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INNOVATION SYSTEMS AND CLUSTERS
PROGRAMME IN EASTERN AFRICA (ISCP-EA)
PROCEEDINGS OF THE THIRD

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Stimulating Competitiveness for Sustainable

Economic Development
September 3 -7, 2006, Dar es Salaam, Tanzania
Editors:
Burton LM Mwamila
Abraham K Temu
Proceedings of the Third Regional Conference on Innovation Systems and Innovative Clusters
in Africa, Dar es Salaam-Tanzania, September 3-7, 2006
ISBN: 9987-9074-4-X
CONTENTS
ABBREVIATIONS AND ACRONYMS ..........................................................vi
PART A: CONFERENCE ORGANIZATION, OBJECTIVES,

HIGHLIGHTS AND RECOMMENDATIONS ......................... 1
A.1 CONFERENCE ORGANIZATION, OBJECTIVES, AND
LOGISTICS by Burton LM Mwamila................................................ 2
A.2 HIGHLIGHTS OF PRESENTATIONS AND DISCUSSIONS7
by Fikeni EMK Senkoro and Nandera Mhando .................................. 7
A.3 OBSERVATIONS AND RECOMMENDATIONS
by Burton LM Mwamila and Abraham K Temu............................... 70
PART B: INNOVATION SYSTEMS AND CLUSTERS FOR

COMPETITIVENESS AT INTERNATIONAL LEVEL........... 73
B.1 THE WORLD BANK INSTITUTE’S KNOWLEDGE FOR
DEVELOPMENT PROGRAM AND AFRICA by Justine White,74
B.2: ENGINEERING CAPACITY BUILDING IN DEVELOPING
COUNTRIES by Russel C. Jones ..................................................... 87
B.3 VINNOVA’s EXPERIENCE IN PROMOTING
COMPETITIVENESS IN SWEDEN by Dan Sjogren.................... 94
PART C: DEVELOPMENT OF INNOVATION SYSTEMS AND

CLUSTERS IN THE AFRICAN REGION AND EFFORTS
TOWARDS ACHIEVING COMPETITIVENESS ................... 99
C.1: MEASUREMENT OF R&D AND INNOVATION IN SOUTH
AFRICA: LOOKING AT THE LOCATION OF ACTIVITIES
AND LINKAGES by William Blankley ........................................ 100
C.2: DESIGN FOR SUSTAINABILITY: CASES AND
TOOLS by M. R. M. Crul and J. C. Diehl ................................... 116
PART D: WHICH WAY EASTERN AFRICA TOWARDS

REALIZATION OF THE MILLENNIUM DEVELOPMENT
GOALS AND NATIONAL STRATEGIC GROWTH AND
POVERTY REDUCTION ........................................................... 131
D.1 OVERVIEW OF ISCP-EA - ENHANCING COMPETITIVENESS
THROUGH CLUSTER INITIATIVES by Burton LM Mwamila 132
iii Contents
D.2 AN OVERVIEW OF INNOVATION SYSTEMS AND

CLUSTERS PROGRAMME IN UGANDA (ISCP-Ug)
by John B Turyagyenda ................................................................... 155
PART E: REPORT FROM THE CLUSTER INITIATIVES REPORTS. 167

E.1 KATWE METAL FABRICATION CLUSTER
by Joshua Mutambi ......................................................................... 168
E.2 FACILITATING MOROGORO METAL WORKS CLUSTER
by Eng. Peter Chisawillo ................................................................. 174
E.3 THE EXPORT POTENTIAL OF PINEAPPLE: KAYUNGA
PILOT PINEAPPLE CLUSTER INITIATIVE, UGANDA
by Charles K Muyanja and JB Turyagyenda................................... 188
E.4 DAR ES SALAAM NUTRACEUTICALS CLUSTER
by Mariamu Halfani........................................................................ 199
E.5 THE STATUS OF BAGAMOYO CULTURAL HERITAGE
TOURISM CLUSTER by Paul Msemwa....................................... 208
E.6: LAKE KATWE SALT CLUSTER INITIATIVE
by W. Balu – Tabaaro et al. ............................................................. 223
E.7: INNOVATIONS AT KAKIRA BIO-ETHANOL CLUSTER
by Ssengonzi Bagenda Jerome ......................................................... 236
E.8: THE SEAWEED CLUSTER INITIATIVE IN ZANZIBAR,
TANZANIA by Flower E. Msuya ................................................. 246
E.9 THE SISAL CLUSTER INITIATIVE by Enock Masanja............. 261
E.10 POTENTIAL AND CHALLENGES OF THE MUSHROOM
INDUSTRY IN THE EASTERN REGIONS OF TANZANIA
by Asman, et al. ............................................................................... 276
E.11: ARUSHA VEGETABLE SEEDS CLUSTER (AVSC)
by Hussein Mongi ........................................................................... 301
E.12 DEVELOPING KAMPALA MANAGEMENT CONSULTANCY
CLUSTER by John Musajjakawa,................................................... 308
PART F: ASSESSMENT OF THE CLUSTER INITIATIVES ................ 317

F.1 CLUSTER INITIATIVES EVALUATION: A BRIEF REPORT
FROM 8 TANZANIAN PILOT CLUSTERS INITIATIVES
by B. D. Diyamett and A. A. Komba............................................... 318
iv Contents
F.2: INNOVATION SYSTEMS AND CLUSTERS PROGRAMME

IN EAST AFRICA (ISCP-EA): ATPS’s perspectives on the
establishment and performance of cluster initiatives in Uganda
by Joseph Obua, ............................................................................... 343
F.3: THE POTENTIAL OF UDSM-CoET
TECHNOLOGY/BUSINESS INCUBATION PROJECT FOR
SUPPORTING THE INNOVATION SYSTEM AND CLUSTERS
PROGRAMME IN TANZANIA by I.B. Mshoro ........................ 357
PART G: SPEECHES..................................................................................... 371

G.1: INTRODUCTORY REMARKS by Prof. Burton LM Mwamila .. 372
G.2: WELCOME SPEECH by Prof. Mayunga Nkunya, ..................... 376
G.3: OPENING SPEECH by Mr. Peniel Lyimo ................................... 379
PART H: APPENDICES ............................................................................... 385

H.1 LIST OF PARTICIPANTS ............................................................ 386
H.2 CONFERENCE PROGRAMME.................................................. 402
v Contents
ABBREVIATIONS AND ACRONYMS
AAP African Action Plan

Agency for the Development of Educational
ADEM
Management
African Regional Conference on Engineering
ARCEE
Education
ARI Agriculture Research Institute
ATPS African Technology Policy Studies
AU African Union
AVSC Arusha Vegetable Seeds Associaiton
BOD Biological Oxygen Demand
CA Citric Acid
Centre for Agricultural Mechanisation and Rural
CAMARTEC
Technology
CBO Community Based Organisation
CCB Committee on Capacity Building

Centre of Science, Technology and Innovation
CeSTII
Indicators
CI Cluster Initiative
CIDA Canadian International Development Agency
CIS Community Innovation Survey

CoET College of Engineering and Technology
COSTECH Tanzania Commission for Science and Technology
CRDB Cooperative and Rural Development Bank
D4S Development for Sustainability
vi Acronyms and Abbreviations

Development Alternatives Inc. Private Support

DAIPESA
Activities
DANIDA Danish International Development Agency
DMGA Dar es Salaam Mushroom Growers Association
EAC East African Community
EPZ Export Processing Zone
ERMCI Eastern Region Mushroom Cluster Initiative
EU European Union
FAO Food Agriculture Organization
FIDIC International Federation of Consulting Engineers
FoT Faculty of Technology
Mak Makerere University
FRD Foundation for Research Development
GDP Gross Domestic Product
GNP Gross National Product

German Agency for Technical Cooperation
GTZ
(Gesellschaft für Zussamenarbeit)
HDI Human Development Index
Human Immunodeficiency Virus/ Acquired
HIV/AID
Immune Deficiency Syndrome
HSRC Human Science Research Council
IAV Indigenous African Vegetables
ICT Information and Communication Technology
IEC Information Education and Communication
International Organization for Knowledge Economy
IKED
and Enterprise Development
vii Acronyms and Abbreviations

INEC Infrastructure and Economic Cooperation
IPR Intellectual Property Rights

Innovation Systems and Clusters Programme in
ISCP-EA
Eastern Africa
ISCP-Tz
Tanzania
ISCP-Ug
Uganda
JICA Japan Internation Coorepation Agency
JSDF Japan Social Development Fund
K4D Knowledge for Development
KAM Knowledge Assessment Methodology
KE Knowledge Economy
KEI Knowledge Economy Index
KI Knowledge Index
KIDT Kilimanjaro Industrial Development Trust

Kampala Management Consultancy Cluster
KMCA
Associates
Marine and Coastal Environment Management
MACEMP
Project
Ministry of Agriculture, Food Security and
MAFSC
Cooperatives
MDG Millennium Development Goals
National Strategy for Growth and Reduction of
MKUKUTA Poverty (Mkakati wa Kukuza Uchumi na Kuondoa
Umaskini Tanzania)
Property and Business Formalization Programme in
MKURABITA Tanzania (Mpango wa Kurasimisha Rasilimali na
Biashara Tanzania)
MMWCI Morogoro Metal Works Cluster Initiative
viii Acronyms and Abbreviations
MNRT Ministry of Natural Resources and Tourism

Ministry of Agriculture, Food Security and
MoAFSC
Cooperatives
MoITM Ministry of Industry, Trade and Marketing
MoPEE Ministry of Planning, Economy and Empowerment
MoU Memorandum of Understanding
MTAC Management Training and Advisory Centre
NAADS National Agricultural Advisory Services
NARO National Agricultural Research Organisations

National Council of Uganda Small Business
NCUSBO
Organization
NEPAD New Partnership for Africa’s Development
National Experts in Science and Technology
NESTI
Indicators
NGO Non Governmental Organisation
NORAD Norwegin Agency for International Cooperation
NSC National Steering Committee

Organisation of Economic Cooperation and
OECD
Development
PEAP Poverty Eradication Action Plan
PMA Plan for Modenisation of Agriculture
PPP Public Private Partnership
QDS Quality Declared Seeds
R&D Research and Development
RSA Republic of South Africa
ix Acronyms and Abbreviations

S&T Science and Technology
SADC Southern Africa Development Community
SAREC Swedish Department of Research Council
SCF SME Competitiveness Facility
SEAMIC Southern and Eastern Africa Mineral Centre
SIC Standard Industrial Classification
Sida Swedish International Development
SIDO Small Industries Development Organisation
SME Small and Medium Enterprise
SUA Sokoine University of Agriculture
SUCCESS Sustainable Coastal Communities and Eco-systems
SUDPF Strategic Urban Development Planning Framework
TAHA Tanzania Horticultural Associations
TASTA Tanzania Seed Trade Association

TATC Tanzania Automotive Technology Centre
TBI Technology/Business Incubator
TBS Tanzania Bureau of Standards

Tanzania Chamber of Commerce, Industry and
TCCIA
Agriculature
TCI The Competitiveness Institute
TD Technology Development
TDTC Technology Development and Transfer Centre

Tanzania Engineering and Manufacturing Design
TEMDO
Organisation
x Acronyms and Abbreviations

TFDA Tanzania Food and Drugs Authority

Technology for Human Resources in Industry
THRIP
Programme
TIC Tanzania Investment Centre
Tanzania Industrial Research and Development
TIRDO
Organisation
TOSCI Tanzania Official Seed Certification Institute
TPRI Tropical Pesticides Research Institute
TPSF Tanzania Private Sector Foundation
TU Technical University
TVSP Tanzania Vegetable Seed Programme
UCPC Uganda Cleaner Production Centre
UDSM University of Dar es Salaam
UIA Uganda Investment Authority
UIP Uganda Integrated Programme
UIRI Uganda Industrial Research Institute
UMA Uganda Manufacturers Association
UNBS Uganda National Bureau of Standards

Uganda National Council for Science and
UNCST
Technology
United Nations Educational, Scientific and Cultural
UNESCO
Organization
United Nations Industrial Development
UNIDO
Organisation
UPE Universal Primary Education
USAID United States Agency for International Development
xi Acronyms and Abbreviations

VETA Vocational Education and Training Authority
VINNOVA Swedish Agency for Innovation Systems
WBI World Bank Institute
WFEO World Federation of Engineering Organisations
WVC World Vegetable Centre
ZANEA Zanzibar East African Company
ZASCOL Zanzibar Agro Seaweed Company Limited
xii Acronyms and Abbreviations

PART A
CONFERENCE ORGANIZATION, OBJECTIVES,

HIGHLIGHTS AND RECOMMENDATIONS
1
A.1 CONFERENCE ORGANIZATION, OBJECTIVES

AND LOGISTICS
by Burton LM Mwamila
Principal CoET-UDSM and Chairman of the Organising Committee
A.1.1 INTRODUCTION
For the Eastern African Region to be able to meet the Millennium

Development Goals, a solid foundation for a competitive and dynamic
economy with high productivity has to be laid. Innovations in the form of
new or improved products, services and processes are the bases for
sustainable growth and prosperity in a knowledge-based society. And, the
fundamental factors necessary for the development of innovations include
skills, the exchange of knowledge and opportunities for mutual learning as
part of the interaction between businesses, research institutions and
political bodies. It has been observed that firms that operate close to related
firms and supporting institutions are often more innovative and therefore
more successful in raising productivity than firms that operate in isolation.
The innovative cluster intervention, currently being introduced in the
Eastern Africa region, is thus intended to promote change of behaviour
patterns so as to optimize the benefits of clustering. The specific aspects the
intervention addresses include removing the isolation of firms within a
locality and building alignment between the firms within the cluster and
the publicly or donor funded infrastructure including the knowledge
infrastructure, viz. R&D institutions and the academia. The required
behaviour change is achievable through facilitation of voluntary collective
action - a team approach at a local level.
Cluster development has attained considerable attention over the last

decade, not least as an operational means to enhance the competitiveness
of firms and regions. This is largely due to its responsiveness to the
demands of the new economy for; speed, quality, flexibility, innovation,
networking and building critical mass. Thus, early establishment of the
clustering behaviour is particularly important in supporting the
development of competitiveness of emerging industries, and hence laying
of a solid foundation for a competitive and dynamic economy with high
BML Mwamila 2 Conference Objectives & Sponsorship

productivity. Through clustering, even a small firm can gain the necessary
critical mass to service world markets.
Since 2003, the College of Engineering and Technology (CoET) of the

University of Dar es Salaam (UDSM) has spearheaded an initiative towards
the establishment of an Innovation Systems and Clusters Programme in
Eastern Africa with a view to fast-tracking socio-economic development in
this region. In February 2004, CoET hosted the 1st Regional Conference on
Innovation Systems and Innovative Clusters in Africa, in Bagamoyo. In
January 2005, CoET organized, in Bagamoyo again, a National Stakeholders
Workshop on the Establishment of an Innovation Systems and Clusters
Programme in Tanzania (ISCP-Tz). And, in March 2005, a 2nd Regional
Conference on Innovation Systems and Innovative Clusters in Africa was
hosted, in Jinja, by the Faculty of Technology of Makerere University. The
two Regional Conferences and the National Stakeholders Workshop
resolved to establish an Innovation Systems and Clusters Programme in
Eastern Africa (ISCP-EA). From September 12-24, 2005 week-long training
courses were held in Bagamoyo, Tanzania and Jinja, Uganda on; “The
Development of Innovation Systems and Clusters”. From June 19-23, 2006 a
similar course was run in Mozambique. The courses were intended to
prepare ground and participants for the implementation of the pilot phase
of ISCP-EA, by the 15 selected pilot cluster initiatives – 8 in Tanzania and 7
in Uganda. The 8 pilot cluster initiatives in Tanzania were officially
launched in February 2006.
The College of Engineering and Technology of the University of Dar es

Salaam was once again given the honour and privilege to organize and host
the 3rd Regional Conference on Innovation Systems and Innovative Clusters
in Africa, from September 3-7, 2006. This followed immediately after the
second round of the week-long training course on; “The Development of
Innovation Systems and Clusters” which ran from August 28 to September
1, 2006. The Sub-theme of the 3rd Regional Conference was “Stimulating
Competitiveness for Sustainable Economic Development”.

A.1.2 OBJECTIVES
The primary objective of the Conference was to consolidate the progress

made to-date and ensure wider stakeholder understanding and support,
including the Government, through:
Ü Creation of enhanced awareness and appreciation of the
effectiveness of innovation systems and innovative clusters in
promoting competitiveness;
Ü Creation of enhanced awareness and appreciation of the role of
competitiveness in enhancing and sustaining economic growth; and
Ü Learning from best practices on the development of innovation
systems and innovative clusters.
The specific objectives of the Conference were to afford participants to learn

and discuss issues that relate to the following, among other things:
(i) Innovation systems and clusters as means for enhancing
competitiveness at international level;
(ii) Development of innovation systems and clusters in the African
Region and efforts towards achieving competitiveness;
(iii) Development of innovation systems and clusters in Eastern Africa as
a way of stimulating speedy economic growth and poverty
reduction;
(iv) Lessons from cases of innovations at firm level; and
(v) Establishment of a forward agenda for the achievement of enhanced
dynamism, competitiveness, and sustainable economic growth and
poverty reduction.
A.1.3 EXPECTED OUTCOMES
The Conference was expected in the main to enable refinement of

implementation aspects of the Innovation Systems and Clusters Programme
in Eastern Africa (ISCP-EA) and thereby ensure success of the same. It was
also expected to facilitate enhanced awareness and appreciation, by the
various actors, of innovation systems and innovative clusters as means
towards achieving innovativeness, competitiveness and hence economic
growth. Finally, it was expected to establish a forward agenda for the
achievement in Eastern Africa of enhanced dynamism, competitiveness,
and sustainable economic growth and poverty reduction.
A.1.4 PARTICIPANTS
Participants from Tanzania and Uganda were drawn from amongst

members of the academia and R&D institutions, industry, Government and
other policy bodies, financial institutions, NGOs, and regulatory bodies. In
addition to resource persons, some representatives of regional and
international organizations as well as development partners attended the
Conference.
A.1.5 CONFERENCE PROGRAMME
The Opening Ceremony of the Conference was held from 17:00 Hrs on
Sunday, September 3, 2006 followed by a Cocktail.
The Conference Programme which ran from September 4-6, 2006 comprised
the following sessions:
(i) Innovation Systems and Clusters for Competitiveness at International
Level;
(ii) Development of Innovation Systems and Clusters in the African
Region and Efforts towards Achieving Competitiveness;
(iii) Which Way Eastern Africa towards the Realization of the Millennium
Development Goals and National Strategies for Growth and Poverty
Reduction;
(iv) Reports on the 15 Pilot Cluster Initiatives, in Tanzania and Uganda;
(v) Other Innovation and Competitiveness Related Initiatives and Cases;
and
(vi) Group Discussions on “Establishment of a Forward Agenda for the
Achievement of Enhanced Innovativeness, Dynamism,
Competitiveness, and Sustainable Economic Growth and Poverty
Reduction”.
The Closing Ceremony was held at 17:00 Hrs on September 6, 2006 and was
graced by the Vice Chancellor of the University of Dar es Salaam, Prof.
Matthew Luhanga.
From September 7-16, 2006 officials from Sida/SAREC and Sida/INEC,

accompanied by members of ISCP-EA’s International Team and some

members of the National Steering Committee, made a round tour of the

eight pilot Cluster Initiatives established in Tanzania.
A.1.6 SPONSORSHIP
The Conference was supported financially by the University of Dar es

Salaam and the following co- sponsors:
- Sida/SAREC of Sweden
- Tanzania Investment Centre (TIC)
- The World Bank Institute (WBI)
- SME Competitiveness Facility (SCF), Tanzania.
A.1.7 ORGANIZING COMMITTEE
The Organizing Committee for both the 3rd Regional Conference and the
National Training Workshop comprised the following:
1. Burton LM Mwamila from CoET of UDSM, Chairperson;
2. Januarius G Mrema from the Ministry of Industry, Trade and
Marketing (MoITM), Events Manager;
3. Peter Chisawillo from Inter-Mech Ltd and representing the Tanzania
Chamber of Commerce, Industry and Agriculture (TCCIA);
4. Julieth Magambo from the Ministry of Planning, Economy and
Empowerment (MoPEE);
5. Peter Lanya from the Tanzania Private Sector Foundation (TPSF);
6. Ruth J Kigera from the Ministry of Infrastructure Development;
7. Julius O Saule from the Public Relations Office of UDSM;
8. Mariam R Halfani from CoET of UDSM;
9. Leonard Y Mwaikambo from CoET of UDSM;
10. Abraham K Temu from CoET of UDSM;
11. Simon H Mkhandi from CoET of UDSM;
12. Raphael Mrope from CoET of UDSM, Secretary.

A.2 HIGHLIGHTS OF PRESENTATIONS AND

DISCUSSIONS
by Fikeni EMK Senkoro and Nandera Mhando
Conference Rapporteurs
A.2.1 OPENING SESSION
A.2.1.1 Introductory Remarks

by Prof. Burton L.M. Mwamila, Principal, CoET
The Principal began by expressing his pleasure for being allowed the
opportunity to make some introductory remarks on the 3rd Regional
Conference on Innovation Systems and Innovative Clusters in Africa.
Before doing so he thanked the honourable Chief Guest and all the
participants for positively responding to CoET’s invitation.
Giving a short history of the project and the background behind the
organization of the conference, Prof. Mwamila highlighted the collaboration
between CoET of the University of Dar es Salaam (UDSM), Faculty of
Technology of Makerere University and the Faculty of Engineering of
Eduardo Mondlane University, with the generous support of Sida/SAREC
of Sweden since 2003, in an initiative towards the establishment of an
Innovation Systems and Clusters Programme, with a view to enabling east
African countries to fast-track socio-economic development in the region.
The Professor informed participants that in February 2004, CoET hosted the
1st Regional Conference on Innovation Systems and Innovative Clusters in
Africa, in Bagamoyo. Subsequently, at the end of 2004 and the beginning of
2005 each of the three institutions organized a National Stakeholders
Workshop on the Establishment of an Innovation Systems and Clusters
Programme. He further informed participants that in March 2005, a 2nd
Regional Conference on Innovation Systems and Innovative Clusters in
Africa was held in Jinja, hosted by the Faculty of Technology of Makerere
University. Participants were informed that the two Regional Conferences
and the National Stakeholders Workshops resolved to establish an
Innovation Systems and Clusters Programme in Eastern Africa (ISCP-EA).
FEMK Senkoro & N Mhando 7 Highlights of Presentations

Professor Mwamila further informed participants that in September 2005

week-long training courses were conducted in Bagamoyo, Tanzania and
Jinja, Uganda on “The Development of Innovation Systems and Clusters”.
A similar course was run in Mozambique in June 2006. He pointed out that
the courses were intended to prepare ground and participants for the
implementation of the pilot phase of ISCP-EA for selected pilot cluster
initiatives in Tanzania, Uganda and Mozambique. The Principal
underscored the fact that there is a growing demand from stakeholders that
calls for more such training courses, and the establishment of more cluster
initiatives.
In the next part of his remarks, Professor Mwamila appreciated the honour
given to CoET to, yet again, organize and host the 3rd Regional Conference
on Innovation Systems and Innovative Clusters in Africa, on the sub-theme
‘Stimulating Competitiveness for Sustainable Economic Development’.
The Professor informed participants that the primary objective of the

Conference was to facilitate consolidation of the progress made to-date and
to ensure wider stakeholder understanding and support, including the
Government. He then listed three ways of achieving the objective as
• Creation of enhanced awareness and appreciation of the effectiveness of

follows:
innovation systems and innovative clusters in promoting
• Creation of enhanced awareness and appreciation of the role of

competitiveness;
• Learning from best practices on the development of innovation systems

and innovative clusters.
He then listed the issues that would be discussed during the conference
relating to the specific objectives of the Conference as follows:
(a) Innovation systems and clusters as means for enhancing
(b) Development of innovation systems and clusters in the African Region
and efforts towards achieving competitiveness;
(c) Development of innovation systems and clusters in Eastern Africa as a
way of stimulating speedy economic growth and poverty reduction;
(d) Lessons from cases of innovations at firm level; and
(e) Establishment of a forward agenda for the achievement of enhanced

poverty reduction.
The speaker informed participants that through the above and other
discussions the Conference was expected to provide ways and means of
refining the implementation plan and thereby ensure success of the ISCP-
EA. The speaker further pointed out that the Conference was also expected
to facilitate enhanced awareness and appreciation, by the various actors, of
innovation systems and innovative clusters as a means towards achieving
innovativeness, competitiveness and hence economic growth. Finally, the
conference was expected to establish a forward agenda for the achievement
in Eastern Africa of enhanced dynamism, competitiveness, and sustainable
economic growth and poverty reduction.
Next, the speaker reviewed the Conference program/sessions and then

gave an overview of the composition of the participants, pointing out that
they had been drawn from amongst members of the academia and R&D
institutions, industry, Government and other policy bodies, financial
institutions, NGOs, and regulatory bodies. He mentioned that participants
from Kenya, Rwanda, Zimbabwe, Ghana and South Africa have also been
invited. He further mentioned that in addition to resource persons, some
representatives of regional and international organizations as well as
development partners had also been invited.
The Principal ended his submission by saying that CoET and UDSM are
very grateful to all the sponsors for their support. He particularly
mentioned Sida/SAREC, the World Bank Institute, the Tanzania
Investment Centre and the SME Competitiveness Facility.
He then invited the Chief Academic Officer of UDSM to deliver his

welcome speech.

A.2.1.2 Welcome Speech

by Prof. Mayunga Nkunya, Chief Academic Officer, UDSM
Professor Nkunya began by warmly welcoming all the participants, on

behalf of the entire university community, the Vice Chancellor and on his
own behalf. He then revisited the theme of the conference, viz.: Stimulating
Competitiveness for Sustainable Economic Development.
The speaker commended the progress made thus far in respect of the
innovation systems and cluster program in East Africa in general and
Tanzania in particular. He particularly singled out CoET’s contribution in
the process, commending the College for leading the way in the initiative.
In the next part of his remarks, the Chief academic Officer linked the ISCP-
EA programme to the social, political and economic development
endeavours of Tanzania and other countries, and he said that he hoped that
such a link would be further developed through such initiatives like the
conference and other avenues.
The Professor ended his comments by inviting the conference participants

to tour interesting places in Tanzania in general and the University of Dar
es Salaam in particular.
A.2.1.3 Statement from Sida/SAREC

by Dr. Maija Lindroos
Dr. Maija Lindroos informed participants that it was great joy and pleasure
for her to attend the regional conference. The speaker then dwelt on the 30
year long Sida/SAREC involvement in development involving a long term
Swedish-Africa cooperation. The speaker then touched on the bilateral
relationship in which local ownership is paramount in the support of
economic development. She informed participants that VINNOVA
contacted Sida/SAREC to sponsor the Innovative Cluster programme in
Tanzania after Prof. Burton Mwamila had indicated interest in introducing
the programme in Tanzania. The speaker therefore congratulated Prof.
Burton Mwamila, Prof. Barnabas Nawangwe from Makerere University,
and the Vice Chancellor of UDSM Prof Matthew Luhanga, for their

contribution towards the establishment and strengthening of the ISCP-EA

programme.
A.2.1.4 Statement from World Bank Institute

by Dr. Justine White
Dr. Justine White informed participants that she was representing her
superior Dr. Jean Eric Aubert of the World Bank Institute and that she came
and hoped to learn from the conference participants.
The representative informed participants that she was very happy to learn
about this very interesting initiative of the ISCP-EA Programme. She
pointed out that the World Bank Institute was really interested in capacity
building programmes such as the ISCP-EA and that the Bank was more and
more convinced that local development initiatives are very important and,
thus, thanked CoET and other sister institutions for the programme.
The speaker ended her statement by thanking the conference organizers for
welcoming her to participate in the conference. She indicated that she
hoped that the Bank would participate in future initiatives of the
programme.
A.2.1.5 Statement from VINNOVA

by Mr. Dan Sjögren
The speaker said that it was a pleasure to be in Tanzania, East Africa, and,
especially at the beach, which is a very convenient setting for exchange of
ideas.
He said that the ISCP-EA programme was a combination of economics and

local democracy and initiatives, saying that processes like this are not
possible without the engagement of many parties, engagement being the
key word, in sustainable efforts.
The speaker then gave a short history of the initiative after which he
thanked Prof. Mwamila for a job well done from the very beginning.

The speaker charged that cluster mindset is different from rational,

scientific mindset, and that it needs creativity and innovativeness. He
mentioned a number of players in the success of the initiative from its
inception to the present.
Mr. Sjögren noted with appreciation the fact that the Program did not only
confine itself to the Eastern African Region but also Africa as a whole. He
pointed out that this initiative is getting global attention, with such
countries like Chile, Pakistan, etc getting involved.
In the next part of his statement, the speaker talked about the need for
practical-oriented research, and said that innovation is the basis for growth
and sustainable development.
Towards the end of his statement, the speaker referred to the programme
saying that it had made very substantial progress. He informed participants
that more than 180 facilitators had been trained and more clusters are in the
offing in Tanzania and Mozambique. He further said that interest from
stakeholders and donor organizations is very promising, and he
highlighted the Sida/SAREC/VINNOVA and African partners in the
collaboration as a very good example. He particularly mentioned
VINNOVA’s national and international networks of experts. He
emphasized that only commitment, creativity and professionalism in close
collaboration with African partners would make the programme work.
Finally the speaker wished Prof. Mwamila and Nawangwe and all the
participants, a successful conference.
A.2.1.6 Opening Address by Mr. Peniel Lyimo, Permanent

Secretary, Ministry of Agriculture, Food Security and
Cooperatives
The Permanent Secretary began by warmly welcoming all foreign

participants to Tanzania. He informed that he hoped they would have an
excellent time in the country and that besides participating in the
Conference, they would spare some time to visit different parts of the
country, especially the various tourist attractions, that would enable them

to get a better picture of Tanzania, and not only an impression of Kunduchi

Beach Hotel and Resort.
After expressing his sincere appreciation to UDSM for inviting him to

open the conference, Mr. Lyimo revisited the conference objectives and then
informed participants that on behalf of the Government of the United
Republic of Tanzania and his own behalf, he wished to convey profound
gratitude to the Swedish Government for generously supporting, through
Sida/SAREC, the initiation of collaborative research in engineering and
technology among the faculties of engineering in our region, in partnerships
with Swedish counterpart institutions, and specifically for co-financing the
Conference. He also thanked the co-sponsors of the conference.
Mr Lyimo commended the College of Engineering and Technology of the

University of Dar es Salaam for organizing both the Training Course on the
Development of Innovation Systems and Clusters and the Conference.
In the next part of his opening speech, the Permanent Secretary observed
how, as we move towards increasingly globalised economies, we witness an
accelerated but segmented and uneven process of development. Such
process, he observed, entails the concentration of total global wealth in
certain countries, regions and cities of the world; and marginalization of
production and the people engaged in them, in some other parts of the
world. He then related the above developments to the Government’s
formulation of the National Development Vision, VISION 2025, and the
National Strategy for Growth and Reduction of Poverty. He said that the
documents had been prepared to provide a framework for the development
of our country in a manner that accommodates the emerging national and
global realities, as outlined in Agenda 21 and the UN Millennium
Development Goals (MDGs), in the long-term. He reiterated the overall
national development goal as defined in VISION 2025 as being to attain
sustainable human development. The honourable Chief Guest
emphasized the fact that such a goal has economic, social, political,
institutional, environmental and above all, technological dimensions.
Still on the global scene, the Permanent Secretary observed that while some
of the world leaders are already crossing to the post-industrial era, most
countries of Africa have not been able to adequately embrace even the
technologies of the first industrial revolution. He thus emphasized the

necessity of development in science and technology, particularly innovative
activities, as an important determinant of the processes governing national
development and the position of a country within the world economy,
Tanzania included. He pointed out the need for such countries to adopt
technological innovations as a vital tool for accelerating not only their
transition to an industrial economy, but also for modernization of their
agriculture for the achievement of economic growth.
In the next part of his speech, Mr. Lyimo related the process of African
industrialization with, and emphasized the need for, the development of
Small and Medium Scale Enterprises (SMEs). He asserted that SMEs have
greater potential to generate appreciable employment opportunities thereby
facilitating reduction of the abject poverty existing in Africa. He then
appreciated the fact that the conference aimed at exactly promoting the
growth of such SMEs. Clusters, he said, give rise to collective efficiency,
which enhances firms' competitive advantage and helps firms to respond to
opportunities and crises easily while, at the same time, offering a fertile
ground for technological innovations.
Touching on the advantages that clusters have over other initiatives, Mr.
Lyimo observed that enterprises in clusters enjoy easier communication and
therefore facilitate learning from each other compared to isolated firms.
The next part of the speech dwelt on the role of universities and other
institutions of higher learning in relation to the cluster initiative, that
includes intensification of research activities that serve the community and
its developmental needs thereby searching for solutions to problems that
affect social and economic development; and imparting scientific
knowledge and technical know-how and expertise to the future stock of
specialists.
The speaker then underscored the importance of a regional outlook in

sustainable development, in the face of an increasingly globalised world, in
terms of linkages and cooperation. He cautioned that while the importance
of South-South Co-operation cannot be over-emphasised, it should also not
be perceived as a replacement of North-South Partnerships, but rather a
complement to it. He then pointed to the fact that Tanzania and Uganda are
members of the East African Community (EAC) and that Tanzania and
Mozambique are members of the Southern Africa Development
Community (SADC). He further mentioned the facts that all three nations
are members of the African Unity (AU), the Commonwealth of Nations and
the United Nations (UN).
He related the above spirit of cooperation to the type of cooperation shown

in composition of the conference participants. Again, touching on the
composition of participants to the conference, the Permanent Secretary
submitted that he was encouraged to see that participants were not only
members of the academia, but also that there was appreciable
representation of the industry and policy bodies.
Next, the speaker highlighted the objectives of the conference in terms of

deliberations and discussions that would catalyse, stimulate, and promote
the growth of SMEs and hence the establishment of a buoyant indigenous
based private sector in the Eastern African Region.
At this point, the Guest of Honour declared the 3rd Regional Conference
on Innovation Systems and Innovative Clusters in Africa officially open
and wished the participants fruitful deliberations.
A.2.1.7 Vote of Thanks

by Prof. Barnabas Nawangwe, Dean, FoT-Mak
Professor Nawangwe started his vote of thanks by thanking the Events

Manager who, he noted, had done his job very well. He also thanked Prof.
Burton Mwamila whom he referred to as the father of Innovation Systems
and Innovative Clusters in Eastern Africa. He submitted that while he had
admitted and pleaded ignorance in the first such conference in Bagamoyo
in 2004 with regard to the concept of innovative clusters, today he had
witnessed a successful programme through Sida/SAREC support that had
made it possible to establish a strong ISCP-EA programme.
The professor then thanked VINNOVA and all the sponsors of the
conference for their tireless and unflinching support to the programme.

After the above, the Dean thanked all UDSM colleagues for the preparation
of the conference which, he observed, must have involved sleepless nights
and busy days.
Towards the end of his vote of thanks, Professor Nawangwe thanked the
Guest of Honour for gracing the conference with his wise and challenging
speech. He also appreciated the words of welcome to Tanzania and the
UDSM given by the Guest of Honour. He ended his vote of thanks by
promising that the conference would make good use of the guest of
honour’s speech.
A.2.2 INNOVATION SYSTEMS AND CLUSTERS FOR

COMPETITIVENESS AT INTERNATIONAL LEVEL
A.2.2.1 The Role and Contribution of the World Bank Institute in

Promoting Competitiveness and Sustainable Economic
Growth Worldwide and How Africa can Benefit
by Dr. Justine White
Dr. White began by introducing herself. She thanked CoET for inviting her.
On the overview of the World Bank Institute (WBI), the presenter informed
participants that the Institute has a mission of helping countries share and
apply global and local knowledge to meet development challenges. She also
informed participants that the World Bank Institute intervenes in most
African countries through training sessions and workshops. She then went
on to list policies that have recently affected the WBI. She said that
developing countries are now in the driver’s seat and that the WBI focuses
on the African Action Plan (AAP).
In the next part of her presentation, the speaker dwelt on the Knowledge for
Development Program. She explained the growing importance of the
application of knowledge for growth of the Knowledge Economy (KE). She
explained that the Knowledge Revolution, which forms the basis of a
knowledge economy, means:
(a) Closer links between science and technology,
(b) Importance of innovation for economic growth,
(c) Education and Life-Long Learning,
(d) Investment in intangibles (Research and Development, software and

education) which is even greater than investments in fixed capital,
and
(e) The ICT explosion.
Dr. White then explained that the need to address the risk of a “knowledge
divide” between developing and developed countries had led to creation of
the 1999 program on the “Knowledge for Development”.
The speaker went on to elaborate the four pillars of the “Knowledge for
◊
Development” framework as including:
◊
Education,
◊
Information and Communication Technology,
◊
Innovation System, and
An appropriate economic and incentive regime.
She then explained that Knowledge for Development Program provides

policy services and knowledge economy studies and tools. Dr. White also
gave an overview of the Knowledge Assessment Methodology (KAM). She
informed participants that KAM has 80 structural/qualitative variables to
benchmark performance on the four pillars. The variables are normalised
from 0 (weakest) to 10 (strongest) for 128 countries. Underscoring the
importance for participants to view the easy and interactive WBI website
www.worldbank.org/wbi/kam, Dr. White noted that if a country is doing
well in the Knowledge Economy there is a chance to have a good future in
its economic growth. She further noted that KAM allows comparison in
relation to income, and that the assessment includes most OECD countries
and more than 90 developing countries and 25 Sub-Saharan African
countries. The presenter further informed participants that the data is
updated semi-annually and country coverage is expanded whenever
possible. After explaining how KAM produces a range of charts and figures
the presenter informed participants that comparisons in the KAM can be
performed in many ways. These include:
A global scale comparing all 128 countries in the KAM
A regional scale comparing only countries in the region
On the basis of income levels comparing only countries in the same
income category

On the basis of Human Development Index (HDI) comparing only

countries in the same HDI category.
After the above, the presenter then illustrated various activities that have
been done under Knowledge for Development Program in Africa, itemising
various conferences and Knowledge Economy Studies that had been
conducted. The presenter also elaborated the forthcoming KE study on
Knowledge, Technology and Cluster based Growth in Africa after which
she advised participants to see the case-studies on the following web site:
www.worldbank.org/knowledgefordevelopment.
Towards the end of her presentation Dr. White suggested that participants
deliberate on how the World Bank Institute can help the cluster initiatives.
In addition, the presenter proposed that the partners should also see how
the World Bank Institute could be involved in their projects.
Discussions and Observations
• With regard to the World Bank, it was charged that there is a lot of
ignorance about this bank. An example was given whereby, in villages,
people will ask you how they can open an account with the WB. It was
further observed that the strings attached in WB deals and other
•
donors are a stumbling block to development.
Some clarification was made on the WB pointing out that it still works
directly with governments, although sometimes some funds such as
the social fund and the funding of such conferences like this one do not
have to go through governments.
A.2.2.2 TCI’s Competitiveness Agenda for Africa

by Mr. Lars Eklund, President of The Competitiveness Institute (TCI)
This was a short presentation in which the President of TCI mentioned that
Eastern Africa is not the only region that is advancing rapidly in cluster
initiatives since South Africa has also been doing the same.
West Africa was explained as another region with cluster initiatives coming
up slowly. The speaker advised conference participants to get in touch with

their South and West African counterparts and colleagues so as to learn

from their experiences.
Mr. Eklund ended his presentation by proposing that the ISCP-EA initiative
for cluster be linked to the African Union, and that the modalities of doing
so could include organization of symposiums and conferences.
A.2.2.3 Cases of Innovation Systems and Clusters for Enhancing

Competitiveness Worldwide
by Prof. Ifor Ffowcs Williams, Cluster Navigators Ltd, New Zealand
The speaker began by outlining his presentation in four parts, viz.: a look at
the global perspective in the development of innovative clusters; a case
study from Sialkot, Pakistan; red lights and green lights in cluster
development; and reflections for Eastern Africa.
On global perspectives in the development of clusters, the speaker cited

examples from the US, France and Canada. With regard to the situation in
Quebec, Canada, for example, the speaker observed that the idea was to
build a regional productive system, competitive at the North American and
global levels, by identifying and developing clusters in each of Quebec’s
regions.
Giving an overview of the development of innovative clusters elsewhere,

the speaker observed that there was a mainstream strategy in more than 75
countries in which there was a positive link between the development of
innovative clusters and such other factors like productivity,
competitiveness, job creation, SME growth, investment attraction, export
development and, especially, poverty alleviation.
Turning to the Sialkot case study, the speaker gave a brief background to
the Sialkot surgical instrument cluster, observing that it has more than 100
years of tradition and that today it exports goods worth US $ 175 million; it
has 4,000 formal and informal firms; it employs more than 100,000 workers;
and that it is operating under increasing competitive pressure. The speaker
informed participants that Sialkot is known through academic research that
has been reported in hundreds of papers. Prof Williams further noted that

the project is comparable to the surgical instrument cluster of Tuttlingen in

Germany. He cautioned that while some surgical instrument
centres/clusters like the Sialkot one survive and prosper, others decline and
even cease to operate while others continually adapt. He underscored the
importance of clusters learning from others.
In the next part of the presentation, the speaker turned to the development
of innovative clusters vis-à-vis Red Lights and Green Lights. He advised
that it is important to carefully define one’s cluster first by moving from
generic descriptors such as tourism, light manufacturing or food products
to identifying specific competencies such as Heritage Tourism, Tin Smiths,
Processed Pineapple, etc. In the same vein, the speaker emphasized that it
was important to avoid broad regions such as “Coastal” and identify
specific places like “Bagamoyo”.
Next, the speaker continued with his cautionary list of dos and don’ts. He
observed that it is very important to empower private sector leadership,
and that cluster initiators should view cluster development as a dynamic
process. Cluster initiators were also advised not to allow paralysis by
analysis by, for example, seeking early pay-offs. He noted that it is
important to move quickly into action by identifying the ‘low hanging
fruits’ and then engaging in the more substantive issues through
establishing a portfolio of projects and moving at the speed of business. He
underscored the need to resource cluster development for the long haul by,
for example, taking a 5-10 year perspective.
The speaker noted that the cluster facilitator was key in all of the above so
that confidence is retained; early benefits are found; no single person or
organisation dominates; there is open communication and transparency;
and links are built beyond as well as within each cluster.
Reflecting on Eastern Africa, the speaker said that the constraint to growth
is capacity within each country and not necessarily lack of market
opportunities. He maintained that addressing capacity development is
increasingly becoming a local issue that is cluster specific.
The speaker underscored the importance of linking clusters within a region,

collaborating with the private sector, enhancing capacity for
competitiveness through, for example, Triple Helix alignment that is led by

universities. Touching on collaboration between micro, small and medium
sized enterprises in East Africa, the speaker pointed out that the key
problem for small firms is not their size but their isolation.
The speaker ended his presentation by listing the clustering initiatives

underway in Tanzania, Uganda and Mozambique, commending the efforts
as excellent and exemplary.
A.2.2.5 VINNOVA’s Experience in Promoting Competitiveness in

Sweden
by Mr. Dag Sjögren
Mr. Sjögren began his presentation by linking sustainable development

with long-term economic growth which is also socially and ecologically
sustainable.
He then cited the mission of VINNOVA, as one aiming at contributing to

sustainable economic growth in Sweden through funding of need-oriented
research and the development of effective innovation systems. The general
outlook of VINNOVA is that innovation is the basis for growth, and that in
order to realise innovation one must deal with the missing links towards
competitiveness by using the innovation system framework. He
emphasized that there is a need for parallel strategies such as through
collaboration of innovation systems with Triple Helix as a system oriented
innovation policy framework.
In the next part of his presentation, participants were informed on how

VINNOVA promotes competitiveness in Sweden using VINN Excellence
Centres; competitive SMEs within which there is a program on research and
growth; and a VINNVÄXT program that promotes competitive regions.
Each one of the above was illustrated further. For example, with regard to
VINN Excellence Centres, participants were informed of the long-term
R&D partnership between universities, private enterprises and the
government. There is a national competition on growth potential and there
are 25 new centres, each focusing on one future application area. There is
also joint financing between VINNOVA, universities, and the private sector.

