Risk Management and Poverty Reduction through CBOs. Evidence from Hai District, Tanzania

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue IX, September 2019 | ISSN 2454–6186

Risk Management and Poverty Reduction through CBOs. Evidence from Hai District, Tanzania

Deogratias Basil Aikaruwa
Department of Accounting; Moshi Co-operative University (MoCU), Shinyanga, Tanzania

Abstract— The study is on the investigation of the roles of CBOs in risk management and poverty reduction in Hai District. It is a case study research employing a total of 353 respondents as sample size. Data were collected through the use of different tools including observation, interview and documentary review. Most data collected were statistical thus analysed through SPSS software.
The findings indicate that most of CBO members’ annual income increased after joining CBO. This was due to members’ involvement in more income generating projects as a result of accessing credit opportunities. Despite the increased annual income a significant percentage of the respondents (12.6%) remained multidimensionally poor based on MPI.
The findings also demonstrated that CBOs coordinated and promoted private investments among their members as a way of fighting extreme poverty and improving the people’s livelihood. CBOs enabled members to identify market prospects for their products. Some CBOs had marketing managers who were employed solely to help members to search for markets for their products. Some CBOs were least equipped with the management competence needed to identify market chances as each member traded his/her products individually.

Keywords— Risk Management, Poverty reduction, CBOs

I. INTRODUCTION

Low performance of government in meeting the socio-economic demands of citizens has been identified as one of the reasons behind the proliferation of CBOs in the past few decades. The historical background of the CBOs in Tanzania involves three major phases namely: the colonial and immediately after independence period; post-Arusha Declaration (1967-85); and post-the International Monetary Fund (IMF) and Tanzania Agreement in 1986 to date (Ndumbaro, 2003).

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