Tabora. A total of 1,356 households among the poorest in Ulyankulu settlement, Tabora, have improved their economic circumstances after receiving business training, capital, market linkages and access to formal financial services.
According to the final evaluation of the second cohort of the Delivering Resilient Enterprises and Market Systems (DREAMS) Tanzania programme, the number of households living on more than $3 (about Sh7,970) a day rose from 14 percent to 82.75 percent within 12 months.
The assessment also found that the average value of household assets increased from $260 (about Sh691,214) to $955 (about Sh2.54 million), while the proportion of households making regular savings rose from 3.5 percent to 99.7 percent.
The DREAMS programme is implemented by Mercy Corps in partnership with Village Enterprise, Caritas Tabora and Dignity Kwanza, targeting people living in extreme poverty in Ulyankulu, Mishamo and Katumba settlements.
In the second cohort, 1,670 households were identified as meeting the programme's eligibility criteria, but 1,356 joined the initiative.
Rather than receiving cash directly, participating households first underwent household-level assessments of their economic circumstances using the Poverty Probability Index (PPI), a tool used to estimate the likelihood of a household living below a given poverty line.
Those selected subsequently underwent nine training sessions covering financial literacy, group management and business development.
They then formed savings groups of between 30 and 45 members, with every three households forming a business group.
Each business group received Sh533,820 in an initial grant and a further Sh228,720 after six months.
In total, Sh344.4 million was provided to support 452 businesses.
The final assessment found that 91.8 percent of the businesses were considered financially healthy when participants graduated from the programme.
For some beneficiaries, the programme has resulted in tangible growth in household assets.
A resident of Itagwa, Mr John Mwangolela, said he started with four goats but had increased his herd to 16 within a year.
“We started with four goats. By the end of the year, we had 16. We sold 13 and bought a pregnant cow. It has given birth and we now drink its milk,” he said.
In Taba, the Muungano group has focused on buying paddy, milling it and selling rice.
The group's chairperson, Antonet Yohana, said the savings system had helped members reduce their dependence on informal lenders when meeting household expenses, including school fees.
The programme has also linked beneficiaries with financial institutions and companies providing services and equipment needed for production.
The CRDB Bank Foundation has helped some beneficiaries open bank accounts, with about 708 accounts registered in Sasu alone.
Other partners have provided equipment and inputs to support businesses.
KickStart International supplied irrigation pumps, while SimuSolar provided milling machines through interest-free financing. AKM Glitters supplied day-old chicks.
The programme has also gone beyond financial assistance by addressing some of the social and legal barriers affecting beneficiaries.
Dignity Kwanza provided education on legal matters, family rights and land use, while some beneficiaries received assistance in obtaining birth certificates and identification numbers.
The project's legal officer, Masala Johnson, said the training had also helped address gender-based violence, which had prevented some women from participating fully in economic activities.
Meanwhile, the programme's deputy manager, Martin Mgallah, said beneficiaries from the first cohort, who completed the programme a year ago, were still running their businesses.
One of them is Abraham Mgaywa of Makingi, who has since ventured into farming and has already transported two lorry-loads of watermelons to Dodoma.