• Increased knowledge and improved technology base in products and

The effects of Research and Growth for SMEs were listed as:
• Increased global competitiveness; and

processes;
• Improved cooperation and networking.
The effects of all the above on Sweden are such that there is increased
economic growth and also job opportunity growth.
VINNVÄXT was further elaborated by the speaker who mentioned that it is

an initiative of regional growth through innovation systems that entails a
regional competition where the winners take it all to the tune of millions of
dollars.
After touching on what he termed as “Robots at large scale” – from low

hanging fruits to strategic initiatives - the speaker looked at ISCP-Tz saying
that two kick-start courses had been conducted whereby 100 facilitators had
been trained while 8 pilot cluster initiatives were already up and running in
Tanzania. He informed participants that formulation of 11 additional
cluster initiatives were in progress. He then turned to the ISCP-
EA/Sida/VINNOVA connection through which four kick-start courses had
been conducted with about 200 facilitators trained. At the same time 7
cluster initiatives were operating in Uganda while 9 were in progress in
Mozambique. Furthermore facilitators’ learning workshops had been held
in Uganda and Tanzania.
Towards the end of his presentation, he reflected on ISCP-EA pilot program

saying, among other things, that it is creating critical mass and is constantly
learning from experience and best practices. He ended by listing three
major challenges that ISCP-EA faces, namely:
o How to use the ISCP-EA framework to upgrade the program to full
scale;
o How to build a functional and sustainable innovation policy
framework in Eastern Africa; and
o How to form and initiate a successful innovation system and cluster
program through, say, re-clustering and networking.

A.2.2.6 Discussion
(i) It was observed that the fish story was very touching and that the
obstacles in putting our fish products in the world market should be
addressed.
(ii) In response to the observation, it was stated that “fish” was just used
as a hypothesis and was symbolic of all products that the CIs would
produce. It could be any product, even ICT products. It was observed
that investment in higher education would ensure an improvement in
our products so that we sell finished, processed products rather than
just raw materials.
(iii) Some participants observed that most national programs aimed at
strengthening higher education had been earlier on branded to be too
elitist. It had even been suggested by some outside forces that we
should just concentrate on primary education. Participants wondered
how we could get out of this quandary.
(iv) It was emphasized that when dealing with ICT, we should begin with
low cost technology, and make use of such technology where
available. The cellular phone was mentioned as a good example of
low cost ICT that can, at the same time improve people’s lives.
(v) The assertion that poor countries are now “in the driver’s seat” was
challenged as being too idealistic. Participants argued that it would
be better not only to be in the driver’s seat but also to know the right
direction and to use the right vehicle.
(vi) The importance of linking with the community was emphasized. It
was argued that without such a link, capacity building would not
work and the CIs would not succeed in their endeavours.
(vii) It was observed that instead of reinventing the wheel, we should
strive to add value to whatever products we export and even to those
that we import.
(viii) Participants underlined the importance of the use of indigenous
knowledge in our projects. Participants were urged to identify and
document indigenous knowledge and its use, constraints and
opportunities in relation the activities of each CI.
(ix) The WBI representative informed participants that although it was
true that the WB had earlier focused on primary education, there has
been a refocusing that takes on board and considers higher education
to be very crucial. On indigenous knowledge it was reported that the
WB is very much interested in this phenomenon, especially

indigenous knowledge on agriculture which the WB is trying to work
on.
(x) It was observed that it is very difficult to quantify innovation
especially in the face of data problems. Members were urged to use
the internet as much as possible where some of the answers to their
queries and problems can be readily accessed.
(xi) Participants observed on the need to fully use the media to advertise
the activities of the CIs. The example of Finland was given, where one
can readily read about innovation system and cluster initiatives in the
country. It was pointed out that the use of the media can reinforce
development while increasing the chances for the democratization
process.
(xii) Participants decried the practice of brain drain from poor countries
like Tanzania to rich, industrialized countries. The case of Taiwan
was revisited in which the country managed to bring back those
intellectuals who had been “stolen” from the country by devising a
special incentive programme for them. Along the same lines,
developing countries were urged to work closely with their people in
the Diaspora.
(xiii) The need for communicating to the public the activities of the CIs was
underlined. An example of a monthly digest was given, although the
question of distribution was cited as a bottleneck.
(xiv) It was stated that it is possible to get good economic returns in low-
income countries through low technology, to begin with. An example
was given of a woman who improved tremendously the sale of her
vegetables through the use of the cellular phone.
(xv) Participants called for the necessity to have long term plans in
development programmes rather than just quarterly plans and
reports.
(xvi) Engineers were urged to link up with medical people, education
people, etc. so as to make things work, and stop the mindset that only
engineering is the beginning of development endeavours.
(xvii) Recognition of engineering qualifications across borders was said to
be very tricky especially due to self-protection.

A.2.3 DEVELOPMENT OF INNOVATION SYSTEMS AND

TOWARDS ACHIEVING COMPETITIVENESS
A.2.3.1 Cases of Innovation Systems and Clusters in South Africa

and Measurements on How They Impact on Productivity,
Competitiveness and Economic Growth
by Dr. William Blankley, Human Science Research Council,
South Africa
The Presentation
The presenter started by giving some background information on

development of cluster initiatives in South Africa. He pointed out that the
numerous spatial development initiatives and cluster developments in
South Africa are mostly broad based and government, rather than industry
led.
Dr. Blankley reported that measurement of R&D activities are based on the
Organization for Economic Cooperation and Development (OECD) system
and are undertaken on an annual basis covering five sectors, namely;
business, higher education, government, science councils, and not-for-profit
organizations. The results comprise official national statistics and are
recognized by Statistics Agency of South Africa. The reports are submitted
to OECD Centre for Science, Technology and Innovation Indicators.
The speaker further reported that the Centre for Science, Technology and
Innovation Indicators (CeSTII) has now undertaken the third in a new
official series of R&D Surveys since 2002, including questions dealing with
R&D performance by provincial location and on collaborative partnerships
in R&D for business sector only.
The presenter went on to explain the basis for innovation surveys, the
guidelines it provides, where it is undertaken, mentioning that it covers the
business sector, namely, mining, manufacturing, and services.
In connection with the above, the speaker presented detailed explanation of

the responses. Under the question of South African R&D expenditure and
R&D as percentage of gross domestic product (GDP) per province, he

observed that there was major flow of funding to research and
development. For example, Gauteng despite being the smallest province in
South Africa was reported to be the base for most leading research and
technology institutions.
On South African business sector R&D collaboration with partners, the

speaker informed participants that results showed that the majority of links
within South Africa were with higher education followed by other
companies and science councils. Most links abroad were with other
companies.
♦ Business collaborates with higher education institutions and science

In concluding his presentation, Dr. Blankley noted the following:
♦ Spatial development initiatives and clusters are not focused on R&D

councils in R&D partnerships but very little in innovation activities.
♦ Innovation collaboration with partners in other African countries is still

and innovation - there is therefore, a need for studies on this.
low but on a steady increase.
Discussion
• Requested clarification on the explanation on R&D partnership in
•
relation to business
Inquired on how collaboration can be enhanced through different
•
measures, including invitations to such conferences like this one.
•
Enquired how the activities can be brought towards higher education.
Wondered how African governments to contribute can be convinced to
•
such initiatives.
Questioned the relevance of universities in the innovation programmes.

A.2.4 WHICH WAY EASTERN AFRICA TOWARDS

GOALS AND NATIONAL STRATEGIES FOR GROWTH
AND POVERTY REDUCTION
A.2.4.1 Overview of the ISCP-EA: Enhancing Competitiveness

through Cluster Initiatives
by Prof. Burton L.M. Mwamila, CoET-UDSM
The Presentation
The presentation began by citing the Tanzania National Development

Vision 2025 and observing that it entails laying a solid foundation for a
competitive and dynamic economy with high productivity. There is, thus, a
need for stimulating and promoting innovativeness, competitiveness and
growth of the local industry. Prof. Mwamila went on to explain the UN
Millennium Development Goals mentioning what the 191 member states
pledged to accomplish by the year 2015.
This was followed by presentation of the Tanzania education pyramid

showing enrolment in primary and secondary schools since 1961, 1981 and
2003. It was made clear that the College of Engineering and Technology
(CoET) recognizes that the fundamental factors necessary for the
development of innovations include skills, the exchange of knowledge and
opportunities for mutual learning as part of the interaction between
businesses, research institutions and political bodies.
The Professor reported that CoET, the Faculty of Technology of Makerere

University, and the Faculty of Engineering of Eduardo Mondlane
University with the support of Sida/SAREC, have jointly established the
Innovation Systems and Clusters Programme in Eastern Africa (ISCP- EA).
The aim is to stimulate innovativeness, competitiveness of firms and farms,
and economic growth in the three Eastern African countries. Major
components of ISCP-EA were mentioned as including:
(i) Research and related innovation systems and clusters policy reviews
in EA,
(ii) Implementation of pilot innovation systems and cluster initiatives,
(iii) Awareness creation and publications,
(iv) Implementation of various competence building activities, and

(v) Coordination and follow up forums.
∇
In addition, the programme’s objectives were also presented. These are:
∇
Enhanced innovativeness among firms and farms,
Enhanced competition and cooperation among firms and farms
∇
within clusters and sectors, and
Acquisition of competitive mindset by Eastern Africans.
The next part of the presentation was devoted to the review of the current
situation. The presenter noted that there has been little industrial
development; our countries remain basically non-industrialized and heavily
reliant on agriculture. Firms’ relations to other firms and/or organizations
are not optimized for knowledge transfer and joint learning. There is lack of
innovation leading to continuously loosing market shares to others who are
continuously innovating. As a result of these problems our countries are
loosing incomes and are therefore bound to remain poor. The speaker
submitted that there is a need to instil and promote competitiveness among
firms and the SMEs, and thereby develop a strong and vibrant private
sector. He underscored the fact that there is no country that has successfully
built a buoyant private sector without a strong indigenous participation.
After the above, Prof. Mwamila listed a number of activities which have
been carried out including formation of Tanzania National Steering
Committee. This was followed by the list of the 8 pilot cluster initiatives
established in Tanzania. These CIs are:
1. Bagamoyo cultural heritage tourism cluster initiative,
2. Eastern region mushroom cluster initiative,
3. Morogoro metal-works cluster initiative,
4. Morogoro small scale fruit and vegetables processors cluster initiative,
5. Arusha vegetable seeds cluster initiative,
6. Tanga/Korogwe sisal cluster initiative
7. Zanzibar seaweeds cluster initiative, and
8. Dar es Salaam nutraceuticals/functional foods cluster initiative

The professor then elaborated the three main activities to be undertaken

during the pilot phase, namely:
(i) Mobilization of people and resources within the CI and analysis of the
activities;
(ii) Preparation of the ground for facilitation of implementation of short-
term activities;
(iii) Identification and facilitation of implementation of long-term strategic
activities.
Prof. Mwamila turned to the parallel initiatives by CoET towards

establishing a buoyant private sector. He mentioned the initiatives that
CoET is undertaking as including the technology-cum-business incubation
project with stations in Kibaha, Lushoto and Morogoro; establishment of
SME clubs in six locations in the Lake Zone; and the innovation systems
and cluster program. He further reported on the recent training workshop
that preceded the conference. He then listed the potential cluster initiatives
which were the outcome of the training workshop as including: small-scale
mining, ICT, oil-seeds, building construction, educational services, rice
processing, wood carvings, bio-fuel, cassava processing, and heritage
tourism.
The professor concluded his paper by reiterating the need for continuous
innovation, not only as an important, but also necessary condition for our
countries to stay “alive”. He said that for Tanzania and Eastern African
countries to cope with the challenges of globalization and achieve what is
envisioned in the Vision 2025 and in conformity with the MDGs, there is
dire and urgent need for capacity building and change of mindset among
businesses and Tanzanians and Eastern Africans in general. The
establishment of the clustering behaviour is important in supporting the
development of competitiveness among SMEs. He emphasized that
clustering promises to facilitate growth of the SMEs into large, vibrant and
competitive firms, and hence a successful and buoyant local private sector.
He noted that the innovation system and cluster programme promises
provisions of the mechanism for change of the mindset in favour of
competitiveness, enhanced quality consciousness, productivity and
cooperation while competing among SMEs and the Tanzanian and Eastern
African societies in general.

Discussions and Observations
• A question was raised as to why Kenya was left out from the initiative,
and why Mozambique has been left behind in the picture given by Prof.
•
Mwamila.
Participants asked how governments can assist the development of
•
innovation systems in Africa.
Some participants asked some questions with regard to the theme of the
conference. It was queried whether it means that the clusters are being
•
revamped or new ones are being introduced.
It was urged that there should be incubators in universities that can link
up with the clusters. Makerere University was said to be still grappling
with the interfacing between higher education institutions, incubators
and the clusters.
Responses
◊ With regard to the fact that Kenya has been left out, the Professor said
that it all emanated from the history of the initiative. He noted however
that from last year, Kenya and Rwanda have been considered in initial
discussions with Sida/SAREC. On Mozambique which is partner in the
collaboration, it was reported that in June 2006 a training workshop was
◊
conducted there and that about 9 possible CIs had been identified.
On government involvement, it was observed that there are signs that
the govt is in support of the ISCP especially the Ministry of Industry,
Trade and Marketing, including some funding that has been made
available to sponsor part of the conference.
In addition to the response given one participant stated that

governments should just be forced and pushed to do this, so that
development aid is attached to the development of the cluster
initiatives. An example was given, of West Africa where aid was
attached to “no-coups”, as a result of which there has been no coup
◊
since then.
Professor Mwamila observed that the Tanzania Private Sector
Foundation that is supported by the World Bank is likely to avail
support to ISCP-EA.

◊ The professor cautioned that there is a need to differentiate clusters
◊
from cluster initiatives, innovative clusters and incubators.
Professor Mwamila ended his comments by observing that what are
seen out there are not yet fully developed clusters, but rather clumps
and agglomerations. Such clumps can graduate into clusters if they
corporate and compete around common niche areas.
A.2.4.2 A Short Overview Presentation of the Innovation Systems

and Clusters Programme in Uganda (ISCP-Ug)
by Prof. John-Bosco Turyagenda, National Coordinator, ISCP-UG
In his introduction the speaker stated that the concept of cluster initiatives
and innovative clusters has been embraced by the three countries, namely
Tanzania, Uganda and Mozambique in which the respective faculties of
engineering have spearheaded the efforts. He then stated the purposes of
the ISCP in East Africa saying that it aimed at developing innovation
systems and innovative clusters through cluster initiatives in the region.
On why the cluster idea is important now, the professor touched on

competitiveness pointing out that clusters are effective tools /structures for
promoting innovations and, hence, competitiveness of firms, especially
SMEs. He then stated that cluster initiatives are important now for joint
production, joint sales, human resources upgrading, intelligent lobbying,
and joint research.
The speaker justified the initiative, saying that globalization entails that a
firm acquires a competitive advantage, and that there is competition in
economic development in which the rule is either you innovate or you
perish. Through the initiative there is going to be an increase in production,
expansion of markets and increased profits.
Professor Turyagenda then touched on the cluster initiative experience

elsewhere, saying that there are very many cluster initiatives around the
world especially in Europe, Australia, New Zealand and North America.
Experience from these countries demonstrates that strong clusters do
ensure sustainable competitive advantages in these countries.

The speaker included on the list, some developing countries like India,
Brazil, and South Africa, stating that in those countries cluster tools have
taken roots that have, in turn, catalysed the growth of their economies by
helping them to penetrate and effectively compete in global markets.
Next, the professor turned to the role of government in the development of

clusters, pointing out that there are policies that are conducive to the
development of cluster initiatives. He singled out the Uganda Investment
Authority, which offers some incentives for starting up businesses. He also
◊ Liberalization of the economy,

listed the following as positive aspects for cluster initiatives:
◊ Creation of relevant institutions and agencies, and

◊ Creation of Innovation and Research Fund by the Government.
The speaker also noted the existence of regional initiatives such as NEPAD
and EAC, as well as bilateral science and technology cooperation between
Uganda and the Republic of South Africa.
In the next part of the presentation, the professor listed cluster activities in
Uganda as including:
1. Attendance in 1st Regional Conference at Bagamoyo in September 2004;
2. National Stakeholders’ Workshop held in Entebbe in December 2004;
3. The 2nd Regional Conference held in Jinja, Uganda on 3rd – 5th March
2005;
4. Cluster Training Workshop in Uganda in September 2005;
5. Participation in TCI Conferences; and
6. Implementation and management of 7 Pilot Cluster Initiatives in
Uganda.
The speaker then examined the Cluster Initiatives in Uganda and the
∇ Evaluation exercise by the NSC and also by the international team,

accompanying activities /achievements that included:
∇ Mid Term stakeholders workshop in Kampala,

∇ Registration with the Registrar of Companies and Organizations in
∇ Clusters from different villagers that touch on various aspects and

Uganda, and
activities of the people.

The achievements of phase one were also listed by the speaker. These
฀ Leadership teams of the pilot clusters were already in place;

included the fact that:
฀ Cluster concept has been understood by the various stakeholders;

฀ Mistrust among cluster members has been minimized; and
฀ Some clusters have been officially launched.
The challenges that were listed as facing the CIs in Uganda included:
1. Limited funds;
2. Lack of physical infrastructure;
3. Training and skills development;
4. Lack of national awareness of the cluster programs at all levels;
5. Whether the cluster concept will deliver where other concepts have
failed; and
6. The issue of sustainability.
In drawing his conclusions and charting the way forward, Professor

Turyagenda said that experience from developed countries shows that CIs
improve competitiveness while creating new jobs and companies, attracting
new investments and retaining firms within the industry. The professor
cited the experience from developing countries such as India, Brazil and
South Africa where CIs have helped those countries to penetrate and
effectively compete in the global market. He said that if the CIs have
worked elsewhere it should be possible for them to work in Uganda.
The speaker ended his submission by advising that in order for the cluster
concept to take root in Uganda the government and all stakeholders should
come up with a cluster management and development policy that will
guide all the cluster initiatives in the country.
Discussions and Recommendations
(i) On challenges at national and government levels, it was observed that

such challenges can be overcome so long as there is a joint effort
between government, the people and the academia.
(ii) Participants wondered why presenters did not touch on intellectual
property rights that would curb piracy, etc.

(iii) It was observed by a participant that in spite of the praise by the

Uganda government, there has been no cash from the government.
(iv) The Uganda Representative informed participants that on the cash
issue, 8 Billion Shillings have been allocated to research by the
Uganda Government, for measures such as national awards for
innovativeness, science and technology, etc. He suggested the
introduction of a regional award for the best cluster, which could
recognize such initiatives like the present one.
(v) Hon. MP from Uganda said that there is goodwill and the cash is
there, that is why there were no cuts in the recent budget.
(vi) Participants were informed about the availability of 30 million US
Dollars in Makerere in support of innovations.
(vii) It was reiterated that clustering will finally eradicate poverty since it
will lead to economic development of the people.
(viii) Prof. Turyagenda was requested to sell the cluster initiative to the
government of Uganda through such contacts like that of the Minister
of State for Finance.
Responses
• Professor Turyagenda agreed that the issue of intellectual property is,

indeed, very important and that the legal aspects of the initiative will
•
be addressed.
Prof. Mwamila also reiterated the importance of guarding intellectual
property rights emanating from the cluster initiatives.
A.2.5 PARALLEL SESSIONS ON REPORTS FROM PILOT CLUSTER

INITIATIVES
A.2.5.1 Cluster Initiative Reports

by Respective Cluster Facilitators
The reports from the 15 pilot Cluster Initiatives (CIs) were presented in
parallel sessions as follows:
(i) Metal Fabrication in Katwe Uganda

(ii) Morogoro Fruit and Vegetable Processors Tanzania
(iii) Morogoro Metal Works Tanzania
(iv) Pineapple Processing in Kayunga Uganda

(v) Basketry in Luweno Uganda
(vi) Nutraceuticals Tanzania
(vii) Bagamoyo Cultural Heritage Tourism Tanzania
(viii) Salt Processing in Katwe Uganda
(ix) Biofuels–Ethanol in Kakira Uganda
(x) Zanzibar Seaweeds Tanzania
(xi) Sisal Tanzania
(xii) Eastern Region Mushroom Tanzania
(xiii) Arusha Vegetable Seeds Tanzania
(xiv) Fashion Design / Textiles Uganda
(xv) Management Consultancy Uganda
The Cluster Initiatives were given guidelines for their presentations. The CI
reports and discussions thereof were facilitated by Ifor Ffowcs Williams and
Lars Christensen.
A.2.5.2 Presentation of Independent Monitoring and Evaluation of

the Performance of the 8 Pilot Cluster Initiatives in
Tanzania
by Ms. Bitrina Diyamett, ATPS National Coordinator, Tanzania
Ms. Diyamett began by outlining her presentation. She pointed out that it
would, among other things, include:
(i) Proposing the monitoring and evaluation indicators;
(ii) A word on methodology;
(iii) Brief report on clusters visits;
(iv) General conclusion on clusters potential;
(v) Proposed evaluation chart; and
(vi) Issues for further debate.
In the introductory part, the speaker stated that the 8 pilot cluster initiatives
are a part of the implementation of the action plan developed as a result of
the first conference on Innovation Systems and Innovative Clusters in
Africa. She further informed that the 8 clusters were selected based on some
limited information on cluster growth potential and strategies for poverty
alleviation. She then listed the clusters as comprising metalworking and

engineering, mushroom, seaweeds, vegetable seeds, tourism and cultural

heritage, vegetable and fruits processing, sisal and nutraceuticals.
The speaker quoted an operational definition of a cluster from Resenfeld

(1997) who had defined an industry cluster as a geographically bounded
concentration of similar, related or complementary businesses, with active
channels for business transactions, communications, and that are faced with
common opportunities and threats. She then explained that Porter (1990)
defines clusters as predominantly horizontal or vertical. The speaker
explained that horizontal clusters are basically competitors, linked through
common market for the end products while vertical clusters are linked
through buyer-seller relationship. The presenter noted that in most cases,
some elements of both vertical and horizontal clusters are present. The
presenter dwelt on factors important for the formation and growth of
clusters.
In the next part of the presentation, Ms. Diyamett reported that the
evaluation began from the objectives of each cluster. Cluster formation
processes were examined alongside the objectives of each cluster. She then
presented the proposed monitoring and evaluation indicators, as follows:
(i) Environmental factors;
(ii) Cluster phase and type at the point of intervention;
(iii) Social capital and trust;
(iv) Linkages;
(v) Active participation from private sector; and
(vi) Good governance
The speaker provided the methodology employed which included

observation and interview with sample members of each cluster, followed
by listing of the major questions explored.
฀
Ms. Diyamett outlined the general observation, as follows:
฀
Most clusters have made efforts in cluster initiative awareness raising;
฀
Leadership teams have been put in place;
Some clusters have done official launching and others are in the
฀
process;
Most of the cluster initiatives are pro-poor projects, especially for the
disadvantaged groups such as women.
The presenter went on to explain in detail outcomes of the study of each

cluster initiative. She observed that supportive policies at the national level
are important for the growth of cluster initiatives. She noted that at the local
level some clusters have made head ways.
Towards the end of the presentation, the speaker observed that most of the
clusters are of the engineered and re-engineered type, but with a lot of
potential for development because of the strong environmental factors and
commitment from private sector, coupled with good governance, both at
local and national level. Ms. Diyamett explained that with most of the
clusters, there is potential market that needs to be developed into effective
demand; otherwise market issues can turn into a major stumbling block for
most clusters.
∇ Identification and selection of clusters for initiatives;

At the end the speaker presented issues for further debate, including:
∇ Spatial proximity;
∇ Best entry points for starting initiatives; and
∇ Measures of cluster growth, whether in terms of number of firms or
size.
A.2.5.3 Presentation of Independent Monitoring and Evaluation of

the Performance of the 7 Pilot Cluster Initiatives in
Uganda
by Prof. Joseph Obua, ATPS National Coordinator, Uganda
Prof. Joseph Obua began his presentation by listing the cluster initiatives
monitored, namely:
(i) Pineapple juice processing;
(ii) Fashion and Textile;
(iii) Metal fabrication;
(iv) Basketry;
(v) Ethanol and Biofuel;
(vi) Lake Katwe Salt; and
(vii) Management Consultancy

The presenter defined African Technology Policy Studies (ATPS) as a

multidisciplinary network of researchers, policy makers, actors in the
private sector and other end users interested in generating, promoting and
strengthening innovative Science and Technology in Africa. ATPS’s major
♦ Providing support for development and strengthening of policies that

thrust was reported as:
increase the integration of Science and Technology in national
♦ Strengthening institutional capacity for technological development,

development programmes;
♦ Making a difference in people’s livelihoods by enhancing the capacity

competitive production and enhanced incomes;
to produce goods and services that can compete internationally and

globally through utilisation of appropriate and affordable
technologies.
After the above, the speaker outlined the objectives of monitoring Cluster
•
Initiatives in Uganda, as follows:
To assess the formation, status of progress and operation of the
•
clusters;
•
To assess the expectations of stakeholders about cluster initiatives;
•
To identify bottlenecks and challenges faced by the CIs;
To establish whether the CIs have been established within the national
•
policy frameworks; and
To recommend actions to enhance the development, performance and
sustainability of CIs.
With regard to the guiding questions, the presenter detailed the questions
asked. He then went on to explain policy requirement for development of
◊
Cluster Initiatives in Uganda. He highlighted the facts that:
Economic activities in Uganda are guided by Poverty Eradication
◊
Action Plan 2004/5-2007/8;
◊
Uganda needs to industrialise to enhance competitiveness;
◊
Private investment is a competitive enterprise; and
Hypothesis is consistent with CI goals.
Regarding the African Technology Policy Studies (ATPS), it was pointed

out that all the seven Cluster Initiatives have been formed and are

functional. The concept of “low hanging fruits” was used to kick-start the
CIs. The speaker observed that the Management Consultancy, Basketry and
Metal Fabrication CIs have organizational structure, and he advised all
other clusters to streamline this aspect.
On the issue of whether a baseline survey was conducted to reveal each

firms’ profile, Prof. Obua said that none of the CIs has done this. There was
a slight attempt by Fashion and Textile CI, but data was inadequate to
reveal profiles. He noted that most CI firms and individuals do not know
each other adequately. The information known was shared by word-of-
mouth during planning meetings to start CIs.
The following challenges were listed by category as the major ones that the
cluster initiatives face:
(i) Capacity building;
(ii) Awareness;
(iii) Resource centre;
(iv) Budget clarification;
(v) Sustainable cluster status of CIs;
(vi) Knowledge of current status of CIs;
(vii) Language barrier;
(viii) Quality of the local facilitator;
(ix) Cluster mapping;
(x) Linkage with other related national activities; and
(xi) How to differentiate CI from cooperatives and associations.
The speaker reported that the majority of the CIs appear to have grasped
the meaning of the concept of clustering. Cluster leaders and facilitators
applied the cluster concept to a good start of CIs. Some of the people still
refer to member firms as “clusters”. Therefore, there is need for further
sensitization of members to fully grasp the concept of CI.
Concerning the feasibility of implementing the CI concept in Uganda, the

general indication was that CIs can benefit the development of SMEs. There
was a concern on fears of abandonment if members do not realise any
benefits from CI. He observed that CIs require patience, commitment and
time.

With regard to the question of individual members and member firms fully
participating in the CI activities, it was reported that individuals and
member firms were fully involved in CI activities. Involvement was viewed
as creating room for building trust and ownership of the CI. Therefore,
cluster leaders need to assign clear roles and responsibilities to members to
keep them actively involved in CI affairs.
On whether activities of CIs linked to relevant policies in Uganda, the

speaker reported that all clusters had overlooked this issue. It was pointed
out that there are serous flaws in the CI development process. Therefore, all
clusters need to operate in favourable policy environment or regime. In
addition, the speaker presented the various relevant policies in Uganda and
emphasised the need for clusters to know these policies and how they affect
or guide their activities.
Regarding sustainability of CIs in Uganda, the speaker noted that it is too

early to tell and there is definitely need for sustainability of the strategies.
Concerning empowerment and perceived benefits, it was reported that it is
too early to tell as cluster initiatives have just began. The speaker observed
however, that there is potential for empowerment through capacity
building. Moreover, there are enormous benefits through competitive
production of high quality goods and services.
With regard to potential for stimulating economic growth and up-scaling,

the speaker noted that there is huge potential as demonstrated by Uganda
Quality Basketry Cluster Initiative. He said that the importance of
continuous training to upgrade skills to achieve high quality basketry for
local and international markets must be emphasized.
Relating to advocacy for acceptability and lobbying government support,

the speaker reported that this has not been done by all CIs. He advised
inclusion of this aspect in the work plan and strategies of all the CIs.
Towards the end the speaker summarised his presentation as follows:

The cluster initiatives have been formed and are functional;
The clusters initiatives are at different levels of development and face
different challenges;

The profiles of firms or institutions in the different clusters are not

known;
Clusters have not linked their activities to relevant policies and
national development frameworks.
Having said the above, Prof. Obua recommended the following:

(i) Baseline studies need to be conducted;
(ii) There should be refresher training for continuous flow of information
among members and firms in CIs;
(iii) The National Steering Committee should develop a programme of
meetings of cluster facilitators and leadership;
(iv) There is a need to sensitize members not to perceive CIs as “new
projects”;
(v) It is important to establish innovative programme of activities so that
members do not drift away;
(vi) There is a need to conduct cluster activities within the policy and
economic development framework;
(vii) There is a need for sustainability strategies; and
(viii) A national policy on IS and ICs should be formulated.
In the end the presenter thanked ATPS Network for collaborating in the
ISCP-EA and involving the Uganda Chapter. He said that ATPS Uganda
Chapter is grateful for all the support from the National Steering
Committee Uganda and Sida/SAREC. He further expressed gratitude to all
the ISCP-EA teams for excellent partnership in the programme.
A.2.5.4 Observations on Presentations of Cluster Initiative

Reports by Facilitators I
by Ifor Ffowcs Williams
The speaker started by noting that clusters are at pilot and learning stage.
He said that the 15 clusters were selected by chance, and they were not
picked depending on their performances.
The speaker commended the presentations made. He noted that he has seen
great achievements from the presentations made. He used the example of
Bio Fuel Ethanol Cluster in Uganda, where ethanol was used as car fuel and
the car drove away. He further used Metal Fabrication Cluster to illustrate
success in terms of orders for their machinery. He also noted that CIs had a
triple helix representation. An example was given of the good
representation from the Bagamoyo Tourism Cluster.
He went on to say that the idea of clustering is a process, and it is about

changing the mindset at local and regional levels. He emphasised the need
to differentiate between a cluster initiative and a cluster. Clustering is a
social process and a change on a system level and change of the mindset.
Any social process takes time so as to build awareness and sense-making
process. There is, thus, a need to have a 5-10 year perspective.
In concluding his summary of discussions made, the speaker highlighted

the need to think of the way forward from pilot program to a full program.
A.2.5.5 Observations on Presentations of Cluster Initiative

Reports by Facilitators II
by Lars Christensen
The presenter reiterated the five phases and twelve steps for cluster
development as exemplified by Lake Katwe Salt. He noted the importance
of workshop attendance by citing the example of Zanzibar Seaweed Cluster
that truly reflected the leadership group in place. The speaker proposed to
engage people from all aspects related to a particular cluster in promotional
activities.
The presenter cited the Morogoro Fruit and Vegetable Cluster as an

example of a low-hanging fruit.
Touching on the Kampala management training / consultancy cluster, the
• A cluster over time defines itself more narrowly

presenter concluded by emphasizing three points, viz.:
• A cluster is not a cooperative, consortium or property organization.

• Stages: Unfreezing, moving on and then freezing.

Discussion
(i) It was noted that profit making is central in all clusters.

(ii) Participants recommended further training of the cluster facilitators
so that issues of management and book keeping etc are taken care of.
(iii) The clusters were advised to cooperate and share information.
(iv) The conference emphasised the need for facilitators to get equipment
such as laptops so as to improve their presentations.
(v) Participants reiterated the importance for baseline research and
studies on government policies and also for data collection.
(vi) Clusters were advised to exchange technologies across clusters and
across the regions.
(vii) It was suggested that the evaluation methodology used by Prof.
Joseph Obua be given to clusters so that they can use it to evaluate
themselves.
(viii) It was enquired if it is possible to combine incubation and clustering
processes for growth into viable industries that create market
demand.
(ix) Participants suggested that the World Bank should be a partner in
the long-term investments by different cluster initiatives.
(x) Participants underscored the need for training to be inbuilt within
the long-term plans of each cluster.
(xi) It was suggested that facilitators across the region create a regular
forum during which they can share experiences with the support of
the media.
A.2.6 OTHER INNOVATION AND COMPETITIVENESS RELATED

INITIATIVES AND CASES
A.2.6.1 Cases of Innovation at Firms Level in Developed and

Developing Countries
by Dr. Marcel Crul and Mr. Jan Diehl, TU Delft, The Netherlands
Part One
Dr. Crul started his presentation by stating the mission of the Faculty of
Industrial Design Engineering, which is to study, innovate and improve the

development of durable products and their related services for people, on

the basis of balanced interests of users, industry, society and environment.
He then went on to explain the two concepts of development, namely;

people profit planet sustainability, and strategic product development. He
reported that the Technical University Delft (TU Delft) is providing services
to various countries and regions in the world. The countries to which
services have been provided include the following:
(i) Central America: Packaging food, Energy.
(ii) Latin America: Solar lighting, Healthcare & ICT.
(iii) Uganda: ICT, microfinance.
(iv) India: Healthcare Water, Energy, Disability Housing, ICT, Education,
Rural women, Design Tools.
(v) China: Healthcare, Design Tools.
(vi) Cambodia: Solar lighting.
(vii) Philippines: Local resources.
Regarding experiences from the projects, it was explained that product

innovation is feasible and can improve competitiveness of a company,
cluster or sector and that the innovation is needed to keep up with
competitive pressure - local, national, regional and global. Sustainability
was explained to be one of the key concepts adopted worldwide, that
should be included in product innovation.
The speaker further explained that in developing countries there is a need

for awareness of the importance of product innovation, practical experience
and technical capacity.
Thereafter, the presentation discussed Development for Sustainability (D4S)

in developing economies. The target groups are intermediaries working
with SMEs and clusters. The presenter dwelt on how to do D4S. He
explained what D4S is, emphasising the need for design for product
innovation and sustainability. He explained that to do D4S in practice, three
steps are followed. These are redesign, needs assessment and
benchmarking.

The presenter ended his presentation by providing detailed information

covering the steps to be taken and the questions to be taken into account, in
product redesign, needs assessment and benchmarking.
Part Two
The thrust of Mr. Diehl’s presentation was to demonstrate product
฀
innovation cases conducted by TU Delft. These products included:
฀
Metal workshops;
฀
Food Packaging; and
Solar Energy and beyond.
The presentation first explained product innovation in SMEs in Central

America. This consisted of Talleres Rea, Guatemala and Metal Workshop.
The main work dealt with how to make the workshops more competitive.
The presenter illustrated how, for example, in Guatemala, coffee processing
was improved. He reported that TU Delft worked with students to make
the product (coffee) more innovative. The achievements obtained are:
(i) 70 % Reduction of weight,
(ii) 50% Reduction of material use,
(iii) 40% Cost reduction,
(iv) Elimination of water use
(v) Improved assembly,
(vi) Improved handling, and
(vii) Improved image (“Eco”).
Also it was reported that in Guatemala redesign was done in the Metal
Sector Synergy. Another illustration was given on post harvest transport in
Ghana, West Africa. The speaker informed participants that post harvest
loss of yam, pineapple and plantain has led to lack of potential income.
Towards the end of the presentation, the speaker reported that in Tanzania
the cassava project was executed in collaboration with Inter-Mech
Engineering Ltd. starting from human powered graters towards
benchmarking and product redesign.

A.2.6.2 Engineering Capacity Building in Developing Countries,

by Prof. Russel Jones, President, WFEO Committee on Capacity
Building
Prof. Jones started his presentation by citing quotations from Kofi Annan
(2002) and Koichiro Matsuura (2000). He then continued by outlining the
United Nations Millennium Development Goals. He said that several of the
development goals outlined in the Millennium Declaration amplify the call
for action by engineers through:
̇ Eradicating extreme poverty through reducing by half the number of
people living on less than a dollar a day;
̇ Ensuring environmental sustainability by reducing by half the
proportion of people without sustainable access to safe drinking
water;Developing a global partnership for development in cooperation
with the private sector, making available the benefits of new
technologies, especially information and communications technologies.
The speaker defined and explained the aim of capacity building. He started
by citing from “the Elusive Quest for Growth” by William Easterly (2002)
who worked with the World Bank and was fired because of the statement.
He then presented Easterly argument on factors that can lead to economic
◊
development viz.:,
◊
Utilization of advanced technologies, and
Education that leads to high skills in technological areas.
Prof. Jones then explained that a solid base of technologically prepared
•
people in developing countries will result into:
•
Attracting investments by multinational companies;
•
Assisting in making the most of foreign aid funds; and
Providing a basis for business development by local entrepreneurs.
In the next part of the presentation, the speaker listed two complimentary
approaches which form UNESCO Cross-Sectoral program in technical
capacity building, to enhance programs within that organization, and the
WFEO Committee on Capacity Building, to provide an action oriented
program for forward motion. He said that the activities of the WFEO
Committee include:
o Engineering for the Americas,
o E-conferences,
o Entrepreneurial conference,
o Women in engineering,
o Engineers Without Borders, and
o African initiatives.
Prof. Jones listed the activities and initiatives by WFEO Committee to Africa
which included:
(i) Engineering education workshops;
(ii) Development of accreditation systems;
(iii) Entrepreneurial training;
(iv) Stimulation of internship programs;
(v) Electronic delivery of courses;
(vi) Formation of Engineers Without Borders cells;
(vii) Faculty and student exchanges; and
(viii) Incubators for innovation.
He further expressed hope that the WFEO Committee will work together
with institutions in Tanzania to utilize well the available funds.
฀
After the above the speaker said that funds are being sought in support of:
Partnership for Higher Education in Africa (six major US foundations
have committed $200-million over next five years), and other
฀
foundations;
฀
Corporations;
฀
Government organizations; and
Universities.
Towards the end of his presentation, Dr. Jones highlighted the conference
that would be held in Cameroon in 2006 with a theme on “Sustainable
Engineering Development in Africa”. The presenter informed participants
∇ 26 – 27 September: ARCEE Conference in Pretoria

of the next major programs, namely:
∇ 28 – 29 September: WFEO CCB workshop on engineering education
∇ 30 September: Women in engineering conference

(freshman year, active learning)
∇ 1 – 2 October: CCB annual meeting, including interaction with African

Engineers Forum for professional development needs
The speaker ended his presentation by providing a summary of his

presentation as a reminder to participants of what he had explained.
A.2.6.3 Linking CoET Technology Incubation Programme to ISCP-EA

by Prof. Idrissa Mshoro, CoET -UDSM
The Presentation
The professor began by stating that in Tanzania, the SME sub-sector is still
largely informal, under-performing, and also it has not grown to have
significant contribution to the national growth. He listed some reasons for
this state of affairs, as follows:
(i) Use of obsolete technology;
(ii) Underperformance of machines;
(iii) Lack of managerial, technical and business/entrepreneurial skills;
(iv) Inability to access loan financing;
(v) Inability to access markets;
(vi) Inadequate support infrastructure;
(vii) High costs of doing business; and
(viii) No/inadequate networks.
The professor charged that such barriers lead to poor quality products
accompanied by higher production costs, which, in turn, makes most SMEs
not to grow.
As a panacea for the above, Professor Mshoro suggested that there should
be supportive policy and legal frameworks while minimizing the
weaknesses related to competitiveness at product level. He also advocated
for provision to entrepreneurs, with technology, expertise, networks and
business tools. The speaker pointed out that it was with such spirit that
CoET initiated the technology-cum-business incubator project.
In the next part of his presentation, the speaker informed participants about
the project design, starting with the overall goal of contributing to the
achievement of the objectives of the National SME Development Policy
with special emphasis on the improvement of SME’s access to new and
adapted technology and business support services.

In what he termed “developmental goal”, the speaker said that the target
was to enable SMEs to grow quantitatively thereby generating employment
and wealth that will, in turn, reduce poverty.
Next, the speaker informed participants that the institutional objectives of

the project include the following:
̇ Piloting replicable case studies of demand driven business/technology
incubators that are sustainable and relevant to national policy
objectives;
̇ Enhancing transfer of technologies developed at CoET and other
developers; mainstreaming enterprising tendencies in teaching that will
produce more enterprising graduates; and
̇ Assisting graduates and staff/retirees wishing to realize respective
imaginations but lacking the necessary environment to do so.
At this juncture, Professor Mshoro dwelt on the way to realize the above
goal and objectives. The conceptual framework of the technology/business
incubator project at CoET was explained to include collaboration with
Government, development partners and innovative clusters. The targeted
people for the project were then listed. These comprise those within the
incubator hub such as:
̇ Proven entrepreneurs wishing to start technology-based businesses;
̇ Ambitious, innovative and creative individuals; and
̇ Existing entrepreneurs wishing to be more competitive in respective
undertakings.
The targeted people also include satellite beneficiaries such as incubators at

upcountry localities (viz. satellite incubators), SME clubs, innovative
clusters and other SMEs that are non formal clients.
In the next part, the speaker listed the services that would be offered to
clients/tenants within the hub and those from without the hub. For the first
group, the speaker mentioned such services like:
(i) training,
(ii) quality control services,
(iii) office support,
(iv) workspace,
(v) internet services,
(vi) business advice,

(vii) shared equipment, and
(viii) support on patent information.
Clients in satellite incubators and SME clubs would get, among other
services; assistance such as quality assurance services, certification of
products, training, networking, market links and access to discounted
conference facilities.
Clients within the innovative clusters would get, among other things;
expert advice, quality assurance services, certification of products and/or
services, specialized training, and brokerage or promotion of proven
technologies developed by cluster members.
Professor Mshoro then elaborated on the expected impact at target group

level and at institutional level, pointing out that while the former would
have easy access to various support services and that such intervention
would promote effective innovativeness among the individual clients, the
latter would make CoET play a leading role in development, adoption,
adaptation and innovation of technology in Tanzania. At the same time
CoET and UDSM will be able to play a proactive role on policy matters
related to technological development. Furthermore, Professor Mshoro
observed that operational incubators that support development of SMEs
and innovations closely linked to teaching will lead to improved quality
and relevance of the college’s graduates. Lastly, with regard to expected
impact at institutional level, Prof. Mshoro underscored the fact that
commercialization and transfer of technologies developed by CoET and its
research findings will be strengthened through such aspects like the
acquisition of patents.
Examining the present scope of technology/business incubator project by

CoET, the speaker informed participants that three satellite incubators (in
Kibaha, Morogoro and Lushoto) had been established while six SME clubs
(four in Mwanza region and two in Tabora Region) had been instituted.
With regard to services that have been offered so far to clients of satellite
incubators, the speaker listed the following:

• Training on such matters as incubator policies and procedures, legal

aspects, basic processing of agro-products and fundamentals of
•
business management and entrepreneurship skills;
•
Assistance in preparation of bankable business plans;
•
Linkages to microfinance institutions;
•
Technology support; and
Expert advice.
Towards the end of his presentation, the speaker described the topology of
the satellite incubators as follows: Kibaha Incubator (Hybrid) with 26
incubator clients comprising 3626 households; Lushoto Incubator (Virtual)
with 13 incubator clients consisting of 645 people, mainly women, dealing
with the processing of fruits, vegetables and diary products, and baking; the
Morogoro Incubator (Virtual) also processes fruits, vegetables and diary
products while also dealing with honey production and processing and
poultry keeping.
In concluding, the speaker pointed out that the incubation project by CoET
is in response to core problems that SMEs face in Tanzania. He observed
that the aim is to improve SMEs access to new and adapted technology as
well as business support services. The speaker informed participants that an
incubator hub at CoET has been proposed to provide services to its tenants
and to link those covered by other various CoET interventions for
promoting growth of SMEs, be they virtual incubators, SME clubs, or
innovative clusters. The speaker further observed that this state of affairs
would link the business/technology incubation with the ISCP. He asserted
that the technology-cum-business incubator project has the potential to
support the innovative clusters in addressing SME innovations at product
and service levels.
Professor Mshoro ended his presentation by reiterating that innovativeness

in clusters can be supported by the technology-cum-business incubator
project through provision of linkages to patent information of proven
technologies that cluster members will have developed.

