October 2003 VOLUME 2003 ISSUE 2  
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Tree Nurseries Take Root in Tanzania

382,000 trees - It's six times the number that EnterpriseWorks' fledgling tree crop program expected to plant and sell in Tanzania, and also the amazing result of a single growing season.  EWW Tanzania country director Michael Fredericksen was astounded when EWW-assisted entrepreneurs were able to establish 155 tree nurseries - He thought he was being optimistic when he set a goal of 30 nurseries and 64,000 trees in two seasons. 

"People are so amazed by the results," says Fredericksen, "that sometimes they assume we set the goal low on purpose.  But the truth is, it was an aggressive target, and we had no idea exactly how much success EWW's private-sector approach was going to have in this new area."


The timber and fruit trees will generate $3.7 million in revenues to the nursery operators and tree farmers over the lives of the trees, while addressing two compelling development goals: sustainable timber harvesting methods and increased business opportunities for rural Tanzanians.  Timber seedlings, such as pine and eucalyptus, mature in 10-12 years and offer an environmentally sustainable alternative to harvesting indigenous forests.  Fruit trees - including apples, avocados, mangos, peaches, pears, plums and other temperate and tropical tree crop species - generate substantial income for local farmers and decrease reliance on expensive imports.  While the majority of the fruit has been sold locally so far, EWW recently coordinated a shipment of apples from Iringa (southwestern Tanzania) to the capital city, Dar Es Salaam, in which farmers realized a 430% increase in prices.

EWW's move into sustainable timber harvesting also revealed a lack of affordable sawmills for small harvesters, a serious barrier to competitiveness since hand-sawn logs sell at a much lower price than machine-sawn logs.  Fredericksen and his team addressed this problem by modifying an imported design to make it towable and operable by just one person.  The $4,000 saw pays for itself after processing just 1.5 acres of trees.  EWW is currently working on creative financing options for would-be purchasers.

As for the future, EWW hopes to expand the program into a second phase, establishing 150 more nurseries, with sales projected at 800,000 trees.  Says Fredericksen: "I believe we're just getting started."

The nursery and tree crop program is a component the EnterpriseWorks "Project for Rural Initiatives in Micro-Enterprise Development," (PRIME) funded by the United States Agency for International Development (USAID).  The $1.4 million, two-year cooperative agreement with USAID also includes small-scale irrigation and oilseeds project components.  So far, the return on USAID's investment has been threefold - $4.3 million in benefits for Tanzanians.



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WhatWorks
September 16, 2003
Vol. 2003 Issue 1
Published by EnterpriseWorks
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