those earning between TShs. 45,000 to TShs. 100,000 per month, all 5 of them or 100 percent use firewood and 4 of them or 80 percent use charcoal. According to findings of this survey, the level of income is a major factor that reduces the use of electricity in both the urban and rural areas. From Table 3.1a it can be established that, none of those who are earning less than TShs. 45,000 per month is using electricity as main energy type. 10.2.1 Beneficiaries in the Rural Areas According to respondents, the main sources of fuel energy used by the rural areas dwellers were firewood (93 percent of respondents), followed by charcoal (57 percent), kerosene (29 percent) and saw dust (14 percent). In the surveyed areas of Ruvu and Ikwiriri it was clear that charcoal is not a priority source of energy since they usually collect firewood free of charge from the surrounding forests (Table 3.1b). 10.2.2 Beneficiaries in the Urban Areas As noted in the Table 3.1b, the main types of energy that are used by the urban dwellers arranged in decreasing order includes charcoal (80.4 percent), kerosene (34.8 percent), electricity (32.6 percent), firewood (32.6 percent), sawdust (10.9 percent) and gas (8.7 percent). While electricity is an important source of modern energy for economic activities, only about 33 percent of interviewed population have access to it. Eleven percent (11%) of respondents were found to be using sawdust stoves; these were mainly street food vendors. Most of the respondents interviewed (57 percent), combine two or more types of energy sources. This is partly because they tend to use certain fuel energy sources for certain foods. For instance, the findings revealed that, the cooking of dried beans or maize cereals require longer cooking time and in such cases, most people decide to use charcoal or firewood than other sources of fuel such as kerosene or electricity. The same respondent may use kerosene or other expensive but convenient energy sources to cook light foods. Level of income, prices and availability are among the determinants of using any source of energy. 10.3 Specific Needs and Preferences of the target groups Consideration of users‟ requirements is a vital factor for any cookstoves introduction and dissemination programme. The early cookstoves programs focussed strongly on stove efficiency and fuelwood saving, and many programs failed because they ignored the requirements of the user. There is a great need for stove designers and producers to find out if there is an interest and market for improved stoves. For the sake of this 49 survey, customer specific needs and preferences for choice of stove were categorized into seven categories: (i) (ii) (iii) (iv) (v) (vi) (vii) 10.3.1 (i) Monetary benefit (Price of the stove and Energy saving); Durability of the stove; Appearance (or appealing) of the stove; Social and Culture (acceptability of the stove); Health and Improved kitchen environment; Appropriateness (type of food, size, portability, safety); Availability of repair services or after-sales services. Specific Needs and Preferences for Urban and Rural Households Monetary benefits (price of stove and energy saving) Price: The price of improved cookstove may yet be the most important factor impacting their adoption by users especially the rural households. The price of the improved stoves varies significantly. According to findings, affordable stoves are those with prices ranging between TShs. 1,350 to TShs. 5,000 (Bellbottom, Straight, Sazawa, Miguu Mitatu) as responded by 49% of the surveyed population. The most expensive energy saving stoves as expressed by respondents (particularly those having average income level of below TShs. 100,000 per month) are Double Plate Box, Double Plate Stand, most of the Charcoal Ovens and Efficient Firewood Brick stoves (Table3.3a). On the other hand, the actual price for two-pot openings efficient firewood clay stove adapted for rural areas (example at Ikwiriri) and constructed at user‟s home is TShs. 1,000 - 2,500. Apart from TaTEDO’s efforts to increase adoption by providing initial promotional price reduction offer of up to 50 percent of the actual stove cost, the intended user could not afford to pay. This made it difficult for trained artisans to take over production and to sell these improved fixed clay firewood stoves. It is the feeling of the survey team that, although the villagers are constrained by low income, but the main factor, specifically for Ikwiriri is not the price of stove but rather is the easily availability of firewood in the area. Ikwiriri is not a deforested area and therefore, firewood can be easily collected free of charge from surrounding woodlands and forests. In this case, financial benefit of investing in an improved woodstove is small if not nil. Several authors argue that if prices of alternative fuels like kerosene, electricity or gas go down, they can substitute woodfuel and reduce its demand. However the level of substitution may be affected by the high prices of certain equipment for these energy sources. High price of equipments like electric cookers or heaters may hinder the substitution of woodfuel for alternative heating sources (e.g. electric power) even if the prices of these alternatives are dropped (Table 3.3b). In the other hand, there is a need to perform an in-depth costing and pricing analysis as well as the analysis of level of productivity in order to determine the level of price that is attractive to both user and producer of improved stove. The rationale is that if producers and traders can make an attractive income from the fabrication and 50 marketing of improved stoves then these businesses will in the long run be sustainable and hence; the fabricators will be motivated to improve quality of stoves. Table 3.3c summarizes gross profit margins as responded by surveyed workshops. There is a need to assess if the margins are attractive to producer artisans. Energy saving: The bulk of energy from wood is used for cooking and heating. Although no macro-estimates exist of the percentage of wood consumed directly as fuelwood, and the percentage consumed as charcoal, micro studies indicate that charcoal is mainly an urban fuel. While in most regions, fuelwood is still largely free (i.e. people depend on what they can gather themselves), in urban areas fuelwood is largely purchased. The success of improved stoves in the urban areas will depend on how much the user will cut down fuelwood requirements. Seventy eight percent (78%) of the urban household interviewed reported to have gained the benefit of energy saving by using improved stoves. They reported that the consumption of charcoal has been reduced by up to 50 percent . Only 38 percent of the rural households using efficient firewood stove responded to have realized this benefit. As noted earlier, firewood is not a crisis in the surveyed rural areas (Table 3.3d). (ii) Durability of the Stove The durability of the improved cook stove is an important factor determining household choice on whether to adopt the stove or buy a new one to replace the old one. The durability depends on such characteristics as the quality of materials used in fabricating the stove, application of proper technical knowledge during fabricating stove, and the availability of technical assistance for stove repairs. According to findings of this survey, 56 percent of the respondents (users) interviewed, pointed out that most of the stoves are not durable (Table 3.3e). They have the opinion that, stove fabricators use low quality raw materials especially poor quality iron sheets, scrap material and ceramic liners (ceramic liner cracks very easily). The survey also revealed that, most of the improved stoves sold through various outlets are fabricated by unskilled artisans who operate informal businesses in the informal sector. Survey findings also reveal that 14.3 percent of urban artisans interviewed and 100% of rural artisans (Ikwiriri) have received stove fabrication skills training from TaTEDO. The remaining 81 percent have learned how to fabricate stoves through other artisans (relatives or friends) (Table 3.3f). In the rural areas, as indicated by 92 percent of the interviewed households, durability is largely dependable on the quality of the clay soil used to construct the stove. In most cases, the constructed stoves cracked and collapsed and had not been replaced. (iii) Appearance (or appealing) of the Stove The most appealing stove to most urban users seemed to be the “bell-bottomed”. Another appealing stove as reported by some household users is the “double plate stand”, although is not within the reach of the majority of households. 51 (iv) Social and Culture of Users Acceptability: The survey team observed that the acceptability of improved stoves is high in the urban areas, especially for those, which are within the reach of many urban dwellers in terms of price, required sizes and good looks (appearance). Urban households require small sizes cookstoves (sizes 9 – 14) and which are affordable to them (TSh. 1,300 – 6,000). Improved stoves were seen to be dominant in most of the households visited. It was also observed that some of the households maintained traditional three-stone fire places alongside with the improved ones. The reasons for maintaining the traditional stove were stated as lack of awareness on availability of larger sizes of improved stoves and poor quality of ceramic liners. While waiting for repairing of the improved stove one uses the traditional stove. There are about two indicators one can argue that the improved stoves are acceptable by the urban dwellers. These are: (a) Artisans are making them continuously and even increasing the production; and (b) Retailers and regional traders are stocking them and selling them. The stoves are mostly sold in Dar es Salaam, Arusha, Kilimanjaro, Shinyanga, Tanga and Mbeya (Tables 3.3g - h). Gender: The success of improved wood stoves depend on whether the stoves are acceptable by women who are the mass of users, especially in the rural areas. The status of women within the household is a significant factor in wood stove adoption, especially where adoption requires cash expenditure. Although women are the potential users and, therefore, in the best position to assess the advantages and disadvantages of the wood stove, men usually handle the household cash and make decisions on how it is spent. Where women manage to get independent access to money, they spend it on family needs, whereas men tend to spend it on their own needs, such as drink, clothes, etc. Hence, where men make the decisions, the purchase of an improved stove almost certainly does not get priority, especially since its main advantage is greater leisure or convenience in cooking for women. Rural women usually have no direct access to institutional credit or to an independently disposable cash income to purchase new innovations; and they seldom have access to information on new innovations. It is also unfortunate, that up to now, rural women have not been given the education, training or the opportunity to undertake decision-making roles or responsibilities in the public sphere. Cleanliness: When one cooks with the improved stove, one can still wear nice clothes without getting them dirty or smoke and also can reduce time spent in cleaning pots after cooking (smoke blackens pots and other utensils and hence need vigorous cleaning). Clean and smoke-free kitchen environment would attract members of the family especially men to sit around while the women are preparing the meals. (v) Health and Improved Kitchen Environment In-door smoke removal and reduction of harmful emissions from the kitchen are important considerations for improved biomass stoves. Interviewed users of improved stoves reported that, the use of these stoves contributes a lot to the improved kitchen environment especially with regard to cleanliness and health. They said that, the amount of smoke that was being produced by the traditional stove has been reduced 52 tremendously and hence the level of coughing, headache and eye irritation has been reduced. However, it was difficult for the survey team to quantify to what extent the uses of improved stoves have brought impacts to the health of users. Various studies have associated the smoke from traditional stoves with health risks including acute respiratory infections in children, chronic obstructive lung diseases (such as asthma and chronic bronchitis), lung cancer and pregnancy-related problems. Specifically, indoor air pollution affects women and small children far more than any other people in the society. Women typically spend three to seven hours per day by the fire (cooking breakfast, lunch and dinner), exposed to smoke, often with young children nearby or strapped on their backs. Properly designed improved cookstoves with chimneys would be the answer to reduce smoke exposure for the rural people. (vi) Availability of Repair Services Improved stoves need continuous repair and maintenance. From the survey findings, it is obvious that user acceptance and quality control in fabrication are prerequisites for success in this business. There is, therefore a need for identifying strategies to be adapted to control stove quality while at the same time avoiding negative effects on stove prices. (vii) Appropriateness In order to achieve higher adoption level, it is crucial that improved cookstove are appropriate for the specific community they are dealing with. Although efficiency and fuelwood saving are very important factors but other requirements of the user should not be ignored. Some of the user needs, besides fuel saving include type of food, cooking comfort, portability and safety. a) Some foods e.g. dry maize and beans (makande) cooked by communities takes six hours to cook. Clay and sand stoves proves quite useful in this respect as the mass will take the heat for the first 30 minutes but later the mass retains the heat within itself as the fire is directed to the pot; b) The length of time the food takes to cook is also an important factor in the stove efficiency consideration design; c) The type of pot used in the cooking. Many pots used cannot fit very well with a situation where heat is to be forced to scrape against the sides of the pot; d) Some foods requires pounding as it cooks which influences the way the pot has to sit on the stove; e) Gender aspects are important because most household users are generally women. Most successful way to design a stove that will be widely appreciated and used is to involve women in the design; f) Cooking comfort is also an important factor. The cookstove should be adapted to the most comfortable cooking posture (depending on the type of food, sometimes cooking could be done while standing or sometimes sitting down e.g. in the case of stirring “ugali”; 53 g) Saving time is another important factor that most urban households are looking for, especially the working population. In order to save time, there are many households that use electricity to boil water especially by using an electric kettle. Saving time for rural women is also important. One of the major drawbacks of the rural three stone fire place is that one is required to be in the kitchen during the whole cooking period as she has to feed the stove with wood every few minutes, which increases the time required for tending the fire; h) Safety is also very crucial. Major drawbacks of the traditional stove, especially the three stone firewood place are dispersion of flames and heat because of the wind, poor control over the fire, exposure to heat and smoke, and fire hazard. The benefit of the improved stove is that safety is enhanced since the flame is enclosed inside the stove. 