Discussions
(i) It was queried as to which criterion is used to select clients for the
incubators, and participants wondered if any individual can qualify
to be a client of the incubator.
(ii) It was explained that there are admission and exit criteria although at
the very beginning the assessments were based on the type of
business being introduced and the likelihood for success. The issue is
to have maximum impact on the locality/community within which a
project is operating as long as the projects meet the criteria spelled
out above. It was further explained that it is possible to have one or
two people as individual members.
(iii) Participants wondered why Kibaha was selected for the cashew nuts
project and not Lindi where cashew nuts are more abundant.
(iv) The professor explained that the first phase is just a pilot one, and
that with time, the project will embrace most parts of the country
depending on possibilities and opportunities.
(v) Participants commended CoET but wondered if it would be possible

to develop further so that products are processed better for
competition. SMEs were particularly urged to aim at developing
further into high technology industrial enterprises.
(vi) It was explained that InterMech was given the duty of producing the
machinery for cassava growers, and that its link with R&D
institutions has been working well.
(vii) A participant gave his personal experience from Uganda and advised
that Uganda be included on the list of success stories. He said that
India and South Africa can also provide very good examples of
incubation work. He insisted that success should be comparable
rather than just personal. He underscored the importance of
networking between incubators in Tanzania and those in Uganda.

(viii) Professor Mshoro’s report was commended although some

participants feared the way clusters have been introduced, since
some confusion may arise now that the issue of incubators is coming
in. They wanted Prof. Mshoro to assure them that the interventions
would work.
(ix) Incubators were explained to be short term measures that target

product and service level improvement. Participants were informed
that SME clubs, incubators and clusters do compliment each other. It
was further explained that while in clubs there is no question of
graduating and exiting, in the case of incubators graduating and
exiting are necessary steps.
A.2.7 GROUP DISCUSSIONS: ESTABLISHMENT OF A

FORWARD AGENDA
by Burton LM Mwamila and Abraham K Temu
A.2.7.1 ISSUES FOR DISCUSSION AND FORMATION OF

GROUPS
Before being presented with the issues for Group Discussions, participants
were reminded about the UN Millennium Development Goals, which all
191-member states (including those in Eastern Africa) have pledged to
฀
strive to achieve by 2015, and which include to:
Reduce by half the proportion of people living on less than a dollar a
฀
day;
฀
Reduce by half the proportion of people who suffer from hunger;
฀
Develop decent and productive work for youth; and
Make available the benefits of new technologies.
It was then observed that in order to achieve the UN-MDGs, there is urgent
need for Eastern Africa to stimulate and promote enhanced innovativeness,
competitiveness and growth of the local industry. The Innovation Systems
and Clusters Programme promises provision of the mechanism for change
of mindset in favour of enhanced innovativeness, competitiveness, quality
consciousness, productivity, and co-operation of firms while competing.

฀
Participants were further reminded that:
An innovation system is constituted by elements and relationships
between elements which interact in the production, diffusion, and use
฀
of new and economically useful knowledge.
Clustering is defined as the process of firms and other actors co-
locating within a concentrated geographical area, cooperating around a
certain functional niche, and establishing close linkages and working
฀
alliances to improve their collective competitiveness.
A cluster initiative is an organized effort to increase the growth and
competitiveness of a cluster within a region, involving cluster firms,
government and the research community (academia).
The Group Discussions were intended to facilitate formulation of a Forward
∇
Agenda for Eastern Africa to achieve:
∇
Enhanced Innovativeness;
∇
Dynamism;
∇
Competitiveness;
∇
Sustainable Economic Growth; and
Poverty reduction.
Five Groups were formed and each was assigned one of the tasks described
in (A) to (E) below. Beside the main discussion items given all groups were
asked to also consider the following:
(i) Leadership for close cooperation;
(ii) Supporting structures;
(iii) Competence development;
(iv) Process support;
(v) Building trust;
(vi) External funding in development phases; and
(vii) Intellectual Property Rights.
In addition all the groups were asked to also list three top priorities.
Group A: Discuss and propose what needs to be done by Governments, at

local, national, regional levels regarding the following:
̈ Policies;
̈ Regulations and Laws;
̈ Financial support;
̈ Incentives;
̈ Others to be identified by the Group
Group B: Discuss and propose what needs to be done by the Business

sector regarding the following:
- Enhancing Cooperation;
- Competition;
- Linkages;
- Infrastructure; and
- Others to be identified by the Group.
Group C: Discuss and propose what needs to be done by the Academia

(Universities) regarding the following:
- Infrastructure;
- Resource priority for knowledge production;
- Cooperation with public;
- Cooperation with private stakeholders; and
- Others to be determined by the Group.
Group D: Discuss and propose what needs to be done by other R&D

Institutions regarding the following:
฀ Infrastructure;
฀ Resource priority for knowledge production;
฀ Cooperation with public;
฀ Cooperation with private stakeholders; and
฀ Others to be identified by the Group.
Group E: Discuss and propose what needs to be done by other Support

Organizations regarding the following:
- Infrastructure;
- Resource priority for knowledge production;
- Cooperation with public;
- Cooperation with private stakeholders; and
- Others to be identified by the Group.

A.2.7.2 PRESENTATION OF REPORTS FROM GROUP

DISCUSSIONS
The different groups that had been assigned different topics made their
presentations. Basically, such discussions reviewed the policies, laws, and
regulations while also listing all the issues pertaining to the work and task
ahead. The questions of infrastructure and financial support also featured
conspicuously in the reports. The following is the summary of the group
presentations.
Group A
Group A dealt with the topic: “What needs to be done by Governments, at
• Policies;
local, national, regional levels” regarding:
• Regulations and Laws;

• Financial support; and
• Incentives.
Closely related to the above, the group also discussed issues of leadership
for close cooperation, supporting structures, competence development,
process support, building trust, external funding of development phases,
intellectual property rights, communication and the media.
With regard to policies, it was suggested by Group A, among other things,

that existing Government policies should be reviewed so as to address
innovation aspects and identify opportunities and gaps relating to
innovative clusters and cluster initiatives. Participants observed that this
would determine whether there is need for a specific policy or it would
suffice to have innovation issues incorporated in the existing policies. The
idea was to ensure that such a policy highlights priority/strategic sectors
for financial support from the government.
Concerning regulations governing such projects like the innovative cluster

initiative, participants in Group A observed the need to operationalize the
law by setting up the necessary regulations that would deal with such
aspects as the criteria of selection of the clusters, identification of members
to join a Cluster Initiatives, a uniform code of conduct for cluster members,
and the way the Government supports the Clusters Initiatives. It was
emphasized that there has to be a coordination unit, among others, and that
the regulations set should capture competitiveness aspects. Issues of
standardization were particularly underlined together with those of
regional collaboration and harmonization of cluster initiatives.
The Government was identified as the main source of financial support for
the cluster initiatives. Such support could be availed right from the
initiation of the clusters initiatives, provision of seed money, funds for
technology and equipment, funds to pay facilitators, funds for research and
development, tax relief, legal support, and also financial assistance through
Government guarantees. It was argued that the registration of SMEs
properties e.g. land can enable cluster members to access loans from
financial institutions.
The participants also observed that cluster initiatives need to consider the
following for their success:
(i) Rewarding scheme for best business development practices;
(ii) Capacity building e.g. entrepreneurship skills;
(iii) Patenting of innovations and inventions;
(iv) Advisory services;
(v) Media (Publicity); and
(vi) Marketing.
The following were identified by Group A to be the top three priority areas
◊
in the Forward Agenda:
◊
Policy direction;
◊
Financial Support; and
Sensitization of key stakeholders.
Group B
Group B dealt with the topic: “What needs to be done by the Business
• Enhancing cooperation;
Sector” regarding:
• Competition ;
• Linkages ; and
• Infrastructure.
Closely related to the above, the group also discussed issues of leadership
for close cooperation, supporting structures, competence development,
process support, building trust, external funding of development phases,
intellectual property rights, communication and the media.
With regard to enhancing cooperation, the group observed that cooperation

among small businesses was important since it would enable members to
share risks and thus enhance production and quality. Several ways of
enhancing such cooperation were listed. These include:
o Compiling a list of clusters in the sector and setting a common
database at the local, national and regional levels;
o Compiling of data available through such means like websites;
o Organisation of forums for discussing opportunities of common
interests;
o Instituting a system of competing while cooperating at the same time;
and
o Optimizing economic scales and cooperation so as to influence and
advocate policies.
Competition was greatly encouraged, and group members observed that

through such competition, innovativeness would be stimulated. In the same
vein, linkages were observed to enhance sharing services and information
between cluster members.
Group members agreed on the need for the private sector to show initiative
in supporting maintenance of the infrastructure.
The group identified leadership for close cooperation as another important

factor. They noted that there is need to have a stimulator/initiator (an
elected charismatic individual for the purpose of motivating others in the
cluster); or a leadership team with defined roles which then make it
possible to chose the right leadership.
Group B agreed further that supporting structures were an important factor

in the success of cluster initiatives. They agreed that it was important to
establish close linkages with supporting structures, and to establish a forum
that would facilitate such linkages for the benefit of the businesses.

Competence development was identified as another priority area. The

group agreed that there is a need for training for research and development
institutions so as to improve competence in research and development. It
was important to identify training requirements, institutions and
opportunities while influencing the curriculum and research priorities. The
group emphasized the need to create an environment for continuous
training, learning and identification of needs.
Group B ended their presentation by identifying some other important

factors. These related to:
∇ Process support by using the supporting structures for research and
development and retaining skilled individuals through better
packages/remuneration;
∇ Building trust amongst the trading partners;
∇ External funding of development phases in line with national
development goals and also ensuring sustainability; and
∇ Clearly understanding issues of Intellectual Property Rights such as
those of national patent policies.
Group C
This group dealt with the topic “What needs to be done by the Academia”.
In their introduction, the group observed that the University is generally
seen as an ivory tower, the community has not been going to the university
and vice versa. They informed participants that this gap is being bridged,
but there is still a big gap regarding developed technologies, since
industries don’t have linkages with Universities. They cited the case of
Tanzania where SMEs don’t know what assistance they could get from the
academia while there is a lot at the universities which could be of great help
to them and to industrialists.
The group decried the fact that in spite of so much research being carried
out, the results are never fed back to the industrialists. They charged that
sometimes, if not often, some types of research results that come out of the
universities don't benefit the locals, due to their complicated nature and
language. At the same time, universities were said not to be utilizing
indigenous knowledge because of colonial hangover of supply rather than
demand-driven training.
Group members noted that steps have been taken, but that there is need to
address the big picture by the universities developing curricula which cater
for the communities’ demands. The group advised that this fact should be
included in the prerequisites of establishing the universities. Furthermore,
the group observed that there is a weak linkage between the private sector
and universities, with the results that information on IPR, related
publications, etc is not easily available. The group observed that the clusters
initiative can improve the link between universities and the communities.
Furthermore, the group observed that:

(i) Universities are poorly financed;
(ii) Private businesses like Vodacom, Breweries, etc need to be
encouraged to sponsor some research students and other academic
students;
(iii) The way the Faculty of Law helps the community through provision
of legal aid should be emulated by other disciplines like engineering;
(iv) Research agendas at universities do not address problems facing
communities;
(v) The perception on the role of universities in society is not clear;
(vi) There is a need for technology transfer to be enhanced;
(vii) Most of the infrastructure in universities, such as in labs and
workshops has collapsed;
(viii) Policies on science and technology research and related research
equipment are not in place.
With regard to infrastructure, the group advised that infrastructure should

be put in place to help the private sector, e.g. regional centres should be
created. Members of the group observed that the little linkage that exist
between the society and universities, such as incubators need to be
improved. They urged universities to improve and encourage the use of
ICTs. They also underlined the necessity for encouraging fundraising for
universities. Along the same lines, the group observed that research
equipment is taxed in countries like Uganda, which makes it expensive for
universities. The group advised that lobbying should be done with the
government to address this issue.
Touching on the issue of human resources, the group observed that there is
a need for the master craft skilled personnel as an intermediary link. They
advised that there have to be special incentives to enable universities,

provide training in particular skills. Furthermore, the group recommended
that review of curricula should be done in universities to address the needs
of the communities and that entrepreneurship programs should be
introduced in the universities.
In the next part of their presentation, the group advised that there must be
closer co-operation between the universities and the public, and also
between universities and the private sector through the following, among
others:
(a) Establishing vibrant industrial and public relations offices;
(b) Strengthened participation in public exhibitions;
(c) Recognition of members of staff who provide services to
communities;
(d) Arrangement of off season training courses for the communities;
(e) Increasing the use of the public media for more dialogue and debates;
(f) Translation of university achievements into local languages;
(g) Scaling up the activities of the university-private sector forum;
(h) Encouraging the private sector to finance joint research with
universities; and
(i) Opening up of university facilities to the private sector.
The group presented further points for consideration, arguing, among other
things:
o that leadership for cooperation should be shared equally between
members of the triple helix;
o the government should provide an enabling environment; and
o that a cluster development course should be introduced at university
level leading to a diploma or degree award.
Before concluding, the group looked at the issue of external funding in the
development phase and IPR, arguing that donors should not stop at the
pilot phase rather funding should be extended to the final stage. The group
emphasized that other donors should be lobbied to support the initiatives,
like World Bank, NORAD, and UNIDO. The group underlined the
importance of creating awareness in the area of intellectual property rights
in the communities and actually creating an office to handle intellectual
property rights issues.
Group D
This group tackled the issue of what needs to be done by other R&D
institutions by principally dwelling on Infrastructure, Capacity Building,
and Cultural (Mindset) issues. The group discussions hinged on the
following questions:
(a) What is the expected role of these R&D institutions?
(b) How relevant are they?
(c) What have they not delivered?
(d) What are they required to deliver?
(e) What is usually delivered?
In answering these and other questions, the group examined the R&D and
support (Extension) services including:
1. Process analysis services (Uganda Industrial Research Institute,
TIRDO);
2. Product design (Prototyping) (TEMDO, TATC, UIRI);
3. Testing facilities (CAMARTEC, UNBS, TBS, SEAMIC, TPRI, UDSM);
4. Quality assurance institutions and facilities (TBS, UNBS, GCLA, TFDA);
5. Calibration of instruments (TBS, WEIGHTS & MEASURES, UNBS);
6. Standardization (As above);
7. Technology transfer (COSTECH, UIRI);
8. Product development (TEMDO, CAMARTEC, NARO); and
9. Capacity building (SIDO, VETA, UNCST).
The group observed that maintenance and repair services were markedly
absent and, thus, considered top be one of the major challenges.
Next, the group emphasized that there is need to revamp the infrastructure
so as to replace old, worn-out and outmoded machinery and equipment
after ascertaining the requirements and taking inventory of what is
available.
The issue of capacity building was considered next, and the group argued
that there is need for knowledge capture, dissemination, and updates, and
also for information sharing. The group urged for the establishment and
addressing of knowledge needs for cluster initiatives. This called for a

centralized information depository and also for studying the systems and
establishing shortcomings.
In order to realize full capacity building, it was argued by the group that
there is a need for both public and private sector focus, in which case
proper marketing was required. There is also a need to interact with the
public to find what the public actually requires. As for the focus on the
•
private sector, the group listed the following:
Need for a culture of aggressively establishing what the private sector
•
needs;
Attracting private sector to use R&D facilities to enhance their
•
business; and
Establishing market potential through need-based or user-based R&D.
In dealing with the complicated issue of the need for cultural or mindset
change, the group contended that it is all about cooperation and
competition. For that matter there is a need for leadership training program
for R&D teams and Cluster Facilitators. For all these to succeed, the group
called for transparency, trust building and also development business ethics
culture of handling information that would be shared by the stakeholders.
−
The three most important issues identified by this group are:
−
Sustainability through diversifying sources of funds;
−
Continued awareness campaigns to the grass roots; and
Infrastructure improvement.
Group E
This group tackled the issue of what needs to be done by other support
organizations. The group identified support organization as including the
•
following among others:
•
Multilateral agencies such as the World Bank and UNIDO;
•
Bilateral agencies that include Sida, CIDA, GTZ, DANIDA, USAID;
•
NGOs such as the Gatsby Trust and Oxfam; and
CBOs.

The group reported that such support organizations could assist in

improving the physical infrastructure such as roads, logistics, bandwidth,
utilities, and incubators. They could also assist in improving the knowledge
infrastructure relating to skills, training, R&D, TT, and ICT.
The group ended their report by underscoring the necessity and important
role of the following in order for all the above to succeed:
Forums;
Media;
Web site; and
Newsletter.
These were particularly singled out as having the potential of playing a key
role in facilitating successful operation of the National Steering Committees.
A.2.8 CLOSING SESSION
A.2.8.1 Concluding Remarks by Prof. Burton LM Mwamila,

Principal, CoET
Professor Mwamila welcomed the Guest of Honour and informed him that
the objectives of the conference had been met. He reported that cluster
initiative presentations were made and the enthusiasm was visible
throughout to the end.
Professor Mwamila thanked the Guest of Honour for agreeing to officiate at

the Closing Ceremony of the conference. He further thanked the media for
covering and informing the public about the conference.
He informed the Guest of Honour that the Swedish Embassy has requested
for a proposal on how best the CIs can be assisted. He also reported that the
World Bank Institute wished to be associated with the cluster initiatives and
has requested for a proposal on how best CIs can be helped.
Professor Mwamila ended by inviting the Guest of Honour to give some

distinguished participants a token appreciation in a form of presents.

A.2.8.2 Statement from the Department for Infrastructure and

Economic Cooperation (INEC) of Sida-Sweden
by Dr. Elena Escola
The speaker thanked the College of Engineering and Technology for the
invitation. Dr. Eskola remarked that she especially enjoyed the CIs
discussions held by the participants, which can be used to enhance future
relations.
The speaker ended by expressing her hope to initiate discussions on

establishing new cluster initiatives and scaling up existing ones.
A.2.8.3 Statement from The Competitiveness Institute (TCI)

by Mr. Lars Eklund, President, TCI
Mr. Eklund noted that the characteristics of the CIs in Tanzania, Uganda
and Mozambique are not new anymore but rather they constitute a
development of analysis of the engagements. Even with national and
international support, the experience is that you cannot use the existing
structures to develop CIs, the National Steering Committee is an essential
feature of the initiative.
He said that he is very impressed with the progress made by CIs. He

informed that he has invited Professor Mwamila to give a talk in Lyon,
France to share the CI experience. He emphasized the importance of
carrying out continuous critical analysis. He added that he is optimistic that
the CIs will develop well.
Mr. Eklund ended by appreciating the invitation and inspiration, and

promised to work further on it.
A.2.8.4 Statement from WFEO’s Committee on Capacity Building

by Prof. Russel Jones
In his brief remarks, Professor Russel said that it was a great honour for him
to participate in the conference. He praised the College of Engineering and
Technology for preparing such an important conference which gives

opportunity for CIs to grow. He pointed out that he hoped that this will
lead to further collaboration between his committee and ISCP-EA as well as
CoET.
A.2.8.5 Statement from the SME Competitiveness Facility

by Mr. Sosthenes Sambua
In his short remarks, Mr. Sambua thanked the Workshop Organizing

Committee for work well done. He then congratulated participants and
presenters for their contributions. He declared that SME Competitiveness
Facility is happy to give support to CIs starting with training. He, thus,
encouraged CIs to request for funding directly. The speaker wished
participants a safe journey back home.
A.2.8.6 Statement from the Tanzania Investments Centre

by Dr. John Joel Kyaruzi
In short, Dr. Kyaruzi explained the functions, problems and challenges

facing the Tanzania Investments Centre. The speaker noted that if not well
planned, it is theoretically possible to give all the Tanzanian land to
investors. He emphasized the need for funding the ISCP initiatives so as to
develop local investors. He pointed out that there is also need to find ways
of giving economic land to the clusters. This could be spearheaded by the
College of Engineering and Technology through advising and lobbying the
government. He charged that the required support should be a matter of
government responsibility and the government should work on the results
from research. He challenged the government to commit itself to assisting
the cluster initiatives.
A.2.8.7 Statement from CRDB Bank

by Mr. Bennett Bankobeza
In his short remarks, Mr. Bankobeza expressed gratitude to the Workshop

Organizing Committee for conducting the training and conference. The
speaker decried the fact that there is lack of information on the available
loans and the loan system used by CRDB. He, thus, promised to submit a
report to the management that will show how CRDB can help CIs to get

loans. He ended by promising that CRDB would soon become CoET’s main
connection to CIs.
A.2.8.8 Statement from Sida/SAREC Head Office

by Dr. Maija Lindroos
Dr. Maija Lindroos noted that in analyzing the development of CIs, one has
to know what is either promoting or hindering the networks. She observed
that the pilot phase is scheduled to end in mid June 2007, and the next
phase entails investing funds for developing the necessary infrastructure for
CI development. She promised that Sida would continue to support
development of Science and Technology, policy, and links between people
and universities. She emphasized the need for multi-disciplinary research.
Dr. Maija Lindroos then thanked the UDSM Vice Chancellor, Professor
Luhanga, Professor Mwamila and all participants for joining in the
discussion. The speaker ended by wishing all the participants success in the
entire endeavour.
A.2.8.9 Statement from Faculty of Technology, Makerere

University
by Prof. Barnabas Nawangwe
The Professor reminded participants that the journey which started in 2003
is yet to be concluded. He thanked the College of Engineering and
Technology and Professor Mwamila in particular, for introducing the
concept of CIs at regional level, and for the well organized conference. He
then thanked the Vice Chancellor of the University of Dar es Salaam for the
support. The speaker also appreciated the financial support by
Sida/SAREC. He ended by extending an invitation to the conference
participants to the 4th Regional Conference of CIs to take place in Kampala,
Uganda. He informed participants that the events will start with a training
session for potential CIs.

A.2.8.10 Closing Speech by Prof. Matthew L. Luhanga,

Vice Chancellor, UDSM
The UDSM Vice Chancellor appreciated the honour extended to him to

officiate at the Closing Ceremony of 3rd Regional Conference on
Innovation Systems and Innovative Clusters in Africa.
He referred to the objectives of the conference and noted with

appreciation that they had been achieved. He further referred to the four
important points about productivity growth and prosperity, and observed
that universities in Africa have a lot of hard work to do since Universities
are no longer places for higher education and basic research only rather
that today, they are expected to do much more, including fostering
creativity, innovations, breeding new companies through incubators, and
thereby generating wealth and creating jobs. For this reason, he
congratulated the College of Engineering and Technology for organizing
this conference.
Professor Luhanga was happy to learn that significant work has been done
in working groups to develop a simple, sound and implementable forward
agenda. He hoped that the agenda will facilitate consolidation of the
Innovation Systems and Clusters Programme in Eastern Africa (ISCP-EA)
and further establishment and promotion of Innovation Systems and
Innovative Clusters in our region. This, he said, call for the Governments
to provide the necessary environment to ensure successful implementation.
Towards the end, the Professor thanked various organizations for their
generous support which enabled the conference to become a success story.
He then requested for continued cooperation and support from the various
governments, national and international organizations represented as well as
those not represented at the conference.
Finally, Professor Luhanga expressed his appreciation to participants and

collaborators for participating in this very important conference. He also
thanked resource persons for their willingness to share their knowledge and
expertise with the conference participants. At this juncture, the VC declared
the conference officially closed.

A.2.8.11 Vote of Thanks

by Prof. John-Bosco Turyagyenda
In his short vote of thanks Professor Turyagenda, on behalf of the

participants, thanked Professor Luhanga for the very good points raised. He
observed that having done that much in the Cluster Initiative, universities are
becoming more relevant in leadership and responsiveness to societal
concerns.
The speaker noted that in the forward agenda it was agreed that the major
issue is mobilizing financing especially from the governments and that this
should be top on the agenda of ISCP-EA.
The speaker joined the Guest of Honour in thanking development partners

and Professor Mwamila for the magnificent conference, after which he
wished all participants safe journeys home.

A.3 OBSERVATIONS AND RECOMMENDATIONS

by Burton LM Mwamila and Abraham K Temu
A.3.1 OBSERVATIONS
(i) It is important for African countries to carry out national R&D and
innovation surveys to provide data and information on respective
state of science and technology, research and innovative systems.
This will enable such countries understand how innovation clusters
feature and function within the system. Through the surveys
sufficient information and data may be made available to support
strategic decision making around investments and innovations.
(ii) There is a need for such bodies like the WBI and other donor agencies
to put more emphasis on funding of higher education that will,
ultimately, facilitate the clustering process even in high-tech for faster
development of Africa.
(iii) Efforts must be made to establish international recognition of locally
trained people so that they become marketable.
(iv) Getting good economic returns in low-income countries does not
necessarily demand high technology. It is possible to use gadgets like
the cellular phone to expand the market of locally produced products
such as vegetables.
(v) While it is true that no development can take place without science
and technology, engineers must also understand that no true and
tangible development can happen without their linking up with the
other professions such as medicine, natural science, social science
and others.
A.3.2 RECOMMENDATIONS
(i) Training and teaching institutions must promote innovativeness by

linking connecting with local communities. This will enhance the
capacity building programs.
(ii) The relevant faculties and institutions in developing countries must
strive to add value to whatever is produced in respective countries.
(iii) Academic institutions must play an active role in ensuring that
products from different clusters are patented and intellectual
property rights observed.
BLM Mwamila & AK Temu 70 Observations and Recommendations
(iv) Issues of indigenous knowledge must be taken aboard in all the

research that is carried out by training and research institutions so
that they are incorporated into the activities of clusters initiatives.
(v) The place of indigenous knowledge in the face of cluster and
technology development must be defined and legalized so that
intellectual property rights emanating from activities of cluster firms
are guarded.
(vi) The media should be part of every event and program that is
initiated by ISCP-EA so that the activities of the clusters are
popularized.
(vii) Efforts must be made by governments and training institutions to
link up with the Diaspora by providing incentives to attract their
services to their countries of origin.
(viii) Registration boards of relevant countries must develop mechanisms
that will tackle the issue of the recognition of engineering
qualifications across borders.
(ix) Where possible and necessary, cluster initiatives must make efforts to
legalize their status through registration with the relevant
authorities.
(x) Training institutions and the clusters should develop ways and
means of exchanging information and publicising their work and
profiles through, for example, pamphlets and other publications,
including e-journals.
(xi) Training institutions must lobby so that their governments commit
themselves to substantially fund the development of research and
innovation systems in Africa.
(xii) Training institutions must develop specific programmes that link
SMEs, research and funding agencies.
(xiii) Communication and linkages between cluster initiatives,
communities, industries, government, companies; etc must be
developed for the benefit of all.
(xiv) Training institutions and the cluster initiatives must take into
consideration the needs of the communities around which their
activities are taking place.
(xv) There must be a distinctive collaborative agenda between training
institutions, the cluster initiatives and the communities around them.
(xvi) Cluster initiatives must work out their sustainability strategies. This
is urgent in order to curb over-dependency on donors.
(xvii) Cluster initiatives must link their activities to national economic

development policies so as to contribute to, and benefit from,
national development plans.
(xviii) There is a need to have an industrial plan included in the CoET
incubation project.
(xix) CoET incubation project should do more regional and international
networking by taking cognizance of the existence of other incubators
such as the one in Uganda.
(xx) CoET and other clustering stakeholders should revisit past
observations and recommendations emanating from the first two
regional conferences so as to examine how many of them have been
successfully followed up and how many are yet to be worked on.

PART B
INNOVATION SYSTEMS AND CLUSTERS FOR

COMPETITIVENESS AT INTERNATIONAL LEVEL
73
B.1 THE WORLD BANK INSTITUTE’S KNOWLEDGE

FOR DEVELOPMENT PROGRAM AND AFRICA
by Justine White,
Knowledge for Development Program, World Bank
jaubert@worldbank.org, jwhite@worldbank.org
INTRODUCTION
The World Bank Institute (WBI) is the capacity development arm of the
World Bank, and helps countries share and applies global and local
knowledge to meet development challenges. WBI's capacity development
programs are designed to build skills among groups of individuals
involved in performing tasks, and also to strengthen the organizations in
which they work, and the sociopolitical environment in which they operate.
Capacity for Development is the ability of individuals, institutions, and

whole societies to solve problems, make informed choices, order their
priorities and plan their futures, as well as implement programs and
projects, and sustain them over time. Building capacity is at the heart of
development and development effectiveness. It depends heavily on
society’s ability to acquire and use knowledge.
The Institute builds capacity for development in response to specific

country needs by providing learning programs and policy advice on
economic management and poverty reduction, environmentally and
socially sustainable development, financial and private sector development,
governance, human development, infrastructure, and knowledge for
development.
The World Bank Institute depends on a global network of strategic

partnerships to promote the sharing of local and global knowledge among
countries. Partners help expand WBI's professional expertise, staffing,
funding, facilities, and administration. Contributions of WBI resource
partners represent nearly half of WBI's total working capital. Resource
partners include bilateral aid agencies, foundations, the private sector, and
J White 74 WBI K4D Program in Africa

other organizations. More than half of WBI's activities are developed and
delivered jointly with partners in developing countries.
In May 2006, the Knowledge for Development (K4D) Program held a major
Knowledge Economy conference in South Africa. It aimed to provide a
platform for stakeholders and policy makers to discuss how African
economies can access and apply knowledge to grow and become more
competitive. The follow up research and knowledge sharing activities will
focus on innovation policies that can contribute to sustainable economic
development in the African context.
KNOWLEDGE FOR DEVELOPMENT PROGRAM
The application of knowledge is now recognized to be one of the key

sources of growth in the global economy. The term Knowledge Economy
(KE) has been coined to reflect this increased importance of knowledge. A
knowledge economy is one where organizations and people acquire, create,
disseminate, and use knowledge more effectively for greater economic and
social development.
This 'knowledge revolution' manifests itself in many different ways: there

are closer links between science and technology; innovation is more
important for economic growth and competitiveness; there is increased
importance of education and life-long learning; and more investment is
undertaken in intangibles (R&D, software and education) which is even
greater than investments in fixed capital. And of course there is the ICT
explosion which brings worldwide interdependency and connectivity.
Increased importance of knowledge provides great potential for countries

to strengthen their economic and social development by providing more
efficient ways of producing goods and services and delivering them more
effectively and at lower costs to a greater number of people. However, it
also raises the danger of a growing 'knowledge divide' [rather than just a
'digital divide'] between advanced countries, who are generating most of
this knowledge, and developing countries, many of which are failing to tap
the vast and growing stock of knowledge because of their limited
awareness, poor economic incentive regimes, and weak institutions.
Combined with trade policy liberalization, the knowledge revolution is
leading to greater globalization and increased international competition,

which is eroding the natural resource and low labor cost advantage of most
developing countries.
To capitalize on the knowledge revolution to improve their competitiveness

and welfare, developing countries need to build on their strengths and
carefully plan appropriate investments in human capital, effective
institutions, relevant technologies, and innovative and competitive
enterprises. Countries such as Korea, Ireland, Malaysia, and Chile illustrate
the rapid progress that can be made.
Risk of a “knowledge divide” between developing and developed countries

pushed creation of the knowledge for development program in 1999.
The program has the potential to help all countries make the transition to a
KE (not only medium to high income countries, but also low-income
countries). The key issues and policy agenda will differ according to the
needs and capabilities of each country. The program embarks on KE work
• It makes sense to pursue this agenda in a particular country - in other

in countries where:
words, where an emphasis on developing a knowledge-based economy

would offer the country additional growth potential and improvement
in competitiveness, and where the country has a capacity to take the
• There is strong demand from the client country and government is

necessary steps to pursue this agenda;
• There is interest from the Bank's Country Team undertake such work;
committed to the work;
• There are good interlocutors in the client country.

and
To date, the Knowledge for Development program has undertaken

innovative in-depth policy work customized to client needs in Argentina,
Brazil, Chile, China, India, Korea, Mexico, Russia, Tanzania, and Turkey.
The K4D program is based on the following framework consisting of four

pillars to help countries articulate strategies for their transition to a
knowledge economy:

(i) An economic and institutional regime that provides incentives for the
efficient use of existing and new knowledge and the flourishing of
entrepreneurship.
(ii) An educated and skilled population that can create, share, and use
knowledge well.
(iii) An efficient innovation system of firms, research centers, universities,
think tanks, consultants, and other organizations that can tap into the
growing stock of global knowledge, assimilate and adapt it to local
needs, and create new technology.
(iv) Information and Communication Technologies (ICT) that can
facilitate the effective communication, dissemination, and processing of
information.
Making effective use of knowledge in any country requires developing

appropriate policies, institutions, investments, and coordination across the
above four functional areas. The synergy between the pillars is as shown in
Figure 1.
Figure 1: Four Pillar Knowledge Economy Approach

The K4D program includes five main product lines:

1. Policy services for clients, including policy reports and policy
consulting advice on various aspects of the knowledge economy. K4D
provides a spectrum of knowledge economy products (enhanced desk
assessments, knowledge economy overview assessments, and full
knowledge economy assessments) which allow us to meet the needs of
different client countries.
2. Knowledge Economy studies that are designed to bring together
global learning and experience on the knowledge economy, such as on
innovation systems.
♦ Benchmarking assessments
♦ Enhanced knowledge economy and sector assessments (Senegal
Report, Report on “Knowledge, technology and cluster-based
growth in Africa” – Forthcoming, Diaspora networks)
♦ Comprehensive Knowledge Economy Assessments (China, India…)
3. Learning events to build knowledge and skills and to facilitate
exchange of experience and good/best practice on the knowledge
economy.
4. Knowledge products and tools, including the preparation of materials
to support our learning events, websites, and the Knowledge
Assessment Methodology (KAM).
5. Knowledge Management assistance to enhance the capacity of
development-oriented organizations in the client countries to achieve
greater impact through the application of knowledge management
tools and practices.
OVERVIEW OF THE KNOWLEDGE ASSESSMENT METHODOLOGY

(KAM)
The KAM is an interactive benchmarking tool created by the Knowledge for

Development Program to help countries identify the challenges and
opportunities they face in making the transition to the knowledge-based
economy.
The KAM consists of 80 structural and qualitative variables to benchmark

their performance on the four Knowledge Economy pillars. To allow for a
flexible cross-country comparison, each variable is available in both actual
and relative value, i.e. normalized on a scale of zero (weakest) to ten
(strongest) relative to other countries in the comparison group. Information

for a total of 128 countries has been documented. The KAM also allows to
derive country’s overall Knowledge Economy Index (KEI) and Knowledge
Index (KI). The Knowledge Index (KI) measures a country's ability to
generate, adopt and diffuse knowledge. This is an indication of overall
potential of knowledge development in a given country. The Knowledge
Economy Index (KEI) takes into account whether the environment is
conducive for knowledge to be used effectively for economic development.
It is an aggregate index that represents the overall level of development of a
country or region towards the Knowledge Economy. The KEI is calculated
based on the average of the normalized performance scores of a country or
region on all four pillars related to the knowledge economy. Figure 2
shows KEI correlated with future economic growth.
Figure 2: KEI correlated with future economic growth
Basic scorecard for 14 key variables is used to attempts to capture a

country's preparedness for the knowledge-based economy. The data set
consists of 12 variables that represent the four pillars of the knowledge
economy and are used to calculate countries’ Knowledge (KI) and
Knowledge Economy (KEI) indexes. The scorecard also presents two
variables related to the overall economic and social performance. The

variables are available for two points in time: for 1995 and 2004 (most
recent) years.
The 128 countries are put into 9 regional groupings as shown in Table 1.
The list includes most OECD countries and more than 90 developing
countries, among which there are 25 Sub Sahara African countries. Data
from these countries are updated semi-annually and the country coverage is
expanded whenever possible.
Based on the data collected, a range charts and figures are produced, which
visibly highlight similarities and differences amongst the countries. The
plots focus either on the overall knowledge economy or its component
parts.

Table 1: Countries included in the KAM 2006 (Knowledge for Development Program (K4D) 2006)
G7 Western Developed East Asia South Asia Europe and Latin Middle East Sub-
Europe Oceania Central Asia America and and North Saharan
Caribbean Africa Africa
Canada Austria Australia China Bangladesh Albania Argentina Algeria Angola
France Belgium New Hong India Armenia Barbados Bahrain Benin
Germany Cyprus Zealand Kong Nepal Belarus Bolivia Djibouti Botswana
Italy Denmark Indonesia Pakistan Bosnia & Brazil Egypt Burkina Faso
Japan Finland Korea Sri Lanka Herzegovina Chile Iran Cameroon
United Greece Laos Bulgaria Colombia Israel Cote
Kingdom Iceland Malaysia Croatia Costa Rica Jordan D'Ivoire
United States Ireland Mongolia Czech Dominican Kuwait Eritrea
Luxemburg Philippines Republic Republic Lebanon Ethiopia
Netherlands Singapore Estonia Ecuador Morocco Ghana
Norway Taiwan Georgia El Salvador Oman Kenya
Portugal Thailand Hungary Guatemala Qatar Madagascar
Spain Vietnam Kazakhstan Haiti Saudi Arabia Malawi
Sweden Kyrgyz Honduras Syria Mauritania
Switzerland Republic Jamaica Tunisia Mauritius
Latvia Mexico UAE Mozambique
Lithuania Nicaragua Yemen Namibia
Moldova Paraguay Nigeria
Poland Peru Senegal
Romania Uruguay Sierra Leone
Russia Venezuela South Africa
Serbia & Sudan

G7 Western Developed East Asia South Asia Europe and Latin Middle East Sub-
Europe Oceania Central Asia America and and North Saharan
Caribbean Africa Africa
Montenegro Tanzania
Slovakia Uganda
Slovenia Zambia
Tajikistan Zimbabwe
Turkey
Ukraine
Uzbekistan
7 15 2 12 5 25 20 17 25

Comparisons in the KAM can be performed:

̈ On a Global Scale, where a country is compared to all 128 countries in
the KAM;
̈ On a Regional Scale where a country is compared only to countries in
the respective region;
̈ On the basis of income levels in which a country is compared only to
countries in the same income category; and
̈ On the basis of Human Development Index (HDI) where a country is
compared only to countries in the same HDI category.
BASIC SCORECARD OF SELECTED AFRICAN COUNTRIES
Knowledge assessment scorecards for Tanzania and Uganda are shown in

Figure 3 while that of Mozambique is shown in Figure 4. The Figures show
that fuller the scorecard, the better poised a country is to embrace the
knowledge economy. It should be noted that when a country’s performance
seems to have declined in the most recent period, this can happen for two
reasons:
∇ It may actually have lost ground in absolute terms (this often occurs on
education enrollment rates).
∇ Even if it has made a several fold improvement, it could still fall behind
because the world as a whole on average may have made a much more
significant improvement (this often happens with information
infrastructure penetration ratios).

