Market analysis of social businesses in Mozambique and Tanzania

Social businesses and sustainable economies

Duration June – September 2017

Location Tanzania and Mozambique

Client CTM Altromercato

Partner OIKOS Institute

 

Context

Tanzania is characterized by a high poverty rate. A large part of its population is also affected by the effects of climate change. The Masaai, essentially devoted to sheep farming, must face both the problem of drought and the over-exploitation of the lands used as pasture. The low diversification of the local economy, linked to growing poverty, aggravates the scenario.

In Mozambique, conditions are similar for farmers too. Near Pemba there is a population of about 60,000 people mostly dedicated to subsistence farming. Their main crops are corn, sorghum, rice, beans and tomatoes that are grown with often inadequate techniques and machinery.

 General objective

The aim of the project is to encourage the birth of an alternative and self-sustainable economy thanks to the creation of micro-businesses managed by Maasai women who deal with leather vegetable tanning processes and production of leather products. In Mozambique, on the other hand, the project aims to enhance the variety of local products thanks to the adoption of culture techniques suitable for the environment.

Our contribution

ARCO Researchers conducted two market research. The goal was to understand the potential market for leather products in Tanzania and support services for small producers in Mozambique. Researchers then carried out an analysis for the products and services of social businsses in order to quantify the potential demand, the characteristics preferred by customers and the recommended selling price. Data collection was carried out by administering questionnaires and interviews with privileged informants during field missions. These were made in June 2017 in Tanzania, August 2017 in Mozambique.

ARCO Researchers also analyzed the economic sustainability of social businesses and offered indications on how to achieve or improve it.

Read more on our Social Economy Unit