10.3.2 Specific Needs and Preferences of the Institutions Stoves to cater for larger groups of people are known as institutional stoves. They are distinguished from domestic stoves mainly by their larger size and more sturdy construction. There are still fewer types of institutional stove on the market than the domestic stoves. This is because of beliefs among the stove fabricators that the market for institutional stoves is smaller and, because the development of a working stove design is often a very lengthy and detailed process. Institutional stoves may be used for one or more of the following purposes, and should be designed accordingly: cooking or boiling; heating water for tea, washing, or for heating systems; as an oven for roasting or baking bread or cakes; and frying. In order to assess the potential of institutional stoves amongst Dar es Salaam schools, a study was conducted by Dr. L.M.P Rweyemamu of the Department of Chemical and Process Engineering; University of Dar es Salaam. In this study, which was carried out in May – June 2003, the situation of the fuelwood consumption in 26 randomly selected schools located in all the three districts of Dar es Salaam was assessed. The following sections below i.e. (i) – (vii) discusses findings relevant to this assignment. (i) Monetary Benefits (i.e. price of stove and energy saved) Monthly Expenditure on Fuel Procurement: Total monthly expenditure of shillings varied from 30,000 to 1,110,000 shillings. The expenditure on energy to feed one student varied from 150 to 1960 shillings per month. Energy saving: The potential for fuel saving is much greater in institutional kitchens than in domestic cooking if the owners are conscious of the cost of fuel and the amount used, and keep records of operating costs. Improved stoves of higher efficiency may be more expensive to buy but will repay their cost in the long term. As institutions buy fuel from outside contractors, rather than gather it free themselves, they have a strong incentive to keep down fuel costs by using efficient stoves. 54 Energy saver cookstoves were found in four schools, i.e. 13% of the visited schools. The benefits of energy saving stove could be clearly noted from the assessment of one of the school energy saving cookstoves (St. Mathew High School). It had the highest number of students of all surveyed schools. It spends about 600,000 shillings a month to burn around 10 tons of firewood, and thus preparing meals for its 1,244 students. On the other hand another school with 920 students had monthly wood energy expenditure of 1,110,000 shillings. In other words, the school with energy saving woodstove is spending about 490 shillings on energy to feed one student, whereas that using traditional metal charcoal stoves is spending about 1200 shillings for one student per month. The efficiency of energy saving stoves normally varies between 40 – 80%, whereas that of metal charcoal stoves ranges between 15 – 25%. With appropriately improved cookstoves technology schools would realise numerous benefits including cutting down their fuelwood expenses and improving the hygiene of their kitchen. From the study and the level of cookstoves technology, the projected energy saving is calculated at 60%, which is on the lowest side. The maximum saving can go up to about 80 per cent. The current expenses of St. Mathew Secondary School can be improved by the minimum of 20%. According to the savings realised and the cost of buying the stove, the amount spent to by stoves could be realised within a relatively short period of time. (ii) Durability/Reliability of Cookstoves Used The life-span of most charcoal stoves used in schools varies between 8 – 18 months. The shortest life-span is offered by the ceramic charcoal stove (Jiko bora). The main factor here is the characteristics of the construction materials. The ceramic charcoal stoves have a ceramic liner to reduce the heat loss and therefore maximising the heat going into the pot to cook food. However, due to operating conditions and the quality of workmanship the ceramic liner can deteriorate very fast and thus shortening the stove‟s service life. The ceramic liner cracks and/or detaches from the metal where it is fixed by using the binding material. Most of the construction materials used to make these stoves is metal scraps which to a large extent have already been subjected to excessive rust. Some metal charcoal stoves comprise of massive metal parts such as auto tyre rims. This type seemed to be the best choice of most schools because it offers longer service-life up to 2 years. The study showed the relationship between stoves reliability and the type of the cookstove used. Most of charcoal stoves users and energy-saving stoves responded as their stoves being good. The assessment on how reliable the stoves are revealed that most users (73%) are moderately satisfied. Nineteen per cent expressed dissatisfaction with the reliability. The schools which are using energy-saving woodstoves, or gas and electricity were proud with their cooking devices. They were only 8 per cent of all surveyed schools. (iii) Appearance (or appealing) of the Stove Fuelwood energy-saving stoves are constructed in a way to enclose the combustion chamber and to insulate the body with poor conducting materials. With the cooking pot inserted into the stove and the smoke discharged outside through the chimney, the institutional stove presents itself as a high standard cooking device. 55 (iv) Social and Culture (acceptability) of Users The survey revealed the interest of schools to obtain and using improved cookstoves. Some schools have obtained such stoves but actually not operating to the satisfactory standards in terms of combustion efficiency, hazardous smoke emission, fuel saving, durability, costs, etc. A well designed improved cookstove should function to offer a number of desirable benefits. Field observations have indicated that stoves designed and developed by Dr. Rweyemamu consumes little fuelwood, with fuel saving between 60 to 80%. Besides reducing deforestation, the financial savings obtained from using less fuelwood can be used by schools for other purposes such as obtaining new physical facilities, textbooks, improving quality of meals, etc. Because of high combustion efficiency, the stove also saves time for cooking. Because of the good insulation materials constituting the body of the improved stove, food can be cooked by using the smallest amount of produced charcoal from wood combustion. This also keeps foods warm for longer hours even after extinguishing the fire. Good insulation properties of the used materials make the stove safer for users because of tolerable sensible heat on the outer walls. These reduce risks of burning accidents, and provide further comfort to the cooks by not exposing them to excessive heat which is detrimental to their health. Whereas other types of the stoves have a short service life, the design and properties of materials used to construct these improved stoves ensures longer life-span of more than six years. (v) Health and Improved Kitchen Environment Indoor air pollution in most community centres including schools seems to be a normal situation that a cook has to be subjected to. Most school kitchens are not well ventilated or provided with facilities to remove the smoke. Even schools which have already acquired energy-saving stoves had their kitchen environment not welcoming. The ill-performance of energy-saving stoves could be related to the fundamental design of the stoves as well as the way they are operated. Application of advanced woodstoves‟ technology aims largely at maximising the conversion and transfer of the amount of energy in wood during combustion to the food being cooked. Such technological principles generally involve improvement of the combustion efficiency of fuelwood, improving heat transfer to the pot, minimising release of smoke containing harmful emissions, as well as improving quality of materials used in making the stoves. (vi) Availability of Repair Services Successful dissemination of the institutional energy-saving stoves has to involve training of artisans within the area where the stoves are to be installed. The maintenance services normally involve frequent clean up of the chimney and fireboxes. Also, school maintenance personnel could be trained to service the stoves. 56 (vii) Appropriateness The appropriateness of the improved institutional cookstoves includes the ability to cook a large variety of meals in the high hygienic conditions while preserving the nutritional values and safety of food ingredients and foods in general. Improved institutional cookstoves can be easily fitted with the water heater to recover the energy escaping with hot flue gases. From the school survey the followings were established: Types of Meals Cooked: All schools visited are offering lunch to their students. Ninety six per cent of them do provide breakfast. Schools with boarding option accounted for 46%, whereas those offering supper were only 15 per cent. Variety of Foods Cooked: With a few exceptions where students eat only snacks and deep-fried potato chips, most of the surveyed schools have their meals incorporating traditional Tanzanian dishes. Rice and ugali are cooked in combination with stews from beans and beef. Vegetables are also included in daily menus. Breakfast menus involve tea and porridge. Hot Water Requirements: Usage of fuel covers preparation of hot water for various purposes in the schools. A large number of schools interviewed (85%) requires hot water for washing kitchen utensils. Schools boiling water for drinking purposes accounted for 69%. In some schools hot water is required for bathing purposes, and it accounted for only 4%. Types of Cookstoves Used: Seven types of cookstoves were found to be used in the schools. The stoves with their predominance percentages in the brackets included traditional metal charcoal stoves (53%), three-stone fireplace (13%), energy saving woodstoves (13%), improved ceramic charcoal stoves (Jiko bora) (6%), gas stoves (6%), electric cookers (6%), and sawdust stoves (3%). Although it is the oldest and the least efficient cooking system (typically utilising less than 10% of the energy in the wood to food being cooked), three-stone stove is still used even in new schools which have been recently established. Both firewood and sawdust briquettes are burnt in this rudimentary stove. The use of energy efficient ceramic charcoal stove (jiko bora) which has comparatively higher efficiency (20 – 30%) than other charcoal stoves is still very low in schools. Schools using this stove had a lower number of students not exceeding 130. The TaTEDO ceramic stove (bell-bottom) is mostly available in small sizes and mainly aimed at household level to cook for small families. Besides TaTEDO, other cookstoves manufacturers‟ especially of metal charcoal stoves are entrepreneurs running micro metal workshops. The major discrepancy of their stoves is caused by lack uniform pattern in terms of size of fireboxes, size of the grates and number and size of grate-holes, and the doorway for combustion air. The quality of materials used is also of low quality. The feeling of energy efficiency aspects by these manufacturers is generally lacking. Type and Quantity of Fuel Used: The fuel or energy source used in the schools is firewood, charcoal, sawdust, sawdust briquettes, liquefied petroleum gas (LPG) and electricity. Woodfuel comprising firewood, charcoal, briquettes and sawdust is predominant energy source accounting about 90 per cent. This was attributed to higher costs of charcoal. Higher costs of charcoal lead to energy-mix, where schools opt to use traditional three-stone fire place. 