Figure 3: Scorecards for Tanzania and Uganda
Figure 4: Basic Scorecards for Mozambique

SELECTED AFRICAN COUNTRIES – KEI
Figure 5 shows the relative position of countries and regions of the world,
based on their performance on the Knowledge Economy Index (KEI), a
composite indicator measured by the Knowledge Assessment
Methodology. KEI scores are derived by calculating the average in the
performance of a country or region on three key indicators in each of the
four pillars: economic and institutional regime, education, innovation, and
information infrastructure.
In addition, the program analyzes how K4D variables contribute to

economic growth (see graph at bottom right on country preparedness for
the knowledge economy and Gross Domestic Product per capita).
From the figure it is evident that most African countries are lying on the
lower range of the index in 1995 as well as in 2004 (most recent). This
means extra efforts are needed to make them achieve knowledge economy.
Figure 5: Global View of Knowledge Economy Index

THE K4D PROGRAM IN AFRICA
In May 2006, the K4D Program held a major Knowledge Economy

conference in South Africa. It aimed to provide a platform for stakeholders
and policy makers to discuss how African economies can access and apply
knowledge to grow and become more competitive. The follow up research
and knowledge sharing activities will focus on innovation policies that can
contribute to sustainable economic development in the African context.
Vice Chancellors policy conferences were organised in Tanzania, Uganda,

and Ghana in 2002. Similar conferences were organised in Senegal,
Mauritania, and Benin in 2004. Francophone University Rector’s Meetings
showcasing different success stories have also been organised by WBI.
Innovation workshop for selected countries (Ethiopia, Ghana, Mozambique,
Rwanda, Tanzania, Uganda) is scheduled for Ireland in March 2007
KNOWLEDGE ECONOMY STUDIES
The World Bank is following up several studies on knowledge economy

worldwide. Some of these studies are:
̈ Senegal Knowledge Economy assessment, which started in 2006 and is
ongoing;
̈ Work on IT and derivatives (e-government) in various African
countries (Senegal, Uganda, Rwanda…);
̈ Knowledge, Technology and Cluster-based Growth in Africa, which is
forthcoming; and
̈ “Diaspora Networks and the International Migration of Skills.
KNOWLEDGE, TECHNOLOGY AND CLUSTER-BASED GROWTH IN

AFRICA
This is a forthcoming event. It involves findings based on analysis of 11case-

studies of enterprise clusters in Kenya, Uganda, Tanzania, Nigeria, Ghana,
Mauritius, and South Africa
BIBLIOGRAPHY
www.worldbank.org/wbi/knowledgefordevelopment

B.2 ENGINEERING CAPACITY BUILDING IN

DEVELOPING COUNTRIES
by Russel C. Jones
Committee on Capacity Building, World Federation of Engineering
Organizations
ABSTRACT
In the pursuit of a more secure, stable and sustainable world, developing countries
seek to enhance their human, institutional and infrastructure capacity. To do so
they need a solid base technologically prepared people to effectively improve their
economies and quality of life. Such a base will facilitate the infusion of foreign
capital through attraction of multinational companies to invest in the developing
country, assist in making the most of foreign aid funds, and provide a b for business
development by local entrepreneurs. In a coordinated approach, UNESCO and
WFEO are mounting major efforts at technical capacity building in developing
countries.
INTRODUCTION
An old Chinese proverb says:

“Give a person a fish: you have fed the person for today. Teach a person to fish: you
have fed person for a lifetime”.
In today's global economy, one more level needs to be added for developing
countries:
“And: teach the person how to process and package fish for export and market it,
and you h stimulated economic development”.
Economic development for developing countries can be effectively

stimulated by building technical capacity of their workforce, through
quality engineering education programs. A compe1 technical workforce
base can then provide several paths to economic development: attraction
technically oriented multi-national companies, who can invest effectively in
the developing cow once there is a cadre of qualified local employees
available; effective utilization of foreign aid fur and providing a legacy of
RC Jones 87 Engineering in Developing Countries

appropriate infrastructure projects and technically competent people to

operate and maintain them; and small business start-ups by technically
competent entrepreneurs.
Capacity building can be defined as follows:
Capacity building is a dedication to the strengthening of economies, governments,

institutions (individuals through education, training, mentoring, and the infusion
of resources. Capacity building aims at developing secure, stable, and sustainable
structures, systems and organizations, with a particular emphasis on using
motivation and inspiration for people to improve their lives.
In the global economy of the 21st Century, engineers play a key role in
overall economic development for countries and regions. In the well
developed countries, the role of the engineers is well understood and
utilized. In much of the developing world, however, tile available pc leering
talent is typically below critical mass -and economic development and even
important basic societal needs that rely on engineering - such as clean water
supply and sanitation – lack the technical talent to address them.
Technical capacity building efforts aim at developing a sufficient pool of

well educated and cert leering graduates in developing countries to effect
three desirable outcomes:
● Technical capability is needed for developing countries to engage
effectively in the global economy; direct foreign investment,
international trade, mobility of engineers, and the flow of work to
countries with cost-effective talent will result.
● Indigenous science and technology capacity is needed to insure that
international aid funds are utilized effectively and efficiently - for
initial project implementation, for long-term operation and
maintenance, and for the development of capacity to do future
projects. And a sufficient pool of engineers can enable a developing
country to address the UN's Millennium Development Goals
effectively, including poverty reduction, safe water and sanitation, etc.
● In order to stimulate job formation in developing countries, a technical
workforce pool needed, made up of people who are specifically
educated and prepared to engage in entrepreneurial startup efforts
that meet local needs.
The World Federation of Engineering Organizations, through its Committee

on Capacity Building, is dedicated to assisting developing countries to
engage effectively in the global marketplace via technical capacity building.
RESULTS OF PREVIOUS EFFORTS
In a detailed study of the results of foreign aid to developing countries over

the past several decades, William Easterly concludes; in his book “The
Elusive Quest for Growth” (MIT Press, 2002):
- Previous efforts have tried to use foreign aid, investment in machines, fostering
education at the primary and secondary levels, controlling population growth,
and giving loans and debt relief conditional on reforms to stimulate the
economic growth that would allow these countries to move toward self
sufficiency
- All of these efforts over the past few decades have failed to lead to the desired
economic growth
- These massive and expensive efforts have failed because they did not hit the
fundamental human behavioural chord that “people respond to incentives”.
Having concluded that past efforts at stimulating economic growth in

developing countries have failed Easterly outlines what he thinks would
work. He argues that there are two areas that can likely lead to the desired
economic growth in developing countries, and can lead them toward
economic self sufficiency:
- Utilization of advanced technologies, and
- Education that leads to high skills in technological areas
While emphasis on health and basic relief needs must continue, there is also
a critical need to break the cycles of poverty through development of strong
and competitive economies that can relate to world markets. The building
of indigenous pools of people with quality educations in science,
technology, and engineering can help lead to economic growth and healthy
economies.
One need only look at examples from India and South Korea to see the
effect of concerted efforts to enhance the education of engineers and
technology graduates on the economies of these two countries. At the 2004
meeting of the American Society of Civil Engineers the South Korean

delegation to the Capacity Building Forum presented the results of South

Korea's investment over the past three decades in the number and quality
of engineering graduates. In 1970 South Korea had about 6,000 engineering
graduates. In 1980 these were increased to 14,000. By 1990, the figure ha
lumped to about 80,000. When plotted against South Korea's per capita
GNP growth, the number of engineering graduates almost directly parallels
the growth of the South Korean economy, offset by a few years. This data
appears to show a direct cause and effect - investment in building a well
qualified and sufficiently large pool of engineers, leads to sustainable
economic development.
In the case of India there has been a long-term effort to increase the
numbers of engineering graduates and the quality of their education.
Whereas in the past, many of these graduates sought employment outside
the country, now many are returning and newer graduates are staying to
work in India in the software and design industries, often to high-tech cities
where well-paying careers and extensive numbers of colleagues await them.
The growing number of technically proficient and well educated specialists
also has enabled India to become a prime location for the outsourcing
technical support by the world’s leading technology firms.
In China, already a major economic power, the proportion of first science

and engineering degrees to all bachelors-equivalent degrees was 59%, as
compared to about 33% in the US in 2001 (Source: Science and Engineering
Indicators 2004, National Science Foundation, National Science Board). The
report opens with the statement:
“Excellence in (science and engineering) higher education helps a country to be

technologically innovative and economically competitive”.
WHAT IS NEEDED
First and foremost, a large enough pool of high quality, accredited

engineering graduates is needed in developing countries so that the good
results listed above can be realized. It must be recognized that there will be
some leakage of these graduates to jobs in developed countries, but many
will choose to stay where family ties and native country culture provide a
comfortable environment.
But the basic need is the creation of good jobs in the home country. This is a
chicken-and-egg issue. Increased demand for engineers will result only
when there is a sufficient pool of well qualified graduates to attract direct
foreign investment, multinational corporation operations, offshore
outsourcing from developed countries, and entrepreneurial startups.
Developing country planner and government officials must pursue effective
economic development and job generation strategies in parallel with
making the needed investments to enhance the quality and quantity of
engineering.
Engineering education in developing countries should include significant

coverage of entrepreneurship – how to start, operate, and grow a small
business. Note that US companies such as Hewlett-Packard, Microsoft, and
Yahoo all were started in garages by enterprising young people with a
technical bent. Engineering graduates should be equipped to take a path of
creating jobs rather that seeking one if they wish to do so.
As technology based economies grow in developing countries, one

important source of top talent - in addition to new engineering graduates -
is the return of previous emigrants from the Diaspora. Several countries
that are developing well have benefited from the return of former citizens
who see new opportunities in their home countries, and bring back foreign
experience and network con 0 the benefit of their home countries.
In addition to increasing the number and quality of engineering graduates,

and pursuing strategies to have good local jobs available, developing
countries need mechanisms to apply research development results from
local universities and companies for economic gain. Such mechanism
incubators and small business development financing are needed in the
mix.
UNESCO AND THE WORLD FEDERATION OF ENGINEERING

ORGANIZATIONS
Given the strong relation between creation of a critical mass of educated

and skilled engineering science graduates, shouldn't efforts be made to
build these capacities in Sub-Saharan African countries? This is one of the
conclusions reached by both UNESCO and the World Federation of
engineers (WFEO). The World Federation of Engineering Organizations

was founded in 1968 ill he auspices of the UNESCO in Paris and is a non-
governmental international organization brings together national
engineering organizations from over 90 nations and represents some
8,000,000 engineers from around the world. WFEO is the worldwide leader
of the engineering profession and co-operates with national and other
international professional institutions in developing and applying
engineering to the benefit of humanity.
In keeping with its mission, WFEO created its Standing Committee on

Capacity Building at WFEO General Assembly in Tunis in 2003. The
Committee on Capacity Building held its organizational meeting in
Washington DC in June 2004; this meeting was supported by the l National
Science Foundation. The Committee currently includes 44 members from 29
countries. At this and subsequent meetings several priority projects were
identified, including:
∇ Engineering for the Americas: This project, being carried out in
conjunction with the Organization of American States, is focused on
developing plans for enhancing engineering education and practice
throughout Latin American and the Caribbean.
∇ African Initiatives: Many of the societal, human and economic needs
identified in the Millennium Development Goals and other similar
descriptions of the situation in developing countries are present in sub-
Saharan Africa. The WFEO Committee on Capacity Building
developing programs to address a significant subset of those needs, in
areas of its expertise Activities will include: engineering education
workshops; development of accreditation systems; entrepreneurial
training, particularly for women; stimulation of internship program
electronic delivery of courses; formation of Engineers Without Borders
cells; and faculty a student exchanges.
∇ Electronic Initiatives: The Committee on Capacity Building is
organizing an e-conference conjunction with the American Society for
Engineering Education/Rio Colloquium scheduled for Brazil in
September of this year. The use of an e-colloquium will enable
engineering educators from developing countries who cannot typically
afford to attend international conferences to participate by submitting
papers and discussion in advance of the live meeting and then have
their materials presented in summary from at the Rio conference.
∇ Other Activities: The Committee on Capacity Building is also working

on the following activities:
● Black Sea University Network .Gender issues
● South-south interactions
● Engineers without borders
● FIDIC (International Federation of Consulting Engineers)
● UNESCO/WFEO Expert Conference
CONCLUSION
Technical capacity building in developing countries as a lever for economic

and social development is currently recognized as an important priority in
the global engineering community. The WFEO Committee on Capacity
Building is pursuing this priority on several fronts.
Biography of the Author
RUSSEL C. JONES is a private consultant, working through World

Expertise LLC to offer services engineering education in the
international arena. Prior to that, he had a long career in education:
faculty member at MIT, department chair in civil engineering at Ohio
State University, dean of engineering at University of Massachusetts,
academic vice president at Boston University, and President at
University of Delaware. Dr. Jones is President of the Capacity
Building Committee of World Federation of Engineering
Organizations.

B.3 VINNOVA’s EXPERIENCE IN PROMOTING

COMPETITIVENESS IN SWEDEN
by Dan Sjogren
VINNOVA, Sweden
During the years around the Millennium, Sweden made a radical change in
policies. Sweden as a leading nation in spending in Research and
Development did not achieved sufficient economic growth. A shift in policy
was needed.
“Industry´s transformation and competitiveness is best understood from a

perspective where the private firm is regarded as part of a system. The
measures taken for regional business development ought to be
characterised by a perspective where firms are seen as part of a system –
innovation systems and clusters.” (The Swedish regional development bill
2001)
One result of the change in policy was manifested by establishing

VINNOVA (the Swedish state agency for innovation systems) in 2001.
The aim of VINNOVA is sustainable economic growth which is also socially

and ecologically sustainable.
The mission of VINNOVA is to contribute to sustainable economic growth
• Investing in need-oriented research;

in Sweden through:
• Development of effective innovation systems; and

• Triple helix collaboration.
The basis for economic growth and competitiveness is innovation. By using

the innovation system as a policy frame work, the gaps and missing links
can be identified in the transformation process from knowledge to products
and services on the market. By using Innovation system as a policy tool,
specific programmes can be designed to improve the performance of the
system.
D Sjögren 94 VINNOVA in Competitiveness

How does VINNOVA promote competitiveness in Sweden? Three

examples:
1. Competitive R&I Environments - VINN Excellence Centres Programme.
2. Competitive SME - Research and Grow Programme.
3. Competitive regions - VINNVÄXT Programme.
1. Competitive R&I Environments

VINN Excellence Centres provide a forum for collaboration between the
private and public sectors, universities and colleges, research institutes and
other organisations that conduct research. The Centres deal with both basic
and applied research and they work to ensure that new knowledge and
new technological developments lead to new products, processes and
services. ViINN Excellence Centre Programme provides:
̇ a long term R&D partnership between universities, private enterprises,
government;
̇ a national competition on growth potential;
̇ 10 year financial commitment from all participants;
̇ 25 new centres each focusing one future application area 2006; and
̇ joint financing VINNOVA + University + Private enterprises 600
mUSD/10 y. Max 24 mUSD/Centre.
2. Competitive SME
• stimulate user oriented R&D in small and medium-sized companies;

The programme Research and Grow aim is to:
• increase knowledge and improved technology base in products and
• increased global competitiveness; and

processes;
• improve cooperation and networking among SME.
The expected outcomes are:

For SMEs
̇ Increased knowledge and improved technology base in products and
processes;
̇ Increased global competitiveness; and
̇ Improved cooperation and networking.
For Sweden
̇ Increased economic growth; and
̇ Job growth.
3. Competitive regions: VINNVÄXT – Regional growth through

innovation systems
The aim of the programme is to promote sustainable growth and
international competitiveness within future growth areas defined by the
functional region. This is achieved through problem-oriented research and
development of innovation systems to internationally competitive levels.
• a regional competition – the winners takes it all;

The main features of the program are:
• 10 year financial commitment;

• $80 million (+ $80 m);
• training courses, follow up, learning workshops, a national network of
• selection through a competition in growth potential.

faciliators etc; and
Eight functional regions receive 1,1 M€ per year. 3 winners were picked in
2003 – Lund (Functional Food), Vasterås/Mälardalen (Robot Technology)
and Uppsala (Bio-Tech). Five additional winners were selected in the fall of
2004: Luleå (IT for Process-industry), Dalarna (Steel Manufacturing),
Gothenburg (Bio-Medicin), Linköping (Life ‘Science); Hudiksvall (Fiber
Optics). In 2008 two more innovation systems initiatives in early stages
(embryonic) will be selected.
FUNDING AND FOCUSED ACTIVITIES WITHIN THE INNOVATION

SYSTEM
The total budget (2006) for the whole program is 80 M€ from VINNOVA
plus an estimated regional co-funding of at least as much. The winners will
receive up to 1.1 M€ a year. With the co-funding this means 2.2 N€ a year.
Funding will be given during ten years.
The resources of VINNOVA should be used for:
(1) problem-oriented R&D in the growth area, in collaboration with
research and business firms, and
(2) Triple Helix-led development of the innovation system.

PROCESSES SUPPORT AND TRAINING (FACILITATION) – A KEY

FACTOR FOR SUCCESS
It was clear from an early stage that process support was a key factor for
success. A national network of facilitators was organized. The challenges
and critical situation the facilitators meet in the daily facilitating work
where retrieved through focus groups and prioritized by the facilitator’s
community. A common agenda was agreed upon. The top three themes
• Triple Helix leadership, collaboration and the role of the facilitator;

were:
• Communication, mind set/awarness and mobilization; and

• R&D strategies and innovation processes.
The process support (facilitating) activities were derived from the need of
the facilitators. Training courses, handbooks, thematic work shops, learning
workshops, net work conferences, follow up studies, special projects etc.
The process support function is now outsourced to The Dahmén Institute,

a network organization built on multidisciplinary cooperation. The Institute
coordinates researchers and practitioners within the area of innovation and
growth, aiming to examine, support and develop the Swedish politics of
innovation systems.
COLLABORATION BETWEEN ISCP–EA, Sida/SAREC AND VINNOVA
One main reason for VINNOVA to collaborate is the rich opportunities for
exchange of experiences and knowledge on innovation led economic
development. The only ways to really learn is to teamwork and collaborate
in practice, for example the kick-start training courses, evalutations and
facilitators learning workshops. From VINNOVA´s perspective the
achievements of ISCP-EA (pilot phase) have been impressive:
̇ four kick start courses,
̇ approximately 200 facilitators trained,
̇ 8 pilot cluster initiatives (CI) up and running and 9 additional CIs in
progress in Tanzania,
̇ 7 CIs up and running in Uganda,
̇ 9 CIs in progress in Mozambique,
̇ a facilitators learning workshop in Uganda, and
̇ a facilitators learning workshop in Tanzania.
Additional training courses are planned as well as follow up activities.

VINNOVA is looking forward to further collaboration.

PART C
DEVELOPMENT OF INNOVATION SYSTEMS AND

TOWARDS ACHIEVING COMPETITIVENESS
99
C.1 MEASUREMENT OF R&D AND INNOVATION IN

SOUTH AFRICA: LOOKING AT THE LOCATION
OF ACTIVITIES AND LINKAGES
by William Blankley
Centre for Science, Technology and Innovation Indicators (CeSTII),
Human Sciences Research Council (HSRC), Cape Town, South
Africa
INTRODUCTION
Cluster and spatial development initiatives
Historically South Africa has seen the development of several spontaneous

industrial clusters such as the mining and secondary industry development
in the Witwatersrand, the wool and leather industry, the wine industry
“Winetech” of the Western Cape, the oil from coal industry clustered
around Sasol and the telemetry industry of the Western Cape. In more
recent years, there have been several industrial cluster developments such
as the Maputo Development Corridor and the Coega Industrial
Development Zone and Deepwater Port near Port Elizabeth. Government,
through the Department of Trade and Industry, is currently busy with
developing a new Regional Industrial Development Strategy. This new
Regional Industrial Development Strategy aims to better coordinate all the
various spatial development initiatives in the country. These initiatives tend
to be broad based rather than industry-specific developments.
It is probably fair to say that most of the recent cluster initiatives and
developments have been supported or developed by government and are
not primarily driven by market forces or the industry players concerned.
Possible exceptions here are Winetech, which arose from the mutual
concerns of wine industry leaders with the aid of the University of
Stellenbosch Institute for Wine Biotechnology, and the Automotive
Component Benchmarking Club. This Club was initially started as a local
programme funded by government support through researchers at the
School of Development Studies of the University of KwaZulu-Natal in 1998
but has developed into a successful Club with the participation of 70 firms
(Morris and Barnes, 2005). South Africa’s spatial development initiatives
W Blankley 100 R&D and Innovation in South Africa
tend to focus on industrial development and employment creation rather

than R&D and Innovation with the exception of the science park known as
the “Innovation Hub” in Gauteng which is part of the Gauteng Blue IQ
Project (Blankley and Moodley, 2004).
Unfortunately it does not appear that there have been any specific projects
that have examined innovation clusters as a whole in South Africa,
particularly from a R&D and innovation perspective. It is for these reasons
that this paper will not look at these clusters in any detail but will rather
aim to map out the location of R&D and innovation linkages in South
Africa. The paper also aims to provide background and information on how
these aspects of R&D and innovation are measured in South Africa as a
source of possible useful information for other countries in the region.
R&D and Innovation Surveys
South Africa has conducted fairly regular biennial R&D Surveys since 1966.
However, between 1991 and 2001 the survey migrated between several
agents and much of the institutional memory around the survey was lost.
The gross expenditure on R&D (GERD) as a percentage of GDP recorded
for 1997 was only 0.60%, one of the lowest levels recorded by the survey. In
2002 the then Department of Arts, Culture, Science and Technology (soon to
become the Department of Science and Technology or DST) commissioned
the HSRC to establish the Centre for Science, Technology and Innovation
Indicators (CeSTII). CeSTII was charged with the special function of
providing surveys and indicators to support the DST in producing national
R&D and innovation statistics and indictors to support the implementation
and monitoring of South Africa’s National R&D Strategy and provides
official statistics for the National Statistics System. CeSTII was contracted to
undertake regular R&D Surveys and National Innovation Surveys and to
work closely with DST and Statistics South Africa in the conduct of these
Surveys (Blankley and Kahn, 2005).
CeSTII also works closely with the Organisation for Economic Cooperation
and Development (OECD) and the working group of National Experts in
Science and Technology Indicators (NESTI). CeSTII also has links with
Eurostat, the central statistical office of the European Union (EU),
particularly regarding the Innovation Survey. The links with OECD and
Eurostat are important because the OECD provides the recommended

methodology and guidelines for the conduct of internationally comparable
national R&D Surveys through the OECD Frascati Manual (OECD, 2002).
Eurostat works with the OECD on the Community Innovation Survey (CIS)
which is regularly undertaken in all EU countries. The two organisations
jointly compile and publish the Oslo Manual (OECD, 2005). The Oslo
Manual provides guidelines on appropriate methodology and approaches
for measuring and understanding international innovation activities.
Eurostat also develops a standard questionnaire and methodology
guidelines for the conduct of the CIS every four years, now in its fourth
round (CIS4) covering the period 2002-2004 (future surveys may be carried
out more frequently). In March 2001, Eurostat circulated an open request to
all non-EU countries planning to undertake an innovation survey to use
core CIS questionnaires and methodologies to allow international
comparisons. South Africa heeded this call and in 2005 launched its first
official National Innovation Survey. The questionnaire and methodology
employed is based on CIS4 guidelines so the results will be directly
comparable with CIS4, given some stated statistical differences.
The results of the South African R&D Survey are used to complete the
OECD data sheets required to populate the OECD Main Science and
Technology Indicators or MSTI (OECD, 2006). The MSTI is updated
biennially and provides records of R&D data and indicators for the most
recent 25-year period for the 30 OECD member states and for nine other
countries that submit data to the OECD. South African data thus appears
along with data and indicators for Argentina, China, Israel, Romania,
Russian Federation, Singapore, Slovenia and Chinese Taipei.
Both the South African R&D Survey and Innovation Survey contain
questions on cooperation linkages. The R&D Survey requests data on the
location of activities. Neither of the surveys is directly aimed at coverage of
innovation clusters but both provide some indirect evidence of cluster
activities that are described more fully in the Survey Methodologies section
which follows.

SURVEY METHODOLOGIES AND QUESTIONNAIRE COVERAGE OF

LOCATION AND LINKAGES
R&D Survey Methodology
The South African annual R&D Survey is a purposive survey that targets all
known R&D performers in the country. It aims to provide a census of all
organisations known to be active performers of R&D. It covers five sectors,
namely higher education, business, not-for-profit, science councils and
government (national and provincial government departments, museums
and public research institutions). For the 2004/05 survey respondents
comprised 561 business enterprises, 35 higher education institutions, 37 not-
for-profit organisations, 9 publicly funded science councils, 16 national
government departments, 15 provincial departments, 40 museums and 21
pubic research institutions. Many more organisations are sent
questionnaires but some do not respond and others provide questionnaires
with nil returns. As respondents get accustomed to the more regular annual
surveys they tend to find the task of completing the questionnaires more
routine and less arduous than is the case in an irregular or unexpected
survey. As a result response rates have shown a general improvement each
year and respondents appear to be able to provide improved accounts of
their R&D expenditure and activities.
Innovation Survey Methodology
The Innovation Survey 2005 is the first official innovation survey in South
Africa that has been commissioned by government through the DST. It
covers the years 2002-2004 with the financial year as 2004/05. Two previous
innovation surveys were undertaken in South Africa, one for the financial
year 1994/95 (covering the years 1992-1994) and the other for financial year
2000/01 (covering the years 1998-2000). The 1994/95 survey was carried out
by the Industrial Strategy Project and the Foundation for Research
Development (FRD/ISP, 1997). The 2000/01 survey was undertaken by the
University of Pretoria and Eindhoven University of Technology (Oerlemans
et al, 2004). Both surveys were based on commercially available lists of
companies (which had their shortcomings) and both achieved very low
response rates of 8.9% and 8.4%, respectively.

Innovation surveys are currently only carried out for the business sector,
usually the mining, manufacturing and service sectors. In order to promote
international comparability, Eurostat recommends that Innovation Surveys
be usually based on a random stratified sample, which should be drawn
from the latest national business register. Because of the Memorandum of
Understanding between DST and Statistics South Africa (StatsSA), CeSTII
was able to formally request a random sample from the StatsSA business
register. This is the first time that StatsSA was able to provide such a sample
to an outside body. CeSTII staff are all bound by strict confidentiality
agreements not to disclose any information on the identities or information
on individual enterprises contained in the register. A stratified random
sample of 3087 enterprises was provided by StatsSA. The sample was
stratified by four size classes of firms and two digit levels of selected
Standard Industrial Classification (SIC) codes. Eight sectors are covered by
the survey including mining and quarrying, manufacturing, electricity, gas
and water, wholesale and retail trade, transport storage and
communication, financial intermediation and architectural, engineering and
other technical activities.
The size of the sample requested from StatsSA was based on the human,
financial, time and infrastructural resources available for the survey as well
as the degree of effort required by respondents to complete the
questionnaire. Researchers from CeSTII spent time at the StatsSA main
centre in Pretoria in order to understand the composition and operation of
the official business register. Some valuable insights, such as the above
advice on constraints in selecting the size of a survey sample, were gained
through these visits and interactions.
The questionnaire was based on the CIS4 core questionnaire but adapted
for local conditions and terminology and shaped by a consultative
workshop with stakeholders and subsequently modified after two rounds
of piloting. The final questionnaire is comparable with CIS4. A dedicated
Survey Call Centre, comprising six research assistants, was set up to deal
with the day-to-day activities of the survey. The research assistants were
each assigned responsibility for specific sectors of the survey. The address
list database supplied by StatsSA was checked and the contact details of
enterprises were verified. A contact person at each enterprise was
identified, usually at the level of CEO or Managing Director. Survey
questionnaires were posted to all recipients along with a letter of support

from the Minister of Science and Technology. Questionnaires were followed
up with verbal reminders and in many cases an electronic version of the
questionnaire was requested and sent to respondents.
A second posting of questionnaires to those enterprises that had not yet

responded was made about four months after the initial posting. Final
reminder phone calls were made and the survey finally closed after eight
months in the field. Given the generally low response rate of business to
non-mandatory surveys in South Africa, a fairly satisfactory response rate
of 32% was obtained. A non-response survey was also carried out in order
to ascertain whether non-respondents tended to be less innovative than
respondents. A senior statistician was engaged to help adjust the weights
for the survey based on the number of non-valid enterprises and the non-
response survey. At the time of writing the first weighted estimates of
responses for the survey population are being calculated. Results from the
Innovation Survey reported here are thus unweighted and preliminary and
the final survey results will only be released later in 2006 or early 2007.
Survey Questionnaire Items on location and cooperation linkages
R&D Survey
The R&D Survey for 2004/05 requested respondents to state in which of the
nine provinces in South Africa R&D activities were actually carried out.
Responses were expressed as a percentage of total R&D expenditure for the
organisation or company.
The R&D Survey also asked a relatively straightforward question on

collaborative R&D for the business sector only. The question was posed as
below.
With whom is R&D conducted in partnerships, alliances or collaboration?

Tick as appropriate.

Yes No
Higher Education Institutions
Science Councils
Government Research Institutes
Members of own company/affiliated companies
Other companies (including specialist consultants)
Not-for-profit organisations
Innovation Survey: Information Sources
In the Innovation Survey respondents were requested to rate the degree of

importance for their innovation activities of various internal and external
sources of information
Degree of importance
High Medium Low Not used
Internal Sources within your enterprise or
enterprise group
External
Market Suppliers of equipment, materials,
components or software
Clients or customers
Competitors or other enterprises
in your sector
Consultants, commercial labs or
private R&D industries
Institutional Universities and Technikons
Government or public research
institutes
Other Conferences, trade fairs,
exhibitions
Scientific journals and
trade/technical publications
Professional and industry
associations

Innovation Survey respondents were asked whether their enterprise had

any co-operation on any of its innovation activities with other enterprises or
institutions. Respondents who replied in the affirmative were then asked to
indicate the type of cooperation partner and their location as set out below.
Please indicate the type of co-operation partner and their location.

Tick all that apply
Type of co-operation partner South Rest of Europe USA Asia Other

Africa Africa countries
A. Other enterprises within your
enterprise group
B. Suppliers of equipment,
materials, components, or
software
C. Clients or customers
D. Competitors or other
enterprises in your sector
E. Consultants, commercial labs,
or private R&D institutes
F. Universities or other higher
education institutions
G. Government or public
research institutes (e.g. CSIR)
The results of the respondents’ completion of these questions in both the

R&D and Innovation Surveys are presented in the next section.
RESULTS
The questions described in the methodology section were all pilot tested
with several typical respondents and subsequently modified where any
confusion or misunderstanding arose. However, it is the survey team’s
experience that there will always be problems of particular wording or
terminology having different meanings for different groups of people.
Respondents are also prone to ignore definitions and explanations provided
in a questionnaire. A clear example of this is the request in questionnaires
for financial figures to be provided at a certain level (e.g. thousands of
Rand). Respondents tend to report figures in the way that they are used to

reporting internally, some report in actual Rands and others in millions of

Rand despite the explicit instructions in the questionnaire. It is thus not
always clear to survey researchers at what level financial figures are being
reported. Quality control measures such as a check on total R&D
expenditure per researcher capita are required to monitor such possible
sources of error. Follow up phone calls are required to clarify such
mistakes.
Table 1: South African R&D expenditure and R&D as a percentage of Gross

Geographic Product (GGP) per Province (2004/05)
Provinces Percentage of GGP as a percentage R&D as %GGP
total R&D of total GDP
Total R 12.0 billion R1 386.7 billion
Gauteng 54.6 33.3 1.42
Western Cape 17.5 14.4 1.05
KwaZulu-Natal 10.2 16.7 0.53
Free State 6.0 5.5 0.95
Eastern Cape 4.0 8.1 0.43
North West 3.1 6.3 0.43
Mpumalanga 2.5 6.8 0.32
Limpopo 1.3 6.7 0.16
Northern Cape 0.8 2.2 0.33
South Africa Total 100.0 100.0 0.87
Table 1 shows that South Africa had a total R&D expenditure of R12 billion
(US$1.9 billion) in 2004/05 equivalent to 0.87% of Gross Domestic Product
(GDP). Gauteng is the smallest province in South Africa but it is also the
powerhouse of the economy and contributes about a third of GDP. Gauteng
is the base of most leading research and technology institutions in the
country, including the main offices of eight of the nine science councils.
R&D expenditure for the province comprised more than half the country’s
total R&D expenditure and was equivalent to 1.42% of GGP in 2004/05.
This is above the level of expenditure found in a few OECD countries,
including the Czech Republic (1.27%), Ireland (1.20%) and Hungary at
0.89% of GDP (OECD, 2006). The Western Cape also has relatively high
R&D expenditure equivalent to 1.05% of GGP. The natural resource based

and largely rural province of Limpopo is clearly lacking when it comes to

R&D and only an equivalent of 0.16% of GGP is spent on R&D.
South African Business Sector R&D collaboration with partners
Information on South African Business R&D conducted in partnerships,

alliances or collaboration was gathered through a special question inserted
for the 2004/05 R&D Survey. Of the 561 enterprises that participated in the
survey only 231 responded to this new question. Of these respondents
about 72% reported collaboration with at least one outside partner of which
the majority (95%) reported having at least one local collaborative partner.
About 36% of respondents with collaborations had at least one R&D
collaboration partner from abroad.
Figure 1 South African business sector R&D collaboration

links - unweighted percentages, n=470 (2004)
Percentage of reported links
25.0
20.0
15.0
10.0
5.0
0.0
Not-for-
Education
Members of
Government
Councils
companies
Science
company
profit
Higher
institutes
research
Other
own
In RSA Outside RSA
Figure 1 shows that the majority of South African business R&D links
within South Africa are with higher education institutions (21.3%) followed
by other companies (17.2%) and the science councils (14.0%). The most links
abroad are with other companies (10%) followed by companies’ own
member companies (8.5%). It is sometimes said that the South African
businesses sector acts as an island and that businesses are not well
connected outside their own sector, but these figures show that R&D active
companies tend to have a diversity of collaborative linkages when it comes
to research partnerships.
Figure 2 Business R&D collaboration by industry activity

sectors - unweighted percentages, n=445 (2004)
Percentage of total reported links

35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
re
lth
es
s
al
in
in
IC
tu
ea
ic
ur
in
tic
ul
rv
M
H
t
eu
ac
ric
se
ac
uf
Ag
al
an
ci
ar
n
M
na
Ph
Fi
In RSA Outside RSA
Figure 2 shows that South Africa’s manufacturing sector appears to have

the most collaborative R&D links both inside (29.2%) and outside the
country (10.1%), followed by mining (total of 15.9%) and agriculture (total
of 14.8%). The service sector industries of ICT and financial services appear
to have less outside R&D links (6.7% and 5.9% respectively).
Table 2: South African Innovating firms rating of the importance of various

information sources for innovation activities (n=603 innovating firms -
unweighted) 2002-2004
Sources of information for innovation High or medium Low Not
importance importance used
Internal sources 82.9 6.6 10.5
Customers 68.8 16.6 14.6
Suppliers 68.5 20.2 11.3
Conferences, trade fairs 38.4 32.2 29.4
Professional & industry associations 35.5 29.2 35.3
Scientific or trade journals 34.7 35.8 29.5
Consultants, private labs 28.2 27.2 44.6
Higher education institutions 15.7 23.9 60.4
Government or public research institutes 11.0 19.2 69.8

Nearly 83% of innovative firms reported that internal information sources

were most regarded to be of high or medium importance for innovation
activities, followed by customers and suppliers at about 69% (Table 2). The
other categories of information such as conferences and trade fairs, journals
and consultants were important sources of information for less than 40% of
innovative firms. Interestingly, in comparison with Figure 1 the higher
education institutions and public research institutions (including science
councils) feature very low on the list and were not used by more than 60%
of firms and regarded as important sources by less than 16% of firms. It
appears that these institutions are important partners for R&D activities
(possibly because of public support programmes and a fairly sound history
of funding for R&D linkages in South Africa) but are not nearly so
important when it comes to the business of innovation in South Africa.
Figure 3 Location of co-operation partners of

innovating South African firms - unweighted
percentages, n=1946 (2002-2004)
Percentage of innovating firms
60
50
40
30
20
10
0
South Europe USA Asia Rest of Other
Africa Africa
As expected Figure 3 shows that South African firms have cooperation links
with innovation partners mostly in South Africa (48% of reported partners)
followed by Europe (30.9%) and to a lesser extent in the USA (17.9%).
Collaborative links with the rest of Africa are relatively low at 9.3% and
even slightly lower than links with Asia (10.1%).

Figure 4 Distribution of types of collaborative

innovation partners per geographic region
by unw eighted percentage, n=1946 (2002-
2004)
Percentage of total partners

14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Consultants
Suppliers
enterprises
institutes
Own group
Public
South Africa Not Africa Rest of Africa
Suppliers from countries outside of Africa appear to be the most important

collaborative innovation partners for South African firms comprising 11.9%
of all such partnerships, followed by clients or customers from South Africa
at 11.3% (Figure 4). Own group enterprises are also important partners at
17.1% of partners from all geographical areas but again tend to be situated
outside Africa. In Africa, clients and customers and own group enterprises
are the most important innovation partners (2.5% and 1.2% of all reported
partnerships). South African higher education institutions and public
institutes (including the science councils) again feature relatively low in
terms of being involved in collaborative partnerships with South African
industry, only accounting for 6.2% and 5.1% of partnerships with
innovative firms, respectively.
DISCUSSION
The patterns of R&D and innovation collaboration of South African firms

are not yet well understood. Industry appears to have responded fairly well
to public support programmes for R&D such as the relatively long standing
Technology for Human Resources in Industry Programme (THRIP) and this
could possibly account for the fairly high number of collaborative R&D
links with public bodies recorded in the 2004/05 R&D Survey. However in

terms of innovation activity linkages appear to be more driven by business

imperatives. Public institutions such as science councils and higher
education establishments do not feature as highly regarded sources of
information for innovation or as collaborative partners for innovation
activities. In contrast results of CIS3 show that in the EU, higher education
institutions are as likely to be engaged by firms in innovation activities as
suppliers or customers, about 35% of partnerships within countries
(Crowley, 2004). In South Africa, higher education institutions and science
councils tend to be the foci of government support programmes for R&D
and innovation but do not appear to feature as important partners for the
innovation activities of firms. A more in depth study, probably using case
study methodology and focused on specific sectors will be needed to shed
more light on this matter.
While South African firms, particularly in the ICT, financial and retail
sectors appear to be increasingly active in other African countries, there
appears to be relatively little collaborative work in R&D and innovation
activities with other African countries. However, it is worth noting that
customers or clients appear to be the most important partners in the
innovation activities of South African firms in Africa indicating that special
products and solutions are being developed for African clients and markets.
It is important for African countries to have national R&D and national

innovation surveys to provide an overall idea of the main features of their
science and technology, research and innovation system. In South Africa’s
case we appear to have covered sufficient ground now to proceed with
much needed more detailed studies of how innovation clusters feature and
function within the system. However, we will continue with regular R&D
and innovation surveys as they supply important regular baseline data and
indicators for international benchmarking as well as providing policy
makers with strategic information.
There is a clear need for more in-depth studies looking at the government
programme of spatial development initiatives and clusters both within
South Africa and the region. Understanding the R&D and innovation
activities in these clusters and hubs and how to further engage the research
and innovation community in these activities is key to South Africa’s
economic future. R&D and innovation partnerships between South Africa
and partners in other African countries will be vital for general economic
prosperity in the region and essential for increasing the competitiveness of
African countries. Sufficient information and data needs to be made
available to support strategic decision making around these investments in
the near future.
ACKNOWLEDGEMENTS
My appreciation to all the CeSTII staff for their hard work in undertaking
the R&D and Innovation Surveys in South Africa. Special thanks to Cheryl
Moses of CeSTII for her assistance with the Innovation Survey and inputs to
this paper.
REFERENCES
Blankley, William and Moodley, Sagren (2004), South Africa’s National

System of Innovation and Cluster Formation in the ICT Sector.
Paper presented at: Regional Conference on Innovation Systems
and Innovation Clusters in Africa, Bagamoyo, Tanzania, 18-20
February 2004. Published in the book of proceedings of the
conference.
Blankley, William and Kahn, Michael, 2005, The history of research and
experimental development (R&D) measurement in South Africa
and some current perspectives. South African Journal of Science,
Volume 101, March/April 2005. 151-156.
Crowley, Paul (2004), Sources and resources for EU innovation. Statistics in
Focus, Science and Technology, Theme 9, - 5/2004, Eurostat,
European Communities, 2004.
FRD/ISP (1997), Innovation Patterns in South African Manufacturing Firms:
Report on the survey of innovative activity in South African manufacturing
firms. October 1997. Foundation for Research Development and
Industrial Strategy Project. Principal authors: William Blankley (FRD)
and David Kaplan (ISP), FRD, Pretoria: 142 pages.
Morris, Mike and Justin Barnes (2006), Regional Development and Cluster
Management: lessons from South Africa. See:
http://www.saldru.uct.ac.za/prism/development_clustermngmt.
pdf#search=%22Morris%20Barnes%20cluster%20management%22

OECD (2002), Proposed Standard Practice for Surveys of Research and

Experimental Development, Frascati Manual 2002, 5th Edition. The
Measurement of Scientific and Technological Activities Series.
Organisation for Economic Cooperation and Development, Paris.
OECD/European Communities (2005), Guidelines for Collecting and
Interpreting Innovation Data, Oslo Manual 3rd Edition. The
Measurement of Scientific and Technological Activities Series. A
joint publication of the Organisation for Economic Co-operation
(OECD) and the Statistical Office of the European Communities
(Eurostat), Paris.
OECD (2006), OECD Main Science and Technology Indicators, Electronic
Version, June 2006. Organisation for Economic Co-operation and
Development, Paris.
Oerlemans, L.A.G., Pretorius, M.W., Buys, A.J., Rooks, G. (2004), Industrial
Innovation in South Africa, 1998-2000. Pretoria: University of
Pretoria.