57 About 640 bags of charcoal representing approximately 41 tons of charcoal were being consumed by 21 schools within a month. Size of the Stove: Stove size is dependant on pot capacity, which is dependent on the number of people served. The larger stoves are designed for 10 to 200 litre capacity and although stoves are made up to 300 litres capacity the cooking vessels then become very heavy to handle32. Therefore, large institutions often prefer to use a larger number of smaller stoves. To supply 600 people, for example, 5 to 6 stoves of 100 litres pot could be required. 10.3.3 Specific Needs and Preferences of the Micro and Small Enterprises (MSEs) The Micro and small enterprises visited included, food related business (local and tourist restaurants, food vendors) and small cottage textile businesses. The group of food vendors included street vending chicken/chips fryers, fish fryers (small and large scale) and barbeque businesses. Types of stoves and fuel used by MSEs: According to survey findings most users in the SME sector are still using traditional stoves (metal and three stone fire place). Types of cooking stoves found to be used in a descending order include traditional charcoal (61%), firewood (13%), sawdust (9%), electricity (9%) and gas (9%). Most chicken/chips fryers in the surveyed areas are mainly using sawdust and traditional metal stove. Small scale street vending fish fryers are largely using the traditional metal stove (size 14- 18 inches), while the large scale fish fryers at the Dar es Salaam Integrated Fish Market Complex are using improved wood stoves. These stoves were designed by Dr. Rweyemamu following the needs and preferences of the users who wanted a stove that could deep-fry a large amount of fish within a shortest possible time, and in the environment that is free of smoke and heat. The new stoves technology has reduced the smoke pollution by more than 90%, while cutting down the consumption of fuelwood by about 80 per cent. The prominent women food vendors (mama lishe) and household women involved in cooking related businesses use a heavy duty long lasting traditional charcoal stove (tyre rim type). These households use charcoal to prepare, for example buns (maandazi), rice cakes (vitumbua) and fried fish. Average monthly expenditure on fuel is between TShs. 20,000 – 25,000. The general adoption level of improved stoves in this group is still low. The main reasons for low adoption include: The large size improved stoves (14 – 18 inches and above) are rarely produced. Apart from SEECO shop, the team did not find these stoves in the visited trading centres. Artisans are making large size stoves for individual orders only. Large size cookstove are required by this group because they cook large amounts of foods every day; Although SEECO is producing and selling large size improved stoves, most users are not aware of its availability; 32 Intermediate Technology Development Group (technical brief). 58 The stoves are sold at prices not affordable by most users in this category; When produced, the durability of improved charcoal stoves is questionable. Food vendors are interested with stoves that will last long, according to them, the improved “bell-bottomed” stove is not strong enough to handle the weight of e.g. 10 – 15kg cooked rice. Women textile producers (tie & dye and batik production) are largely using the traditional three stone firewood stoves. This category is among the major consumers of firewood. Charcoal in this category is used in very small quantities as compared to firewood. This is due to the fact that, firewood is easily available and cheap at the cost of TSh 1000 per cubic metre of firewood. According to this survey, this group is very interested to get the improved firewood stove so that they could save energy. Their request is that, since most of the participants in this sub sector operate in rented premises, they would very much be interested to get good quality portable wood stoves. Tourist restaurants (Mbezi, Peacock) are mainly using gas and electrical cookers. The reasons for using these types of cookstove as mentioned by respondents were: Easy heat control a heat (i.e. the ability to increase/decrease amount of heat required for preparing specific meals); Poor standard (poor appealing) of improved charcoal/wood stoves to be kept in tourist restaurants. Most tourist guests enter into the kitchen area to check the hygienic standards of these restaurants; Local restaurants visited (Moshi, MK, New Happy hotel) are using the combination of electricity, gas and improved charcoal stoves. In Dar es Salaam, there is emerging users of barbeque and bakery ovens. These are operators located in most local and tourist along the beach restaurants who bake bread, cakes and various types of meat. These are such as “Cine Club”, “Slip Way”, “Best Bite”, “Bahari Beach”, Paradise Hotel in Bagamoyo, “Forodhani” in Zanzibar etc. There are many women food processors trained under the SIDO/UNIDO programme who produces various snacks including wedding cakes. The “Wedding Cake” business in the Dar es Salaam city is growing very fast. This group is a potential user of TaTEDO ovens. 59 11.0 ANALYSIS OF ADOPTION LEVEL OF IMPROVED BIOENERGY TECHNOLOGIES AMONG THE IDENTIFIED SUBGROUPS 11.1 Current Adoption level of improved bioenergy technologies Adoption level of improved stoves is higher in the urban households as compared to rural households. According to findings of this survey 81 percent of the urban respondents have used at least one type of improved stoves. The following factors contribute to high adoption rate: Stove sizes required (9 – 14 inches) are available in the market; Stove prices seems to be affordable to the targeted users; Fuelwood (mainly charcoal) and stoves are purchased hence users are interested to save fuel; The rural surveyed areas are a different story. Fifty eight percent of the efficient firewood stoves constructed at Ikwiriri were found to be non-functioning (Table 3.3i). The stoves were either cracked and abandoned or completely swept away by the 2003 floods in the area. In Ikwiriri, villagers still use three stones for cooking despite the families getting the stoves constructed by TaTEDO. Similarly, a large number of urban households in Dar es Salaam continue to use metal stoves after a more efficient stove has been installed. Reasons for low adoption level (specifically for Ikwiriri) are amongst others: Traditional fuel or stove (three stone firewood place) are not purchased (fuel is readily available and easy to collect); Clay soil used to construct efficient firewood stoves reported to be not suitable because most constructed stoves (58%) cracked and collapsed; Some of the women users complained about the cooking comfort with those stoves. They said that the stove surface is too high for stirring foods like the stiff porridge (ugali); There are few artisans as compared to urban areas (particularly DSM). Even the artisan groups trained by TaTEDO (women potters and men tinsmiths) are no longer producing improved charcoal stoves. It is the feeling of the survey team that these groups require more after training follow-ups to identify constraining factors. According to them, poor clay soils (clay soil used to produce ceramic liners cracked and collapsed even before put in the kiln), expensive raw materials imported from Dar es Salaam and long pay back periods from customers discouraged them. 60 12.0 OTHER DETERMINING FACTORS FOR UPTAKE AND ADOPTION OF STOVES AND OVENS The majority of improved cookstoves built and sold in various outlets in Dar es Salaam are for domestic cooking, often used by households. However, there are also schools, colleges, hospitals, prisons, factories, sites for festivals (weddings, other religious) where a large number of people may need feeding at any one time. Even in commercial centers and roadsides, there are numerous snack bars, street stalls and cafes selling cooked food and serving a large number of people throughout the day. In such places the traditional domestic stove would not be suitable, even if several of them were used together – they would be just too small to meet the demand which is likely to be concentrated at particular times rather than regular. It has been observed that the uptake and adoption of improved stoves and ovens depends on the user‟s cooking requirements. 12.1 Level of Accessibility/Availability of Improved Stoves/Ovens When asked if they have ever seen or used the improved stoves, urban households responded as follows: 100 percent reported to have seen at least one type of the improved stove. 81 percent reported to have used at least one type of the improved stove; 19 percent reported to have seen the stove but not used. The accessibility and/or availability level of improved stoves and ovens to targeted users is in close relationship with needs and wishes of targeted groups and beneficiaries, as well as the type of fuel available. In the school survey it could be established that the adoption of improved institutional cookstoves depended on some key factors such as availability of fuel and the price of the fuel. Most schools would like to adopt improved cookstoves fired by fuelwood, but the common question was on where or how to obtain the fuel. Fuelwood marketing in the urban areas especially Dar es Salaam is not yet well developed. Green Acres High School switched to institutional woodstoves after getting an easy access to sawdust briquettes, while a school in Mkulanga district (Coast region) would prefer to use three-stone fire place because the fuelwood is freely available from nearby woodland. 12.2 Identification of Key Target Group and Beneficiaries of TaTEDO Improved Stoves and Ovens From the survey it could be evidently concluded that the key target groups and beneficiaries who are most likely to benefit from TaTEDO‟s improved stoves and ovens would include, rural and urban households, community centres such as schools and training centres, MSEs (food vending, hotels and restaurants, and non-food processing enterprises such as textile processors (tie & dye batik production). 61 13.0 IDENTIFICATION OF POSSIBLE MODIFICATIONS OF THE EXISTING PROTOTYPES Needs and wishes of potential beneficiaries do at a large extent determine modification aspects that should be considered for successful adoption of stoves. Durability of the stove was the main aspect of concern expressed by most respondents. Modification of the current TaTEDO improved stoves could be undertaken from two large considerations, namely, the first targeting to improve charcoal stoves, and the second aiming at the fuelwood stoves. Stove designs which are capable to cater for places of large gatherings: Most micro and small scale entrepreneurs including schools that form a potential market segment for institutional stoves expressed opinion that the current stoves are unable to support larger pots. Current designs could be modified to serve this group by using stoves with sturdy ceramic firebox and exterior metallic body. Current ceramic liners could be reinforced with materials such as kaolin and vermiculite or diatomite so that to withstand heat shocks when subjected to prolonged higher temperature conditions. To avoid the destruction of the perforated bottom section of the ceramic firebox which permits combustion air into the burning charcoal bed, the option of using cast iron grates could be considered especially for institutional stoves. Methods for manufacturing larger size of ceramic liners should be developed, so that to avoid the current size limitation which is between 9 - 14 inches. The efficiency of current charcoal stoves could also be further improved by considering fitting the stoves with a skirt which could direct more heat to the pot and reduce heat loss to the surroundings. This could be done for both household and community stoves. However, this modification should be carefully developed so as to reduce the emission of poisonous gases, particularly carbon monoxide. For wood burning stoves the modifications should involve provision of a chimney system so as to reduce possible indoor smoke pollution which has substantial impacts on public health. Associated health risks include acute respiratory infections (ARI) in children, chronic obstructive lung diseases (such as asthma and chronic bronchitis), lung cancer and pregnancy-related problems. Heat lose through the body of institutional stoves could be significantly reduced by using pumice based insulation materials, which have been developed by CPE department and have been successfully used in some stoves. A stove with pumicebase insulation materials has the body which can withstand higher temperatures in ranges between 800 – 1000 ºC. Apart from saving heat loss and thereby increasing energy efficiency of the stove, usage of these insulation materials provides the stove with longer service life, since the exterior metallic part is not subjected to higher temperatures. The provision of a water heater to utilise the heat of escaping flue gases of the institutional woodstoves is the option, which have been seen to be of preference to most of users. Improved ovens could also be fine-tuned by considering the inclusion of lightweight insulation lining. This will also provide dual benefits, which are improving energy efficiency and longer service life. 62 When considering the insulation property of the stoves clay should not be regarded as the best option, since technically it tends to absorb significant amount of heat. Thus, for the constructed efficient brick stoves various insulation materials such as pumice, sawdust, etc, should be considered for mixing with clay and moulding bricks. This will also provide dual benefits as discussed in previous paragraphs. 63 14.0 DEVELOPMENT OF STRATEGY FOR INCREASED UPTAKE AND ADOPTION OF IMPROVED STOVES AND OVENS 14.1 Strategies for increased uptake and adoption According to survey findings and observations, the following were noted: More follow-ups are required to stoves constructed and installed at various institutions and households. Follow-ups are substantial part of a successful dissemination. As noted earlier, most efficient firewood stoves constructed at Ikwiriri are no longer functioning. Follow-up is required because, over time the stoves tend to differ from the original design, so monitoring and quality control is needed. Also, after-service follow-up is important in order to stimulate the rate of adoption, modify the existing stoves and for continuous improvements. TaTEDO (or its agents) should continuously provide after-sales follow-ups because customer needs and preferences are not static; Support to the users must be given high priority. People must cook food every morning, afternoon and evening. A non functional stove, even for one meal, results in dismantling improved stoves; There is a need for artisans (stove constructors) to make sure that the constructed efficient brick stoves are compatible with the cooking pots that are available in the market. It was reported that some pots could not fit to the stove‟s pot opening. The first pots were tailor-made pots produced specifically to fit into the stove opening. As a result users could not replace these pots during the time when the pots were no longer functioning (worn out). The strategy recommended by users is to construct stoves that can accommodate all sizes of cooking pots or in other words, the sizes of the pot holes should be suitable for pots that are already in use. An indirect cost will be incurred if the stove necessitates the purchase of new cooking utensils; Solicit feedback from the users of the improved stoves and make sure that the stoves continue to adequately address the needs of the rural and urban households; There is a need for TaTEDO to develop leaflets for stove fabricators specifying user instructions (like user manual). User instruction manual for the best performance of stoves (usage guidance regarding proper usage of stove for longlife and amount of energy saved). This will minimize the level of ceramic liner breakages, as a result of poor handling by the user (e.g. pouring water or breaking charcoal on top of the stove); More analysis on costing and pricing is required in order to look for possibilities of reducing prices of some larger types of stoves and ovens which are out of reach of most of the customers; Need to develop quality control systems during fabrication of charcoal stoves, so that the under grades are rejected before reaching the market. 64 14.2 The Supply and Demand Chain Analysis The improved stove supply/ demand chain map is a visual presentation of the way that stoves flow through different channels from production sites to the markets. The map is divided between the different functions that are carried out in getting the stoves from production area to the end markets. Participants are divided into chains based on their forward and backward linkages and their use of technologies that differentiate them from one another. 14.2.1 Functions and Participants Eight different functions were identified in the supply /demand chain within the Coast and Dar es Salaam regions. These functions are (i) Research and Prototype Development, (ii) Training, Extension, Demonstration & Enterprise Development, (iii) Clay/ceramic liner making, (iv) Production (claddings & stove assembling), (v) Subcontracting, (vi) Stove Repair, (vii) Regional Trade; and finally (viii) Retail either through various intermediaries or directly to the final consumer. 14.2.1.1 Research and Prototype Development The production of improved woodstoves in Tanzania dates back to colonial days. In many of the early cookstove programs, little or no effort was made to examine the need and preferences of stove users. Without their feedback, designers failed to transfer certain values and functions of traditional stoves to the new models. Thus early cookstoves were often designed by people with a great deal of enthusiasm but with little technical background. Different NGOs and Government institutions have undertaken research activities and new improved stoves prototype development. These include: Ministry of Water, Energy and Minerals (MWEM): The Ministry has been involved in disseminating Dodoma and DUMA (CAMARTEC version) stoves under the GTZ financed Special Energy Programme (SEP). Also MWEM has been involved in disseminating Jiko Bora under IDA financed Energy I project (1986-1989) TaTEDO: TaTEDO assists stove producers and tried to improve efficiency of the original MWEM stove and reduce cost. It has developed new charcoal stoves prototypes, which have higher efficiency, more durable and cost less than the jiko bora. (2001-2006) Ministry of Community Development Women Affair and Children: Worked close in collaboration the former Institute of Production Innovation (IPI) of the University of Dar es salaam of the University of Dar es Salaam under the supervision of Dr. Rweyemamu. For the period of 1990 - 1993 the Ministry and IPI worked on the development of domestic coal stoves which were intended to use the coal from Kiwira in Mbeya. Department of Chemical and Process Engineering, University of Dar es Salaam (principal researcher - Dr. Rweyemamu): In 2003 designed, fabricated and supervised installation of efficient woodstoves made 65 specifically for fish fryers at Dar es Salaam Integrated Fish Market Complex. He has also designed and developed other institutional stoves which are being used in some schools and colleges in the country. The energy saving of these stoves is between 60 – 80%. The Tanzania Commission for Science and Technology (COSTECH). Its responsibility is to coordinate various research and development programmes on cookstove, aiming at stimulating and analysing the development of indigenous technologies. 14.2.1.1 Training, Extension, Demonstration & Enterprise Development Various institutions provide skills training to small-scale artisans. The purpose of the training is to equip artisans to produce stoves that are not too costly, good quality, better insulation and hence save energy, improve kitchen environment with the aim of reducing smoke and its associated ill health and safety. Different NGOs and government institutions provide training to artisans. This includes: Ministry of Water, Energy and Minerals (MWEM), undertook training for more than 10 artisans on how to produce the stoves (Dodoma Stoves) - 1986 to 1989. TaTEDO: Promotion activities through demonstration. Several demonstrations have being carried out in various areas in both rural and urban. It has undertaken training of stoves producers and trainers at its Renewable Energy and Environment Centre located at Goba (Technical training, advice and extension services). Also provides training in small business management for artisans. Ministry of Community Development Women Affair and Children: The department of Technical and Self-Help Project from the Ministry of Community Development Women Affair and Children, facilitates promotion and dissemination of appropriates technologies through a number of ways which inter-alia include: a. Use of Appropriate Technology Centre (ATC): The ATC based at Misungwi facilitate promotion and dissemination of technologies mainly those used in rural areas. Both long and short courses are offered. Technician, local artisans, women and communities in general receive training in area like construction of biomass. b. Work close in collaboration with The Department of Energy and Petroleum Development, in undertaking training and promotion of improved charcoal production and fuel saving stoves The implementation of the project started in late1991. As noted earlier, 65 percent of the artisans reported to have attended skills training prior to starting business. Out of those 14.3 percent from the urban artisans and 100 percent from the rural artisans reported to have obtained training (together with initial working tools) from TaTEDO. The remaining 81 percent artisans acquired fabrication skills from other artisans (friends or relatives). 66 It is important to remember that most customers complain about poor stove quality. Although it seems that the large population of artisans have at least received skills training, it might be that they are not fabricating the stoves according to the technical requirements either due to lack of after-training follow-up by trainers, lack of quality control system or accessibility to good quality raw materials. It is also important to note that 88.8 percent of the surveyed population has only attained primary level of formal education (Table 6.1) Ceramic Liner Making Only a few groups of artisans (9 percent of the surveyed population) are specialized in ceramic liner production. Ceramic liner as an insulator is a most important component for the improved stove. Liner makers are located near sources of raw materials (clay soil), for example, in Dar es Salaam at Vingunguti (Sahara A group), Bunju and Goba (SEECO workshop) areas. 61 percent of artisans interviewed purchase ceramic liners from these two sources. Ceramic liner makers also reported that they sell the liners to regional traders who distribute them to Tanga, Arusha, Zanzibar and Morogoro. (This is a “System Node” i.e. they serve large numbers of stove fabricator artisans). According to findings, most Ceramic liner makers are not equipped with the facilities that could enable them produce high quality ceramic liners. Findings also reveal that users of improved stoves complained about poor quality of ceramic liners (easily cracking). An average Ceramic liner workshop would require the following tools/ facilities as indicated in Table 6.2. The above table indicates that for a liner workshop to be complete in terms of having necessary tools, it requires a minimum TShs 704,000 as an initial investment capital. However, the research findings reveal that most artisans could not afford to have all the required equipment. Women Ceramic Liner Makers: The groups visited consist of 50 artisans/ potters; out of them 14 (or 28%) are women. Production (Claddings and Stove Assembling) Several different types of stove fabricators were identified during the study, performing different functions. The various functions include: (i) Stove fabricating for contractors (Chain 2), 13 percent of the artisans were found to perform this function; (ii) Stove fabrication for onward selling using own efforts (Chain 3). 65 percent of the total surveyed population are in this category; (iii) Stove fabrication and provision of repair services to customer (Chain 4). 22 percent of the total surveyed population are in this category; and (iv) Integrated fabricator i.e. performing all functions i.e. from Ceramic liner production to onward selling to final consumers (Chain 1), 8.6 percent of the total population are in this category. 67 Stove repair Only 22 percent of stove fabricator artisans interviewed are performing repair services an as after sales service. It was mentioned by stove users that this important service is not adequate (it needs expansion). 14.2.2 Marketing Functions Regional trade From the production sites, different traders take up stoves and transport them to the end markets. 13 percent of artisans reported to sell most of their stoves to regional traders who then transport and sell them to customers in Arusha, Kilimanjaro, Shinyanga, Tanga and Mbeya regions. Retailer Same as Regional Trader, retailers purchase stoves directly from artisans for onward selling to consumer. Mot popular stoves as indicated by traders are “Bell-Bottomed” and “Straight” sizes 10, 11, 12 & 14. The largest market for retailers is the urban household. Promotion techniques, those retailers mentioned include: (i) Displaying of stoves at their shop‟s terraces; and (ii) Provision of user guidance (i.e. how to use and care of the stove). According to observations of the survey team, promotional strategies seem to be not efficient. More support is required by traders in order to equip them with good selling techniques. Street Vendors Street vending is a new selling mechanism, which is emerging nowadays. Few street vendors can be seen walking around Dar es Salaam City looking for customers. A “two plate Meza” is the most popular stove, which is sold by these vendors. 14.2.3 Technologies Production The technology development in stoves production is biased towards the one who can afford it in terms of using the required equipment/ tools, required raw materials and applying the required skills. Producing stoves by using the required technology (skills & equipment), lead to high quality products. The study indicated that only 8.6 percent are able to acquire and use modern skills and technology (refer the supply/ chain map), thus they are capable of producing stoves of high standard and quality at least as required by the market (these are SEECO Co. Ltd and some few individual artisans / integrated fabricator – referred as Chain 1 on the Chain map). 