C.2 DESIGN FOR SUSTAINABILITY; CASES AND

TOOLS
by M.R.M. Crul and J.C. Diehl
Design for Sustainability Programme, Faculty of Industrial Design
Engineering, Delft University of Technology. Landbergstraat 15, NL
2628 CE Delft, The Netherlands. E-mail: m.r.m.crul@tudelft.nl
ABSTRACT
Design for Sustainability (D4S) aims at improved product innovation which

applies sustainability criteria. Sustainability encompasses the three key elements of
environmental improvement, social responsibility and economic performance.
Product innovation, as one of the key innovation strategies, can play a key role in
the development of innovative clusters.
IDE, the Faculty of Industrial Design Engineering of Delft University of

Technology has been involved in several programmes and projects related to
product innovation and D4S in East Africa, as well as in other parts of the
developing world. Parallel to these, a considerable number of projects on product
innovation for the Base of the Pyramid (BoP) have been executed. Examples of
successful cases in industry are given.
Recently, a methodology for D4S in Developing Economies was developed by Delft

UT and published by UNEP. Key approaches include needs assessment, D4S
Redesign and D4S Benchmarking.
INTRODUCTION
A major challenge for industry in East Africa is to innovate: initiate, or

adapt fast enough to changes in the economic and commercial business
environment. Doing this in a sustainable way means catering to human
needs while maintaining the environmental and natural resources and local
communities as a long term pre-condition for human societies.
Improved product innovation which applies sustainability criteria - Design

for Sustainability (D4S) - is one of the most useful instruments available to
enterprises and governments to deal with these concerns. D4S includes the
more limited concept of Ecodesign or Design for the Environment. D4S is
M Crul & J Diehl 116 Design for Sustainability: Cases and Tools
closely linked to wider concepts such as sustainable product-service

systems, systems innovations and other life cycle based efforts.
Product innovation, as one of the key innovation types together with

process, market and organisational innovation also can play a key role
within the development of innovative clusters. Implementation of
innovation systems and clusters in East Africa, as is currently taking place
in the ISCP-EA programme, is in need of tangible and successful cases of
product innovation at firm level within the clusters. These cases can serve
as learning experience in the innovative cluster and trigger the cluster to re-
conceptualise their product and market portfolio, challenge traditional
boundaries, improve networking within the cluster and find new linkages
outside the cluster.
This paper describes the concept of D4S, and provides a number of projects
and industrial cases n developing economies. Newly developed tools for
execution of D4S company projects are briefly introduced.
PRODUCT INNOVATION AND SUSTAINABILITY: D4S
Design for Sustainability (D4S) is a globally recognised way in which

companies can work to improve efficiencies, product quality and market
opportunities and at the same time increase environmental & social
performance - resulting in a win-win situation (Crul 2003; Crul and Diehl
2006).
In many developed economies, because of a high level of awareness about

the potential of efficiency and environmental concerns, D4S efforts are
linked to wider concepts such as product-service mixes, systems innovation
and other life cycle-based efforts. In developing economies, more
immediate technical support is needed to introduce the D4S concept. Many
organizations have developed approaches to help companies (and those
who work with companies) rethink how to design and produce products to
improve profits and competitiveness and to reduce environmental impacts
at the same time.
In the late 1980s and early 1990s, sustainability largely was an

environmental issue. Initially efforts focused on improving end-of-pipe
technologies. The focus then shifted towards production improvements via

concepts such as clean technology, cleaner production, and eco-efficiency.
The next shift was to product impacts, thereby taking into account the
whole product life cycle.
Concepts like Ecodesign and Design for the Environment (DfE) were
developed and put into practice.
In the next phase, the focus went beyond environmental issues only. Based
on experience gained, Ecodesign evolved to encompass broader issues such
as the social component of sustainability and the need to develop new ways
to meet consumer needs in a less resource intensive way. D4S goes beyond
how to make a ‘green’ product - the concept now embraces how best to
meet consumer needs – social, economic and environmental - on a
systematic level. These 3 key elements of sustainability are also referred to
as people, planet and profit.
Product innovation is directly linked to sustainability: both are oriented

towards change and the future. Sustainability is concerned with the well-
being of the future. Product innovation is concerned with creating new
products and services that generate value only if they fit in this future. To
be sustainable, product innovation must meet a number of challenges
linked to people, planet and profit: social expectations and an equitable
distribution of value along the global value chain, and the innovation must
work within the carrying capacity of the supporting ecosystems.
PRODUCT INNOVATION PROJECTS OF IDE IN DEVELOPING

COUNTRIES
Over the last years, the Faculty of Industrial Design Engineering (IDE) of
Delft University of Technology has been involved in several projects related
to product innovation and Design for Sustainability in East-Africa, mainly
Tanzania and Uganda. The major project was “IDE in Tanzania”, a 4-years
project to stimulate knowledge transfer between higher education
institutions in the ‘South’ and the Netherlands. Additionally several
feasibility studies and needs assessments took place in Tanzania and
Uganda on the subject of Industrial Design Engineering and Ecodesign. The
following projects can be listed:
1. Industrial Design Engineering in Tanzania project in collaboration with

the University of Dar es Salaam (UDSM) (2000-2004);
2. Ecodesign in Tanzania, needs analysis in collaboration with the
Tanzanian Cleaner Production Center (CPCT) (1999);
3. Ecodesign in Uganda, needs analysis in collaboration with Ugandan
Cleaner Product Center (UCPT) (2002);
4. Industrial Design Engineering in Uganda, needs analysis in
collaboration with Makarere University Kampala (MUK) (2004);
5. Ecodesign in Africa (PI4CP), needs analysis in assignment of UNIDO
(Crul and Diehl, 2002).
The introduction of IDE at UDSM and industry took place in this changing
economical and political context. The shift from a centralised to free market
economy (from the seller’s to the buyer’s market) had created opportunities
that are favourable for the introduction and implementation of IDE in
Tanzania (Diehl, Christiaans et al. 2001). According to Membratu (2001)
there is a need to enhance the entrepreneurial and technological capacity of
African Industries so they can compete in the global market. It was
expected, therefore, that investments in IDE (higher education as well as in
industry) could contribute to the innovation capacity of the Tanzanian
industry and thus stimulate the development of new and appropriate
products in order to compete on the basis of quality and innovative
products sold at competitive prices (Diehl, Christiaans et al. 2001). As a
result, new business can arise and the market share of Tanzanian products
can increase considerably, both on the internal and external market (Diehl
and Christiaans 2003). The ultimate goal is to create a shift away from
commodity dependence towards adding value, manufacturing at more
advanced technology levels. The result of the international IDE in Africa
conference can be found at www.io.tudelft.nl/research/dfs/ide-
conference/ .
The projects of IDE in East Africa were part of a larger series of projects and
programmes of IDE, and especially of the Design for Sustainability
•
Programme that was executed in developing countries.
In Central America a four-year Ecodesign programme was performed
from 1998-2002, leading to the (re)design of over 20 successful
industrial products (metal, food, packaging, coffee machinery,
furniture, plastics, tourism), the preparation of a regional manual and
fact sheet set, involvement of local networks in several countries of the

region and the building of local capacity at consultancies, universities
and National Cleaner Production Centres. Since 2002, both in Costa
Rica and Guatemala several follow-up programmes on Design for
•
Sustainability have been initiated (Crul, 2003).
In Colombia, an ongoing university programme on Ecodesign is
running, including both university courses and practical industrial
•
projects.
In India, a three-year collaborative programme with European
countries was completed in 2002, aimed at the promotion of Ecodesign,
exchange of knowledge, and building of an Ecodesign network in
•
Delhi and later in other parts of the country.
The NCPC in Sri Lanka offered an Ecodesign course together with an
•
Austrian Ecodesign expert in 2003.
In South Africa and Zimbabwe, a study into product innovation from
•
mine waste was performed in 2004. (Crul, 2004).
Currently, D4S projects are ongoing in Brazil, Morocco and Costa Rica,
connected to the publication and further development of the UNEP
•
manual on D4S in Developing Economies (Crul and Diehl, 2006)
New D4S projects will be started in 2007 in India, China and several
•
countries in East Asia.
An EU-Africa university network on sustainable industrial innovation
is being initiated by UNIDO, in which both UDSM and Delft UT
participate.
DESIGN FOR THE BASE OF THE PYRAMID
Parallel to these programmes on D4S, a large number of projects have been

executed by IDE that can be considered to be product innovation for the
Base of the Pyramid (BoP). Generally the concept of BoP refers to a
collection of strategies for (multinational) corporations to create new
markets at the base of the global wealth pyramid, thus helping to alleviate
poverty among the 4 billion economically least fortunate people in the
world (Prahalad and Hammon 2002; Prahalad and Hart 2002).
Within this broader concept, Design of new products for the Base of the
Pyramid is an appropriate approach for tackling these social and
economical problems for the low-income people in the world. Design for
the BOP, reconceptualising global poverty is an attractive growth

opportunity for firms that can simultaneously alleviate the problem of
poverty (Kirchgeorg and Winn 2006). The BOP represents a vast,
unexploited marketplace. For companies struggling with maturing markets,
floundering business models, and questions about who their customers of
the future will be, these are important markets to explore. Design for the
BOP also seeks to inspire entrepreneurship in and for local communities,
• Provide the poor with access to products and services that are both
and seeks to guide energy and resources to benefit in the following ways:
• Explore ways to create new products and services for the poor, through
innovative and adapted to local needs and realities;
combining traditional and modern knowledge and environmental
• Realise cost savings for poor people through more efficient use of
technologies;
energy and other resources, and reduce the reliance of local
• Create local economic linkages and supply chains through use of local
communities on external inputs;
• Create job opportunities for poor people and foster entrepreneurship

materials;
• Preserve environmental and social capital to secure long-term

among the poor; and
development benefits.
IDE projects on product innovation for BoP are aimed at covering very
diverse needs, from health care to energy, from water to education.
Examples of such projects include family- or personal size drinking water
purifiers, water supply systems for slums, improved wood- and plant oil
stoves, solar lighting systems for rural markets and early cancer detection
devices for Indian rural areas.
Example of a BoP Product Innovation case: The LifeStraw in Africa for

children
The company Vestergaard Frandsen (VF) has developed the so-called

‘LifeStraw’, a product that purifies surface water for personal use with
filters (See Figure 1). The LifeStraw can clean up to 700 litters of water (the
yearly consumption of an adult) and is relatively affordable (2,5 €).
Figure 1: The original LifeStraw, the field-testing in Africa and the new
concept LifeStraw Child.
DUT in collaboration with VF investigated several aspects of the usability

and implementation of LifeStraw concept in practice in Africa, focused on
children under the age of five. During the field research it was observed
that children younger than three years old could not handle the initial
LifeStraw by themselves. They do not understand how to suck the water.
The child does not understand why it does not get water in its mouth
immediately when sucking. Since small children are most vulnerable for
waterborne diseases it was decided that the design of the LifeStraw should
be adjusted to the capabilities of children. The final proposal consists of a
adjusted LifeStraw, named LifeStraw Child, a flexible bottle and a special
mouthpiece (see Figure, pictures on the right side). The bottle has a one-
way valve that lets air in but not out. Using a smaller LifeStraw makes the
product smaller and easier to handle for children. The context research and
usability tests with real potential users in the African context were essential
to come to these findings.
INDUSTRY EXAMPLES OF D4S
From the rich experiences with implementing D4S in developing countries,

two examples are given that show the opportunities of product innovation
by SMEs.
Cambodia Kamworks Solar Lighting
About 90% of the Cambodian households have no access to a secure and

reliable electricity infrastructure for lighting. Kamworks, a start-up solar
company in collaboration with DUT considered Cambodia’s problems and
solar resources as an opportunity for local production of solar lighting
products. The Design Brief of the project was to develop an affordable and
desirable Photo Voltaic (PV) powered light device which could be produced
locally.
Prior to the product development phase of the project, a ‘context’ field

research was conducted in the rural areas of Cambodia by visiting and
living with the local people. Based on the field research is was concluded
that there is a need for mobile quality light, which can be used for
orientation purpose to light a wide area as well as a task purpose to light a
small area with a higher illumination level. People mostly use the light
under the house and in this case it is desired to hang the light at the ceiling
and let it shine downwards, like in the western world most lights are fixed
at ceilings. This lacking feature is one of the main complaints about the
current solar lantern designs.
Visiting local workshops gained insight in the status of technical know-how

and production techniques. In Cambodia a lack of production industry
resulting in a lack of skilled people, resources and distribution channels
with suppliers of components of the new product.
Figure 2: PV Lantern, different lighting positions
The final design was a vacuum-formed multifunctional quality lantern

called Angkor Light. The design appealed to Cambodia's national symbol,
the temples of Angkor. Vacuum forming is an appropriate technology for a

start-up company like Kamworks. It combined the advantages of low
investments and simple processes. The Angkor Light used replaceable
quality electrical components. The World Bank 2006 Development
Marketplace awarded Kamworks with US$174,000 for developing an
innovative distribution model. Currently the production of the “Angkor
light” has been started.
Tanzania: Product Innovation at Intermech
Intermech Engineering Limited is a small sized company situated in

Morogoro, Tanzania, offering a wide range of services from engineering
design, manufacturing, machinery installation and plant commissioning
(figure 3). Their main focus is the manufacturing of agro and food
processing machinery and equipment by the about 10 workers in the metal
workshop. Intermech is continuously developing new products to extend
its product folio while meanwhile redesigning their exiting products in
order to improve them.
Figure 3: Intermech Metal Workshop in Morogoro Tanzania.

Cassava is an upcoming and promising crop in Tanzania, which can be
processed into starch for food purposes and as an input for the local textile
industry. Intermech decided to develop a range of products for processing
the harvested cassava into high quality starch. As a first step a new cassava
grater was developed. In order to develop the first model several other
existing models were benchmarked by to looking at illustrations, the
internet and competitors products at fairs. Based upon this benchmark a
version with a wooden drum with needles was developed (see Figure 4).
Figure 4: The original wooden drum with spikes and the new metal drum.
In a next step staff from the Faculty of Engineering of the local University of
Dar es Salaam (UDSM) redesigned together with Intermech the first version
of the cassava grater (figure 5). More than 20 serious improvement options
came up to reduce the environmental impact, to increase the quality and to
decrease the costs. Focus of the improvement options were the central part
of the product, the wooden drum. The production of the wooden version
with metal pins was very labour- and cost- intensive. Secondly, after
intensive humidity, problems arose resulting into low quality processing of
the cassava and short lifespan of the drum itself (which would result in
high maintenance costs).
One of the outcomes of the redesign projects was the replacement of the
wooden drum by one produced from cast aluminium and perforated sheet.
• Has fewer parts and production operations å lower production costs;

The new metal drum:
• Use of local available materials no (import of spikes);

• Increased efficiency while processing the cassava;
• And a longer expected lifespan; and
• Improved ergonomics and safety for the user.
Figure 5: Redesigned Cassava Grater

After the successful benchmark and redesign of the cassava grater,
Intermech continued with developing the next product in the cassava
processing line: The Starch Extractor. The prototype of the extractor (see
figure 6) functions well, making it now possible to produce Cassava starch
locally in stead of importing it.
Figure 6: Intermech Starch extractor
The series of projects at Intermech demonstrates that small production

companies in East Africa countries do not necessary need to copy the designs
of existing machines of (inter)national competition. With the implementation
of the basics of the product innovation process these companies can come up
with unique innovative products that are designed to fulfil the specific (local)
needs. Since these products and machines are designed and manufactured in
Tanzania, they meet the local circumstances (for example no running water)
and demanded scale much better. Besides this, the repair and maintenance of
the machines can now be executed locally.
A METHODOLOGY FOR D4S IN DEVELOPING ECONOMIES
Most of the current available D4S manuals and tools have been developed
in West Europe, based upon European experiences. However, in
developing economies needs are different and more immediate. Also the
characteristics of the local companies and product innovation approaches
differ because of specific local social, economical and industrial
development aspects. Till to date only a few targeted efforts have been
made to develop a tailor made D4S approach specifically for the context of
product innovation in Developing Economies.
The Design for Sustainability (D4S) program of the Delft University of

Technology in collaboration with the United Nations Environment Program
(UNEP) has launched a new Design for Sustainability manual targeted at
especially SMEs in Emerging and Developing Countries (Crul and Diehl,
2006). Based upon the experiences of D4S and UNEP with Design for
Sustainability in universities and companies in, among others, East Africa,
Central America and India a new adapted manual and set of tools have
been developed which fits into the context of small and medium sized
enterprises in developing economies.
The manual is built up around 3 main parts: What is D4S and why do it,
How to do D4S in practice, and reference information on D4S. In addition
there is a set of worksheets available for providing training to SMEs.
The part on How to do D4S in practice is the backbone of the approach. It

explains three practical, step-by-step approaches to execute a D4S project in
a company. Successful D4S projects require good insight and understanding
of the national economy and the possibilities with the local industry.
Therefore, as a first approach, the D4S Needs Assessment shows how to
evaluate the economic position of a country and how to prioritize industry
sectors in order to target the selection of demonstration project companies.
The needs assessment is intended for intermediaries who set up a D4S
programme or project.
The next approach, D4S Redesign, as the name implies aims at redesigning
an existing product made by a company (or by a competitor) from a
sustainability point of view. D4S Redesign is of particular interest for
developing economies because this incremental type of product innovation
involves smaller risks and investment, follows a structured and predictable
process and is known to be economically and commercially as important as
more radical approaches such as development of completely new products.
Because the focus of D4S Redesign is an existing product, the market and
manufacturing conditions specific to the product are already known. Its
improvement potential can be determined from easily accessed information
– such as feedback from the sales department, user experiences and testing
and market investigations. In addition, the existing production facilities are
usually suitable for manufacturing the redesigned product and, hence,
investments costs would likely remain within reasonable boundaries. The
risks connected with the redesign effort are lower compared to more radical
D4S innovation strategies. The approach outlines a 10-step schedule to carry
out a D4S Redesign project, each step reflecting a phase in the product
development process.
Connected to the Redesign approach, the D4S Benchmarking approach is

presented. It is especially suitable for those companies that develop
products based upon imitating existing products. D4S Benchmarking is a
structured approach to compare the environmental performance of a
company’s products against competitors’ products and to generate
improvement options. Since individual competitors often use different
solutions to resolve the same design problems – like a different product
architecture, components or technology – D4S Benchmarking offers a
reflective approach and advises learning from others’ products. Experience
shows that, in practice, no single product scores high on all criteria and
against all other products. This means that benchmarking improvement
options can always be generated. An important element of benchmarking is
the concept of best practice: ‘those practices that please the customer most’.
The goals of a benchmarking study should be based on customer needs,
whether the customers are internal (departments within an organisation,
higher management levels, or employees) or external (consumers, citizens,
regulators, legislators, local and national environmental groups or
investors).
The redesign and benchmarking approaches are complementary to each

other and can be used in combination.
The D4S manual is available for free on the Internet at www.d4s-de.org .
REFERENCES
Crul, M. R. M. and J. C. Diehl (2002), Technical Report: Product Innovation

for Cleaner Production. UNIDO, Vienna.
Crul, M.R.M. (2003), Ecodesign in Central America. Thesis. DfS publication
nr. 9, Delft.
Crul M.R.M. (2004), Product Innovation from Mine Waste, Southern Africa.
Debriefing report, UNIDO Vienna.
Crul, M.R.M. and J.C. Diehl (2006), Design for Sustainability: A Practical
Approach for Developing Economies. UNEP, Paris.
Diehl, J. C., H. H. C. M. Christiaans, et al. (2001), The introduction of the
industrial engineering concept in Tanzania. International
Conference on Engineering Design, ICED 01, Glasgow.
Diehl, J. C. and H. H. C. M. Christiaans (2003), Comparative study on the
implementation of IDE in African Countries. 14th International
Conference on Engineering Design ICED 03, Stockholm, Design
Society.
Membratu, D. (2001), Promoting Sustainable Industrial Development in
Africa. African Industry Workshop for the World Summit on
Sustainable Development (WSSD).
Prahalad, C.K. and A. Hammon, (2002), Serving the World's Poor,
Profitably. Harvard Business Review, September 2002.
Prahalad, C.K. and S. Hart (2002), The Fortune at the Bottom of the
Pyramid. Strategy+Business 26.
PART D
WHICH WAY EASTERN AFRICA TOWARDS

GOALS AND NATIONAL STRATEGIES FOR GROWTH
AND POVERTY REDUCTION
131
D.1 OVERVIEW OF ISCP-EA - ENHANCING

COMPETITIVENESS THROUGH CLUSTER
INITIATIVES
by Burton LM Mwamila
College of Engineering and Technology, University of
Dar es Salaam, Tanzania
ABSTRACT
Since 2003, the College of Engineering and Technology (CoET) of the University of
Dar es Salaam has spearheaded an initiative towards the establishment of an
Innovation Systems and Clusters Programme in Eastern Africa (ISCP-EA) with a
view to fast-tracking socio-economic development in this region. In this endeavour
CoET has been collaborating with the Faculty of Engineering at Eduardo Mondlane
University in Mozambique and the Faculty of Technology at Makerere University
in Uganda. In February 2004, CoET organized and hosted the 1st Regional
Conference on Innovation Systems and Innovative Clusters in Africa, and in
March 2005 the Faculty of Technology in Uganda organized and hosted the 2nd
Regional Conference on the same theme.
After the 1st Regional Conference, each participating country held a national
stakeholders workshop in which issues pertinent to the particular country were
thrashed out before the 2nd Regional Conference. Among the key resolutions
emanating from the 2nd Regional Conference were the establishment of ISCP-EA
and mobilization of funds to finance the same.
The programme is expected to stimulate and facilitate the development of

innovation systems and innovative clusters in Eastern Africa achievement of which
will result in enhanced innovativeness among firms and farms, enhanced
competition and cooperation among firms and farms within clusters and sectors,
and acquisition of competitive mindset.
In September 2005, with the support of Sida/SAREC of Sweden, week-long and

intensive training courses on the development of Cluster Initiatives (CIs) were held
in Tanzania and Uganda. Following success of the training, which was reflected by
the enthusiasm and momentum exhibited by course participants, 8 and 7 pilot CIs
were established in Tanzania and Uganda respectively.
BLM Mwamila 132 Overview of ISCP-EA

Each of 8 CIs prepared action plans for a low budget implementation of the
initiatives which were presented and harmonized during the Clusters Launching
Workshop held on February 09, 2006. The CIs are currently busy implementing
their action plans at their respective localities. During the 3rd Regional Conference
on Innovation Systems and Innovative Clusters in Africa, the CIs will be required
to present status reports on their development, viz. implementation of their
respective action plans.
INTRODUCTION
General
The United Nations Millennium Development Goals stipulates that by year

2015 all 191 member states have pledged to, among other things:
o Reduce by half the proportion of people living on less than a dollar a
day;
o Reduce by half the proportion of people who suffer from hunger;
o In cooperation with the developing countries, develop decent and
productive work for youth;
o In cooperation with the private sector, make available the benefits of
new technologies – especially information and communications
technologies.
The Tanzania Development Vision 2025 stipulates the following: “…. the
society Tanzanians will be living in by year 2025 will be a substantially
developed one with a high quality of livelihood. Abject poverty will be a
thing of the past. ….. it is envisioned that Tanzania will have graduated
from a least developed country to a middle income country by year 2025
with a high level of human development. The economy will have been
transformed from a low productivity agricultural economy to a semi-
industrialised one led by modernized and highly productive agricultural
activities which are effectively integrated and buttressed by supportive
industrial and service activities in the rural and urban areas. A solid
foundation for a competitive and dynamic economy with high productivity
will have been laid.”
For Tanzania to indeed realize this vision, all able bodied and mentally
sound members of this society have to subscribe towards the establishment

of the expected “solid foundation for a competitive and dynamic economy”.

This paper attempts to describe a process that will provide building blocks
for such a foundation, and contribute to actually laying the foundation.
Implementation of ISCP-EA is expected to facilitate enhanced
competitiveness through cluster initiatives. This assertion is based on the
realization that innovations in the form of new or improved products,
services and processes are the basis for sustainable growth and prosperity
in today’s knowledge-based society.
Innovation
The fundamental factors necessary for the development of innovations

include skills, the exchange of knowledge and opportunities for mutual
learning as part of the interaction between businesses, research institutions
and political bodies. Research produces new knowledge, but in order to
promote growth it must be converted into innovations which produce new
and improved products, services and processes for which there is clear
demand.
Broadly speaking, innovation refers to the effort to commercialise new

ideas. In the case of innovation by firms, innovation is "the processes by
which firms master and turn into practice product design and
manufacturing processes that are new to them, whether or not they are new
to the universe. The essence of innovation is novelty and mediocrity does
not encourage innovation and reduces a firm’s chances of survival. Thus,
innovation and creativity are the lifeblood of a firm’s existence and the
source of future profits. They germinate only in the fertile soil of the human
mind.
Innovation can also be defined as the capacity of a nation to adapt to world-

wide changes in nature, technology and economics, but also as its capacity
to influence these. In this connection, population growth will triggers a
dominant thrust, as pressure from the population is what keeps humankind
searching for new solutions towards better chances of survival.
In a world characterized by globalization and competition, continuous

innovation is not only an important, but also a necessary condition for
countries to stay “alive”. In an open economy not to innovate means that
domestic producers will bear the negative impact of innovations made by

others. In other words, lack of innovation leads to continuously loosing
market shares to others who are continuously innovating. As a result
countries that are not innovating will in the end also loose incomes and are
therefore prone to poverty.
Innovation Systems
• The intellectual infrastructure of the population;

The innovative potential of a nation is determined by the following:
• The technical infrastructure of a country or a nation, i. e. the capacity to

transform theoretical scientific findings into technically feasible
• The historically developed tradition of skilled trades and technical

solutions;
• A well-coordinated education system and a consensus between

know-how (indigenous knowledge) in large sections of the population;
• People's basic mental attitude towards the development of science and

educational institutions, science, the economy, and society; and
technology.
Thus, an innovation system is constituted by elements and relationships

between elements which interact in the production, diffusion, and use of
new and economically useful knowledge. An innovation system serves as a
framework for the creation of capabilities for firms in a variety of sectors and
activities. Further, the concept of innovation systems focuses on the
mechanisms that promote the synergy for generating innovations, including
both the overriding macro-framework and incentives structures between
institutions that are highly specific for innovation.
As innovation is about adapting to changing circumstances and making

new things in new ways, and new ways to do things always emerge locally,
the need for an innovation system hinges on the desire to stimulate
adaptation to changing circumstances and to stimulate local emergence of
new ways to make new things.

Clusters
Clustering is generally defined as a process of firms and other actors co-

locating within a concentrated geographical area, cooperating around a
certain functional niche, and establishing close linkages and working
alliances to improve their collective competitiveness. Joint strategies and
actions motivated by the anticipation of mutual benefits are greatly
important in clustering.
It follows from above that clusters are geographically proximate groups of

interconnected companies and associated institutions in a particular field
linked by commonalities and complementarities. Clusters encompass an
array of linked industries and other entities important to competition
including governmental and other institutions such as; universities, standard
setting agencies, think tanks, vocational training providers and trade
associations.
A cluster initiative is an organized effort to increase the growth and

competitiveness of a cluster within a region, involving cluster firms,
government and/or the research community. Cluster initiatives are thus
viewed as conscious actions taken by various actors to create or strengthen
clusters.
An innovative cluster approach can be viewed as an innovation system

restricted in space, which focuses on a certain sector of the industry. Cluster
members often share specific features such as selling to certain markets,
technology, being within the same value-chain, etc.
Whereas all clusters may have properties that serve to speed up innovation, some
can be observed to perform particularly well and hence be classified as
innovative clusters. An innovative cluster innovates in the broadest sense of
the definition, where the innovation can emanate from improvements in the
way actors organize themselves, products are developed, produced,
commercialized, distributed, etc.
The innovative cluster is, in principle, evolving constantly, learning from

experience and is able to adjust to changing circumstances. It is likely to be well-
positioned to explore new opportunities beyond its present boundaries and,
at the same time, combine flexibility with inner strength, stability and a
sense of direction to achieve the following:
„ Continuously changed traditional boundaries to knowledge generation
and diffusion, by establishing linkages to wider and alternative sets of
knowledge inputs;
„ Re-conceptualized products and markets;
„ Upgraded mechanisms for seed-funding, risk-taking and
entrepreneurship;
„ Transformation of old institutions and organizations through learning
as well as unlearning of earlier habits and practices.
A cluster is thus a system of interconnected firms and institutions whose

entirety is more than the sum of its parts.

decade, not least as an operational means to enhance the competitiveness
of firms and regions. This is largely due to its responsiveness to the
demands of the new economy for; speed, quality, flexibility, innovation,
networking and building critical mass. Thus, early establishment of the
clustering behaviour is particularly important in supporting the
development of competitiveness of emerging industries, and hence laying
of a solid foundation for a competitive and dynamic economy with high
productivity. Through clustering, even a small firm can gain the necessary
critical mass to service world markets.
REVIEW OF CURRENT STATUS
General
The development of well-functioning clusters is one of the essential

steps in moving towards an advanced economy. Cluster formation in
developing economies is impeded by low education and skill levels (as
illustrated by Figure 1 below), weaknesses in technology, lack of access
to capital, and poorly developed institutions (viz. established custom or
practice). University and college curricula are not adequately geared
towards meeting cluster needs. Finally, the monopolistic behaviour of
firms protected from competition retards the cluster development.

Figure 1: The Tanzania Education Pyramid, 1961-2003
A quick look at Tanzania’s Triple Helix constellation (academia, industry

and government relationship) reveals a number of issues that need to be
addressed in order to facilitate economic growth drawing on an increased
university-industry interaction but also on how policy can feed into the
discussion and stimulate industrial innovativeness. Economic reality has
made consultancy linkages the main communication channel between
university and industry.
Starting with industry and its present status, regardless of the criteria
chosen for analysis, there has been little progress over the last decades.
Tanzania remains basically a non-industrialized country heavily reliant on
agriculture. The ongoing transformation has had little effect on business
start-ups and expansion in the SME sector whereas the parastatal sector has
literally been phased out. The low level of technological capabilities is a key
bottleneck to responding positively to ongoing liberalization.

Secondly, industrial firms’ relations to other firms and/or organizations are

not optimized for knowledge transfer and joint learning. A strict division of
labour between firms in the value chain is in most cases absent leading to poor
specialization. The level of industrial R&D is still low and most of it is carried
out in governmental institutions rather than in the private sector.
Government spending on industrial R&D is very limited, which has left the
few R&D institutions in an insecure situation having to rely on consultancy,
training, and services offered to industry. These revenues do not cater for
R&D activities but barely meet operational costs of the institutions.
There is neither appreciable innovation nor an innovation systems policy in

Tanzania, but there are various government policies that emphasize the role
of S&T in development. But what is probably more relevant to the
development of innovative clusters is government’s awareness and
dedication to build a scientific platform that may contribute to industrial
progress.
A clear derivative from the aforementioned is that there is dire and urgent
need for change if Tanzania is to achieve what is envisioned in Vision 2025.
Peoples’ attitudes have to change towards a competitiveness mindset,
enhanced quality consciousness and enhanced productivity. To facilitate
these, there is also need to develop a mechanism for change.
Need for a Competitive Mindset
Competitive mindset is one that equally welcomes competition and

cooperation, and seeks to build competitive advantage. It also entails
strategic thinking that leads to a strong distinguished position on a global
scale, identifying the needs and wishes of clients, developing products and
production processes, and finally employing high international standards
when assessing the performance of institutions.
The world economy has entered an era of total competition. There are
many examples around the world where the traditional sources of
comparative advantage, like natural resources, are less valuable than
initially perceived for the development of a strong competitive economy.

At the firm level, competitiveness is the ability to provide products and

services more effectively and efficiently than relevant competitors. At
the industry level, competitiveness is the ability of the nation's firms to
achieve sustained success versus foreign competitors, without protection
or subsidies. And, at the national level, competitiveness means citizens
ability to achieve a high, and constantly rising, standard of living.
Competitiveness in some industrial segments allows productivity

improvement through higher specialization in the respective industries
and segments. Consequently exports volume increase for that specific
segment in which firms are relatively more productive than firms in
other countries.
Competitive advantage grows out of the way firms organize and

perform discrete activities. Of course, activities vary in their
importance vis-à-vis competitive advantages from industry to
industry. All activities contribute to buyer value. Hence, firms create
value for their buyers through such activities. The ultimate value a firm
creates is measured by the amount buyers are willing to pay for the
product or service offered. A firm is profitable if this value exceeds the
collective cost of performing the required activities. To gain competitive
advantage over its rivals, a firm must either provide comparable buyer
value, but perform activities more efficiently than its competitors (lower
cost), or perform activities in a unique way that creates greater buyer
value and commands a premium price (differentiation).
Need to Develop a Mechanism for Change
Firms gain competitive advantage by conceiving new ways to conduct

activities, employing new procedures, new technologies or different
inputs. A firm is more than the sum of its activities. The value chain of a
firm is an interdependent system or network of activities, connected by
linkages. Linkages occur when the way in which one activity is
performed affects the cost or effectiveness of other activities. Linkages
often create trade-offs in performing different activities that must be
optimized. For example, a more costly product design, more expensive
components, and more thorough inspection can reduce after-sale service
costs. A firm must resolve such trade-offs, in accordance with its
strategy, to achieve competitive advantage. Thus, strategy guides the

way a firm performs individual activities and organizes its entire value
chain.
Linkages also require that activities are coordinated. The coordination

of linked activities reduces transaction costs, allows better information
for control purposes, and substitutes costly operations in one action with
less costly ones elsewhere. Coordinating linked activities is also an
important way to reduce the time required to perform them, which is
increasingly important in ensuring acquisition of a competitive
advantage. Careful management of linkages can be a decisive source of
competitive advantage.
Creating competitive advantage requires the management of the value chain as

a system rather than a collection of separate parts. Reconfiguring the value
chain by relocating, reordering, regrouping, or even eliminating
activities is often at the root of a major improvement in competitive
position. The value chain provides a tool for understanding the sources of cost
advantage. A firm's cost position represents the sum of all costs incurred
for performing all the required activities relative to competitors. Cost
advantage can occur in any activity. Gaining cost advantage usually
requires optimizing the linkages among activities, as well as close coordination
with suppliers and distribution channels. The value chain also exposes
sources of differentiation.
A country, which is exporting high value added products, is

automatically improving the living standards of its people. This
condition is evident in the productive cycle that leads to prosperity. It is
driven by an increase in wages, as well as productivity, profits, and the
subsequent rise in shares of exports. This reflects positively on the
country's exchange rate, and consequently on the capability of
introducing capital to absorb technology transfer. With the introduction
of new technology, the productivity scale will proceed forward; thereby
forming a productive cycle headed towards prosperity.
A nation is not competitive if its labour costs are low, has a favourable
exchange rate, or borrows its standard of living. Low wages can help a
nation's firms penetrate international markets. Ultimately, however, the
national goal should be the achievement of productivity that supports high

wages. Competitiveness based exclusively on low wages will ultimately
be self-limiting unless productivity is increased through the
development of higher skill levels, incorporation of more advanced
technology, or institutionalization of better management techniques.
Truly competitive nations are those whose firms compete successfully in
international markets with a strong national currency. Finally,
competitiveness refers to performance that is earned rather than
borrowed. Performance that is fuelled by deficit spending and
borrowing not related to favourable investments, rather than by
increases in productivity cannot be sustained indefinitely.
THE INNOVATION SYSTEMS AND CLUSTERS PROGRAMME
Background

University of Dar es Salaam (UDSM), with the financial support from
Sida/SAREC of Sweden, has spearheaded an initiative towards the
establishment of an Innovation Systems and Clusters Programme in Eastern
Africa with a view to fast-tracking socio-economic development in this
region. In February 2004, CoET hosted the 1st Regional Conference on
Innovation Systems and Innovative Clusters in Africa, in Bagamoyo. The
conference came up with a draft action plan for the development of
innovation systems and innovative clusters in the three African countries.
The action plan was derived from observations and lessons learned during
the conference. In January 2005, CoET organized, in Bagamoyo again, a
National Stakeholders Workshop on the Establishment of an Innovation
Systems and Clusters Programme in Tanzania (ISCP-Tz). And, in March
2005, a 2nd Regional Conference on Innovation Systems and Innovative
Clusters in Africa was hosted, in Jinja, by the Faculty of Technology of
Makerere University. The two Regional Conferences and the National
Stakeholders Workshop resolved to establish an Innovation Systems and
Clusters Programme in Eastern Africa (ISCP-EA). Subsequently, from
September 12-24, 2005 week-long training courses were held in Bagamoyo,
Tanzania and Jinja, Uganda on; “The Development of Innovation Systems
and Clusters”. The courses were intended to prepare ground and
participants for the implementation of the pilot phase of ISCP-EA, for eight
(8) and seven (7) selected pilot cluster initiatives in Tanzania and Uganda
respectively.
Programme Objectives, Purpose and Expected Outputs
The proposed programme has five major objectives, namely:

(i) Research and innovation systems policy reviews;
(ii) Implementation of pilot innovation systems and/or cluster initiatives;
(iii) Awareness creation and publications;
(iv) Competence building;
(v) Coordination and follow up forums.
The intervention programme is thus expected to stimulate and facilitate the

development of innovation systems and innovative clusters in Eastern
Africa. The achievement of this purpose will be measured in terms of;
enhanced innovativeness among firms and farms, enhanced competition
and cooperation among firms and farms within clusters and sectors, and
acquisition of competitive mindset.
The expected outputs (or 'results'), among other things, are:

(a) A network of capable individuals interested in innovation systems and
clusters formed;
(b) Innovation systems and clusters identified and characterized for
possible in-depth study (mapping of clusters and innovation systems);
(c) In-depth study of selected clusters and innovation systems carried out,
including:
o Assessment of extent to which they are innovative and
bottlenecks for growth;
o Determination of mechanisms that will make innovation systems
in the various sectors stronger and sustainable, and clusters
innovative and sustainable.
(d) Consolidation of potentially innovative clusters stimulated;
(e) Innovativeness of firms and farms within pilot existing and new
clusters and innovation systems stimulated;
(f) Various advocacy initiatives implemented;
(g) Short and long-term training in innovations, and innovation
management and related aspects;

(h) National Steering Committees (NSC), National Coordinating Offices

and a cluster development monitoring system established.
Expected Impacts
The expected impacts arising from the implementation of the proposed

programme can be summarized as follows:
(i) Poverty reduction

With acquisition of competitive mindset and adoption of the innovative
cluster approach, productivity will increase, quality of products and
services will improve and Small and Medium Enterprises (SMEs) will grow
thereby generating more jobs and employment. These developments will
trigger national socio-economic growth which will enable Tanzania to cope
with the rigours of international competition accompanying globalization.
The resulting financial empowerment will lead to acquisition of adequate
nutrition, clothing, housing, etc. and thereby subscribe to poverty
reduction.
(ii) Enhanced value addition of local agricultural products and natural

resources
Through enhanced innovativeness and acquisition of competitive mindset,
value addition will be applied to agricultural products and other natural
resources, including minerals, before they are exported abroad. Foreign
currency earnings will thus be boosted and the economy will grow.
(iii) Preservation of the Environment

Entry into international markets demands consciousness of various
environmental aspects as echoed by the World Summit on Sustainable
Development in 2003. Thus, enhanced innovativeness and competitiveness
that qualifies for entry into international markets, will also lead to more
environment friendly products and services.
(iv) Gender
Farming and nearly all home-care activities are mainly done by women.
Further, most small scale food processing is also done by women. Thus,
value addition of agricultural products, cheap and readily available energy
saving technology, and alternative energy sources will lead to financial

empowerment of women and facilitate the growth of their businesses,

thereby enhancing gender relations in rural communities.
(v) Capacity building

Local capacity building will result through:
o Enhanced internal research capacity on innovations, innovation systems
and clusters;
o Strengthened national innovation systems and enabling policies;
o Postgraduate training in innovations, innovation management and
related aspects; and
o Enhanced innovativeness and competitiveness of businesses.
PROGRAMME COMPONENTS
The Innovation Systems and Clusters Programme as conceived during the

Stakeholders’ Workshop held in January 2006 has the following five
• Research and innovation systems policy reviews;

components:
• Implementation of Pilot Innovation Systems and/or Cluster Initiatives;

• Awareness Creation and Publications;
• Competence Building and Research; and
• Monitoring, Coordination and Follow-Up Forums.
Sida/SAREC has availed some funds for initiation of implementation of

research and innovation systems policy reviews by the African Technology
Policy Studies (ATPS) Network, and for low budget kick-start of eight (8)
and seven (7) pilot cluster initiatives in Tanzania.
Research and Innovation Systems Policy Reviews
It was evident during the 1s Regional Conference 1st that not much is
known about innovation systems and clusters in Africa. The concept of
innovative clusters also seemed to be new to most of the participants.
Research in the area of innovation systems and clusters should therefore be
one of the major activities of the proposed programme for two major
reasons, namely; to fill the existing knowledge gaps on clusters in Africa,
and as a way of capacity building in research on systems of innovation.

This programme component is intended to establish the extent to which

innovation systems and clusters, and innovation policies exist in Eastern
Africa. The programme component shall also establish deficiencies in
existing innovation systems and clusters. Finally, an attempt will be made
to establish the extent to which firms and farms are innovative in the three
countries.
Implementation of Pilot Cluster Initiatives
As mentioned earlier, cluster initiatives are organized efforts to increase the

growth and competitiveness of respective clusters that involve cluster firms,
government and the research community. Thus, doing research and
identifying gaps in the systems of innovation and clusters is not an end in
itself. The ultimate goal is to have a system within which firms and farms
are innovative. This programme component is to conceptualize and
support, improve, or introduce innovation systems for specific sectors or
clusters in a practical way, showing short-term results, while fitting into a
national long-term innovation policy framework. This programme
component actually seeks to put in place systems that are innovative, and
initiate innovative clusters. It will also save as a practical learning process
on what works and what does not. This entails getting teams of competent
and committed individuals representing the whole triple helix sphere to
facilitate respective cluster initiatives.
The selection of the 8 and 7 Tanzanian and Ugandan pilot Clusters

Initiatives, respectively, were based on presentations of various potential
clusters during the Stakeholders Workshops held in Uganda In December
2004, and in Tanzania in January 2005. They were subsequently discussed
and approved for implementation. The following criteria were used for the
◊
selection:
◊
Current activity level;
Availability of and potential for effective use of resources (human and
◊
physical);
◊
Existence of actors committed to bringing about change;
◊
Responsiveness to expressed needs from the society;
◊
The strategic idea and its growth potential (e.g. job creation);
◊
Existence of future market potential;
The ambition for renewal within the initiative;
◊ Potential for collaboration between academia, business and political
◊
bodies (including the government) within the initiative; and
Geographical focus, viz. the functional region of the initiative.
The following are the 8 pilot Cluster Initiatives established in Tanzania:

(1) Bagamoyo cultural heritage tourism cluster initiative;
(2) Eastern region mushroom cluster initiative;
(3) Morogoro metal works and fabrication cluster initiative;
(4) Morogoro small scale fruit and vegetables food processors cluster
initiative;
(5) Arusha seeds and seedlings cluster initiative;
(6) Sisal cluster initiative;
(7) Zanzibar seaweed cluster initiative; and
(8) Nutraceuticals cluster initiative.
In Uganda the following are the 7 pilot Cluster Initiatives that have been
established:
1. Management Consultancy Cluster Initiative located in Kampala;
2. Katwe Salt processing Cluster Initiative located in Western – Uganda;
3. Metal Fabrication Cluster Initiative located in Kampala;
4. Pineapple processing Cluster Initiative in Kayunga located in Central
Uganda;
5. Basketry Cluster Initiative in Luwero located in Central Uganda;
6. Fashion design/ Textiles Cluster Initiative located in Kampala; and
7. Bio Fuel – Ethanol Cluster Initiative in Kakira located in Eastern
Uganda.
The purpose is to develop the CIs to a level that will enable them to
cooperate and optimize utilization of their resources for their mutual
benefits through mutual learning and interaction with academia, policy
bodies and other support organizations. The objectives include the
following:
o To develop change of mindset towards appreciating and striving for
enhanced quality;
o To develop change of mindset towards appreciating and striving for
enhanced cooperation and competitiveness;
o To enable CIs work out and implement strategies for improved
productivity; and
o To enable CIs jointly work out and implement strategies for attracting
and accessing reliable markets.
Each of 8 CIs prepared action plans for a low budget implementation of the
initiatives which were presented and harmonized during the Clusters
Launching Workshop held on February 09, 2006. The CIs are currently
implementing their action plans at their respective localities. During the 3rd
Regional Conference on Innovation Systems and Innovative Clusters in
Africa, the CIs will be required to present status reports on their
development, viz. implementation of their respective action plans.
The activities being undertaken during the first 18 months include those
listed below.
(a) Mobilization of people and resources within the CI and analysis of
◊ Identification and search of facts/statistics/reports, viz.

the activities of members of the CI through:
preparation of an inventory of the current situation to facilitate
◊ Informal and open cluster meetings to exchange ideas and

future evaluation of progress and development;
◊ Initiation of leadership group;

promote social trust between cluster members and other actors;
◊ Local interviews/research to establish human and other
◊ Vision-workshop(s);
resources available within and/or accessible by the cluster;
◊ Action-Workshop(s); and
◊ Feed-back-workshops.
(b) Preparation of ground for and facilitation of implementation of short-
◊ Identification of “low-hanging fruits” (viz. activities that can be

term activities through:
◊ Constitution of task forces (consisting of local champions and

implemented immediately and without much hustle; and
local experts) for implementation of the “low-hanging fruits”

activities.

(c) Identification and facilitation of implementation of long-term
◊ Identification, using task forces, of what need to be done today to

strategic activities, which entails:
◊ Planning, using task forces, implementation of activities 6-24

facilitate smooth implementation of activities 6-24 months later;
◊ Working out strategies how to access funds (in form of loans or

months later; and
otherwise) from financial institutions.
Awareness Creation and Publications
Very little is known, and there is not much appreciation of the role of
innovations (both technological and non-technological) in socio-economic
development in Africa. This, to a large extent, has affected the strategic use
of technological innovation in speeding up socio-economic development in
the Tanzania. There is need to ensure that the role of innovations in socio-
economic development is appreciated by government officials, relevant
policy bodies and the general public. Further, there is need to ensure that all
relevant stakeholders appreciate, and actually commit resources to building
strong National Innovation Systems as a way of stimulating innovative
activities and thereby speeding up wealth creation in all sectors of the
economy.
This programme component intends, in the short-term, to raise awareness

regarding the role of innovations in socio-economic development. In the
long-term, the programme component is intended to show practically how
innovative activities can be speeded up by the systems approach, viz.
innovation systems and innovative clusters.
As an outcome of implementing this programme, it is expected that the role

of innovations in socio-economic development will be appreciated, as well
as the systems approach to innovations as one of the best modalities of
stimulating innovative activities and thereby speeding up wealth
generation in firms and farms.

Competence Building and Research
It is unfortunate that Africa lags behind in innovation studies as much as it

lags behind in technological innovations. Courses on technology policy and
innovation studies have therefore insignificant in the curricula of most
African Universities. As a result very little academic discourse ever touches
these issues. There is need to ensure the development of a critical mass of
scholars and specialists in innovation studies to stimulate innovations and
academic discourse on the same.
Technology development is one of those things that cannot be left to be

stirred by market forces alone because of the possible occurrence of the
market failure phenomenon and other externalities, which are beyond the
control of innovating firms and farms, especially for the less developed
countries. There is, therefore, a need to inhibit market failure effects by
putting in place policies for technology development. Proper policies in
turn require prior investment in policy research.
Innovation strategies can be short-term, medium-term or long-term - a

classification which is in line with United Nations Industrial Development
Organization (UNIDO) recommendations in responding to the United
Nations Millennium Development Goals. Short-term innovation strategies
mainly involve intervention at product/service level that can have visible
results for enterprises within a fairly short timeframe, either through
complete innovation, adaptation or re-design. Medium-term innovation
strategies focus on functional innovations including ways in which
individual enterprises are developing products and services within an
innovation system or cluster, and along value chains. This may involve
integration of functions of different firms. On the other hand, long-term
innovation strategies involve industry-society interactions. At this level of
relationships, economic responsibilities of industries go hand in hand with
their social responsibilities in all their operations.
This programme component intends to contribute to this through capacity

building in various aspects of innovation, including innovation studies. As
innovation is a dynamic and context specific concept, and the different
strategies that can be adopted by countries or sectors in those countries
depend on their own specific development advancement and other in-
country factors, as well as on developments in innovation systems in the

global economy to which the national economy is increasingly linked. It
therefore calls for continuous researching, and capacity building in the
area to achieve a critical mass of experts in innovation research.
Establishment of short-term and long-term (MScs and PhDs) training on

innovations, innovation management and related aspects is one of the key
specific objectives of this programme component.
Monitoring, Coordination and Follow-Up Forums
Innovation is a multi-disciplinary and a multi-actor undertaking/process.

Scholars in innovation studies come from all academic fields, and
innovative activities are required virtually in all sectors of the economy.
Bringing these together and ensuring a smooth interaction between them
requires a strong and neutral coordinating body with a lean but competent
and committed secretariat.
During the Launching Workshop of the eight (8) Pilot Cluster Initiatives
(CIs) held at Kunduchi Beach Hotel & Resort on February 09, 2006
Stakeholders agreed on the formation of the substantive National Steering
Committee (NSC) for the Innovation Systems and Clusters Programme
(ISCP-Tz) with 14 members as follows:
(i) Academia 2 CoET & SUA

(ii) Industry 2 TCCIA & SIDO
(iii) Research and Development 2 COSTECH & TIRDO
Institutions
(iv) Government 3 MoITM, MoF & MoPEE
(v) Development Partners 1 Sida/SAREC
(vi) Non Governmental ATPS
Organizations
(vii) Financial Institutions 1 CRDB
(viii) Co- opted Members 2 CoET & SCF
The Terms of Reference of the Coordinating Office are as follows:

(a) To facilitate proper and smooth running of the activities of ISCP;
(b) To oversee the start-up of Cluster Initiatives;
(c) To mobilize funds for the implementation of ISCP;

(d) To receive and prepare reports on the activities of ISCP;
(e) To facilitate thematic meetings;
(f) To organise general meetings;
(g) To initiate formulation of national policies;
(h) To receive research proposals and reports from thematic/technical
committees and submit the same to the National Steering Committee.
CONCLUSION
In this world which is characterized by globalization and competition,

continuous innovation is not only an important, but also a necessary
condition for countries to stay “alive”.
Thus, for Tanzania to cope with the rigours of globalization and achieve
what is envisioned in Vision 2025, there is dire and urgent need for change.
Tanzanians have to be assisted to acquire a competitiveness mindset,
enhanced quality consciousness and enhanced productivity.

decade as an operational means to enhance the competitiveness of firms
and regions because it is responsive to the demands of the new economy
for; speed, quality, flexibility, innovation, networking and building critical
mass.
Early establishment of the clustering behaviour is thus important in

supporting the development of competitiveness among SMEs, and hence
laying of a solid foundation for a competitive and dynamic economy with
high productivity.
The Innovation System and Clusters Programme initiated by CoET

promises provision of the mechanism for change of mindset in favour of
competitiveness, enhanced quality consciousness and productivity, among
SMEs.
There is, therefore, need to support the 8 pilot Cluster Initiatives,

established through the financial support from Sida/SAREC, so as to enable
them succeed and pave way for establishment of others.
There is also need to mobilize resources to finance implementation of the

other components of the Innovation System and Clusters Programme
conceived by CoET.
BIBLIOGRAPHY
United Republic of Tanzania, “The Tanzania Development Vision 2025”,

Dar es Salaam, Tanzania.
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Systems”, in Nelson, R. (ed), National Innovation Systems: A
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Lugones G. and Peirano, F. (2004), “Proposal for an Annex to the Oslo
Manual as a Guide for Innovation Surveys in Less Developed
Countries Non-Member of OECD”, www.centroredes.org.ar
European Commission, “Proposed Guidelines for Collecting and
Interpreting Technological Data – OSLO MANUAL”, Organisation
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Juran (1989), “Juran in Leadership for Quality: An Executive Handbook”,
Free Press, New York.
Lundvaal B.A., Muchie M. and Gammeltoft P. (2003), “Putting Africa First:
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Press, Denmark.
Andersson T. Serger S.S., Sörvik J. and Hansson, E.W. (2004), “The Cluster
Policies White Book”, International Organisation for Knowledge
Economy and Enterprise Development (IKED), Malmö, Sweden.
Sölvell Ö., Lindqvist G. and Ketels C. (2003), “The Cluster Initiative Green
Book”, Ivory Tower AB, Sweden.
Utterback J. (1974), “Innovation in Industry and the Diffusion of
Technology”, Science183, 658-62.
Saxenian A. (1988), “The Cheshier Cat’s Grin: Innovation and Regional
Development in England”, Technology Review, February/March,
67-75.

Siegel D., Waldman D. and Link A. (2003), “Assessing the Impact of

Organisational Practices on the Productivity of University Techno
logy Transfer Offices: An Exploratory Study”, Research Policy
32(1), 27-48.
Bångens L. (2001), “A Study of the S&T system in Tanzania: A Proposal for
Further In-depth Case Studies”, A Study for SIDA, Sweden.
Jordan National Competitiveness Team (2003), “Jordan’s Competitiveness
Book: Confronting the Competitiveness Challenge”, Ministry of
Planning and International Cooperation, Amman.
Mwamila B.L.M., Trojer L, Diyamett B. and Temu A.K. (eds.) (2004),
“Innovation Systems and Innovative Clusters in Africa”,
Proceedings of a Regional Conference, Bagamoyo, Tanzania,
February 18-20.
Mwamila B.L.M. and Temu A.K. (eds.) (2005), “Innovation Systems and
Clusters Programme in Tanzania”, Proceedings of a National
Stakeholders Workshop, Bagamoyo, Tanzania, January 24-25, 2005.
UN Millennium Development Goals, www.un.org/millenniumgoals Dar es
Salaam, Tanzania.
The Global Partnership for Environment and Development, A Guide to Agenda
21. UNCED/United Nations, June 1992.

D.2 AN OVERVIEW OF INNOVATION SYSTEMS

AND CLUSTERS PROGRAMME IN UGANDA
(ISCP-Ug)
by John B Turyagyenda
Faculty of Technology, Makerere University
ABSTRACT
This paper presents a general overview of the activities of the Innovation Systems
and Custer Programme in Uganda (ISCP-Ug). It outlines the genesis of the
Innovation Systems and Custer Programme for East Africa (ISCP-EA) of which
Uganda is a member. A brief explanation of why cluster concept is today very
important is explained by giving experiences from developed and developing
countries.
A chronological cluster programme activities in Uganda since the programme

inception is detailed. Achievements and challenges of the programme are identified.
Finally the paper gives the conclusion and the way forward.
INTRODUCTION
In September 2003 ten participants from Uganda, Tanzania and

Mozambique were privileged to attend the 6th Global Conference on
Innovations Clusters, which was organized by the Competitive Institute
(TCI) and the Swedish Agency for innovation systems (VINNOVA-
Sweden), in Gothenburg, Sweden.
The conference highlighted the importance of closely linking the three

components of the Triple Helix Model, namely; academia, industry and
government. This conference inspired very much and motivated the ten
participants from Eastern Africa, who felt that there was a need to organize
a mini-regional conference on a similar theme in Africa. They then
approached Sida/SAREC officials who were also attending the same
conference for financial support towards organizing a regional conference
in East Africa of which the Sida/SAREC officials readily agreed to the
request.
JB Turyagyenda 155 Overview of ISCP-Ug

The Faculties/Colleges of Engineering at the three Universities in Eastern

Africa, namely the Faculty of Engineering at Eduardo Mondlane University
(Mozambique), the Faculty of Technology at Makerere University
(Uganda), and the College of Engineering and Technology at the University
of Dar es Salaam (Tanzania) agreed to organize the 1st Regional conference
on Innovations Systems and Innovative Clusters in Africa. This Conference
gave birth to Innovation Systems and Cluster Programme for Eastern Africa
(ISCP-EA).
The purpose of ISCP-EA is to stimulate and facilitate the development of

Innovation systems and Innovative clusters and cluster initiatives in East
African, which concepts have been recognised for the last 20 years or so as
the drivers of competitiveness growth and prosperity of nations.
This paper gives an overview of the Innovation systems and clusters

programme in Uganda (ISCP-Ug).
WHY CLUSTERS
The following are some of the key reasons why clusters are today very
important and useful as far as the businesses are concerned.
• Competitiveness
Clusters are effective tools/structures for promoting innovations, hence
competitiveness of firms, especially the SMEs. In other words clusters
are the drivers of competitiveness. Without clustering few business
firms can become competitive. A business which cannot innovate is
dead a one. For the last 20 years, innovation has been recognized as a
driver for competitiveness, growth and prosperity in advanced
economies.
For businesses we do have this relationship;
Clusters Innovations Competitiveness
This means that clusters bring about innovations which in turn bring
competitiveness

● Joint Production
Clusters promote joint purchasing, joint logistics, joint production,
supply chain development
● Joint sales
Clusters also promote joint branding of products/services, regional
branding, export promotion
● HR upgrading
Cluster facilitates the technical & management training, production
process improvement, establishing industry technical standards,
improving education system.
● Intelligence
Market research and technical trends analysis
● Lobbying
Business clusters lobby the government to make the necessary
conducive regulations, policies and also investment in infrastructural
development.
● Firm Formation
Clusters promote incubation services and firm spin-offs
● Joint R & D
Cluster promote joint R and D research projects
The above are key to business competitiveness
WHY NOW?
To day we live in a global village with cutthroat competition, where

business firms must have competitive advantages. This therefore, calls for
• Produce the needed product/services at competitive price;

the business firms to:
• Increase the productivity using efficient methods;

• Look for various markets of their products; and
• Increase the business profits.
EXPERIENCE ELSEWHERE
There are very many cluster initiatives all over the world especially in
Europe, Australia, North America and New Zealand. Experience from
several developed countries such as USA, Sweden, UK, Ireland, Scotland,
Singapore, New Zealand, and Australia has demonstrated that strong
clusters ensure sustainable competitive advantages in these countries.
These strong clusters have helped to continuously improve

competitiveness, create new jobs and companies, attract new investments,
and retain firms with the industry clusters. Also in the developing countries
like India, Brazil, South Africa where cluster tools have taken root, their
economies are fast growing. Clusters have helped these countries to
penetrate and effectively compete in the global markets.
GOVERNMENT SUPPORT IN DEVELOPMENT AND PROMOTION

OF CLUSTERS
The Government through Ministry of Tourism, Trade and Industry is

mandated to promote, expand and diversify an environmentally
sustainable industrial base. This mandate is executed by the department of
Industry and technology in collaboration with the Uganda National Bureau
of Standards (UNBS); Uganda Industrial Research Institute (UIRI);
Management Training and Advisory Centre (MTAC); Uganda Integrated
Programme (UIP) and Uganda Cleaner Production Centre (UCPC).
The Draft Policy framework for Industrialization in Uganda lays emphasis

on promoting increased competitiveness, productivity and innovation and
thus sustained growth of the industrial sector.
•
The department has strategic policy objectives which includes;
•
Value addition in agro-processing;
•
Increasing industrial competitiveness in particular for export markets;
•
Productivity and innovation;
•
Cluster development; and
Investment generation and promotion.
To achieve the above strategic objectives, among other activities that shall
be undertaken by the department and other affiliated institutions in the
medium term is promoting Spatial development initiatives, including

clusters, industrial estates, Export Processing Zones (EPZ) and related
industrial infrastructure.
Uganda Industrial Research Institute in its potential technology transfer

strategies includes; proactive support for SMES to adopt new technologies
and encourages innovation.
Private Sector Foundation Uganda has strategic programmes to assist the

development of SMES and cluster development.
In addition, there is a Presidential Innovation fund, Presidential

performance award, Science and Technology award, and Innovation and
Research fund which support innovations and cluster development.
ISCP ACTIVITIES IN UGANDA
Below is a brief of the cluster activities in Uganda since the inception of the
programme
First Regional Conference (The Bagamoyo Regional Conference)
The first Regional conference which brought together the participants from
the three collaborating countries namely; Tanzania, Monzambique and
Uganda took place between 18th and 20th February 2004 at Bagamoyo Resort
in Tanzania.
This conference was attended by 20 participants from Uganda representing

the Triple Helix Concept namely; University/Research Institutions, The
government and the business.
The major objectives for this conference were:

̇ Creating awareness;
̇ Creating critical mass of cluster stakeholders; and
̇ Coming up with the action plan and the way forward.

National Stakeholders’ Conference
Uganda held its first ever clusters stakeholders’ conference at Entebbe.

Botanical Resort in December 2004, with the following objectives:
General objectives were:
̇ Creating awareness; and
̇ Creating critical mass of cluster stakeholders.
Specific objectives
̇ Selecting of the National Steering Committee (NSC);
̇ Discussion of the proposed action plan; and
̇ Coming up with the way forward.
The Second Regional conference; Jinja, Uganda
The second regional conference of innovation systems and cluster

programme East Africa was held in Jinja – Uganda between 3rd and 5th
March 2005, with the following objectives:
• To take stock of the current state of innovation systems and clusters in
the participating countries;
• To discuss the action plan and approve it;
• Discussion of how to mobilize the funding;
• Come up with agreed funding proposal;
• To agree on the management structures of the ISCP East Africa; and
• The way forward.
Cluster Training Workshop in Uganda
A cluster training workshop was held in Uganda from 18th to 23rd

September 2005. The workshop was facilitated by the team of International
Consultants in cluster initiatives and cluster development.
The objectives of the training were:

• To train a critical mass of facilitators; and
• To guide on how the pilot cluster initiatives can be chosen.

At the end of the training 51 trainees graduated as qualified cluster

facilitators
A Photograph Showing Graduates after the Cluster training Workshop
Attendance of the TCI Conferences
In order to have international exposure and networking with the re-known

world cluster experts, Uganda has managed to fully attend and participate
in the 6th (Gothenburg), 7th (Ottawa), 8th (Hong Kong) and preparing for the
9th (Lyon), TCI conferences.
IMPLEMENTATION AND THE MANAGEMENT OF THE SEVEN

PILOT CLUSTER INITIATIVES
The National Steering Committee is currently implementing and managing

the seven pilot cluster initiatives in the country. The pilot cluster initiatives
are:
1. Management Consultancy Cluster Initiative located in Kampala;
2. Katwe Salt processing Cluster Initiative located in Western – Uganda;
3. Metal Fabrication Cluster Initiative located in Kampala;
4. Pineapple processing Cluster Initiative in Kayunga located in Central
Uganda;
5. Basketry Cluster Initiative in Luwero located in Central Uganda;
6. Fashion design/ Textiles Cluster Initiative located in Kampala; and
7. Bio Fuel – Ethanol Cluster Initiative in Kakira located in Eastern
Uganda.

These cluster initiatives have been visited and evaluated by both the
National Steering Committee and the international team. The results have
been very encouraging.
Note: It should be emphasised that there are many other cluster initiatives
in the country that are not part of the ISCP- Ug.
PILOT CLUSTER INITIATIVE ACTIVITIES
The short term pilot cluster activities undertaken by the seven pilot cluster
initiatives include:
(a) Development of the action plan for each cluster initiative. Which
plans were submitted to the National Steering Committee for
consideration and approval;
(b) Mobilization of the required resources by the facilitators;
(c) Identification of potential cluster members;
(d) Visiting potential individual cluster members;
(e) Bringing the stakeholders together;
(f) Explaining the importance of the cluster concept approach;
(g) Holding Meetings, small seminars and workshops with the identified
cluster members;
(h) Training of cluster members;
(i) Visiting various triple helix Organizations such as higher education;
learning institutions, vocational technical institutions, various
industries and government departments;
(j) Election of the cluster leadership;
(k) Launching of the cluster initiatives;
(l) Holding mid-term stakeholders workshop;
(m) Signing of Memorandum of Understanding (MOU) between the
cluster initiatives and National Steering Committee (NSC); and
(n) Attendance of the 3rd regional cluster conference in Dar- es-salaam
and exhibiting various cluster products during the conference.
MID- TERM STAKEHOLDERS’ WORKSHOP
A mid-term workshop was held in August 2006 with the following
• To take stock and exchange notes between the various cluster

objectives:
stakeholders, namely facilitators, cluster team leaders, national steering
• To chat the way forward for the remaining period of phase one.
committee; and
REGISTRATION OF THE ISCP- UGANDA WITH THE REGISTRAR OF

COMPANIES IN UGANDA
In order have a legal identity, the innovation systems and clusters

programme Uganda has been registered with the Registrar of Companies as
a Limited Company by Guarantee. All the seven pilot cluster initiatives
have also signed Memorandum of Understandings (MOUs) with the ISCP
Uganda.
IDENTIFICATION AND FORMATION OF VILLAGE CLUSTERS
The National Council of Uganda Small Business Organizations (NCUSBO)

together with the ISCP Uganda held various training workshop in some
districts of Uganda. During these training workshops the following village
clusters were identified, in Ntungamo and Kapchorwa districts:
Ntungamo District:
Banana Cluster, Cattle and Goats Cluster ,Retail Traders Cluster,
Educational Cluster, Fish Farming Cluster, Poultry Rearing Cluster, Dairy
Products Cluster, Mechanics Cluster, Textile Cluster, Traditional Herbalist
Cluster, Art and Crafts Cluster, Restaurant Cluster, Tree Planting Cluster,
Bee keeping Cluster, Fruits Growers’ Cluster, Building and Construction
Cluster.
Kapchorwa District:
Maize Growers Cluster, Multipurpose Horticulture cluster, Piggery Cluster,
Banana Growers Cluster, Coffee Growers’ Cluster, Cattle Farmers Lulyo
Cluster, Poultry Farmers Cluster, Diary Cluster, Hides and Skins Cluster.

ACHIEVEMENTS OF PHASE ONE
So far the following has been achieved:

(a) Cluster concept somehow understood by the various stakeholders;
(b) Leadership teams of the pilot clusters in place;
(c) Mistrust between the cluster members minimized;
(d) Good working relationship between the cluster leaders and facilitators;
(e) Some clusters have been officially launched; and
(f) ISCP-Uganda registered.
CHALLENGES
The following challenges were identified:

(i) General management of business enterprises requires managerial
skills which most of the cluster members do not have;
(ii) Facilitating of the cluster is a full- time job but all the facilitators are
part-time people who have other business/jobs to do. And as result
little time is devoted to cluster activities;
(iii) Limited funds are a major challenge as most of the cluster activities
require funding e.g. initiation and facilitation;
(iv) Lack of physical infrastructure (offices, equipment, land, show/sales
rooms) as this affects the smooth running and expansion of cluster
members;
(v) Training and skills development needs to be emphasized and proper
measures put in place;
(vi) There is an urgent need to have national awareness of the cluster
program/concept to all levels;
(vii) Some people are not convinced that the cluster concept will deliver
where other concepts have failed (cooperatives);
(viii) Sustainability of the ISCP–EA need to be looked into seriously by all
the stakeholders;
(ix) Absence of a clear innovation cluster policy to guide the cluster
activities;
(x) Low motivation for research in existing triple helix institutions;
(xi) Absence of clear and formal firm linkages between stake holders; and
(xii) Mistrust amongst local businessmen/women and between
themselves and manufacturers.

CONCLUSIONS AND WAY FORWARD
Experience from developed countries has shown that the concept of clusters
has improved competitiveness, helped in the creation of new jobs, and
making the companies stable and secure, in other wards, attracting new
investments and retaining firms with in the same industry. Also applying
this concept, experience from developing countries such as India, Brazil and
South Africa has helped these countries to penetrate and effectively
compete in the global market.
Here at home, ISCP-Ug promises to provide change of mindset in favour of

competitiveness, enhancement of quality consciousness and productivity
among the Small and Medium Enterprises.
There is a need to mobilize more resources for sustainability of the ISCP-

Ug, the support of the current seven pilot cluster initiatives and for the
establishment of more cluster initiatives in the country.
In order for the Cluster concept to take root in Uganda, the government and
all stakeholders should come out with a clear cluster management and
development policy that will guide all the cluster activities and initiatives in
the country.
Finally if the cluster concept has worked elsewhere, why NOT in Uganda?
BIBLIOGRAPHY
Anderson T. Serger S.S., Sörvik J. and Hansson, E.W. (2004), “The Cluster
Policies White Book”, International Organisation for Knowledge
Economy and Enterprise Development (IKED), Malmö, Sweden.
Jordan National Competitiveness Team (2003), “Jordan’s Competitiveness
Book: Confronting the Competitiveness Challenge”, Ministry of
Planning and International Cooperation, Amman.
Kibira D, Lugujjo E., Turyagyenda J.B. (2005), Proceedings of the Second
Regional Conference, on Innovation Systems and Innovative
Clusters, 3rd – 5th March 2005 Jinja, Uganda.

Kibira D, Lugujjo E., Turyagyenda J.B. (2004), Proceedings of the National

Stakeholders’ Conference, on Innovation Systems and Innovative
Clusters, 9th – 10th December 2004 Entebbe, Uganda.
Mongi, H. O. and Ng’wandu, E. (2005), Need to Establish an Innovation
Systems and Clusters Programme in Tanzania, Proceedings of the
National Stakeholders Workshop, Bagamoyo, 24 – 25 January 2005
(Unpublished).
Mwamila B, Trojer L., Diyamett B., Temu A.K., (2004), Proceedings of the
1st Regional Conference Innovation Systems and Innovative
Clusters, 18th – 20th February 2004. Bagamoyo, Tanzania.
Mwamila, BLM (2005), Towards an Innovation Systems and Clusters
Programme for Tanzania (ISCP-Tz), Proceedings of the National
Stakeholders Workshop, Bagamoyo, 24 – 25 January 2005
(Unpublished).
Mwamila B.L.M. and Temu A.K. (eds.) (2005), On “Innovation Systems
and Clusters Programme in Tanzania”, Proceedings of a National
Stakeholders Workshop, Bagamoyo, Tanzania, January 24-25, 2005.
Turyagyenda J.B. (2005), Innovation Systems and Clusters Programme for
Eastern Africa (ISCP-EA), Proceedings of the Cluster conference
“Beyond Clusters: Current Practices & Future Strategies”. Ballarat,
Australia.
Biography of the Author
Eng. Dr. John B Turyagyenda is the Deputy Dean (Administration),

at the Faculty of Technology, Makerere University, Kampala, Uganda;
formerly the Head of Mechanical Engineering Department of the same
University. Currently, he is developing courses and lecturing in
Business Management for Engineers at both undergraduate and
graduate levels. His research interests are in the fields of Engineering
Education and Training, Policy Analysis, Innovation Systems and
Cluster Development and Management of Small and Medium
Enterprises.
He is the Chairperson of the National Steering Committee of Innovation

Systems and Clusters in Uganda and a National Coordinator of
Innovation Systems and Clusters Programme for Eastern Africa (ISCP-
EA).

PART E
REPORTS FROM THE CLUSTER

INITIATIVES
167
E.1 KATWE METAL FABRICATION CLUSTER

by Joshua Mutambi
BACKGROUND
Everywhere we look in Katwe area Makindye Division, we see fabricated

metal products. From windows, doors, metallic bed frames, motor vehicle
parts, case housings, agro machinery parts, and other countless products
start out as metal stock that fabricators bend, punch, drill, grind, thread,
and cut to produce various shapes.
The Katwe metal fabrication cluster is divided in three sections:

● Kiseka Market which is composed of mainly automotive spare parts
manufacturing, reconditioning and servicing; and manufacture of
Agricultural machinery;
● Katwe Upper and Lower area which handles general fabrication and
mechanics; and
● Kisenyi-Muzaana zone which handles mainly foundry processes
operating for over 15 years with members over 300.
Katwe metal fabrication pilot cluster was financed and supported by

Sida/SAREC with the main objective of promoting and developing the
cluster initiative with in the first 18 months. The project which started in
December 2005 was to be implemented in three phases, namely;
● Phase I – Mobilizing Activities,
● Phase II – Short term tactical activities, and
● Phase III – Long term strategic activities.
GOALS
(i) Stimulate and enable the growth of existing firms within Katwe area;
(ii) Facilitate information exchange and communication among cluster
members; and
(iii) Publicize and promote the cluster’s social economic contribution and
potential.
J Mutambi 168 Katwe Metal Fabrication Cluster

KEY ACTORS IN THE DEVELOPMENT OF THE CLUSTER
The following have been key stakeholders in implementing of the work

plan; facilitators, team leaders, National steering committee and the
industrialists.
Facilitators
1. Joshua Mutambi
2. Sam Kyamanywa
3. Daniel Atugonza
4. Mary Zawedde (Ms.)
5. Naku Y. Ziraba (Dr.)
6. Patrick Tibasimwa
7. Deo Kibira (Dr.)
Team Leaders
1. Moses Sebiranda
2. Prince Juma Kayima
3. Eselu Sebastian
4. Mathius Kivumbi
5. Semulimi Moses
MAJOR ACTIVITIES AND PRODUCTS OF KATWE METAL

FABRICATION CLUSTER- KISEKA AREA, KISENYI AND KATWE
A physical survey of small scale industries in the area revealed more than
150 units in operation. The range was from those employing one person to
those which have about 5 employees (both permanent and trainees).
Randomly, a total of 120 units were visited by the facilitators out of which
the activities involved included:
(1) General fabrication: metal doors & windows, gates, water and fuel
tanks, burglar proofing parts, motor vehicle bodies, brick making
machines, moulds, metallic chairs and beds, tables, etc;
(2) Catering & Kitchen equipment: popcorn machines, food warmers,
Ovens, roasters, cook stoves, nut grinders, and fruit juice extractors;
(3) Foundry: Cast iron and aluminium spares, some vehicle spare parts-
spacers, bushes, bolts and nuts, weighing scales, bull bars, saucepans,
moulds, etc;
(4) Forging: customised fabrications, hinges, latches, door and window

designs, gate designs, sports tools, and other traditional tools;
(5) Light machines and auto parts fabrication: tricycles, welding
machines, vehicle front and rear protective bars, silencers, etc; and
(6) Industrial machinery: agro processing machines, packing machines
etc.
KEY OUTPUTS OF THE PHASE 1 AND PHASE II
The following ACTION STEPS have been taken to implement the

development of Katwe metal fabrication cluster:
(1) Hold information workshops, seminars and status update meetings;
(2) Liaison work to different associations or business organizations and
agencies involved in metal manufacturing and other technology
related work;
(3) Create contact with the members on one to one basis, and in
meetings;
(4) Publishing the achievements and other related cluster work in the
media and local journals (in plan); and
(5) Mobilizing members to participate in exhibitions and trade fairs.
PROGRESS OF THE WORK PLAN BY THE CLUSTER
Since its launch in December 2005, the cluster has made remarkable
progress:
(a) A Survey was carried out, information gathered and analysed. (Fact
finding meetings to identify cluster challenges and to assess the
business climate), over 120 firms participated;
(b) Firms/companies physical locations, products and their
characteristics identified;
(c) Cluster team leaders identified from the open cluster meeting;
(d) Other needs assessment survey was conducted whose objectives
included determining the cluster members’ skills up gradation
requirements, quality and standards of the products produced and
other technical requirements. About 70 firms participated in the
needs assessment survey;

(e) Exposure tour was organized to some vocational, research and

standards institutes/agencies. A total of 40 people participated in
the tour;
(f) One to One cluster members contact program has been carried out
with emphasis on organization management, production systems,
quality standards and testing, marketing and financial
management;
(g) To promote synergies among support institutions meetings have
been held between; Facilitators and team leaders;
(h) Private sector Foundation Uganda;
(i) Uganda Industrial Research Institute;
(j) UNIDO-Cleaner production centre; and
(k) Ministry of Tourism, Trade and Industry.
SUMMARY OF THE KATWE METAL CLUSTER STRENGTHS
The cluster has a competitive strength that lies in the following:

(1) Availability of energetic workforce;
(2) Proximity to customers;
(3) Diversity of products; and
(4) Enabling environment from both government and private sector
agencies.
CHALLENGES FACED BY THE CLUSTER
(i) Organizational Management and Labour Skills

On average, Katwe Metal Fabrication cluster members are persons with
elementary education, artisans, skilled tradesmen and successful small
merchants. Few people with a secondary or higher education are also found
in these small-scale industries. This implies that the management of such
small-scale industries is often based on common sense, intuition and
personal values of the local community.
Therefore, there is a major problem of organizational management and

labour skills. This could be addressed by having a continuous skills
development programs in both technical and managerial skills.

(ii) Working Space

Most members of the cluster are faced with the problem of space shortage
and power failure. Some of their activities need larger spaces.
(iii) Accessibility to Modern Machines

There is lack of accessibility to modern machines, quality inspection
equipment and procedures. As a result, production methods and
techniques used are obsolete and result in higher costs and lower quality
products. This would be addressed by developing and access quality
standards of parts and machinery.
(iv) Marketing and Information Sharing

Marketing skills of their products: Marketing is influenced by the culture
and environment. It has been found and noted that they are making
products according to their wishes, skill and standards rather than in
response to market wishes. There is need to improve on the productivity
and information sharing, especially about source of raw materials, and
potential markets.
(v) Finances
The financial book keeping has been found to exist in some of the cluster
members. However, the small-scale of activities itself results in poor
competitiveness in the sense that, for instance, bulk buying of required raw
materials at appropriate prices is not possible. Even large orders often times
are not taken up due to lack of capital to fulfil the requirements.
Furthermore, lack of facilitation to participate in trade fares, exhibitions and
other marketing promotion activities has hindered the development of the
businesses.
(vi) Technology Development and Use of ICT

There is a dire need of a technology development and designing centre to
assist the members in improving their businesses. There is also need for
improved networking with other firms in the region, like Kenya, Tanzania,
Rwanda and other countries.
.

ACHIEVEMENTS
From the meetings and awareness programs conducted, the following has
• Creation of awareness of the opportunities and potential of cluster

been achieved:
• Business alliances (trust building) is growing between cluster members,

networking,
• Business leaders have started networking, hold regular meetings, carry

and some support institutions,
• 80 firms have participated in our programs with close to 450 members

out market research, etc., and
getting informed.
The facilitators and the team leaders have kept on meeting to exchange
some ideas on how to strengthen the metal fabrication cluster. Proposals
and strategies for developing the cluster are being developed, which
• Productivity improvement through technical training and seminars,

include:
• Technology enhancement by setting up a technology development

Vision workshop to be held soon,
• Product market improvement by opening up a sales show room/ shop

centre,
• Strengthen the networking in the whole manufacturing value chain.

in the area to be selected by the members, and

E.2 FACILITATING MOROGORO METAL WORKS

CLUSTER
by Eng. Peter Chisawillo
Morogoro Metal Works Cluster Initiative
INTRODUCTION
The establishment of cluster initiatives as a strategy for SME development is

at its infancy in Tanzania. Key to the success of this strategy are several
factors among them being: full commitment of the cluster initiative
members to their own development; dedicated leadership in the whole
process of CI development, quality facilitation of the CI formation process
and integration of the whole process of CI development in National
programmes for SME development.
The College of Engineering of the University of Dar esSalaam is

spearheading an initiative to implement components of the National SME
Policy of 2003 through programmes aimed at addressing impediments to
SME growth. One of the programmes is the Innovative Systems and
Clusters Programme (ISCP).
Fundamental to the successful development of sustainable cluster initiatives

is the building of local capacity for identifying potential viable clusters and
facilitating the cluster initiatives to competitiveness.
The first Facilitator training was conducted in September 2005. After this
training the trained facilitators proceeded to facilitate eight cluster
Initiatives. The Morogoro Metal Works Cluster Initiative (MMWCI) is one
of the CIs established after the September 2005 training. The Cluster
Initiative was being facilitated by Mr. Emmanuel Saiguran and the author.
This paper highlights the experience gained in facilitating the MMWCI.

Salient features regarding the CI formation process are outlined. Challenges
encountered are presented with the objective of informing CI facilitation
trainees of the potential tasks and challenges to be addressed. Personal
P Chisawillo 174 Morogoro Metal Works Cluster

reflections on CI facilitation are provided to enable trainees make a few

mistakes of their own as a natural learning process!
BRIEF DESCRIPTION OF THE MMWCI
The initiative started in November 2005 with nine metal fabrication

workshops and 8 tinsmithery and general fabrication groups employing
some 82 people. Currently the initiative involves 9 workshops and 25
tinsmithery groups employing a total of 204 people.
Cluster Initiative Status as of May 2006
a) The 9 firms in the cluster possessed machining capacity with low

capacity utilisation;
b) 5 firms did not have any specific products;
c) All tinsmithery groups manufactured an assortment of products of
low quality;
d) All firms and groups had difficulties in accessing markets;
e) 4 Firms had received credit from financial institutions with other
firms and groups having difficulties accessing finance; and
f) Human Resources
Tinsmithery Groups
• 94% of the 123 employees and owners of the tinsmithery groups
are primary school leavers
• 3% are O level
• 2% are A Level
• 1% are Technician Level
• 91% have no formal vocational education & training
Metal Working Firms

• 65% of the 101 employees are primary school leavers
• 20% are O level
• 5% are A Level
• 3% are FTC holders
• 2% are diploma holders
• 2% are first degree holders

• 3% are Masters degree holders
• 78% have no formal vocational education & training
g) Working Premises
• 4 firms owned their working premises.
• The 25 groups and the other 5 firms operated from either
residential or non approved premises.
h) Income
• The total Annual turnover for cluster firms had risen from
189.88mTZS in 2003 to 285.59TZS in 2005.
• Turnover for groups had risen from 122.2m TZS in 2003 to 169.16
TZS in 2005.
THE CLUSTER INITIATIVE DEVELOPMENT PROCESS
The development of the cluster Initiative had to be designed and

implemented such that the cluster initiative members would not only
realise value in the short term but would also enhance their competitiveness
in the long term.
The mobilisation of the CI members was therefore programmed to be

addressing the specific challenges and constraints facing the CI members.
An initial inventory of the CI conducted by facilitators led to the

identification of the following as specific issues to be addressed:
Ü Technology acquisition
Ü Training in basic business management
Ü Access to financial facilitation
Ü Provision of working premises
These issues were accorded priority as a springboard for enhancing

competitiveness, confidence building and creating trust among the CI
members and between the Facilitators and the members.

Technology Acquisition
Having identified the technology constraint as the dominant factor in the

development of the cluster initiative firms a major component of the initial
activities was focused on addressing this challenge.
The Morogoro Metal Works Cluster Initiative visited Technology

Development (TD) and R&D Institutions in Kibaha and Dar es Salaam from
the 16th to 17th February 2006. The group comprised of 19 cluster members:
eight from manufacturing firms, 10 from tinsmithery groups and one Small
Industries Development Organisation (SIDO) official. The Facilitator from
SIDO Headquarters joined the group in Dar es Salaam.
The institutions visited were Tanzania Automotive Technology Centre

(TATC), Technology Development and Transfer Centre (TDTC) of UDSM,
Tanznaia Industrial Research and Development Organisation (TIRDO) and
the Tanzania Commission for Science and Technology (COSTECH). The
group also visited Gerezani Small Industries Cooperative.
A delegation of five cluster members visited institutions in Moshi and

Arusha from 5th to 8th March 2006. The firms visited included: Kilimanjaro
Industrial Development Trust (KIDT) and Nandra Engineering in Moshi;
Centre for Agricultural Mechanisation and Rural Technology
(CAMARTEC), Tanzania Engineering and Manufacturing Design
Organisation (TEMDO) and SIDO in Arusha.
Another delegation of two members visited Kiwira Coal Mines to obtain

technology on the use of coal briquettes for domestic fuel use.
The objectives of the visit were:

̇ To provide cluster firms with an opportunity to broaden their
knowledge of the existing technologies offered by technology
development and R&D institutions with a view to acquiring these
technologies for commercialisation;
̇ To enter into agreements on technology transfer on aspects initially
discussed between some of the institutions and firms in the cluster;

̇ To consolidate the relationship between Cluster Firms and Technology

Development, R&D and Academic institutions; and
̇ To establish modalities for technology transfer and joint product
development.
The visit to Technology Development Institutions and some manufacturing

facilities in Kibaha, Dar-Es-Salaam, Moshi and Arusha was a great success.
̇ Cluster members had the exposure to firms and settings different from
their own and got the opportunity to learn from others. They
established contact with technology development institutions and
eventually selected technologies they would like to follow up for
commercialisation;
̇ The Cluster Initiative consolidated its links with Technology
Development Centres and charted modalities for continued
collaboration; and
̇ Memoranda of understanding with TATC and TIRDO have already
been drawn and are awaiting ratification by stakeholders of both sides.
Selection of Technologies
Following the visits cluster firms selected to focus on specific technologies
of corporate interest to them. Some technologies were selected to be
commercialised as joint undertakings of the cluster initiative. Table 1
indicates the selection of technologies from technology development
institutions.

Table 1: Selection of Technologies for Transfer from Technology

Development Institutions
S/N NAME OF TECHNOLOGY TECHNOLOGY REMARKS
CLUSTER SELECTED PROVIDER
FIRM/MEMBER
1 All Fruit Juice Extraction Plant TIRDO
2 All Plastic Recycling Plant TIRDO
3 All Briquettes manufacturing KIDT
Plant
4 Economy Stove with Oven NANDRA
BSK Engineering Engineering
Cash Box TATC
Juice Extractor TIRDO
BSK/Simbaliana Tool Grinder TIRDO
5 MORETRACO Jaw Crasher CoET
Ball Mill CoET
Gold Separator CoET
Plough Beam Own Collaborate
Design/Product with SUA
6 Sokola Economy Stove COSTECH Collaborate
Mwinyikondo with SIDO
7 Omar Komba KIDT Stove KIDT Develop and
Amina Chauya report to
Cluster
Economy Stove COSTECH
8 DEMACO Palm Oil Extractor TEMDO
Cashew nut Processing TATC
9 Welding and Palm Oil Extractor TEMDO
Fabrication Mineral Processing CoET
(E.Yela) Equipment
10 Mkasanga Metal Economy Stove COSTECH
Works Water Heater COSTECH
11 Rashid Ally Economy Stove CoET
12 Intermech Palm Oil Extractor TEMDO
Engineering Ltd Solar Heaters CAMARTEC

Every new step in the development process poses new sets of challenges
and mostly different from those previously encountered. This is due to the
dynamic nature of reaction and decision making resulting from acquisition
of new sets of information and variables.
Following are the author’s reflections on the nature of emerging challenges

and potential positions and solutions:
̇ The technology visits: There is a growing concern on the idea that the
cluster initiative must jointly exploit the technologies accessed from TD
Institutes. My feeling is that we should expose all firms equally to the
opportunities availed by the link with TD Institutions. Then on, firms
should pick up technologies they would like to exploit at their own
pace. Assistance should be afforded when there is a common cluster
need to address joint competitiveness. Is this view going to assist in
building capacity for cluster firms to exploit available opportunities?
Are we not leaving the firms out in the cold after indicating to them
potentials for development? Should we encourage joint undertaking of
projects?
̇ My other concern is the encroaching on current cluster firm products by

some members of the cluster who feel that cooperation means putting
proprietary products on the public domain (at cluster level). My
response has been that the current proprietary products offer firms their
competitive advantage within the cluster and in the industry in general
and therefore members should not be compelled to get into joint
manufacturing agreements or even share information with, basically,
competitors in the industry at cluster level. This should form the
foundation for competition in the cluster while cooperating in aspects
that provide general cluster competitiveness.
Working Premises
• Premises space requirements is more than 5,700 square metres.
• A request was presented to SIDO.
• SIDO has allocated land to be developed by entrepreneurs to solve the
problem of working premises.
• The area is to be designated “The Morogoro Cluster Park”.

Reflections
The SIDO board Chairman visited the cluster initiative on 12 March 2006
and had a meeting with cluster initiative members. Cluster initiative
members reminded the chairman that they had presented their request to
the SIDO Regional Manager for development of the Industrial Estate to
solve their problem of lack of working premises. The chairman offered the
cluster initiative an opportunity to apply for the premises and be accorded
priority in allocation after presenting their layout plans and architectural
drawings for working shops. This was published in the local media and we
witnessed a flood of people not connected to the cluster coming to enquire
whether they could be included in the allocation of plots. This indicated the
extent of shortage of working premises in Morogoro. Should the cluster
initiative model work, it could be modelled as an SME development
strategy.
Business Management Skills
Five members from tinsmithery groups were sponsored by the cluster

initiative for a one week course in basic business management conducted
by SIDO in Morogoro.
Reflections
The cluster initiative sponsored five trainees for a course in basic business
management. The training was organised by Small Industries Development
Organisation (SIDO). The training took place from 27th to 31st March 2006.
Of the five trainees sponsored one did not attend. The trainee earmarked
for this course had to undergo medical check-up after surgery. A
replacement trainee was then selected to attend. The trainees reported
benefiting a lot from the training. Follow up needs to be made to determine
whether they are putting their training to practical use. A mechanism for
monitoring and evaluating the impact of such training needs to be
developed. Arrangements should be made to train more members in basic
business management.
Financial facilitation
• Through improved collaboration with SIDO four firms received loans
totalling TZS 32.0m.
• The initiative is working out modalities for further micro financing to

other firms and tinsmithery groups.
DEVELOPING THE CLUSTER INITIATIVE VISION
Progressively, the Facilitators have been moulding the initiative to evolve

and own the vision of the initiative. The vision of the Morogoro Metal
Cluster Initiative is:
To be the best manufacturer of high quality post-harvest and food

processing machinery and other related equipment in eastern, central
and Southern Africa.
Work has to be done to introduce stretch by getting CI members to focus on

a time frame and specific measurable targets by adding to their vision the
following: “WITH 25% MARKET SHARE BY 2010”.
HANDLING DIVERSITY AND BUILDING TRUST
• The initial stages of the cluster initiative development were difficult.

NGOs and Development Groups history of working with grassroots
groups has instilled an attitude of scepticism with any “new”
development ideas. It required the demonstration of genuine concern
•
for SME development to cluster members to get them to cooperate.
Initially there was a lot of hostility and non cooperation between
cluster initiative members. Now there is better cooperation including
•
subcontracting within the cluster and joint materials purchases.
Individual firms have their own development/growth strategies (?)
Tinsmithery groups have (?) a development direction and concerns
diverse from those of the firms! The Vision focuses on agro-processing
machinery. The strategy shall be to enhance the competitiveness of all
core members to become the best in their specialised fields in the East,
Central and Southern African region.

Reflection on handling diversity, building trust and developing a shared

vision
(i) Lack of confidence by some of the members that the facilitators are
not sincere with the intention of creating a group that would work
together and compete. That the facilitators may be using the group
for personal benefit or gain of one kind or another as has happened
before with other NGOs and "Grassroots Development
Organisations". The challenge now is to build trust among the cluster
members on the honest intentions of the facilitators and within the
cluster members themselves.
(ii) Improved trust among the tinsmiths and the resolving of long
standing differences among some tinsmiths is a welcome
development. The strategy now should be to identify activities which
will consolidate the confidence building aspect of the cluster
initiative development.
(iii) The resolution of and accommodation of diversity within the group
especially the various differences within the cluster: Notably is the
difference in levels of income and activity. Currently cluster firms
can be classified as follows:
a. Metal working workshop owners with incomes of 50m pa and
above. Employing above 10 people. Having metal working
machinery and own premises;
b. As above but on rented premises;
c. Machining equipment owners with incomes below 50m pa
employing less than 10 people; and
d. Tinsmiths, welders and fabricators.
Each of these categories has specific problems and challenges which

need to be addressed to enhance firm competitiveness. If we are to
maintain the cluster initiative as a single entity we need to focus on
initial activities addressing challenges common to most of the
cluster firms. Critical among these is the issue of products and
technology, followed by the issue of working premises and that of
expertise in business management.