68 Though capital investments required for improved charcoal stoves fabrication are relatively modest, but it was revealed during the survey that most enterprises could not have access to capital. Table 6.2a indicate optimum investment capital and tools that are required for a modest enterprise. Table 6.2a indicates that for a workshop to be complete in terms of having necessary tools it requires a minimum TShs 357,600 as an investment capital. Sources of raw materials for stove production: The main sources of raw materials for artisans are hardware (73 percent of respondents get inputs from hardware), Aluminium industry (45.5 percent get aluminium sheets from this industry) and scrap dealers (36.4 percent get their inputs in terms of scrapers from scrap dealer) (Table 6.3). It is important to note that, even though stove fabricators are required to buy their raw materials from approved suppliers (hardware & aluminium industries), this requirement is frequently overlooked and inferior stove materials are purchased from scrap dealers. Major constraints/ hindrances to artisans can be summarised as: Access to finance; Technical training on fabrication; Marketing knowledge; High production costs; Poor production technologies; Materials availability (ALAF no longer produce aluminium sheets but imports from abroad). Transport Most of the sale by producers is done at the production sites. Regional Traders transport stoves by inter regional buses and most of the retailers use bicycles as means of transport. 14.2.4 The Chains The team identified five main Chains through which stoves passes from production to the end consumer. The chains are differentiated by the technologies that they use, the sources of raw materials and the different functions that they perform. These Chains are not intended to be all encompassing, but represent the majority of the different kinds of relationships that are encountered. Chain 1: is the integrated fabricator, having the following qualifications: (a) Having most of the tools/ equipment required for the metal workshop as indicated under table 4:3 (a); (b) Applies good workmanship i.e. has the ability to fabricate stoves according to the recommended technical requirements; 69 (c) Has ability to purchase quality raw materials from reliable suppliers (hardware & aluminum industries); (d) Have formal registration; and (e) Have permanent business premises. The survey team met only a few artisans of this kind (i.e. apart from SEECO Co. Ltd. only 4.3% of all artisans interviewed could be categorized as Chain 1 artisans). Chain 2: is the subcontractor fabricator. Participants in this Chain are those who received skills and business training from TaTEDO. Participants in Chain 2 have the following characteristics: (a) Their workmanship still requires to be perfected, so that they can be able to produce good quality products and hence tap market opportunities. (b) Have less capacity to procure good quality raw materials (still use a lot of inferior scrap metal) & equipment/ tools; (c) Operate under informal business environment and have no access to permanent business premises (since they operate from any open space they happen to find, they sometimes suffer being chased away by government officials). Chain 3: is fabricator artisan who, produce stoves for onward selling. Participants in this Chain have similar issues/ challenges as participants in Chain 2. Chain 4: is a fabricator artisan who provides repair services to his customer. As said earlier in the report, only few (22%) of surveyed artisans perform this function. Stove repair is an important service to the customer; therefore it is important that all artisans are encouraged to provide repair services. Participants in Chain 4 have similar challenges as their fellow artisans in Chains 2 & 3. Chain 5: represents artisans who fabricate the “traditional metal stove”. Most users who were visited (in Dar es Salaam) during this survey no longer use the traditional metal stove, so our observation is that this Chain is fading away. 70 14.2.5 Business Services in the Supply Chain Many different business services are being provided to fabricator artisans by various institutions as indicated in the Table below: Function Prototype Development Services Research & Prototype Development Enterprise Development Training, Extension, Demonstration & Enterprise Development Fabrication (cladding & stove assembling) Selecting raw materials Subcontracting Stove repair Regional Trade Wholesale & Retail Selecting & train artisans Move to regional markets Move to customers Business/Institution NGOs and Government Institutions (TaTEDO, Department of Chemical and Process Engineering, University of Dar es salaam, COSTECH, CARMATEC) NGOs and Government Institutions (TaTEDO, Department of Chemical and Process Engineering, University of Dar es salaam, COSTECH, CARMATEC) Ceramic liner production, hardware, aluminium industries, scrap dealers Artisans Artisans Transport Transport Taking into account that there are many business activities taking place in the supply/ demand chain, any intervention by TaTEDO or any other development organization must take into consideration the effect that these will have on those businesses. In addition, looking to the long term sustainability and success of any identified solutions, TaTEDO or any other development organization must see how they can involve and use the private sector to actually implement the solutions, by facilitating their involvement. 71 14.3 Supply Chain Dynamics Tanzania is committed to free market economy, which means that private sector should take the lead in creating income, wealth, employment and growth. The government role is to be the regulator and facilitator of private sector development. Micro, Small and Medium-sized Enterprises (SMEs) in most sub sectors including the improved stove sub sector are the emerging private sector in Tanzania. Though the sub sector possesses high employment potential, it is largely informal, underperforming and in need of considerable assistance to overcome disadvantages and barriers. Since late 1990‟s there has been major policy changes that create enabling environment for private sector to take charge of all productive activities. Various Non Governmental Organizations including TaTEDO have recently played major roles in supporting micro enterprises especially in rural areas to improve household incomes and employment creation. It is clear from the supply/ demand chain map, that TaTEDO interventions in the target group through training, demonstrations and provision of market outlets through subcontracting artisans will result into increased income and employment to artisans as well as increased confidence in doing business and building track record for accessing financial support from donors and other NGOs. In most cases the quality of stove is dependent to the quality of the Ceramic liner; therefore, interventions that will lead into “improved quality of Ceramic liners” will impact the majority of artisans. 14.3.1 Driving forces A number of different forces are driving the dynamics within the supply/ demand chain. These forces range from technologies, availability of good quality raw materials and application of required skills. The relationship of these forces and how they impact on the decisions of the actors within the supply / demand chain provide very important insights into the best kinds of activities that the support organizations can implement to have impact on micro enterprises. 14.3.2 Points of Leverage The points of leverage are those points in the supply/ demand chain where applying a small amount of pressure will lead to a fairly large impact. This is extremely important when trying to work with micro and small enterprises (MSEs), which are very difficult to reach on an individual basis. There are generally three main sources of leverage in the supply/ demand chain: System nodes, or those points in the supply chain where a single firm is in contact with a much larger number of firms; Geographic clusters where there are large concentrations of targeted firms; and Policies, where a decision taken at a central level has a broad reaching impact on a large number of firms in the supply/ demand chain 72 System Nodes Ceramic liner producers: Ceramic liner producers serve as important points of contact within the supply/ demand chain as they each deal with large numbers of stove fabricator artisans. Geographical clusters Most of the fabricator artisans are clustered into geographic areas working together under voluntary informal organized groups. In this survey 17 groups were identified representing 65 percent of the total population surveyed, 3 partnership businesses (11% of the surveyed population) and 4 sole proprietor businesses (15%) (Table 7.1). 14.4 Analysis of Constraints and Opportunities 14.4.1 Analysis of Constraints There are many constraints facing micro enterprises and the growth of the supply/ demand chain. Most constraints present opportunities for TaTEDO and other support organizations for designing and implementing solutions. CATEGORY CONSTRAINTS Procurement of Raw Materials and Inputs Market Development Technology / Product Development Poor raw materials used for stoves fabrication High selling price of some important raw materials Poor quality of ceramic liners led by clay soil textures Lack of advertisement and promotion initiatives No users instruction manual for the best performance of stoves (usage guidance regarding proper usage of stove for long life and amount of energy saved) Lack of general information as to what the user can expect on amount of energy saved when using improved stove (i.e. improved stove performance) Stoves are not available in some areas, even if the demand is so high Poor working tools Poor stoves quality led by poor working tools and raw materials used Some stoves, such as double plate box and double plate stand and ovens are not affordable by the majority of customers Low awareness of large size of improved stoves No records on energy consumption AFFECTED ACTORS Artisans Artisans Artisans, Users Artisans Users Users Users Artisans Artisans, Users Users Users Users 73 CATEGORY CONSTRAINTS Business Skills Development Poor/No business records (production, sales records) Inadequate knowledge and skills on management of improved stoves and ceramic liners business on commercial basis Low capital base Non existence of financial institutions that provide loan support to stoves artisans No access to permanent working place Finance Operating Environment/ Infrastructure Source: Survey Findings, February 2004 14.4.2 AFFECTED ACTORS Artisans and traders Artisans and traders Artisans Artisans, Artisans and traders Analysis of Opportunities CATEGORY Procurement of Raw Materials and Inputs TYPE OF CONSTRAINT Market Development Technology / Product Development Poor raw materials used for stoves production High selling price of some important materials Poor quality of ceramic liners led by clay soil textures Lack of advertisement and promotion initiatives No users instruction manual for the best performance of stoves (usage guidance regarding proper usage of stove for long life and amount of energy saved) Lack of general information as to what the user can expect on amount of energy saved when using improved stove (i.e. improved stove performance) Stoves are not available in some areas, even if the demand is so high Poor working tools Poor stoves quality led by poor working tools and raw materials used PROPOSED OPPORTUNITY FOR INTERVENTION Organized into formal groups and lobby for better price of raw materials Raw materials subsidies Need more research on quality clay soil Improve liner making technology and introduce strict quality control Advertising and publicizing improved stove performance. Promote commercialization and mass production of the stoves. Make stoves available Encourage competition between areas i.e. districts Solicit feedback from the users of the improved stoves and make sure that the stoves continue to adequately address the needs of the rural and urban households Organized into formal groups in order to gain access to financial services. Provide more technical 74 CATEGORY TYPE OF CONSTRAINT Business Skills Development Finance Policy Environment Operating Environment/ Infrastructure Some stoves, such as double plate box and double plate stand and ovens are not affordable by the majority of customers Low awareness of large size of improved stoves No records on energy consumption PROPOSED OPPORTUNITY FOR INTERVENTION training. Provide more awareness creation. Provide public investment funds for low income household To measure actual household savings from improved stoves Poor/No business records (production, sales records) Inadequate knowledge and skills on management of improved stoves and ceramic liners business on commercial basis Provide business training Low capital base Non existence of financial institutions that provide loan support to stoves artisans Organized into formal groups in order to gain access to financial services Support commercial producers and sellers if the mechanisms for feedback and cooperation are planned and developed. High transporting costs No access to permanent working places Organized into formal groups in order to lobby for permanent working places Setting up stove centers; training; involving women; evaluation and follow-up; use training; sponsoring and advising small businesses" Assisting and training private and local artisans in the production of improved and efficient stoves Source: Survey Findings, February 2004 It is important to note that, all of the proposed interventions are being done in some degree. There is therefore a gap in each that needs to be tackled and overall there is need for coordinated effort (integrated approach). 75 Identified Opportunities Apart from many factors that constrains the growth of the improved stove supply / demand chain, there are also many positive factors that provide opportunities for growth and hence strong reasons for TaTEDO and other support organizations to focus their activities in the supply chains. Some of the positive factors can be summarized as follows: Availability of training, demonstration and enterprise development services (TaTEDO, COSTECH, Department of Chemical and Process Engineering, University of Dar es salaam); Any intervention will have a longer-term impact since woodfuels dominate the energy balance for Tanzania. The policy environment (The National Forest Policy, National Environment Policy, National Energy Policy) is supportive to efforts being undertaken by various support organizations to the improved stove supply/ demand chain; The sector‟s ability to utilize locally available raw materials (e.g. clay soil, rice husks ash and sand) and its production does not require complex and expensive tooling or high capital expenditure. There are many geographic clusters, where artisans have organized themselves into informal groups. 14.4.3 Proposed Leverage Leverage points can be identified at four main areas: 1. Improved product quality through: (i) Initiation of a long-term training and capacity building programmes as well as after-training follow-up programmes to artisans and Ceramic liner producers. The growth demand of improved charcoal stoves has created employment opportunities and income generation in small artisan enterprises; (ii) Provision of credit facilities to artisans and Ceramic liner producers; 2. Introduction of Quality Control mechanisms to Ceramic liner producers (this is an important component to the stove). 3. Introduce efficient firing kiln to improve quality of Ceramic liner 4. Lobby for access to permanent premises allocation for artisans It is important to note that capital investments are modest (TShs. 357,000 for a metal workshop and TShs. 704,000 for a liner workshop). Improved stoves producers require a long-term commitment of donor and implementing organizations like TaTEDO in provision of technical and managerial assistance, e.g. surveys to determine user needs, advice during design of the stoves, testing of materials, provision of loans, advice about budgeting, marketing and quality control, and training programs in stove making. They can also contribute by promoting stoves in publicity campaigns. The ultimate goal of a stove program should be to reach self-sustainability of the production and distribution of improved cookstoves. 76 15.0 CONCLUSIONS AND RECOMMENDATIONS 15.1 Summary of Constrains faced by SMEs in Tanzania and SME development policy 2002 Generally, SMEs are confronted with unique problems including heavy costs of compliance resulting from their size. Other constrains include insufficient working premises and limited access to finance. In addition, Business Development Services, namely services related to entrepreneurship, business training, marketing, technology development and information are underdeveloped and not readily available. On the other hand, SME operators lack information as well as appreciation for such services and can hardily afford to pay for the services. As a result, operators of the sector have rather low skill. Also, there is no umbrella association for SMEs. At the same time, the institutions and associations supporting SMEs are weak, fragmented and uncoordinated partly due to lack of clear guidance and policy for the development of the sector. In Tanzania the SME sector has been recognised as a significant sector in employment creation, income generation, poverty alleviation and as a base for industrial development. The sector estimated to generate about a third of GDP, employs about 20% of the Tanzanian labour force and has greatest potential for further employment generation. Based on the importance of this sector and its potential, the SME Development Policy has been designed to revitalise the sector to enable it to contribute to the objective of the National Development Vision 2025. The policy aims at revolutionising the SME sector to make it a vibrant and sustainable agent of stimulation of growth of the economy. In recognition of this, various interventions, including policies and programmes have been initiated to develop the sector. The overall objective of the SME policy is to foster job creation and income generation through promoting the creation of new SMEs and improving the performance and competitiveness of existing ones to increase their participation and contribution to the Tanzanian economy. Although the improved stove program looks very simple, in fact it is a very complex process due to different characteristics like user variations (households, institutions, SMEs) and family variations (size of family, shape of pots used), climatic variation and various cultural and traditional beliefs. So, a careful national strategy should be worked out involving all agencies presently implementing improved cook stove programs. Nevertheless, the changing habits of the people for which they are intended will be a steady process. Many more activities in dissemination and research have to be continued in future33. 33 Case stories on Improved Cook Stoves http://www.nepalnet.org.np/crt/ics_casestudy.htm 77 15.2 Proposed Recommendations for TaTEDOs Interventions CONSTRAINTS 1 1 2 3 4 5 6 The legal environment Most of operator do not have business licences Infrastructure and operating environment Most of operators do not have approved premises to conduct their businesses Availability of quality raw materials Production of sub standard products as a result of unreliable raw materials and lack of working capital Production tools and equipment Predominant use of hand tools Little capital investment Production skills (lack of skilled artisans to do metal claddings) Poor quality control of stoves and ceramic liners (attributed by poor firing, poor handling by producers and poor handling by stove users) Low production levels with low returns Business and marketing skills Undefined SERVICES RESPONSIBLE Assist the formation of legally registered artisans‟ association of producers. This can help producers get organized and mobilize finance Provision of business premises Improving market stalls Improving feeder roads TaTEDO to link artisans Business Development Service providers Access to finance or supplier credit for raw materials TaTEDO to link producer associations to funding organizations (e.g. AREED, ADF); TaTEDO to work with University researchers to develop advanced materials TaTEDO link producer associations to funding organizations Access to finance: Loans to artisans that are guaranteed by artisans organization TaTEDO to lobby for government supportive services Access to technical skills on production and repair of stoves Improve production Ensuring quality, packaging, transportation TaTEDO to provides Technical Extension Services to “Help artisans to make what people want to buy”. Access to business skills services Organization TaTEDO to link artisans to Business Development 78 CONSTRAINTS SERVICES RESPONSIBLE 1 organizational development structure of artisans Marketing plan groups Financial management Absence of records Production techniques keeping hence difficult to establish actual production and marketing data Access to markets and market Access to markets information No established marketing Promotional campaigns arrangements to consumers, Producers make large Clear benefits of size stoves for improved stoves need individual orders and to be seen by sell small sizes to consumers distributors within the Information on stoves city. performance and consumer responses 15.2.1 15.2.1.1 Services providers (Business Care Services, CSDI, etc) Government, TaTEDO & other donors Marketing Strategies for Improved Stoves and Ovens Targeting women Since women are more responsible for cooking at the household, deliberate efforts should be made to reach them with the improved cook stove/ oven. This can be through their various gatherings e.g. at “Kitchen Party” ceremonies. The survey team feel that this is one of the appropriate places to promote the improved stove/ oven. During these ceremonies whereby the newly bride is prepared to become a good wife, she is receiving kitchen related gifts from parents, relatives and friends. The survey team estimate that there are more than 50 “Kitchen Parties” every week in Dar es Salaam alone. Improved stoves can also be promoted during various food processing related courses and exhibitions. It is important to note that the survey team does not suggest to exclude men and other members of the family during promotional campaigns. Especially in the rural areas where most women have no direct access to institutional credit or to an independently disposable cash and information on new innovations, it is very important for stove promoters to perform family presentations/ demonstrations. Although rural women might be in disadvantaged position especially in decision process to buy the improved stove, women and children are the ones who are responsible collecting firewood. The entire process of marketing the improved stove/ oven should strongly be user focused rather than technology focused. Customers are not buying a stove – they are buying cooked food in other words they are buying the “satisfaction of needs” – they want cooked food. 79 When selling improved stove, one is selling the benefits accrued to it. These benefits can be stated such as: “Safety” “Saves time” “Smokeless” “Clean” – display the stove with a good, clean pot (sufuria) on top of it. “Low usage of fuel” “Portable” “Can handle traditional pots” “Can cook traditional foods” etc. “Provides comfortable cooking environment” When promoting institution stoves (e.g. in schools) target school matron/patron and when promoting to SME target the chefs. 15.2.2 Conclusions An integrated approach of business and technical development services to artisans is required (promotion of alliances amongst various actors in the supply/ demand chain). As indicated in the above table, TaTEDO has a role to play in the whole cycle of production and marketing of improved stoves. There is a great need to work out and institute appropriate financing mechanisms and organizational/ management structures, for example organizing Artisans‟ Cooperative Societies, provide them with business support services and link them with donors/ NGOs who provide financial support services like the African Development Foundation (ADF), AREED through E + Co and others; REED REED provides support to enterprises through a combination of extensive business development services and seed financing‟. Together, this combination creates the opportunities for the new business to test and refine their new enterprises to the point where they will interest outside investors. This combination of entrepreneurial mentoring and initial seed financing forms a missing link to sustainable development creating a bridge from an idea to a capable commercial enterprise. The REED Approach. Successful enterprises are usually a combination of good business skill, a verifiable demand for a particular good or service, and the financial resources to innovate and take risk. Often, an entrepreneur will attempt to lunch a new venture without addressing all three elements, which greatly lowers their potential for success Working with E+Co and country partner, an entrepreneur with a business plan meeting certain criteria can receive seed financing to start or expand a business. The form of this seed finance depend both on the needs of the enterprise and its capacity to repay a financial obligation. In some cases, the finance is provided as a loan to be repaid over a term that matches the revenue projections of the new enterprise. ADF 80 African Development Foundation (ADF) provides reimbursable grants to Community Based Organizations (CBO) including, but not limited to, legally registered cooperatives, economic interest groups, associations, micro and small businesses and community development organizations. 81 16.0 REFFERENCES CITED Arnold, J. E.M. (1991). "Community forestry - ten years", Review (Rome, FAO CHAPOSA ( ) Dar es Salaam Charcoal Consumer‟s Study. CHAPOSA (2002) Final Report CHAPOSA Research Project , Tanzania De Montalembert, M.R., and J. Clement. 1983., "Fuelwood supplies in developing countries, Forestry Paper No. 42 (Rome, FAO). Edmund B (2001) Natural Resources for Whom and Why, Important of Village Based Ergeneman A ( 2003) Dissemination of Improved Cookstoves in Rural Areas of the Developing World: Recommendations for the Eritrea Dissemination of Improved Stoves Program htt:www. Nepalnet. Org.np/acs-case study.htm, Case Stories on Improved Cook Stoves. Kaale B.K and Sawe E.N ( 2002) Woodfuel Strategy,Tanzania Malimbwi R. E et al (2002) Impact of Charcoal Extraction to the Forest Resources of Tanzania. Kitulangalo Area, Tanzania. Mkwawa.J (2003) Proceeding of the National Cookstove stakeholders Meeting, COSTECH Musendo, Z. (2001) Destroying Cheap Forests to Buy Expensive Water Natural Resource Management in Rufiji IUCN_EARO; eb REMP-EGB Report. Pesambili F, et al (2003 ) Sazawa charcoal Stoves Designed For Efficient Use of charcoal Raju, S.P.( 1961) “Smokeless Kitchens for the Millions” Christian Literature Society, Madras, India. 