(iv) Is it possible to come up with special interest groups within the

cluster? At least two distinct interest groups are emerging: The
tinsmiths and the Machining Workshop Owners. Is it possible to
determine the core interests of each group? How are these core
interests going to be handled while maintaining cluster cohesion and
focus on a common vision?
CREATING LINKAGES
The creation of linkages and networking with key institutions and

individuals who would be stakeholders to the cluster initiative was
essential in building public awareness and attracting collaborators.
Technology Development and Research Institutions and the Local
Government were particularly keen to work with the cluster initiative.
DEVELOPING THE LEADERSHIP GROUP
The facilitators approached the issue of Cluster Initiative leadership with a

lot of caution heeding the international experts call for care in establishing
the leadership of CIs. Individuals were carefully assessed on their
commitment to the development of the CI by asking people to volunteer on
self destructive task forces set up to address specific issues. An evaluation
of performance and general character assessment was done by the
facilitators who then identified potential leaders and approached them to
request them to volunteer for leadership in the Initial leadership of the core
members of the cluster initiative. The other members of the leadership
group from institutions in the triple helix are to be identified and co-opted
to form the CI leadership group.
Certain incidents assisted in getting CI members to take a cautious stance in

leadership group formation.
Following are reflections on the incidents and CI member responses that

consolidated the philosophy behind group leadership:
1. COSTECH sponsored training in the manufacture of the ceramic core of
the economy stove to tinsmiths in the cluster initiative. COSTECH
brought one trainer from Dar-Es-Salaam. The course was to last five
days but had to be extended to twelve days. The training was

conducted from 8th May to 19th May 2006. A few issues emerged from
this training:
o There emerged sharp differences between tinsmith groups located
in SabaSaba area and Mji Mpya areas (about 5km apart) every
group determined to see that the training is conducted at their
premises.
o It later transpired that one of the trainees (Mr. Sokola
Mwinyikondo) wanted to monopolise the trainer’s time at his
premises. This greatly undermined the spirit of cooperation
within the tinsmithery groups with sharp exchanges of words
and the generation of an ill spirit within the group.
o The role of the facilitator as a balancing influence in such
situations was clearly demonstrated by Mr. Saiguran handling
the conflict by phone from Dar-Es-Salaam.
o Some leadership was required. The fact that Mr. Yela had been
assigned to oversee the training provided leadership in resolving
the issue. The two groups were subsequently assigned different
training times at their locations.
o Between 20th and 22nd May 2006 I held meetings with the
different groups to hear the views from both sides. One former
employee of Mr. Mwinyikondo reported to me that they had
formed their own group. We are scheduled to hold a joint
meeting on Thursday 25th May 2006 to attempt to iron out the
differences and reconstruct the spirit of cooperation and trust. I
have stressed the need to remain focused to our vision and
mission and avoid self destructing actions. (An interesting
development that should require every skill in facilitation. We should
not be witch hunting but should utilise the opportunity to consolidate
the need and the necessity for cooperation around a common need of
acquisition of technology. Any attempt to hijack the process for personal
benefit should not be entertained)
2. We held the meeting on 25th May 2006. The facilitation objective

was to build cohesion within the group and focus on development
of the cluster initiative. The strategy was to direct the group
towards the results of the recent training in core manufacture and
identify knowledge and skills gaps which should be addressed.

(The strategy almost worked!!). The group(s) presented their
reports on the training. Each group was in agreement that the
training was a success. Outstanding issues were identified
including sustainable source of clay soil, construction of a heating
furnace.
3. The issue of differences was persistently referred to by Mr. Sokola.
Other members tried to calm him by appealing to wisdom and a
spirit of cooperation within the cluster initiative and specifically the
tinsmiths group. Eventually calm was restored and everyone
dedicated themselves to working harmoniously together.
4. A very interesting point was raised on the election of leaders. The
process for electing the leadership group had been explained to
regular attendants of the CI meetings. The enquirer had missed
previous meetings and one cluster member explained as follows:
"….. I think you all will now appreciate that the approach of being
cautious with the selection of our leaders is very important (this is
in reference to the division and misunderstanding arising during the
training). In this particular instance, if we had assessed the capacity
of an individual based on our initial acquaintance without knowing
the character of the particular individual we would be facing the
problem of either living with our mistake without harmony or
replace a leader and therefore creating bad blood within the group.
Let us identify our challenges and then match the leadership to be
elected to the task of addressing the challenges and realising our
vision" I could not have put it any better!
The initial leadership group has been elected and has taken over the reigns
from the facilitators.
Some concluding reflections from the facilitators on the election of the

leadership group:
1. Today (19th August, 2006) the core members of the cluster initiative
elected their leadership. The leadership includes: I.V. Byoma - Chair,
Amina Rashid - Vice Chair, John Mwakaswaga - Secretary, Sokola
Mwinyikondo - Member, A. Komba - Member, Chisawillo -
(Facilitator/Treasurer).
2. This marks a turning point in the development of the cluster Initiative.

Now the cluster members have to take the destiny of the initiative into
their own hands.
3. It has taken time to identify committed individuals in the cluster
initiative with the persistence to carry out the demanding tasks of
volunteering to build competitiveness in the metal sub sector in
Morogoro Region.
4. The election of Chisawillo to treasurer was clearly stated to be a stop
gap measure until such a time as the CI obtains an individual who can
take over from the facilitator. This is essentially to avoid conflict of
interest between being a facilitator and a leader in the CI.
5. It is sincerely believed that the leadership elected will perform.
WAY FORWARD
The first step in moving forward is to consolidate the triple helix leadership
and involvement in the Cluster initiative.
The performance in implementing the action plan has to be evaluated and

necessary steps taken to adjust the plan to reflect the concerns of every
participant in the Cluster initiative.
It is sincerely hoped that momentum will be maintained in propelling the

metal working industry in the Morogoro Municipality.
FINAL REFLECTIONS ON CLUSTER INITIATIVE FACILITATION
Facilitation is hard work! It needs ones personal commitment to making a

difference in society and to contributing positively in the war against
poverty and backwardness. A prosperous future is possible but we have to
work hard to enhance our competitiveness nationally regionally and
globally.

E.3 THE EXPORT POTENTIAL OF PINEAPPLE:

KAYUNGA PILOT PINEAPPLE CLUSTER
INITIATIVE, UGANDA
by Charles K Muyanja and JB Turyagyenda
Makerere University, ckmyanja@agric.mak.ac.ug;
jbturya@tech.mak.ac.ug
INTRODUCTION
Uganda is endowed with fertile soils which permit the production of fruits
and vegetables. Fruits of great importance and potential for export and
processing include pineapples, passion fruits, apple bananas (Ndiizi), Gros
Michel bananas (Bogoya), avocado, citrus, mangoes, papaya and jackfruit.
The fruits are produced in various districts of Uganda including Kabale,
Kasese, Mbale, Kapchorwa, the lake basin and the north and north eastern
regions. Both fresh and dried fruits for the export market mainly come from
Mpigi (31%), Masaka (25%), Kayunga (31%), Mukono (17%), Luwero (5%)
and Mubende (3%) (UIA, 2001).
The fruit and vegetable sector contributes big share of non traditional
exports. The Uganda’s current production of fruits is 384,000 tonnes and of
this 90% is marketed locally (MAAIF, 2004). The fruits and vegetable sector
contributed US$ 6.5 million in 1996 and US$ 9.4 million in 1999. The recent
global trends also indicate that the trade in fruits and vegetable is
increasing. However, the fruits and vegetable processing in Uganda is
under exploited (MAAIF, 2004). A limited number of processors and
exporters are currently involved in the enterprise of pineapple processing
(Brett et al 1996). Drying of pineapple has become an important economic
activity in Uganda.
The market size of the dried fruit sector including pineapple was estimated
at 90 Mt per annum. Five companies are involved in fruit drying and
export, with Fruits of the Nile enjoying a 76% share, AMFRI Farms Ltd 10%,
Masaka Organic Producers 9%, Tefu Ltd 4% and Flona Commodities 1%.
Fruit drying provides income to farmers/small scale processors and
contributes to poverty reduction. Currently Uganda exports about 30 MT
C Muyanja & JB Turyagyenda 188 Kayunga Pineapple Cluster
per annum of dried fruits to the UK, Japan, EU and Canada, valued at US$
240,000 (MAAIF, 2004). This is a strong indication of the existence of
investment opportunities and growth in pineapple drying industry
targeting export markets.
This paper focuses on pineapple and its export potential with special
emphasis on Kayunga pilot cluster initiative in Uganda.
PINEAPPLE
Pineapples are grown in almost all districts in Uganda. The total area under
pineapple cultivation is estimated at 194 million hectares producing some
1,650 metric tonnes of fruit per annum (FAO, 2004). Most pineapples are
grown in the following districts Nebbi, parts of Kabarole, Kapchorwa,
Masaka, Mpigi, Luwero, Mukono, Kayunga, Jinja, Iganga, Kamuli, Mbarara
and Bushenyi. Pineapple production has steadily increased over the years
(table 1). The most grown variety of pineapple in Uganda is Sooth Cayene.
Most of the pineapple is organically produced and have a better market in
Europe. Pineapples are seasonal in production. The share of Uganda’s
pineapple production with the region of East and South Africa is reported
at 27% (Agano et al, 2002).
Table 1 Production and export trend of pineapple in Uganda (1995-1999)

Years Area x 1000 Production x 1000 Export Volume
hectares tonnes (tonnes)
1995 6.0 150 61.6
1996 6.0 150 23.8
1997 6.2 160 4.4
1998 6.5 163 24.0
1999 6.8 163 64.8
Source Uganda Revenue Authority, 2000, 2001
KAYUNGA PILOT PINEAPPLE CLUSTER INITIATIVE
In Uganda, Kayunga district over 90% of the population depends on

agriculture as a source of income. Kayunga district has a big potential for
industrialisation for agro based industries. This is because of the variety of
raw material including fruits and availability of cheap labour. A lot of
pineapple and passion fruits are grown in Kagulmira sub-county in the

district. With this potential there is a need to consolidate full scale
processing attempts, new product development, disseminate the
knowledge and new processing technologies to a number of people. This
being aimed at improving the incomes through exportation of quality
products s result of value addition.
Map of Uganda
Pineapple Cluster located in

Kayunga in Eastern Uganda
PINEAPPLE CLUSTER INITIATIVE AND THE DEVELOPMENT
Cluster initiative was first introduced by the cluster facilitators to the

district officials to embrace it, in Jan 2005. The facilitator entry point was by
using already existing firm (High Quality Farmers Association) which had
got financial assistance from Japan International Cooperation Agency
(JICA). Through the help of the District production coordinator, key
stakeholders involved in pineapple processing were identified in February
2006 A stakeholder’s workshop was held to bring together these individuals
involved in pineapple sector in Kayunga and to introduce the cluster
initiative in April 2006.
The table below shows the key stake holders and their activities or roles in
Kayunga pilot pineapple cluster initiative.

Table 2 Key stakeholders involved in pineapple cluster initiative in

Kayunga district
Key stakeholder Activity/role
Farmer Produce and sell the pineapple
Trader Sell to consumer directly
Sell to middle men
Exporters Process the produce
Packaging of the pineapple products
Store the pineapple
Transport the pineapple products
Processors(Drying) Add value to the pineapple
Processors (Juice extraction There are the markets for the pineapple farmers
Pack the pineapple
Extension workers Provide extension services
Ensure farmer access the information on production
, disease control and marketing
Laborers Involved in clearing the land
Involved in planting and weeding
Involved in application of coffee husks as fertilizer
Involved in harvesting
Transport produce from the farm to home
consumers To the actual consuming f the products
Family members Provide labor during production
Transporters (Taxi, lorries, Facilitate the movement of pineapple from the
Pick-ups Bicycle) farmer to the consumer, rural markets and trading
centres
Coffee processors Provide coffee husks as fertilizer for pineapple
production
Dealers/middle men Buy the pineapple from the farmer Transport
pineapple to buyers
Look for the markets
Set the price of pineapple
Act as wholesalers
Road side retailers Sell directly in small quantities to consumers
Thieves Steal the pineapple during the night
Input suppliers Provide agriculture inputs during production of
pineapples
Local Governments Provide enabling policy environment for
production and marketing of pineapples
Uganda National Bureau of Sets standards for quality
Standards

Key stakeholder Activity/role

Farmer promoters (world Provide financial assistance through Govt or NGOs
Bank)
Researchers Research in various technologies with respect to soil
fertility, diseases and drying and packaging
Teachers in neighboring Buy the produce
schools
Land lords Provide land for production of pineapple
Service providers ( tractor Provide services during the working of the land
Hire)
Information providers Provide information on the prices
Provide information on quantities needed
Farmer organizations Promote joint processing
Microfinance Provide loans to able farmers
NGOs Agricultural service provider that can link to
donors
WHAT ARE THE PROBLEMS FACED BY THE KAYUNGA PILOT

PINEAPPLE CLUSTER INITIATIVE?
(a) Lack of infrastructure, both at the farm and the marketing level lack of
pack houses, cold rooms, collection centers, and poor road networks.
(b) Lack of transport facilities, which delays delivery to the markets.
(c) Unreliable flights also can lead to great losses through abrupt
cancellation of scheduled flights.
(d) Low prices during harvesting (overproduction) period.
(e) Lack of refrigeration stores.
(f) Lack of education programmes on post-harvest handling.
(g) Inadequate packaging materials.
(h) Unreliable market for smallholder producers is a major.
(i) Distant markets from the production point(farmer).
(j) Poor quality produce.
(k) Inadequate working capital.
(l) High product losses experienced during pineapple drying.
(m) Lack of suitable dryers that ensure consistent quality and large
volumes.
(n) Unpredictable weather patterns that affect drying regimes.
(o) Seasonality of the raw materials.
(p) High fee for organic certification.

(q) High freight and local transport costs.

(r) Lack of market information.
(s) Inadequate extension services.
CHALLENGES TO THE EXPORT POTENTIAL OF PINEAPPLE

PRODUCTS
Fresh or processed, pineapple is found all over the world. Nearly two
pineapples in five are sold on the international market, with canned fruits
and juice accounting for 80 percent of the total. Dried pineapple has also
gained great export potential. However, in Uganda the sector is faced with
a lot of challenges. Some of the challenges which were cited during the
stake holder’s analysis of the pineapple cluster initiative in Kayunga are
given below:
Determination of Maturity
Color change of the pineapple exterior from green to yellow is the most
common method of determining maturity. Fresh pineapple is harvested
when the lower eyes show the slightest color change. On the other hand,
fruit meant for export are harvested almost completely green. The variation
among the pineapple maturity affects the quality for export. Besides that
even the products made there from will have variation in quality and very
difficult to standardize for export.
Post Harvest Handling
Fresh fruits after harvest are still living, therefore, they respire and carry out
other functions of living organisms. They are bulky and contain a lot of
moisture (70 - 95%). Pineapples have a delicate outer covering (texture)
hence susceptible to wounding and bruising. For these reasons, they are
highly perishable i.e. their quality deteriorates fast if they are not eaten or
sold immediately, leading to a decline in economic value. Harvesting,
sorting and transportation are not carried out properly. This is made worse
by the poor infrastructure, poor storage and delayed or cancelled flights.

Non Existent Refrigeration for Storage
Pineapples can be stored for up to 4 weeks at temperatures of 7°C or above.

Chilling injury is common at temperatures below 7°C. No such facilities are
known to existing among the people involved in pineapple exportation.
Frozen pineapple develops off-flavors; this is why most processed
pineapple is canned.
Poor Water Availability for Processing Juices
Water if available is of is of poor quality. The Government should make

sure such utilities are provided in the rural areas.
Lack of Value Addition
Value addition is still a big problem for the farmers. Other than a few who
dry their pineapples and pack them, most people simply sell off the
pineapples in raw form. Value addition with high quality production can
make the pine apple gain more export potential.
Lack of Certification
This is caused by the farmer’s lack of information/knowledge about

certification process. Still the certification process is long and expensive.
Certified producers can gain entry in the export market easily.
Determination of Price
During pricing of pineapple for export to neighboring countries (regional

markets) weight is not taken as the basic measure but volume. Quite often
the price will depend on individual negotiations. The fairness of prices
depends on information, trading skills and bargaining power between
producers/growers and buyers.
Air Transport
To majority of farmers/processors the air transport is very expensive. The

high flight cost involved hinders the farmer to export them selves. This
leads them to opt for dealers who reap a lot from the farmers in terms of
money. Further the efficiency of the handling at the air port is doubtful;
storage space is limited and irregularities in flights which includes flight
cancellation.
Lack of Marketing Information/ Limited Access to Information
Markets for dried pineapple products are available but farmer lack market
information. This is also exacerbated by the lack of knowledge about
consumer specifications. There is not reference material to farmers for
example on aspect of processing, quality assurance and export marketing
opportunities.
Microfinance for Uplifting the Low Working Capital
Pay back period on loans is not favourable (1 month after getting the loan).
The low working capital jeopardizes the improvements which would have
been injected into the business. Sometimes the procedure/process of
obtaining such loans is not known by the farmers. Technology investment
cost is another barrier that faces the farmers and processors who operate
individually.
Poor Water Availability for Processing Juices: Water is of Poor Quality
Availability of portable water in rural areas for processing is poor. Most of

the processing depends on water collect from the roofs during rainy days.
Such water is really contaminated as it is not subjected to any treatment.
The Government should provide such utilities in rural areas.
Poor Product Quality
Majority products presently being processed do not meet the required

standards for export market. Quality control of pineapple products is not
well organized, no central control of quality. Further, this coupled with the
lack of knowledge on what quality the market wants. Lack of knowledge in
Good Manufacturing Practices, Food safety and Food hygiene among the
processors and farmers, all affect the quality of the products. At the
processing level, quality can be ensured through training and hygienic
processing. However the numbers of people trained in quality assurance is

still low. The current drying technologies available do not ensure products
with consistent quality attributes. Hence variations in quality of export
produce. The lack of quality assurance by farmers and processors leads to
them excepting low prices for their products by dealers. Quality control
systems should be implemented within the production chain.
Non Differentiation of Organically Produced Pineapples
Pineapple are sold as a single lot, there is no separation of organically

grown pineapple from those which are not. This has a negative effect on
farmers who are involved in organic farming.
Low production Capacities
Most of the farmer still produce and process individually. The volumes
handled can not satisfy the export market demand. There is a very big
demand for Ugandan dried fruit products and cannot be satisfied at the
current levels of production. Some exporters are only able to meet 10-20% of
their demand. For example, Masaka Organic Producers can process about
800 kg per month but their German demand is about 5 tonnes per month.
Weak Distribution and Marketing Infrastructure
There are still very few exporters of dried fruits in Uganda, and the
marketing channels are generally short. The marketing channels of dried
fruits involve small-scale producers and/or processors supplying the
exporters, or the exporters who produce, process and then supply
distributors in the importing country. Wheel burrows, bicycle, and lorries
dominated the transportation of the pineapple. Refrigerated vehicles if used
can maintain the quality of the products.
Packaging and Labeling
Processing infrastructure at small-scale level is still a limiting factor. Lack of

proper labeling and packaging of the pineapple products make them
unacceptable on the international market. In other word lack of branding
the products produced limits access to the market. Further there are still
few industries producing packaging material in Uganda. The cost of

packaging material is so high that processors resort to using recycled bottles
from all sorts of industries. Trained personnel in the food processing
industry are still few to assist the farmer at rural level.
Bulky Selling
Most of the products are exported in bulk and then re-packed into smaller
units ready for sale in the various retailers, dealers’ outlets and exporters.
Bulky selling causes a loss in terms of monetary value. All the profits the
farmer would have obtained are transferred to exporters who do the
packaging.
CONCLUSIONS
Pineapple production in Uganda is relatively high in Kayunga District and

the potential to develop this sector do exist. A number of people have
entered the marketing of pineapple products single handily. The major
challenge is how to produce high quality products which can access the
international market. Certification of farmers growing pineapples
organically will enhance their competitiveness in international market
hence their profitability.
There is a need of periodic training the processors as well as the farmer in

Good Manufacturing and Agricultural practices, food safety and quality
assurance so as to improve the quality of export products.
There is opportunity to invest and develop pineapple sector and boost the
incomes of the people. However, this to be achieved, farmers and
processors has to come together and have a one voice in marketing their
produce. Kayunga farmers stand to benefit in export marketing if they
evolve and adapt the cluster formation innovations. Cluster formation, in
long run, has an advantage of reducing production costs and hence
competitiveness in international market.

RECOMMENDATIONS
Way forward
1. Increase knowledge and improve technology base in product and
process through training of processors in GAP, Food processing, GMP,
and Food Hygiene.
2. New Product development and branding.
3. Improving drying structures (Dryers).
4. Initiating saving scheme among members through cooperation and
networking.
REFERENCES
Agona J, Nabawanuka J, Kalunda P (2002), A market review of the dried

fruit sector in Uganda; A foodnet Grand award project, National
Post harvest Project Kawanda Research Institute (KARI)
Breet A, Cox D.R.S, Simmons, R and Anstte, G, (1996), Producing solar

dried fruits and vegetables for micro and small rural enterprises
development, Handbook #: Practical Aspects of Processing,
Chatham, NRI, UK
FAO (2004), FAOSTAT. http://apps.fao.org/faostat.
MAAIF (2004),www.ugandaexportsonline.com/strategies/zoning_plan.pdf
Uganda Revenue Authority 2001, Fruits and Vegetable profile

E.4 DAR ES SALAAM NUTRACEUTICALS CLUSTER

by Mariamu Halfani
BACKGROUND
The idea on the formation of the Dar es Salaam Nutraceutical Cluster was
initiated during the Innovation Systems and Clusters Training Workshop in
Bagamoyo, in September 2005. It was officially launched together with
other clusters during the Launching Workshop on Pilot Cluster Initiatives
on the 9th February 2006 in Dar es Salaam. The geographical focus of the
cluster was defined as Dar es Salaam and the Coast region. The cluster
targets nutraceutical and functional foods processors in all three
municipalities of Dar es Salaam, and farmers of the nutraceutical crops in
Dar es Salaam and the Coast region.
The cluster’s unique focus are on the development of bioactive compounds

and related functional foods and nutraceutical products from crops
traditionally produced in Tanzania, including grains, oilseeds, legumes, and
indigenous plants. Soya foods, moringa, wild mushrooms, rosella, aloe vera
are among of the indigenous plants and crops associated to the proposed
cluster initiative. The preliminary survey of processors indicated that three
crops were of preference to the cluster, and they were namely soya beans,
moringa oleifera and wild mushrooms.
Because of increasing public awareness on the benefits of these plants on

the human health, the number of entrepreneurs venturing into the
nutraceutical business has been gradually increasing every year. Farmers
have also been getting interested in the cultivating of various nutraceutical
crops, with the hope of getting higher returns thereby increasing their
income. The major targeted consumers for these products include people as
well as animals, where the products include human foods and animal feeds
and other ingredients that can be used to enhance the health of humans and
animals.
M Halfani 199 Nutraceuticals Cluster

CLUSTER VISION
The vision for the Dar es Salaam nutraceutical cluster was preset as follows:
To make Tanzania’s agro-industry produce high quality nutraceutical

products (from mushrooms, moringa and soybean) and become among
global players in the nutraceutical products for enhancement of health
and well-being of humans and animals
INITIAL FACILITATING TEAM MEMBERS
It was proposed for the initial facilitating team to coordinate activities on

the cluster to be made up by members from three major pillars forming the
triple helix concept. The members of the initial facilitating team are: Prof.
Mariamu Halfani - CoET /Chairperson. She was the participant on the
Cluster Innovation Systems and Clusters Training Workshop in Bagamoyo,
September 2005. Dr. L. Rweyemamu – CoET/CPE staff and entrepreneurial
person in projects involving the processing and marketing of nutraceuticals,
including soya foods, aloe vera and moringa products; Mr. Julius Sumba is
an entrepreneur engaged in the processing and marketing of wild
mushrooms in the raw and extract forms. He also participated on the
Cluster Innovation Systems and Clusters Training Workshop in Bagamoyo,
September 2005; Mr. Lawrence Kalugira – an entrepreneur involved in
processing animal foods with special interest to use soya beans and
moringa oleifera as major ingredients. He is also cultivating moringa
oleifera in Bunju area in the outskirts of Dar es Salaam. Mr. G. Kirenga is
from the Ministry of Agriculture, Food Security and Cooperatives. He is the
Director of the Crop Promotion Services Department of the same ministry.
Mrs. Gelagister Gwarasa is the food scientist (Nutrition and Health) and an
employee in the Ilala Municipal Council, where among other duties; she
provides technical advice on food and nutrition to extension workers of the
municipality. She is also an entrepreneur engaged in the processing of soya
beans. She was the participants on the training on Cluster Innovation
Systems and Clusters Training Workshop which has just ended in
Kunduchi in August 2006.

CLUSTER OFFICE LOCATION
Temporarily the Nutraceutical Cluster Initiative activities are coordinated

from the Food and Biochemical Engineering Laboratory, Department of
Chemical and Process Engineering, College of Engineering and Technology
– UDSM, Building Q-Block, Room No. Q.207.
CLUSTER OBJECTIVES
During executing short-term cluster activities, the facilitating team

conducted one-to-one meetings with several offices including those of
Tanzania Food and Drugs Authority to know the regulations governing the
nutraceutical and functional foods product from traditional plants and
crops. The baseline study was also planned whereby the questionnaire was
designed. Review of the initially preset objectives, activities and major
stepping stones, resulted into reforming and adopting the objectives for the
proposed Dar es Salaam Nutraceutical Cluster to be as follows:
i. provide accurate information to public, media and governmental
organizations on Functional Foods and Nutraceuticals;
ii. help entrepreneurs, and functional food processors to improve their
products through efficient processing techniques and develop new
processes and products;
iii. help farmers to increase agricultural income through cultivation of
nutraceutical and functional food plants/crops;
iv. assist entrepreneurs, food processors and farmers with marketing of
their products;
v. evaluate and provide scientific information on effect of processing on
product stability, quality and safety; and
vi. organize training programs and seminars/forums offering
opportunities for related companies to meet and make contacts.
SHORT-TERM CLUSTER ACTIVITIES
In order to clarify the exact nutraceutical industry that is targeted by the

cluster, the study of the sector engaged in the nutraceutical and functional
foods processing and marketing was given the priority. The baseline survey
was planned, survey instrument (questionnaire) designed, and the survey
conducted. The coverage was in all Dar es Salaam municipalities of Ilala,
Kinondoni and Temeke. The target was to cover all processors including
those operating at micro, small and medium levels. The objectives included
to assess the level of the technology, the type of technologies including
major steps, the type and quantity of products, and the crop materials used
as raw materials and their availability and quality. Also, in this baseline
survey to be established were the problems facing the business including
the technology, markets and profitability.
RESULTS OF THE BASELINE SURVEY
The survey identified a total of 64 firms made by individual processors

producing nutraceuticals and functional foods, and farmers (Appendix).
They are at the level of micro, small and medium scale. Almost all of them
are operating from home, where most of processing activities are carried
out. The number of women involved in processing activities is
predominantly high. Some entrepreneurs are operating individually, while
others are in organized groups and working collectively. Of all, only one
medium scale processor with branded products (Power Foods) is well
advanced. Nonetheless, all processors are operating in isolation.
Soya beans are the major crop raw materials presently used for processing
functional foods. The processed products include soya protein flour (full-
fat), soya drink powder (roasted and used in the place of tea or coffee), and
soymilk. Full-fat soya protein is also used as a major ingredient to enrich
other flours from various cereals and oilseeds. Various soya product brands
contain the mixture of cereals such as maize, rice, wheat, sorghum, and
finger millet, while the oilseed materials predominantly used are
groundnuts. Food products produced are prepared and consumed in a
conventional way for health and nutritional benefits (functional foods -
“Chakula Dawa”), rather than in prescribed doses (i.e. nutraceuticals
(“Dawa”). Most of the products are marketed as functional foods and not as
nutraceuticals.
Of the identified 64 processors and farmers, 58 of them are processing

functional foods as soya products. Two entrepreneurs are in the business of
nutraceuticals processing aloe vera products (1 processor), and wild
mushroom extracts (1 processor). Six moringa oleifera farmers were
identified in the Coast region. These are farmers who are cultivating
moringa oleifera tree for the commercial purposes to sell moringa seeds.
The most of farmers have moringa trees in their farming lots mainly for the
purpose of fencing. This is especially in Bagamoyo district, where even
when the trees are pruned, the foliage is regarded as of no value and is
thrown away.
The facilitating team organized visits and informal meetings with the
identified entrepreneurs and other prospective cluster members comprising
the triple helix. Out of 64 identified entrepreneurs, 20 of them have already
been visited. Nineteen entrepreneurs of these twenty processors are women
either operating as individual or in groups. Tanzania Foods and Drugs
Authority (TFDA), Ilala Municipal offices, and the Ministry of Agriculture,
Food Security and Cooperatives (MAFSC) were visited.
Strengths and weaknesses of processors and farmers were identified, where

the processing skills and know-how emerged as predominant. Other trends
and issues identified include usage of labor intensive technology, general
lack of quality assurance in processing soya beans for human consumption.
There is a misconception of proper soya beans varieties (Glycine max) to
common beans (Phaseolus vulgaris), low knowledge on processing and
inadequate knowledge on training on functional foods processing. Heat
treatment technologies for cooking, drying and roasting are still
undeveloped, being dominated by inefficient three stone fire places. Drying
is mainly by sun drying depending on the availability of the sun. The
quality assurance of the product by relying on the sun drying is unreliable
and sometimes the processors have products spoilage because of abruptly
change of weather.
The processors are not aware of research and development activities that
are going on at the University of Dar es Salaam on the nutraceuticals and
functional foods, particularly soya and moringa foods.
Some entrepreneurs are marketing their products by selling to retail shops,

whereas others are selling by visiting their clients to their homes. The
amount of sales is very low ranging about 50 kg in a month. Very few can
sell up to 1000 kg in a month.

Besides processors, the Dar es Salaam nutraceuticals cluster will incorporate

the following production / economical groups or clusters; namely, farmers
in the soya beans production areas (e.g. Morogoro), bulky cereal buyers at
major Dar es Salaam markets, and equipment manufacturers (e.g. metal
cluster).
CONCLUSION AND THE WAY FORWARD
(i) Lessons from baseline survey

o What should be done?
̇ The Dar es Salaam Nutraceutical Cluster is still
unorganized with potential members working on their
own.
̇ Training on the processing technologies for quality soya
foods.
̇ Introducing efficient processing technologies for cooking,
drying and roasting.
̇ Dedicated grinding facility for soya foods processors.
(ii) Cluster strategy development

o Hold a pre-organizing meeting with a few stakeholders members.
o Hold an organizing meeting with stakeholders
̇ With good acceptance shown from processors and other
stakeholders, there is a need to organize and hold series of
meetings in order to lay down strategies for the cluster
development. The major two meetings under planning
include; a pre-organizing meeting with key stakeholders
scheduled for October 2006; and cluster organizing meeting
in December 2006.
(iii) Action plan for cluster development

o Draw an action plan from inputs obtained from pre-organizing
and cluster organizing meetings.

APPENDIX
List of Entrepreneurs
Ilala Municipality
S/N Name of the Entrepreneur Location Address
1. Nyebulu Buyuni
2. Umate Tabata
3. PolisiKata Tabata
4. Green Belt Tabata
5. Upendo Kitunda
6. Nia Njema Kitunda
7. Machimbo Kitunda
8. Peace and Love Kitunda
9. Amani Kitunda
10. Kibokizi Kinyerezi
11. Mama Mkubwa Kinyerezi
12. Msongola women Msongola
13. Vin Hellen SIDO- DSM
14. Kisamba Tonia Tabata- Kisukuru Tel 0745-423297
15. Tupo Women Group Stakishari- Segerea
16. NIA Group
17. Rocky Products Kariakoo
18. Mhali Magdalena Majumba sita 0745 464343
19. Bin Hakim Kipawa
20. Mary Masawe Tabata 0741 348787
21. Chakula Dawa group Christabella Box 42381 Dsm; 0713 378251
(Natural Therapy)
22. Wangari Marketing Bureau Keko Machungwa 022-2862733; 0713-610510
23. Get to New Life Soya Gongolamboto
Products
24. Fide Animal Feeds Ubungo Kibangu 0787-188580
25. Family Flour Mill 0713-801640
26. Makai Enterprises Makunganya str. Box 105542 Dsm;
022-2128517; 0713-607408

Kinondoni Municipality
1. Mary Kileo Mbezi Luis Box 3 DSM, Tel.0744-
741190
2. Severina Shilla Sinza Box 1253 DSM
Tel. 0784-228535
3. Upendo Group Salasala
4. Jukima Kimara Tel 0784-269728
5. Ramsi Africana Mbezi Beach
6. Chimbuko Goba
7. Kirongawima Goba
8. Mponanjala Mbopo
9. Faraja Magomeni
10. Kiumbelu Mbezi Luisi
11. Powerfoods Kawe
12. Mkokoteni Magwepande Box 31902 DSM
13. Ms. Amelia Tibazarwa Kijitonyama Box 32462 DSM
14. Mama Ishengoma Mbezi Beach 0713 342518 / 0784 531887
15. Mr. Simba Sinza 0784 763139
16. Riyama feeds Ubungo area /
University Mandela
Rd
17. Suji Soya (Dr. Mutango) Makongo 0713-247997
18. Fort Foods Kijitonyama 0713-344197
19. Chiseko Widow Maembe Shopping 0713-296706
Cooperative Saving & Centre, Sinza Kijiweni
Credit Society (Mrs.
Ndoloki)
20. Stayfit Nutrisupplies Sinza 0784-478752

Temeke Municipality
1. Nzasa – Women Group Mbagala Box 46343, DSM
2. Nzasa II Mbagala Box 46343, DSM
3. Nzasa III Mbagala Box 46343, DSM
4. Tupo Women Yombo Vituka
5. Gwarasa Gelagister Yombo Sigara Box 63188, DSM; Tel 0784-
233318
6. Sister Fortunata- Yamesi Mbagala Box 46343, DSM
7. Kibibi Koba Tandika 0741378251
9. Kigamboni women Group Kigamboni Tel 0744-481324
OTHER SOYBEANS PROCESSORS IN DSM and COAST REGIONS

1. Mrs. Haule 0745 367492
2. Mrs. Mhali 0745 464343
3. Mama Turuka 0748 738601
Farmers
Soybeans Growers
S/N Name of Entrepreneur Location/Address
1. Ally Zahabu 0744/0748 615879
Moringa Oleifera Growers

S/N Name of Entrepreneur Location/Address
1. Mzee Puga Chanika Kisarawe
2. Mama Magai Chanika Kisarawe
3. Mr. Marna Nashon 0745 360022
4. Mr. Silveria Buberwa Tabata DSM
5. Mr.Charles Kaijage M/Moja Kibaha
Box 30360; 0744672560
6. Mr. Zahoro Mwinyijuma M/Moja Kibaha,
Box 3050; 0745 460090

E.5 THE STATUS OF BAGAMOYO CULTURAL

HERITAGE TOURISM CLUSTER
by Paul Msemwa
INTRODUCTION
Bagamoyo is about 70 Km north of Dar es Salaam and the Cluster is defined

as an area delimited by the Saadani National Park to the north, Mbegani
Fisheries Institute to the south and the beautiful beaches of the western
Indian Ocean to the east. The cluster is unique because it has a wide range
of tourism products and services characterized by a multi-ethnic and multi-
racial society with her people practicing different belief systems. Over a
long period of time Traditional African religions, Islam, Hinduism and
Christianity have co-existed. Indeed this is the very first place in
Tanganyika to have a building built by an Indian merchant for a multi-
racial school. The historical building is still used as a school to today.
One could say Bagamoyo has always been a centre of tolerance. This is
supported by Kaole medieval settlement with elaborate mosques dating
from the 13th century to the 18th century AD and the 19th to 20th centuries
mosques and church buildings in Bagamoyo town. The first Roman
Catholic centre was established in 1868 and now is an important pilgrimage
centre for Roman Catholic followers. The centre has a museum
documenting the history of the church and her efforts in the abolition of
slavery. Muslim community too of Bagamoyo played an important role in
the struggle for Tanganyika’s independence. The late Mwl. J.K. Nyerere
often consulted the very important late Sheikh Ramia of Bagamoyo for
guidance and support.
The cosmopolitan nature of Bagamoyo is clearly reflected by the rich

architectural heritage of her historical buildings and monuments and the
long archaeological record. The architectural elements of the monuments
(e.g. pillar tombs) combine both African and Persian elements whereas the
19th – 20th centuries historical buildings of stone town Bagamoyo one finds
African, Arabic, Indian and European architectural elements.
P Msemwa 208 Bagamoyo Heritage Tourism Cluster

Therefore, the rich architectural and historical heritage, the Saadani

National Park, the beautiful unspoiled beaches and the excellent hotel
accommodation and conference facilities makes Bagamoyo a potential
tourism destination. The proximity to Saadani National Park makes
Bagamoyo even more ideal for conference organizers and holiday makers
for they can combine business with leisure – watching wildlife and enjoying
the rich cultural heritage or simply relaxing on the beach at a very
affordable cost.
Likewise, Bagamoyo is well located for Dar es Salaam residents; especially

business people and working families for a weekend retreat. Also,
Bagamoyo is strongly recommended for organized students study tours on
history; especially on 19th century Ivory and slave trade for Bagamoyo was
the terminus port of the famous central Ivory and slave trade route.
We should note that despite Bagamoyo’s potential for tourism, there is little
appreciation by Local Authority on importance of the tourism because until
now have benefited little from the country’s growing tourism industry.
This was the basis for the cluster in April 2006 developing a proposal on
creation of public awareness and reach consensus on strategic actions to tap
on Bagamoyo‘s potential. In this paper therefore, we present what has been
done, achieved and an Action Plan for Short and Long Term strategic
activities.
ORGANIZATION OF STAKEHOLDERS MEETINGS AND A

WORKSHOP
Since the last training workshop of February 2006 on Innovation Systems

and Cluster Initiative held at Kunduchi Beach Hotel, several one to one
meetings and three (3) meetings of two-three hours each were organized in
Bagamoyo the facilitators of the Cluster. From the three meetings a total
number of 67 stakeholders attended. The role of facilitators was to plan and
organize the meetings Members of the facilitating team included: -
(1) Mr. Joseph Sendwa
(2) Mr. Cliford Tandari
(3) Mr. Lubuva
(4) Ms. Ruth Kigera
(5) Mr. Saleh Dola
(6) Dr. Paul Msemwa

(7) Mr. Israel Kiyame
Cluster facilitators managed to organize three meetings in Bagamoyo

involving informal Sector, Business Community and Academia and
Government. Each meeting was held at a different location selection of
which was based on convenience and willingness of owners of the premises
to subsidize costs for the meetings.
From the three meetings, stakeholders fully supported the initial ideas
presented in the project proposal and provided more inputs on critical
issues of concern to them about Bagamoyo’s tourism. A total number of 67
participants attended the three meetings representing the informal sector,
the business community and Academia and Government. From the
participants list the Government was poorly represented in particular the
Local Authority, which did not send any representative despite the
invitation. Otherwise, Central Government was well represented by the
Antiquities Department, Immigration Department and the Judiciary while
the academia was represented by Bagamoyo College of Arts and business
community by Hoteliers.
The reasons for poor representation of the Local Authority were looked into
by the facilitators and drew strategies to make sure the Local Authority was
adequately represented at the stakeholders workshop planned for July 27,
2006.
From the organization of these three stakeholders meetings the following

were the achievements: -
(1) A list of pressing issues that if addressed by the cluster would facilitate
stakeholders’ participation and to benefit from the growing tourism
industry. The stakeholders’ inputs further improved the proposal
developed in April 2006 to create public awareness on Bagamoyo’s
potential for tourism.
(2) Formation of eight (8) sub-clusters which are: -
(i) Hoteliers
(ii) Artists
(iii) Tour guides
(iv) Restaurant and guest houses operators
(v) Vendors of traditional dishes

(vi) Educational institutions
(vii) Government
(viii) Transport providers
(3) Formation of a tentative cluster leadership made up of eight (8)
members one from each sub-cluster.
(4) Cluster was publicized by participation at this year Dar es Salaam
International Trade Fair. A poster on Bagamoyo Cultural Heritage was
developed and displayed at the Ministry of Natural Resources and
Tourism (MNRT) pavilion.
The stakeholders’ workshop
Once an interim cluster Leadership was formed facilitators and interim

Cluster Leadership organized two and seven planning meetings for a
stakeholder’s workshop respectively. The stakeholders workshop was
organized on 27th July, 2006 and out of the planned 100 participants eighty
(80) attended the workshop.
The main agenda for organizing stakeholders’ workshop was to reach

consensus on prioritized areas of action, to publicize the Cluster and to
confirm the Cluster Leadership. The workshop was officially opened on
behalf of the District Commissioner by the District Administrative
Secretary. Papers presented and which formed the basis for discussion by
stakeholders were on:
o A background to the formation of the Bagamoyo cultural Heritage
Tourism Cluster under the National Innovation Systems and Innovative
Clusters programme presented by Dola Saleh (Facilitator)
o Bagamoyo’s Tourism Potential presented by J.J. Sendwa; Tourism
Division (facilitator)
o Importance of historical buildings and sites to Bagamoyo’s Cultural
Heritage Tourism presented by Felix Ndunguru (Antiquities
Department)
o Opportunities for investors in the development of Bagamoyo’s tourism
presented by D. Mahilane, Bagamoyo Township Council.
At this workshop all key actors were present including the Local Authority,
Media and representative of funding agencies (MFUKO) and financial
institutions. The discussions were conducted in Kiswahili and participants

were served with traditional food prepared by one of the sub-cluster. The
workshop was well publicized by the media both print and electronic.
STAKEHOLDERS VIEWS/CONCERNS
The discussion sessions underscored the need to thoroughly and

immediately address the following Key issues:
(i) Lack of awareness among the local community and the Local
Authority on the importance of Bagamoyo’s cultural heritage, which
has contributed to poor presentation of historical buildings. This has
reached to the extent that some historical buildings are used as places
to dump waste. This problem is compounded by the fact that there
are five (5) main owners of the historical buildings in Bagamoyo: -
̇ Individuals with and without means to revitalize the historical
buildings;
̇ The District Council of Bagamoyo;
̇ The Antiquities Department;
̇ Catholic church; and
̇ Other institutions such as ADEM
Some individuals with means to improve the presentation of

buildings are absentee landlords and it seems are not interested in
investing in conservation of their historical buildings. Instead they are
waiting for the buildings to collapse and hopefully construct a new
structure of their choice and use.
The Local Authority too, do not seem to appreciate the significance of

their historical buildings to the extent that priority for resource
allocation is directed at construction of new building structures
instead of renovating and revitalizing the historical buildings.
Renovated buildings could attract more tourists to Bagamoyo and
thus help improve people’s incomes.
The Antiquities Department with legal instrument to regulate

development activities in historic towns is one of the important
owners of historical buildings in Bagamoyo who have strived to
improve presentation of some of the historical buildings. During the
meetings stakeholders were informed that the Antiquities

Department have funds in place to improve the Arab Tea House
historical building and install an exhibition at the Caravan Serai
Information centre (the 19th century building used by ivory and slave
traders as a lodge). Furthermore, the Antiquities Department is
finalizing Antiquities Policy and has plans to create a fund that would
be accessible to owners without resources to maintain historical
buildings.
From the discussions it was apparent that among the Local Authority
and individual owners of historical buildings, there is a
misconception that care of historical buildings and their
environments is the responsibility of the Antiquities Department and
that the Antiquities legislation is anti-development – do not allow use
of historical buildings for commercial purposes. This therefore
demands that deliberate efforts should be made to create awareness
to the Local Authority and Owners of historical buildings that
historical buildings can be revitalized and used for commercial
purposes. However, in revitalizing the historical buildings all
developers are required to seek guidance from the Antiquities
Department. Conservation of historical areas and buildings do not
necessarily mean no development. Antiquities guidelines do allow
historical buildings to be improved and even change their original
function while maintaining architectural elements and visual
appearance of the buildings. Buildings revitalized or constructed
must be in harmony with the existing environment.
It is encouraging to learn that the Antiquities Department and the

Local Authority of Bagamoyo have listed owners of historical
buildings, which is a necessary first step in the effort to create
awareness on owners’ responsibilities to their historical buildings.
(ii) Lack of resources to implement stakeholders’ wishes was one of the

issues which attracted stakeholders’ attention.
(iii) Other areas that featured prominently in the discussions were:

̇ Tour guides in Bagamoyo are inadequately trained to the extent
that they lack tour guidance code of ethics. Otherwise, it was the
consensus of stakeholders that a regulatory body for tour guide

services should have an office in Bagamoyo to monitor and
enforce quality of tour guide services offered.
̇ Poor transport services within Bagamoyo is a disincentive to
tourists to visit the different attractions
̇ Poor communication and banking services is an inconvenience
for tourists
̇ Inadequate/lack of piped water greatly contributes to the poor
restaurant, guest house and bar services
̇ Local champions from Bagamoyo should be mobilized to invest
in the provision of transport, restaurant and guest houses services
̇ Concerted efforts are required to create public awareness on
Bagamoyo’s importance of tourism to the local Community. The
Bagamoyo College of Arts was proposed should use theatre to
create the required awareness on importance of tourism and
expectations of tourists.
̇ The Local Authority set aside areas where the informal sector can
conduct their business
̇ Through establishing networks find markets for artists works and
convert one of the historical building into an art gallery
̇ Feedback on project progress between Cluster Leadership, Local
Authority and stakeholders should be a continuous one.
PRIORITIZED ACTION AREAS
The participants discussed and prioritised the following activities that they
should be implemented immediately:
(a) Bagamoyo College of Arts should be commissioned to use theatre to
create awareness among the local community, owners of historical
buildings and Bagamoyo Local Authority on what tourists want and
the importance of tourism to the economy of Bagamoyo.
(b) The cluster should promote Bagamoyo through production of posters
brochures and participation at International Trade Fairs.
(c) Continue collection of Baseline data on tourists, attractions and
important services.
(d) In dialogue with local communities prepare a publication on tourist’s
code of conduct – inform tourists what is expected of them by the
local community.
(e) Mobilization of resources for the cluster initiatives should go hand in

hand with awareness creation.
(f) Improve cleanness and security of historical areas through awareness
creation and access to piped water and adequately lit streets of
Bagamoyo.
(g) Train tour guides on Code of Ethics.
THE ACTION PLAN
Short-Term
1. Integrate Cluster Action Plan into the Development Plan of the
• Report of the Stakeholders workshop (27th July 2006) and the

Bagamoyo District Council:
Action Plan of the Cluster Submitted to District Commissioner,

District Executive Director, Member of Parliament, SUDPF and
Development planners. The goal is to make sure Development
Plan of Bagamoyo District includes Tourism development.
o Allocation of working areas/spaces for the organized sub-
clusters,
o Security of tourists and historical buildings and sites,
o Infrastructure Development Plan such as road transport to link
Bagamoyo with Saadani National Park and Water transport by
developing Mbegani into a Port to link Bagamoyo with
Zanzibar and Mombasa, and
• Use theatre to create public awareness on importance of tourism

o Social services e.g. Education, Health, Water, and Electricity.
• Organize the sub clusters into Associations or Cooperative

and expectations of tourists.
Societies and get registration from the Local Authority. Attaining

such status will help source funds from financial institutions, the
Local Authority and other funding Agencies. The Tour Guides
Association is currently in the process of being registered.
• Official launching of the cluster in October 2006;

2. Publicity:
• Participation of the cluster in National and International Trade

Fairs e.g. DITF. The cluster can cut down costs by participating

under the Ministry of Natural Resources and Tourism and by
• Production of brochures, Posters and fliers; and

establishing networks with Zanzibar, Arusha and Mombasa;
• Produce information about the cluster that can be posted on

Websites of Ministry of Natural Resources and Tourism and
Tanzania Tourist Board.
• Produce project write-ups and use them to solicit funds from

3. Mobilisation of resources for the cluster:
• Membership fees/contributions;
financial institutions;
• Request the District Authorities for an Office for the Cluster; and
• Promote private investment in the tourism sector.
4. Train Tour Guides on provision of quality tour services
Long Term Action Plan
1. Establish an information centre.