1953, reprinted in 1961. Renewable Energy Environmental News, No 155n 0856-6704. Ringia O, (2004) Improvement of ISESPREC Logical Framework and development of M & E systems. Final report TaTEDO/HIVOS, Dar es Salaam. Saad S. Y (2002 ) Woodfuel and change in Urban Tanzania Schultz, C.D. (1973) Indigenous Forest Inventory of Five Area of the United Republic of Tanzania, Local volume, Vancouver, Canada. Tanzania Forest Conservation and Management (Project at a Glance), June 2002 82 TaTEDO ( 1998), A Study on Factors Hindering Wide Adoption Level of Improved Charcoal Stoves, TaTEDO, Tanzania. TaTEDO (2003) Final Evaluation Report, TaTEDO, Dar es Salaam . TaTEDO (2000) Uboreshaji wa Tanuru Asili la Kichuguu-Udongo. Mwongozo kwa wachomaji mkaa. TaTEDO Dar es salaam, TaTEDO (2003) Integrated sustainable energy service for poverty reduction and environment conservation programme TaTEDO Annual Report 2000/2003, Dar es Salaam, Tanzania, The United Republic of Tanzania (2001) The National Forest Programme in Tanzania 2001 –2010, The United Republic of Tanzania , (2002),Tanzania‟s Poverty Reduction Strategy Paper, The United Republic of Tanzania, (1998 ) The National Forest Policy The World Bank Report No 22743, January25, 2002 The United Republic of Tanzania, (1992) The National Energy Policy (Revised 2003) The United Republic of Tanzania, Forest Act No 14 of 2002 The United Republic of Tanzania, Ministry of Natural Resources and Tourism, Community – Based Forest Management Guidelines,NPC –KIUTA, Dar es salaam, Tanzania The United Republic of Tanzania,(1997) The National Environmental policy The World Bank (2004), The World Gazetteer, Current Population Figures for Cities, Towns and Places of all Countries. World Bank Report, (2002) No 22743 – TA, FMP Project Appraisal 83 APPENDICES APPENDIX I: TERMS OF REFERENCES TaTEDO Intergrated Sustainable Energy Services for Poverty Reduction and Environmental Conservation in Tanzania Proposal for undertaking Demand/ / Supply Chain Analysis of Charcoal / Firewood and Differentiation of Target Group Submitted by: Napendaeli Sem January 2004 84 Task 3.3: DEMAND/ SUPPLY CHAIN OF CHARCOAL / WOOD Objectives of the study: The main objective is to study the existing charcoal/ firewood demand/ supply chain within TaTEDO programme area and to analyse and determine the primary constraints and opportunities that exists in the whole chain in order to lay the groundwork for identifying support initiatives that can promote the development of the sub sector and recommend the mostly appropriate method of assessing environmental impact associated with charcoal/firewood production and use. The study will comprise of eight (8) activities as follows: 1. Reparation and groundwork activity a. Review of available literature and reports in order to gain insight om: History of the wood fuel/ Charcoal sub sector; Raw materials (sources /availability of firewood and wood used for charcoal production); Technology (machinery & tools) and processes; Products (firewood/charcoal); Distribution channels; and Type of consumers. b. Discuss with some key informants of the sub sector (persons very knowledgeable about the sub sector). The discussion will be focused at finding problems, opportunities, projections, markets, impact and potential for growth. The key informants are: TaTEDO staff (mission, objectives, priorities, current intervention in the supply/demand chain of charcoal and firewood); Government officials in the Ministry of Natural Resources and Tourism, Forestry and Beekeeping Division and Ministry of Energy. (To get their assessment of environmental impact associated with charcoal production and use, supply and demand of charcoal/ firewood); A small sample of woodcutters, charcoal burners, transporters, wholesaler/ retailer, end user (To get insight of the supply/ demand chains, factions, actors, constraints, opportunities). c. Define the sub sector parameters within the existing firewood/charcoal supply chain: Functions within the demand/ supply chain; Actors at each function; Technologies used at each function. 2. Research design a. Design interview tools and train research assistants; b. Conduct mock interviews to test the performance of interview tools; c. Refine interview tools; 3. Data collection Data will be collected from various respondents as follows: 85 a. Conduct interviews with various actors in the sub sector (demand/supply chain) to determine flow of products, pricing structure, price trends, fluctuations and added value during each stage. Determine workload, employment creation, income generation and other effects (negative or positive). Coverage to represent Coast (supply side) and Dar es Salaam (demand side) regions. b. Conduct interviews with consumers to determine the market potential: Customer behaviour (social environment, cultural environment, educational environment, economic environment); Consumption patterns; Purchasing patterns; Size of market; Distribution pattern. c. Review regulatory and institutional environment affecting actors: Conduct interviews with the government leaders & other organizations supporting the sub sector to identify/assess: The policy environment supporting or hindering development in the sub sector (supply chain); Environmental impact associated with charcoal production and use The researchers will use the following techniques/ approaches to conduct interviews: Focus group discussions (actors doing same activity); Individual interviews (consumers. Govt. officials, support institutions); Workshop with sub sector representatives (i.e. bring together key informants and sector actors to participate in a one- day workshop). 4. Analysis of data The objective of this analysis is to determine the primary constraints and opportunities in the sub sector, and to lay the groundwork for identifying support initiatives that can promote the development of the sub sector. The researchers will develop the sub sector map, analyse dynamics of the sub sector and identify sources of leverage and broadly explore opportunities for TaTEDO interventions. (i) Drawing of a sub sector map between actors in the chain) (a chain map of the different stages and the connections This map will present, in graphical form, all the major actors in the charcoal/firewood/ supply chain. It will reflect the different market chains that take raw materials through their production and distribution to the final consumers. Procedures for drawing the map: 1. List all functions identified; 2. List actors performing each function; 3. For each function, identify alternative technologies and quality differences; 4. Check differences with respect to: Products Raw materials Quality Customers (export, local market, on spot sale) Specialization 86 5. 6. 7. 8. 9. Suppliers Vertical integration Distribution channels Map actors onto functions they perform; Draw arrows to describe product flows among actors in the demand/supply chain; Define principal channels; Draw the map; Review sub sector boundaries. (ii) Analyze dynamics There will be an analysis of constraints, opportunities, and potential support initiatives. Opportunities and constraints might be in the areas of: Market access and information Input and supply Technology and Product Development Training and Technical Assistance Regulatory (Policies e.g. licensing and taxes) Finance (credit facilities) Coordination amongst various support institutions (stakeholders) (iii) Identify sources of leverage and broadly explore opportunities for TaTEDO interventions 5. Narrowing down support initiatives Work sessions with TaTEDO staff to narrow down support initiatives to those that TaTEDO feels would be most appropriate to support directly. One of the key considerations in choosing a support initiative should be its ability to have a “leveraged” effect. These support initiatives tend to be more cost effective and can frequently provide a greater impact than support initiatives provided to individual enterprises. Then there will be a description of the projected impact of support initiatives. 6. Recommendations and conclusions Might warrant creation of concept paper/proposal for donor funding. 7. Data verification on unclear points. This will be based on comments raised on the draft report. It may warrant collection of additional information. 8. Final data analysis. 9. Writing final report. 87 Task 3.4: DIFFERENTIATION OF THE TARGET GROUPS Preparation & groundwork activity and research design will be done simultaneously with task 3.3. Also Task 3.3 will generate list of customers (different target groups and TaTEDO beneficiaries). In Task 3.4, in-depth customer information will be gathered to determine existing and potential market for improved stoves and ovens, analyze current adoption level, identify key target groups and beneficiaries and develop strategies for increased uptake and adoption for each target group. Data collection Data will be collected from two types of respondents (current and potential users/customers of improved stoves/ovens and manufacturers of improved stoves and ovens (existing and potential) 1. Current and potential users /customers The objectives are (i) to understand the current adoption level and (ii) to understand the competition level that exists between improved stoves and the traditional charcoal stove. (i) Current adoption level of improved bio energy technologies. The following indicators will be tested: Awareness of improved stoves and ovens Level of acquisition (customer satisfaction & repeat customers) Increase customer use of improved stoves and ovens Customer satisfaction table: Customer type Information to be sought (a) Personal benefits Status/presentation Ease of use (b) Economic benefits Reduces work load Reliability Guarantee Simplicity Durability Cost-efficiency Affordable price Distribution pattern Servicing Distribution pattern (c) Commercial benefits Profit margin Rapid stock turnover Reliability Attractive packaging and display Distribution (iii) Competition: Information will be gathered to determine the level of competition with similar types of stoves and ovens available in the market. The above indicators will be tested for comparison purposes: 2. Manufacturers of improved stoves and ovens (existing and potential) 88 i. ii. iii. Identify existing and potential target group (manufacturers); Gather information about disseminating the technology of improved stoves and ovens; Assessing ways of developing the capacity of the target group to produce, market and repair of the improved stoves and ovens. Based on the above- collected information, the researchers will answer the following questions: i. What quantities of TaTEDO stoves and ovens can be sold? ii. At what prices they can be sold iii. Where can they be sold iv. How can they be sold? (Terms of payment i.e. cash, credit, partial payment) and v. When can they be sold? vi. Acceptability of new renewable technologies. Analysis of data Analysis of opportunities and constraints identified Analysis of strategies for increased uptake and adoption of improved stoves and ovens for each target group Recommendations for improved production and marketing strategies and conclusions 89 APPENDIX II: LIST OF TABLES (From PART TWO) Table 2.1: Estimated number of improved bio-fuelled stoves disseminated in selected sub-Saharan African countries in early 1990s COUNTRY NUMBER DISTRIBUTED Kenya 780,000 Burkina Faso 200,000 Niger 200,000 Tanzania 54,000 Ethiopia 45,000 Sudan 28,000 Uganda 25,000 Zimbabwe 10,880 Source: Renewable energy technologies as an option for a low-carbon energy future for developing countries by Stephen Karekezi, Director AFREPREN. Table 3.1: (a) Types of energy used; sorted by income level (a) URBAN AREAS HOUSEHOLDS LEVEL OF INCOME (per month in TShs) Below 45,000 45,000100,000 Above 100,000 Total responses Percentage (%) RANK No. of TYPE OF ENERGY USED respondents Firewood Charcoal Kerosene Electricity Gas Sawdust Total responses 13 5 10 4 - - 2 21 22 6 19 10 10 - 3 48 11 4 8 2 5 4 - 23 46 15 37 16 15 4 5 92 16 41 18 16 4 5 100 4 1 2 3 6 5 Source: Survey Findings, February 2004 Note: It is important to note that most users use more than one energy type, that‟s why total responses is 92 while total respondents were 46 90 (b) RURAL AREAS HOUSEHOLDS LEVEL OF No. of TYPE OF ENERGY USED INCOME respondents Firewoo Charcoa Kerosene (per month) d l Electricity Gas Sawdust Total responses Below 45,000 8 8 3 1 - - 1 13 45,000100,000 5 5 4 3 - - 1 13 Above 100,000 1 - 1 - - - - 1 Total responses 14 13 8 4 - - 2 27 48 30 15 - - 7 100 1 2 3 Percentage (%) RANK 4 Source: Survey Findings, February 2004 Note: It is important to note that most users use more than one energy type, that‟s why total responses is 27 while total respondents were 14 Table 3.1: (b) Different types of energy used by respondents - summary S/N (a) Urban TYPES OF ENERGY 2 Charcoal 37 41 PERCENTAGE OUT OF 46 RESPONDENTS 80.4 4 Kerosene 16 18 34.8 5 Electricity 15 16 32.6 1 Firewood 15 16 32.6 3 Sawdust 5 5 10.9 4 100 8.7 6 S/N NUMBER. OF RESPONSES Gas 4 Total 92 Source: Survey Findings, February 2004 (b) Rural TYPES OF ENERGY 1 Firewood 13 48 PERCENTAGE (%) OUT OF 14 RESPONDENTS 92.8 2 Charcoal 8 30 57.1 4 Kerosene 4 15 28.5 3 Sawdust 2 7 14.2 5 Electricity - - 6 NUMBER. OF RESPONSES PERCENTAGE RESPONSES (%) Gas Total 27 Source: Survey Findings, February 2004 PERCENTAGE (%) 100 91 Table 3.2: (a) Types of stoves used by urban respondents S/N Types of stoves Number of responses Percentage of responses (%) 1 Bell- Bottom 28 42 Percentage (%) out of 39 respondents 71.8 2 Double plate-stand 12 18 30.8 3 Straight 5 7 12.8 4 Miguu mitatu 5 7 12.8 5 Traditional Metal 5 7 12.8 6 Sazawa 4 6 10.2 7 Efficient Bricks 2 3 5.1 8 Sawdust 2 3 5.1 9 Metallic firewood stoves 2 3 5.1 10 Efficient clay 1 2 2.6 11 Double plate box 1 2 2.6 12 Traditional open three stones - 0 - Total 67 Source: Survey Findings, February 2004 Note: It is important to note that most users use more than one type of stove, that‟s why total responses is 67 while total respondents were 39. Table 3.2: (b) Types of stoves used by rural respondents S/N Types of stoves Number of responses Percentage (%) 1 Efficient clay 11 39 Percentage (%) out of 14 respondents 78.6 2 Traditional open three stones 7 25 50 3 Bell- Bottom 3 10 21.4 4 Miguu mitatu 2 7 14.3 5 Straight 2 7 14.3 6 7 Traditional Metal Efficient Bricks 1 1 4 4 7.1 7.1 8 Sawdust Total 1 28 4 100 7.1 Source: Survey Findings, February 2004 Note: It is important to note that most users use more than one type of stove, that‟s why total responses is 28 while total respondents were 14. 92 Table 3:3 (a) Type and Prices of improved stoves Type of stove 1 Bell Bottom 2 Straight 3 Miguu Mitatu 4 Traditional Stove 5 Double Plate Stand 6 Double Plate Box 7 8. 9. Oven Kabati Oven Kabati Oven Kabati 10. 11. 12. 13. 14. 15. 16. 17. Oven Kabati Oven Kabati Oven Round Oven Sanduku Oven Sanduku Sanduku Efficient Firewood Brick Efficient portable firewood stoves (clay & metal) Efficient firewood metal (fixed) 18. Size (inch) 9 10 11 12 14 18 10 11 10 11 Metal Rim 10 12 10 14 Normal Improved Small Normal Small with Jiko Bora Double Jiko Bora Jiko Bora Large Large Size Medium Size Extra Large Purchasing Price (TShs.) 1,300.00 - 1,400.00 1,400.00 - 2,000.00 1,700.00 - 3,000.00 2,000.00 - 3,500.00 2,500.00 - 6,000.00 30,000.00 -35,000.00 2,000.00 - 2,200.00 3,000.00 -3,500.00 2,000.00 - 2,500.00 2,800.00 - 3,000.00 1,200.00 - 1,500.00 30,000.00 - 50,000.00 15,000.00 20,000.00 26,000.00 - 35,000.00 30,000.00 - 35,000.00 175,000.00 90,000.00 95,000.00 115,000.00 190,000.00 125,000.00 85,000.00 60,000.00 200,000.00 25,000.00 – 90,000.00 3,000.00 – 4,000.00 450,000.00 Source: Survey Findings, February 2004 Table 3:3 (b) Types and Prices of imported stoves (non-woodfuel) S/N TYPE OF STOVE From Clock Tower shops: 1. Cooker with oven (INDESITY made in Italy) 2. Cooker with oven (VENUS made in Korea) 3. Cooker with oven (SIMTER made in Italy) 4. Gas cooker with oven (made in Italy) From Kariakoo shops: 5. Electric Cooker (made in China) 6. Electric Cooker (made in China) 7. Electric Cooker (oven made in France) 8. Electric Cooker (oven made in France) 9. Electric Cooker (made in Japan) 10. Electric Cooker (made in Japan) 11. Gas Cooker (made in India) 12. Gas Cooker (made in Japan) 13. Kerosene stoves (made in Kenya) SIZE OF STOVE 2 electric plates + 2 gas stoves 2 electric plates + 2 gas stoves 1 electric plate + 3 gas stoves 4 gas stoves 1 plate 2 plates 2 plates 4 plates 1 plate 2 plates 3 plates 2 plates 1 plate SELLING PRICE (TShs) 675,000.00 354,000.00 375,000.00 575,000.00 25,000.00 – 30,000.00 42,000.00 – 46,000.00 150,000.00 – 180,000.00 350,000.00 – 400,000.00 70,000.00 90,000.00 40,000.00 – 45,000.00 80,000.00 3,000.00 – 3,500.00 93 S/N TYPE OF STOVE 14. Kerosene stoves (made in China) 15. Kerosene stoves (made in India) 16. Kerosene stoves (made in China) Used stoves (second hand) from Uhuru road: 17. Electric Cooker with oven (made in Sweden) 18. Electric cooker with oven (made in Sweden) SIZE OF STOVE 1 plate 1 plate 3 plates SELLING PRICE (TShs) 4,000.00 – 4,500.00 9,500.00 – 10,000.00 75,000.00 – 80,000.00 3 plates 135,000.00 4 plates 150,000.00 Source: Survey Findings, February 2004 Table 3.3 (c) Gross Margins TYPE STOVE OF Straight Miguu mitatu Double Box Traditional Metal PRODUCTION COST in TShs Bellbottom Double stand SIZE Plate SELLING PRICE in TShs GROSS MARGIN in TShs 9 1,000.00 1,300.00 – 1,400.00 300.00 – 400.00 10 1,000.00 – 1,500.00 1,400.00 – 2,000.00 400.00 – 500.00 11 1,400.00 – 1,600.00 1,700.00 – 3,000.00 300.00 – 1,400.00 12 1,500.00 – 1,800.00 2,000.00 – 3,500.00 500.00 – 1,700.00 14 2,400.00 – 4,000.00 2,500.00 – 6,000.00 100.00 – 2,000.00 18 15,000.00 – 16,000.00 30,000.00 – 35,000.00 15,000.00 – 19,000.00 10 1,000.00 – 1,600.00 2,000.00 – 2,200.00 800.00 – 1,000.00 11 1,600.00 – 1,700.00 3,000.00 – 3,500.00 1,400.00 – 1,800.00 10 1,200.00 2,000.00 – 2,500.00 800.00 – 1,300.00 11 1,400.00 2,800.00 – 3,000.00 1,400.00 – 1,600.00 10 10,000.00 15,000.00 5,000.00 12 13,000.00 – 15,000.00 20,000.00 5,000.00 – 7,000.00 14 25,000.00 30,000.00 5,000.00 18,000.00 – 25,000.00 30,000.00 – 35,000.00 10,000.00 – 12,000.00 Metal 800.00 – 1,000.00 1,200.00 – 1,500.00 400.00 – 500.00 Rim 20,000.00 – 25,000.00 30,000.00 – 50,000.00 10,000.00 – 25,000.00 Plate Source: Survey Findings, February 2004 94 Table 3.3: (d) Energy saving S/N 1 2 3 Percentage of energy saved (%) 0 17 25 Number of Respondents 3 1 2 Percentage of respondents (%) 9 3 5 4 29 1 3 5 6 7 33 40 50 6 1 9 17 3 26 8 9 10 11 60 67 75 80 1 6 2 1 3 17 5 3 12 13 83 88 1 1 3 3 Total (average) 46.2 35 100 Source: Survey Findings, February 2004 Notes: 1) The total number of respondents interviewed was 60; however 25 respondents could not respond to this question due to various reasons. Some of them are still using the traditional charcoal stove as the main cookstove, some are using the combination of traditional and improved charcoal stove and did not kept records as to how much energy is being saved as a result of using the improved stove, and some had never used the traditional stove before so could not compare. 2) It is important to note that the figures provided are highly estimated as most respondents are not keeping actual records of the amount of energy saved as a result of using the improved stove. However; they all strongly suggest that they use much less charcoal as compared to when they were using the traditional metal stove. Table 3.3: (e) Durability Durability Number of respondents Percentage of respondents (%) Durable 23 44 Not Durable 30 56 Total 53 100 Source: Survey Findings, February 2004 95 Table 3.3: (f) Sources of training by respondents in Urban S/n Training Institutions TaTEDO 1 Number of Respondents’ workshops 3 Percentage (%) 17 81 Other artisans (Relative/Friends) Non response Total 2 3 14.3 1 4.7 21 100 Source: Survey Findings, February 2004 Note: From the surveyed population, 81 percent of artisans reported to be trained by other artisans. It is important to note that inadequately trained and inexperienced stove makers make bad stoves; stove which does not have correct dimensions may use more fuel than traditional stove and may be smoky and fail to light properly. Rural S/n Training Institutions Number of Respondents’ groups Percentage (%) 1 TaTEDO 5 100 2 Other artisans (Relative/Friends) Total - - 5 100 Source: Survey Findings, February 2004 Note: The purpose of the training was that these groups of artisans are engaged in the promotion and dissemination of the improved stoves in the villages. The Ikwiriri artisans were provided with free acquisition of knowledge, technology, maintenance capability and initial working tools. Table 3.3 (g) Volume of stove production in the surveyed areas S/N TYPE OF STOVE MONTHLY PRODUCTION (AVERAGE PER WORKSHOP) 1. Bellbottom 192 2. Miguu mitatu 120 3. Straight 76 4. Double plate 40 5. Sazawa 220 6. Sanduku 44 7. Lanjoma berbecue 100 8. Lanjoma institution 52 96 Source: Survey Findings, February 2004 Note: The data was gathered from 21 workshops. It is important to note that these data are estimates as artisans do not keep accurate production data (might be over estimated or under estimated). SEECO produced 251 stoves from July through November 2003. Five workshops subcontracted by SEECO produced 2,646 stoves from March through November 2002 (an average of 294 stoves per month) and 44434 stoves from July through October 2003 (average of 111 stoves per month). Notes: 1. SEECO produces larger sizes stoves while subcontractors produces mainly sizes 9 to 14. 2. Data regarding market demand and production of improved stoves DSM is largely absent. TaTEDO estimated monthly demand at more than 12,000 stoves35. Table 3.3 (h) Volume of sales in the surveyed areas S/N TYPE OF STOVE SALES PER WEEK 1. Bellbottom 60 2. Miguu mitatu 10 3. Straight 20 4. Double plate box 2 5. Sazawa 14 Source: Survey Findings, February 2004 Note: Only 9 (nine) traders were contacted and interviewed. Table 3.3 (i) Status of improved stoves at Ikwiriri Number of stoves that are functioning Number of stoves that are not functioning Total number of households/ institutions visited 5 7 12 42% 58% 100% 34 Quantity produced by subcontractors has been largely reduced compared to previous year mainly due to failure to meet quality requirements 35 A study on factors hindering wide adoption of improved charcoal stoves, March 1998 97 Source: Survey Findings, February 2004 Table 6.1: Level of Education of workers Level of Education Uneducated Number of Responses - Percentage of Responses (%) - Primary level 155 88.8 Secondary level Total 37 192 19.2 100 Source: Survey Findings, February 2004 Note: The 26 artisan‟s workshops visited had employed a total of 192 workers. Table 6.2: Liner workshop tools, equipment and facilities Name of tools/facilities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Clay soaking pit: 212cm long 140cm wide x 78cm deep Clay mixing pad: 195cm wide x 180cm wide x 10 thick Heavy working bench made of cement blocks and concrete table: 157cm long 117cm wide x 84cm high Pottery wheels Wheelbarrow Spade Hoe Solulu (mattock) Knives Scrapers Punch Pan for ashes Stuli (stool) Plastic container Moulds no.9, 10,11 and 14 Plastic sheets in metres Pieces of sacks Liner production workshop (including firing kiln1030cm long x 598cm wide, roofed with corrugated iron sheet gauge 3o including labour Total Source: TaTEDO QUANTITY UNITY COST (TShs.) TOTAL COST (TShs.) 1 60,000.00 60,000.00 60,000.00 60,000.00 50,000.00 50,000.00 50,000.00 25,000.00 10,000.00 1,500.00 2,000.00 200.00 500.00 2,000.00 2,000.00 1,000.00 500.00 1,500.00 1,000.00 200.00 350,000.00 100,000.00 25,000.00 20,000.00 3,000.00 4,000.00 400.00 1,000.00 4,000.00 4,000.00 2,000.00 1,000.00 9,000.00 10,000.00 600.00 350,000.00 1 1 2 1 2 2 2 2 2 2 2 2 2 6 10 3 1 704,000.00 98 Table 6.3: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 (a) Optimum tools/ equipment requirement for a metal workshop Name of tools/facility QUANTITY A piece of rail 2.5 meter long A piece of car leaf spring Cold chisel Ball pen hammers (0.5) Ball pen hammers (1.5) Pliers Tinsinps or metal sheet scissor (30) Rivet snup Compass (30cm diameter) Hole punch Centre punch Measuring Tape (3metres) Square Brush (5cm) Pan Working bench (1.5 x 1m) - Mninga 1 x 6 Hacksaw handle Hacksaw blades (from England) Working shade 6m x 3m, roofed with corrugated iron sheet gauge 30 including labor 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 UNITY COST (TShs) 10,000.00 2,000.00 1,000.00 2,500.00 3,500.00 1,500.00 18,000.00 100.00 1,000.00 1,000.00 1,000.00 2,500.00 2,000.00 500.00 1,500.00 50,000.00 5,000.00 700.00 150,000.00 Total Source: TaTEDO, February 2004 TOTAL COST (TShs) 20,000.00 4,000.00 2,000.00 5,000.00 7,000.00 3,000.00 36,000.00 200.00 2,000.00 2,000.00 2,000.00 5,000.00 4,000.00 1,000.00 3,000.00 100,000.00 10,000.00 1,400.00 150,000.00 357,600.00 Table 6.3 (b) Investment capital and tools used by respondents in the surveyed areas Name of tools/facility QUANTITY36 1 Hammer 2 Wedge 3 A piece of rail 4 Scissor (for cutting metal sheets) 5 Punch 6 Spring 7 Tape measure 8 Rivet 9 Compass 10 Pliers 11 Knives 12 Nuts Total Source: Survey Findings, February 2004 TOTAL COST 7,000.00 5,000.00 5,000.00 18,000.00 8,000.00 8,000.00 1,500.00 2,500.00 2,800.00 1,500.00 3,000.00 200.00 62,500.00 Note: 36 Very few artisans have other more expensive tools/ equipment such as molding machine (TShs. 75,000) and folding machine (TShs. 450,000). Average investment capital for artisans is only about 17.5 percent of the required capital. Due to lack of record keeping quantities could not be estimated. 99 Table 6.3: Sources of Raw Material Sources of raw materials Number of responses Percentage of responses (%) Hardware 16 47 Aluminium Scrap dealers Total responses 10 8 34 29 24 100 Calculating % by number of workshops 73 45.5 36.4 22 Source: Survey Findings, February 2004 Table 7.1: Geographical Clusters S/N Types of Business 1 Sole proprietor 2 Partnership 3 Number of artisans’ workshops 6 Number of workers/owners Percentage of Business (%) 6 23 3 6 12 Groups 17 180 65 Total 26 192 100 Source: Survey Findings, February 2004 100 APPENDIX III: CHAIN MAPS 101 CHARCOAL SUPPLY/DEMAND CHAIN MAP FUNCTIONS Markets Rural HH Rural Centres Urban HH MSEs Institutions Retail Retailers Wholesale mark – up 40 – 50% Retail / Wholesale gross margin 17.6% , aggregate 290,000/= Storage Integrated production/ trading checkpoint 10 – 20% Dealer 80 – 90% Dealers Main road trading Bicycle Dealer IBEK BEK 36% Production Services BEK Gross margin 51% Aggregate 1 IBEK gross margin 63.8%, aggregate 30,000 2 TaTEDO: private tree nursery management, Improved charcoal carbonization & “System Node” 4 3 4% IBEK gross margin 49.2% aggregate 664,833/= 5 RFPP: JFM practices, securing markets for forests products, research, extension services 102 CHARCOAL STOVE CHAIN MAP Markets SMEs HH INST HH Retail INST SMEs HH Retail Retail Regional Trade Regional Trader Integrated Stove repair Stove repair Subcontracting Raw Materials 1 Clay Liner making Stove repair 22% Subcontracted Artisans 13% Fabrication (cladding & stove assembling) Integrated fabricator Good Quality 2 SEECO Co. Ltd Traditional metal stove Stove fabrication Small-scale Fabricators 65% 3 4 4.3% 4.3% 5 Clay Liner markers 9% ALUMINIUM INDUSTRY HARDWARES SCRAP DEALERS Training, Extension, Demonstration & Enterprise Development Research & Prototype Development TaTEDO CARMATEC UDSM COSTECH 103 APPENDIX IV: LIST OF PEOPLE CONTACTED Name Working Area. Eng. N. C. X. Mwihava Ministry of Energy and Minerals Mr Fadhili Kileo Ministry of Energy and Minerals Mr L.E Lyimo Ministry of Natural Resources and Tourism, Forestry and Beekeeping Division Ministry of Natural Resources and Tourism, Forestry and Beekeeping Division Mr Florian Mkea Mrs. Mugheni Ministry of Natural Resources and Tourism, Forestry and Beekeeping Division Ms. T. Ntemo Ministry of Natural Resources and Tourism, Forestry and Beekeeping Division Mr. Edward Shilogile Ruvu Fuel Pilot Project Mr . Abeid Kindo Ruvu Fuel Pilot Project Mr. Joseph P. Sondi Ruvu Fuel Pilot Project Mr. Elibariki Former Consultant REMP Ikwiriri Dr L. M. P Rweyemamu Department of Chemical and Process Engineering, University of Dar es Salaam Dr. M. L. Raphael COSTECH Mr. Adam Max Msoma Kibaha check-point Mr. Mohamed S Chande Forest Officer, Kibiti Mrs. Makutika Ward Councilor, Kibiti Mr. Mushi. Head Teacher, Ikwiriri Primary School. 104