2. Improve presentation of selected historical buildings and sites.
3. Improve presentation of the Roman Catholic Museum.
4. Empower the sub-clusters with working space and credit facilities.
5. Infrastructure development.
Immediate Needs
Immediate needs for the cluster include:-

(a) Launching the cluster,
(b) Costs for expertise advise on project write-ups and registration of
eight (8) sub-clusters into Associations or Cooperative societies,
(c) Costs towards programme on public awareness creation through the
use of theatre,
(d) Six months rent for the office,
(e) Training tour guides on necessary skills,
(f) Funds for Cluster Coordination – communication, and
(g) Transport and communication for data collection on market statistics.

CONCLUSION
The realization that Bagamoyo has a great tourism potential is not new. In
2001 in one of the meetings of Strategic Urban Development Planning
• To elevate Bagamoyo from a Village to a Township Status,

Framework (SUDPF) stakeholders resolved:
• To make Bagamoyo an important recreational and tourist attraction,

• To make Bagamoyo an important centre of fishing, agriculture, cultural
• To make Bagamoyo nominated a World Heritage site.

industries, education and Health, and
There are some initiatives, which have been taken up by the government in
addressing the above stakeholders’ recommendations. Through the support
of Sida, it has been possible to rehabilitate some historical buildings, recover
and preserve Bagamoyo’s old stone town road, built bus stand, and the on-
going research and documentation of the central Ivory and Slave trade
route. The research and documentation work will provide inputs required
for nomination of the Bagamoyo as part of the Central Ivory and Slave
Trade Route a World Heritage Site. The Antiquities Department too has
secured funds to develop exhibits in the Caravan Serai building and to
rehabilitate few selected historical buildings including the Arab Tea house.
Despite these achievements on improved presentation of Bagamoyo’s

attractions, findings from stakeholders meetings and workshop indicates
there is lack of a regular feedback mechanism with stakeholders on
governments plans to develop Bagamoyo. Furthermore, even though the
District Council appreciates Bagamoyo’s potential for tourism, there are no
explicit strategies to promote Bagamoyo’s potential as an important tourism
destination. Likewise, no tangible efforts had been taken before by the
Local Authority to create public awareness on Bagamoyo’s tourism
potential.
Thus, initiatives taken by the National Innovation Systems and Innovative

Clusters programme must be seen contributing towards development of
tourism in Bagamoyo. The cluster believes that if the proposed short term
and long term action plans are integrated into development plan of
Bagamoyo District Council, mobilization of the required resources will be
realized.
The Bagamoyo Cultural Heritage Tourism Cluster is an initiative, which is

in line with the government’s Economic Growth and Poverty Reduction
Strategy (MKUKUTA). Poverty is multi-dimensional, and its essence is
people’s lack of power, choice and resources (Sida 2002). From concerns
raised by the stakeholders of Bagamoyo Cultural Heritage Tourism Cluster
it is clear local people do not have adequate access to key services such as
piped water, electricity and markets, their freedom of movement is
restricted due to insecurity caused by poverty and poorly lit streets of
Bagamoyo and that people are not satisfied with or not fully informed on
government plans to improve the welfare of the people of Bagamoyo.
However, it has to be re-emphasized government alone cannot solve all

problems being experienced by the people of Bagamoyo. It is only through
partnerships between business community, academia, the Government
(Local and Central), politicians and civil societies that the identified cluster
constraints can be addressed and minimized. The cluster can achieve what
has planned only if the participatory approach method initiated by the
cluster will be sustained and ownership of the cluster kept under a
leadership based in Bagamoyo.
REFERENCE
Sida: Perspectives on Poverty, October 2002.

ACTION PLAN FOR SHORT-TERM AND LONG-TERM ACTIVITIES

Initial Activity Budget The First 18 Months
Who
Phases (What, why, how) (US $) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
SHORT- Integrate Cluster • Cluster leadership 50
TERM Action Plan into • Local Authority
TACTICAL the Bagamoyo • District
ACTIVITIES District Council
• Facilitators
Commissioner
Development
◊ Distribute
Plan
report on
Stakeholders
workshop and
Cluster Action
plan to DC,
DED, MP,
SUDPF and
Development
partners
Organize sub- • Cluster 400
clusters into Leadership/
Associations or Experts
cooperative
societies

Who
Create public • Bagamoyo 4,000
awareness on College of Arts
importance of
tourism and
expectations of
tourists
Mobilizing • Cluster 16,000
resources for
• Local Authority
Leadership
short term
tactical activities • Experts
Train Tour Guide • Experts/ Cluster 5,000
on provision of Leadership
quality services
Publicize the • Cluster 3,500
◊ Trade
cluster Leadership/
• Facilitating Team
Fair, Experts
brochures,
posters,
website and
launching
event


Who
Establish an • Cluster
information Leadership/ Local
centre Authority
LONG- Improve • Antiquities To be
TERM presentation of Department/Loca determ
STRATEGIC selected historical ined
• Investors
l Authority/
ACTIVITIES buildings and
sites • Individuals
wwing Historical
• Development
buildings
partners
Improve • Catholic church/ 40,850
presentation of National Museum
the Roman of Tanzania
Catholic Museum
Empower sub- • Cluster To be
clusters works Leadership/ Local determ
space and credit Authority ined
facilities


Who
Develop (Road • Development To be
infrastructure & determ
• Government
partners
worker, ined
transport, water, • Business
electricity, community
education,
communication,
Health services

E.6 LAKE KATWE SALT CLUSTER INITIATIVE

by W. Balu – Tabaaro
Department of Geological Survey and Mines
Grace Ssebugwawo
National Council of Uganda Small Business Organizations
Dan. S. Musiitwa
Uganda Small Scale Industries Association
Eng. Adam Sebbit
Faculty of Technology, Makerere University
EXECUTIVE SUMMARY
The Lake Katwe Salt Cluster was formed in October 2005 with Lake Katwe Salt
Mines to improve the quality of the salt. Presently, poor technologies and poor
marketing strategies have constrained revenue established by the salt miners. The
environment in which the salt is produced id indecent and unsafe especially to
women who have been heavily affected.
The facilitators of the salt cluster have visited Lake Katwe and had discussions with
all the stakeholders. The first time the facilitators acquainted themselves with the
situation and got to know the main operations, and the second time the cluster
facilitators met with all stakeholders (salt miners, traders, transporters, revenue
collectors, LC officials). In both visits, discussions were held on how best all the
stakeholders could be involved in increasing salt production of high quality and use
of good environmental practices. A needs assessment survey was carried out and
this revealed challenges for faced by the salt miners.
During both visits, potential cluster leaders were identified and sensitized about
their potential role in the formation and operation of clusters
INTRODUCTION
Background
In September 2005, the Faculty of Technology of Makerere University in

conjunction with the Swedish International Development Agency/SAREC
organized a five day workshop in Jinja, Uganda during which participants
were trained in the field of innovation clusters. The participants then
W Balu-Tabaaro, et al. 223 Lake Katwe Salt Cluster
brainstormed and identified, basing on selected criteria, seven clusters for

piloting in Uganda. The main objective of piloting the clusters in Uganda
was to create synergies that can enhance organization of enterprises or
individuals and result in increased output, better access to markets,
finances and reduced poverty levels in the population. One of the pilot
clusters identified was salt processing in Lake Katwe, where artisanal salt
production has gone on since time immemorial; reportedly for at least the
past 500 years. Lake Katwe is located in Kasese district, ~ 500 km west of
Uganda’s capital city, Kampala.
A facilitation team was constituted whose responsibility was to coordinate

the activities of the cluster including among others:
- Baseline studies on the current situation at Lake Katwe;
- Organization and sensitization of the salt miners on innovation systems
and clusters;
- Extension of technical services to improve the quality of the salt,
increase salt production, and improve the health and safety of the
workers; and
- Building the salt miners’ capacity to adequately bargain for better prices
which would in turn increase revenue, create more employment and
eventually lead to poverty alleviation in such rural areas.
The vision of the Lake Katwe Salt Cluster is to become the leading producer
of high quality salt for both human and animal consumption under a safe
and health environment in the Great Lakes Region by the year 2010 and to
increase the income of households by six times by the year 2010.
Lake Katwe Salt Industry
A relatively dry climate combined with the presence of closed basins along
the rift valleys has given East Africa a large number of saline lakes. Their
brines are alkaline with high sodium carbonate and bicarbonate contents
and in this and certain other respects they differ chemically from brines of
marine derivation.
In Uganda, the Western Rift Valley enjoys a wetter climate than most of the
East African Rift Valley system and saline lakes are restricted to some of the
extinct explosion craters of the Katwe and Bunyaruguru volcanic fields to
the south-east of the Rwenzori Mountains. Lake Katwe is one of the many
lakes in the western rift valley that are sources of common salt.
For most of the 19th century, salt production was of major economic and
political importance to the kingdom of Toro and was controlled by the Toro
kingdom. It has an area of about 2½ km2 and a depth of about 0.75 meters.
During the past three decades, historic events such as the gazetting of the
Queen Elizabeth National Park, expulsion of the Indians, tribal conflicts and
the insecurity in the area, have resulted in reduced economic alternatives
and corresponding increased poverty levels. This has led to increase in the
number of salt miners and currently, about 12,000 miners mostly women
(70%) are involved in salt extraction, loading and trading.
Traditionally, Lake Katwe has been the source of three different types of
salt sold for human consumption, animal feed and use in hides and skins.
Grade I salt (for human consumption) has not been produced in a very long
time. It is the purest and was extracted seasonally from the lake during the
very long dry seasons. Grade II (for human and animal consumption) is
produced during the dry season in man-made mud lined salt pans by
surface brine evaporation. It is produced in two forms – crude unwashed
salt for cattle lick, and washed salt for human consumption. Grade III,
known as rock salt is extracted from the crust at the centre of the lake
beneath the surface brine.
However, presently, a lot of problems are encountered by the salt miners.

Poor salt extraction technologies and poor marketing strategies have
resulted in very low revenues from the salt. The environment in which the
salt is extracted is indecent and unsafe especially to the women who have
been adversely affected. Some of the occupational hazards are associated
with constant immersion of miners in brine waters and they include
dehydration and skin problems that result from cuts that are often difficult
to heal since they are not always adequately treated.
It is these problems that the Lake Katwe Salt Cluster intends to solve in
order to achieve its vision of ensuring that Lake Katwe becomes the leading
producer of high quality salt in the region.

Geology, Reserves and Chemistry of Lake Katwe Geology
The salt lake occurs as evaporates with the following mineralogy:

HALITE NaCl White cubes
TRONA Na2CO3.NaHCO3.2H2O White glassy crystals,
effloresce slightly when dry
BURKEITE Na2CO3.2Na2SO4 Usually fine grained occur in
crusts often mixed with trona
HANKSITE 9Na2SO4.2Na2CO3.KCl
Reserves
Lake Katwe has reserves of about 22 million tonnes of mixed salts
comprising
Sodium Chloride 2,000,000
Sodium Sulphate 2,000,000
Sodium Carbonate 17,500,000
Potassium Sulphate 700,000
Potassium dioxide 1,000,000
Chemistry
The standing water in the lake and interstitial water within the lake deposit
is strong brine whose concentration and constituents vary with season as
follows (Analysis of Brine in g/l)
Element Dry season (Feb. 1967) Wet Season (June ‘67)

Na 150 70
K 37 17
CO3 47 23
HCO3 5 2.5
Cl 154 72
SO4 62 30
Br 1.2 N.a
F 0.1 N.a

Average analysis of different salt grades (%)

Element Salt Grade
No.1 No.2 No.3
NaCl 93 65 50
Na2SO4 2 18 25
Na2CO3 + HCO3 1 10 15
K2SO4 1.5 3 5
H2O 1.5 3 3
Insolubles 1 1 2
Figure 1: Map Showing Location of Lake Katwe Salt Reserves in

Western Uganda

ACTIVITIES UNDERTAKEN
The Lake Katwe salt cluster team visited the communities in Lake Katwe to
acquaint themselves with the processes involved in salt extraction, study
the different forms of labour used, the mode of trading of the salt, current
marketing and financing structures, and the environmental and safety
issues affecting the miners. Most importantly, the cluster team met and
discussed important issues with all the stakeholders involved in the salt
industry. The stakeholders met include salt miners, traders, transporters,
revenue collectors and Local Council officials. The discussions centred on
how best all the stakeholders could be involved in embracing the idea of
innovation systems and clusters to increase salt production, improving the
quality of the salt produced, and use of environmentally friendly and safe
salt extraction technologies. Several meetings with the stakeholders have
been convened to discuss ways of achieving the cluster’s objectives.
Potential cluster leaders have been identified and sensitized about their
potential roles in the operation of the salt cluster.
Specifically, the following activities have been carried out:

(a) Development and review of the proposal for the clusters’ activities.
(b) Interactions with the salt miners, buyers, salt loaders, and key
stakeholders in Kasese and Kampala, through informal and one to
one meetings. The meetings were aimed at introducing the concept of
innovation clusters to the stakeholders, soliciting their views on the
concept, understanding critical issues affecting salt mining in Katwe
and discussing activities for future action. One to one meetings
• Meeting of the facilitating team with salt miners, representatives

convened include:
from vocational institutions, salt buyers, representatives from

Uganda Leather Association, UNIDO, and Uganda Research
• Meeting of the facilitating team with local leaders in Katwe.

Institute, and
(c) Review of the government policies governing salt mining in Lake

Katwe.
(d) Baseline survey conducted with the help of a consultant who issued a
• Improvement of the infrastructure and transport system

report with the following recommendations:
including storage facilities and a market centre for the salt.

• Addressing as urgently as possible the occupational safety

hazards by introducing a mobile clinic and first aid boxes, fresh
water for drinking and for the mobile clinic, and providing
• Increasing education levels through formal or adult education.

suitable protective gear.
• Create drainage channels around the lake and planting trees to
• Diversification of economic activities by promoting tourism,

halt soil erosion.
handicraft making, fishing to reduce overexploitation and

overdependence on the salt lake.
(e) Needs assessment exercise to establish critical data that would
provide useful information in developing intervention measures to
uplift living standards of the salt miners. The exercise was carried out
through interviews, observations and review of available literature.
The following data was established:
1. The majority of the salt workers were 50 years and above.
2. The majority of the workers came from or resided in the Katwe
area.
3. Most of the workers were married.
4. Most of the workers had been in the salt business for more than
10 years.
5. For most of the workers, their annual salt production was
4,000kgs (4 tons).
6. The production time for most of the workers was twice a week
when they came to clean their pans.
7. Most of the tools used were either locally made or locally
bought.
8. Most of the labour was hired.
9. Most of the hired labour was pooled in a group.
10. Most of the labour hired had benefited through acquisition of
assets.
11. Most of the materials used were obtained from Kasese district –
a distance of 50km away.
12. The optimal capital needed to start business was about 500,000
UShs.
13. Most of the salt was sold to dealers (middle men).
14. Their products were not transported – the dealers came to
collect the products from Lake Katwe using their own transport
15. The salt is stored outside, covered with grass, leading to poor
quality.
16. Most salt workers work in an unhygienic environment, have no
safety wear and are hence exposed to a lot of health risks.
(f) Formation of an interim leadership group composed of eight people
whose task is to mobilize the Katwe community through awareness
and sensitization campaigns
FUTURE PLANS/ACTIVITIES AFTER PILOT PHASE
The following activities will be implemented after the pilot phase:

(a) Identification and mobilization of resources needed
(b) Formation of taskforces to spearhead the following areas: Financing,
technology (mining, processing, refining), market development,
environmental and safety issues.
(c) Providing extension services and training and awareness campaigns
• Training of stakeholders in good salt extraction practices,

including the following:
occupational health and safety, marketing, financing, cluster
• Technology development through pilot processing and refining;

operation and book keeping;
• Product and market development including initial desk research,
• Setting up a demonstration plant; and

testing the product on the market;
• Long term activities including forming a salt centre, market

expansion initiatives, skills upgrading among stakeholders,
technology design.
CHALLENGES
A number of factors have inhibited the smooth running of the Lake Katwe
Salt Cluster, some of which are the following:
(a) It has not been easy for the cluster team to introduce the innovation
cluster concept to the Lake Katwe community since generally; this is a
new concept in Uganda. In addition, many groups/organizations
have carried out studies on improvement of salt mining in Katwe but
they have all left with no visible intervention measures in place. The
people therefore have an attitude that such initiatives come and go
without leaving behind concrete intervention measures. However, the

cluster team took time to emphasize the unique approach of the
cluster system, emphasizing the usefulness of creating cohesion
within the community to collectively and competitively create
opportunities and conditions for growth of the salt industry in Katwe.
Most importantly, the population has now welcomed and embraced
the concept.
(b) Limited knowledge of the facilitating team on comprehensive cluster
development skills. The training during the September 2005 Jinja
workshop, although excellent, was held for only five days, and
therefore did not equip the team with adequate exposure to
innovation systems and clusters development.
(c) Absence of formal framework within which the salt industry operates
has hindered the successful development of the salt cluster. The salt
miners in Katwe largely operate in an informal way, although
currently, there are government initiatives to streamline the salt
industry within the Mining Act.
(d) Inadequate facilities such as reference materials specifically on the
salt industry, communication facilities (including internet and e-mail)
have limited the performance of the facilitating team.
Although the Lake Katwe Salt Industry has been in existence for so many
years, and despite several attempts to improve the quality and quantity of
the salt produced, no improvement has been realized. This has been due to
lack of appropriate technology to improve the salt quality and quantity.
Considering that a lot of salt consumed in Uganda is imported at high cost,
investment in better salt production technologies to provide refined and
iodized salt would provide a market for Lake Katwe salt. This could be
realized if the salt miners were introduced to better technologies through
re-organization under a cluster system.
The way forward for the Lake Katwe Salt Cluster lies in further interaction
and collaboration with the stakeholders, especially in organizing and
creating awareness among the salt miners about the advantages of
innovation clusters, building strong informal personal relationships among
themselves while supporting formation of organizations/associations
through which they can bargain for better prices for their salt, undertaking
deliberate pro-active measures to develop efficient and environmentally
friendly, safe technologies for production of high quality salt, as well as
strategies for market expansion and formation of a salt centre.
The facilitating team of the Lake Katwe salt cluster has no doubt that the
cluster will be very beneficial in organizing miners to enable them increase
their productivity, improve their earning levels and in the end contribute to
rural poverty alleviation.
REFERENCES
Epps, J., (1994), “Assessment of the effects of Mining on the Environment

and Formulation of an Environmental Management System for the
Mining Industry” Unpubl. Report for UGA/89/01 Project,
Geological Survey and Mines, Entebbe, Uganda.
Harben, P.W., (1993), “Salt Production at Lake Katwe” Mineral Investment

Promotion Project Technical Paper, Geological Survey and Mines,
Entebbe, Uganda.
Katwe-Kabatoro Development Plan, (2004)

APPENDIX: PHOTOGRAPHS FOR VARIOUS CLUSTER ACTIVITIES
Picture 1: Cluster Meeting Picture 2: Cluster Meeting

Picture 11: Location of Lake Katwe

Picture 12: Rock salt after extraction Picture 13: Lay out of Salt Pans
Picture 14: A woman harvesting salt from a pan

E.7 INNOVATIONS AT KAKIRA BIO-ETHANOL CLUSTER

by Ssengonzi Bagenda Jerome
Department of Mechanical and Production Engineering, Kyambogo
University, P. O. Box 1 Kyambogo, E-mail: jbagenda@yahoo.com
ABSTRACT
Renewable energy could provide solutions to Global warming and its impacts on
environment and sustainability. One such source of renewable energy is Ethanol.
Ethanol is produced from saccharine, starchy and ligno-cellulosic materials.
Poverty eradication is one of the millennium goals and the Government of Uganda
has put is place a Poverty Eradication Action Plan (PEAP), which encompasses
Plan for Modernisation of Agriculture (PMA) and Universal Primary Education
(UPE). Third world countries have found it difficult to eradicate poverty because
they lack appropriate technologies for the production of goods and services which
could be revenue earners. The failure of national governments to support
innovative ideas from scholars and non-scholars alike is to blame. Innovations at
Kakira Bio-Ethanol Cluster were carried out using the triple helix concept of cluster
initiatives (Business, Government and Academia). The goal was to make
distillation of ethanol more competitive by reducing production costs through use of
appropriate technology which addressed environmental issues, wastage of feed
stocks and energy. Interviews, workshops, sensitization meetings, surveys and
internet search were used in the innovations.
Before the innovations were introduced, distillation was done with oil drums on an
open heath as boilers. A coiled copper tube immersed in water in another drum
condensed the alcohol- water vapour to produce low proof alcohol. No quality
control measures were practiced. The innovations introduced a fuel saving heath, a
high proof distillation column and created a cleaner production environment.
Furthermore the use of Ethanol as an alternative fuel to petrol was demonstrated in
running a generator and a car. This paper recommends that these innovations be
spread to other places where ethanol is distilled, Ugandan parliament enacts a law
to manage blending of petrol and Ethanol, Government through National
Agricultural Advisory Services (NAADS) sensitizes and mobilizes people from all
districts to grow more ethanol yielding crops and Institutions of higher learning
disseminate appropriate ethanol production processes coupled with livestock rearing
to eradicate poverty and hunger.
Key words: Ethanol, Poverty, Eradication, Hunger.
SB Jerome 236 Kakira Bio-Ethanol Cluster
INTRODUCTION
Kakira Bio-Ethanol Cluster is located at Kakira a sugar cane estate near Jinja
the Industrial town of Uganda. The Cluster evolved from an association
called Abangi Webasonka.
The Abangi Webasonka Association requested UNIDO through Uganda

Cleaner Production Centre (UCPC) for assistance to clean up the working
environment of their distillery at the same time Makerere University faculty
of Technology introduced the idea of Cluster initiative to the association
this resulted in the transformation of the association into a cluster.
The cluster activities revolve around ethanol distillation. The cluster is one
of the seven cluster initiatives funded by Sida/SAREC through Makerere
University, faculty of Technology.
VISION OF THE CLUSTER
To be number one distiller of high proof ethanol in Uganda.
OBJECTIVES OF THE CLUSTER
1. To make ethanol production more competitive.

2. To diversify the production of ethanol from grown crops.
3. To produce fuel grade ethanol.
4. To produce other products such fortified wines and spirits.
5. To produce ethanol for export.
6. To produce animal feeds from stillage.
7. To produce biogas from stillage as a way of promoting the
environment.
A training workshop on running clusters was organised by Makerere

faculty of Technology. During the workshop an action plan for the cluster
was drawn and an initial facilitation and leadership team were identified.
Interviews, workshops, sensitization meetings, surveys and internet search

were used in carrying out the innovations.

Before the innovations were introduced, distillation was done with oil
drums on an open heath as boilers. A coiled copper tube immersed in water
in another drum condensed the alcohol- water vapour to produce low proof
alcohol. No quality control measures were practiced.
Now the situation has changed. Fermentation is done in closed drums with
no oxygen access to the molasses solution, Distillation is carried out using
high proof distillation columns, quality control practices are done and the
distillery environment is clean.
This paper is about what has been done so far, how it was done, what has
been achieved so far, what challenges were faced, and the way forward to
overcome them.
INNOVATIONS AT KAKIRA BIO-ETHANOL CLUSTER
Training activities
When the facilitators started their wok they noted the poor housekeeping at
the distillery, the wastage of resources i.e. molasses, firewood alcohol
vapour, the poor disposal of stillage, the lack of monitoring devices to
control quality the lack of record keeping.
A training programme was designed to address these. The training

included: Sensitisation meetings and workshops, Training in fermentation,
Training in distillation and entrepreneurship.
Sensitisation Meetings and Workshops
Following visits to Kakira, and having collected data on production

capacities, quality of alcohol and challenges, a critical situation analysis was
carried out by he facilitating team. Workshops to create awareness of
Cluster potential, identification of team leaders and dialogue with
stakeholders were then carried out.
A cluster constitution was written, the cluster was registered both centrally
and locally, and an account was opened with Stanbic Bank.

Fermentation
Anaerobic fermentation was introduced. Brewers were trained in

fermenting beer in closed drums with an air lock in form of a tube
immersed in a bottle containing water attached to the drum lid. Brewers
were trained in the use of alcohol meters and hydrometers to monitor
fermentation progress. This resulted into a complete fermentation process
that yielded more alcohol.
Figure 1: The fermentation drum with an air lock
Distillation
Next distillers were trained in fabrication and use of high proof distillation
columns. Emphasis was put on temperature control to get the desired
concentration. A high proof distillation column was imported from the USA
and cheaper ones were fabricated using locally available materials. The
ethanol produced was used to run a generator and a petrol engine car. The
fabricated columns are currently being used at Kakira. The column consists
of three copper coils, a cylindrical shell and temperature monitor.
The cooling coil is made from copper tube of 6mm diameter coiled around a
former of 65mm diameter, as shown in Figure 2.

Figure 2: Cooling coils fabrication
Column Shell Fabrication

The column shell was rolled from mild steel plate of 1.5mm. Ideally it
should be made of copper pipe of 100mm diameter or an equivalent
stainless steel pipe. Figure 3 shows fabrication of the shells.
Figure 3: Column shell fabrication
The Column
The column shown in Figure 4 consists of three parts: the stripping section,
the rectification section and the condenser.
There are two control cooling coils, one at the top of the stripping section
and the other at the top of the rectifying section.
The condenser has a copper coil inserted into it. All coils are fed with cold
water from a tap.

Figure 4: Column Assembly
The Boiler
The boiler is an ordinary oil steel drum modified to attach on the distillation
column, as shown in Figure 5. A heath or fire box is constructed of brick
(steel for portability) Scrap wood was used as fuel.
Figure 5: The boiler
Fuel Saving Heath/ Fire Box

A portable fire box/heath was fabricated from plate steel by welding,
however, to cut down costs. It should be built from ordinary clay bricks.
Scrap wood was used as fuel.

.
Figure 6: Fire box Figure 7: Measurement of alcohol content
Demonstration of Use of Ethanol in Generator and Car

A Suzuki Samurai four wheel drive running on petrol was modified to run
on 85% ethanol.
The carburettor main jet 95 was replaced by 250. The choke was set quarter
closed. It was hard to start the car in the morning but a spray of some petrol
in the air cleaner solved the problem!
Figure 8: The converted Suzuki Samurai car

Figure 9: EFI-Toyota car
• This EFI Toyota car has been running on 85% straight ethanol for some
•
time now.
•
The owner distils his own fuel from molasses.
A litre of ethanol costs him 1500/-.
This generator now runs on straight ethanol of 85% concentration.
Figure 10: The generator Honda Elemax2900 running on ethanol
CONCLUSION
Achievements
• Leadership team in place.

The cluster achievements following the introduction of innovations are:
• Cluster constitution written.

• Cluster registered both centrally and locally.
• Fabrication of batch type and continuous packed column done.
• Training in proper fermentation procedures done.
•
•
Fabrication of fuel saving heath done.
•
Demonstration of production of fuel grade ethanol done.
Demonstration of ethanol powered car and generator done.
Challenges
• Facilitating the cluster being a full time job,

The cluster however faces some challenges which include:
• Limited funding,
• Lack of infrastructure,
• Lack of land,
• Fuel grade ethanol more expensive than gasoline, and
• Promotion of production of fuel grade ethanol not yet embraced by
Ministry of Energy and Mineral development.
Recommendations
It is recommended that Cluster facilitation be adequately remunerated,

more funding be availed to the cluster, land on which to build
infrastructure be acquired. Furthermore the Parliament of Uganda enacts a
law to promote ethanol blending with petrol and government through
NAADS promotes commercial growing of ethanol yielding crops.
ACKNOWLEDGEMENTS
Cluster is grateful for cooperation of the Local Government leaders of the

locality and particularly to the area member of parliament Hon. Daudi
Migereko, the Minister of energy and mineral resources for his interest and
active participation in the cluster activities.
Cluster acknowledges the guidance and assistance of UCPC Cluster

registers its thanks to National steering committee for guidance. The cluster
appreciates the financial assistance rendered by Sida/SAREC through
Makerere University, Faculty of Technology.

BIBLIOGRAPHY
Mathewson S.W. (1980), “The manual for the Home and farm Production of
Alcohol Fuel”, Ten speed Press.
Robert Warren (2003), ”Building an Ethanol Still and Making your own
Fuel”
Mother Earth News, “Making Alcohol Fuel “ Mother’s alcohol fuel seminar,
Godfrey Eneas (2006), “Cassava: A BioFuel”
Mother Earth News (1980), “How to adopt your automobile engine for ethyl
alcohol use”, mother’s alcohol seminar
Valerie Thomas, Andrew Kwong “Ethanol as a lead replacement: phasing

out leaded gasoline in Africa”
Centre for energy and environmental Studies, H-214 Engineering

quadrangle, Princeton University, Princeton, NJ 08544-5263, USA
Mann, H.O. (1975), “yield and quantity- Sudan, Sorghum-Sudan, and Pearl
Millet hybrids. “Progress report, Colorado State University, Fort
Collins, CO
Michael Wakabi (1999), “Ethanol fuel plan fizzles out in Uganda” The East
African, Wednesday, May 12, 1999.
Zeldu, T, “The potential of Biotechnology applications for sustainable

Economic development of Uganda: Strategic view point.”
Oyos Saroso H.N, Making ethanol from cassava is easy, “The Jakarta Post,
Bandarlampung”
http://www.nigeriafirst.org/printer-4301.shtml”Cassava
initiatives in Nigeria”

E.8 THE SEAWEED CLUSTER INITIATIVE IN

ZANZIBAR, TANZANIA
by Flower E. Msuya
Institute of Marine Sciences, University of Dar es Salaam,
P.O. Box 668, Zanzibar, Tanzania
INTRODUCTION
Since the start of seaweed farming in 1989, farmers in Tanzania have been
producing the seaweed and selling to the buyers who export it to Denmark,
France, USA, and Spain. What has been persisting in the seaweed industry
is that seaweed production fluctuates between 4000 and 6000 tonnes of dry
seaweed (Msuya 2005) with the highest ever of 9000 tonnes in 2002 (Table
1). This is (very) low production and there is potential to increase the
production through the management/modification of the farming
technique. The market is available for higher production because the
buyers/exporters would like a production of up to 20,000 tonnes (Buyers,
personal communication). The increase in production could result in the
increase of seaweed prices within the country as the business running costs
would be lowered.
Associated with the low production is the problem of the die-off of the
higher priced Kappaphycus alvarezii (Cottonii). The species is more prone to
environmental changes compared with the low priced Eucheuma
denticulatum (Spinosum). The die-offs are experienced in some parts of the
country mostly Zanzibar and Tanga. Possible causes of the die-offs have
been studied recently (Mmochi et al. 2005) and thus there is need to try and
combat the problem.
The produced seaweed is exported in bulk, with no use in the country.

Exporting in bulk leads to low prices paid to the producers (farmers). As a
result, complaints from the farmers over the seaweed prices are not
uncommon.
There is also a potential to farm other seaweed species such as Gracilaria

(and Hypnea) for production of a different gel agar as opposed to
FE Msuya 246 Seaweed Cluster Initiative

carrageenan produced from the current farmed species. Agar is used by

mushroom growers (and food processors) in Tanzania (and abroad) and
laboratory cultures in schools, universities, hospitals and so on. The two
seaweed species grow naturally in Tanzania. Some scientific studies on
these species have been done in the country (Kivaisi and Buriyo 2005) and
the CI would like to use the available information do make trial farming of
Gracilaria and disseminated the species to farmers.
The aim of the Seaweed Cluster Initiative (Seaweed CI or CI) is to address

these problems and tap the scientific information for the benefit of the
farmers and the country at large. The basis of the aim of the CI is that there
is a possibility to increase seaweed production through modifying the
farming technique and adding value to the produced seaweed. 1. Trying to
solve the problem of cottonii die-off that would have two effects: producing
more seaweed through enabling production of cottonii; and raising the
income of the framers by enabling them to farm the high priced cottonii. 2.
Standardisation of farms is one way of increasing the production per unit
area. Standardisation enables the use of more space within the same
farming areas because not much space would be wasted as it is the case
with the current farming technique. 3. Looking for ways of using the
produced seaweed within the country through adding value to the
seaweed. Semi-processing and full processing to make seaweed products
would fetch higher prices than the bulk-unprocessed seaweed and will give
the farmers a chance to use the seaweed that they produce. 4. To enable the
farming of new seaweed species that would add income to the farmers.
Table 1: Annual seaweed production for years 1995 – 2005 in Zanzibar
Year 95 96 97 98 99 00 01 02 03 04 05
Production 3626 4774 3667 4171 6607 6607 4991 9091 - 6459 6097
(Tonnes)
PROGRESS ON THE ACTIVITIES OF THE CI
CI activities started in March 2006. Since that time when the activities were
launched, progress has been made on the planned short-term activities, i.e.
informal meetings with key actors, collection of baseline data on
production/markets, conveying a workshop with key actors to create the
leadership team, conveying a workshop with farmers, standardisation of

farms, setting up a trial raft farm, trial making of seaweed soap and snacks,
and collection of information on new seaweed species. Details of the
activities conducted are shown below.
INFORMAL MEETINGS WITH KEY ACTORS
Informal meetings were held with different actors in the seaweed industry
as follows: the five buyers (buying companies) C-Weed, BiRR, Zanzibar
Agro-Seaweed Company Limited (ZASCOL), Zanzibar East Africa Seaweed
(ZANEA) Company and Zanque Aqua Farms; Department of Fisheries and
Marine Resources, Ministry of Agriculture-Extension Services, and
Department of Trade; Institute of Marine Sciences; Soap making group;
Soap maker; Seaweed snacks maker; Seaweed farmers; and someone
involved in book keeping. In each case, the CI was introduced and
discussion was held on how the different groups can collaborate in the
activities of the CI.
Creation of the Leadership Team (LT)
The LT was formed through the informal meetings with the main key actors
in the triple helix as this was seen as the best way to from the LT. Following
the election, the LT started working (preparing to work) on the activities of
the CI. On 4th July 2006, a key actors’ workshop was held to formalise the
LT and to explain the key actors on what the activities of the CI are. The LT
was then formalised in a workshop with key actors in July.
KEY ACTORS’ WORKSHOP, 4TH JULY 2006
A total of 13 participants were invited to participate and 12 of them

attended the workshop (Fig. 1). They were from Department of Fisheries
and Marine Resources Zanzibar (1), Ministry of Agriculture –Extension
services Zanzibar (1), Department of Trade Zanzibar (1), SUCCESS project
(1, lecture on book keeping), Soap maker – (Mushroom CI 1, lecture on soap
making), C-weed Co. (1, lecture on making of snacks), BiRR Seaweed Co. (1,
Seaweed buyer), Farmer (1, Tanga), Farmer (1, Uroa, Zanzibar), Farmer (1,
Bweleo, Zanzibar), Institute of Marine Sciences (3).

Figure 1: Key Actors’ Workshop Participants, IMS, Zanzibar.
In this workshop, the leadership team was formally launched. The

leadership team from the triple helix is as follows:
1. Academia:
Dr. Flower E. Msuya (Facilitator) – Institute of Marine Sciences
Dr. Alfonse M. Dubi – Institute of Marine Sciences
Dr. Margareth S. Kyewalyanga – Institute of Marine Sciences
2. Government:
Mr. Makame S. Nassor – Department of Fisheries and Marine Resources
Ms. Asha Ameir – Ministry of Agriculture –Extension services
Mr. Juma Omar Haji – Department of Fisheries and Marine Resources
3. Business:
Mr. Bakari Mkwawa (Farmer)
Mr. Arif Mazrui (Buyer)
Ms. Amina Khamis (Farmer)
Mr. Hashim Rune (Buyer)
Ms. Maryam Hussein (Farmer)
The workshop started by a briefing on the initiation of the CI followed by
four major presentations:
(i) Planned activities of CI, what has been done, and what remains to be
done. Details of the Seaweed CI as part of the Innovation Systems and
Innovative Clusters in Africa since its start to the present, and the
activities planned and done so far were presented. The lecture also
showed what activities remains to be done by the CI.

(ii) Efforts of Zanzibar Government to help seaweed farmers

The talk was about the involvement of the Government from the start,
during the first experiments in the early 1980’s. Government plays a
role between farmers and buyers in aspects of prices, revenue, and
land lease. Efforts of the Government to make seaweed farming a free
trade were explained and stated that the process is still not as
successful as thought because farmers fail to buy inputs after selling
seaweed. They use the money obtained from selling seaweed for other
purposes. Nevertheless, negotiation/efforts are continuing with
farmers and buyers. It was reported that Government officials were (in
July) visiting Philippines, Indonesia, and China to learn the success of
free trade and the markets so the tactic can be applied in the country.
(iii) Making of seaweed soap

This lecture was given on how to make seaweed soap using caustic
soda, coconut oil, water, and seaweed. It was emphasised that to be
able to make the soap, education on the making process should be
given.
(iv) Making seaweed snacks

The lecture explained how to make seaweed desserts by mixing water,
fresh milk, corn flour, coconut milk, sugar, and seaweed. Different
mixtures are used depending on what dessert is desired. The seaweed
needs to be bleached to lower the smell of the seaweed for those who
may not like it.
(v) Book keeping

The lecture emphasised the importance of monitoring /recording the
growth of the product itself, the environment around it, project
economics and community development. The lecture concluded that
the success of a project is evaluated depending on how much is
invested and how much is gained.
FARMERS’ WORKSHOP, 2ND AUGUST 2006
The workshop was held at Kidoti village, Northern Zanzibar. Participation

to the workshop was very good with 42 out of 43 invited participants

attending the workshop. Some of the participants of the workshop are

shown in figure 2. The participants were as follows:
(a) Kidoti soap manufacturers “Tusife Moyo” Group (15),
(b) Village leadership (2),
(c) Bweleo farmers (5),
(d) Uroa farmers (4),
(e) Departments of Fisheries (1),
(f) Ministry of Agriculture (1),
(g) Department of trade (1),
(h) Buyers (5),
(i) Institute of Marine Sciences (4) and
(k) Others (4).
Lectures were given on seaweed products for local (as well as international)
use, and book keeping for monitoring seaweed (and other) projects.
Seaweed Soap
One lecture was on how to make soap using seaweed as a spice. Trial
making of seaweed soap was done during the workshop. The soap was
made by mixing 1 kg of caustic soda with 2.5 litres of water, mixing, and
then adding 7 litres of coconut oil followed by 500 g of seaweed powder.
The mixture was poured in a 1 x 2 feet plastic tray and let to dry before
cutting the soap to desired shapes. Colour and other spices can be added to
give the colour and odour required.
Seaweed Snacks
The making of “seaweed desserts” was also presented at the workshop. The
lecture explained the making of three types of desserts named in Philippine
as Maha blanca, Gulaman and a third one that was named “Halua ya
◊
mwani” in Kiswahili. Three types of seaweed disserts were explained:
The first dessert, Maha Blanca, is made by mixing 2 cups of corn flour,
2 cups of fresh milk, 2 cups of coconut milk, 2 cups of sugar with 0.25
◊
kg of (bleached) seaweed. 100 g of peanut are added at the end.
Gulaman is made by mixing 2 cups of sugar, 2 cups of fresh milk with
0.25 kg of seaweed. Some vanilla is added for the aroma/flavour.

◊ “Halua ya mwani” is made by mixing 4 cups of coconut milk and 4 cups

of sugar with 0.25 kg seaweed and some rice flour. 100 g of peanut and
some corn flour are added for better taste and decoration.
The three types of disserts that were previously made at home were
brought to the workshop and the participants were able to taste with much
interest.
Book keeping
A lecture was given on the importance of keeping records in a seaweed

project. In the lecture, it was stated that the aim is to have accurate records
on the progress of a project in order to plan on next steps. Four main areas
were mentioned as health – how the product (planted seaweed) is growing,
environment – assessing the impact to the environment, economics –
whether the project will increase the economy of the target group, and if the
project will lead to community development. The success of a project is
measured by looking at the gains or profit versus the production costs
including funds, time, and materials.
Figure 2: Some participants of the Farmers’ Workshop at Kidoti, Zanzibar.

INCREASING SEAWEED PRODUCTION AND COMBATING

COTTONII DIE-OFF
Deep Water Floating Raft Method of Farming Seaweed
The CI is working on farming seaweed in deep-water floating rafts as a way

of reducing the problem of cottonii die-off. The method is also being used to
see if more seaweed can be produced per farmer compared with the
ordinary off-bottom method that is used in the country. Trial farming of
seaweed using the deep-water floating raft method is being done at Bweleo
village, Menai Bay, on the West Coast of Zanzibar (Figures 3, 4).
The type of floating rafts being tried are made of thick nylon ropes and are
more durable than those made of bamboo (or other tree poles), and thus
more profitable to farmers. These rafts have been tried in Bagamoyo District
near Dar es Salaam under the Sustainable Coastal Communities and
Ecosystems (SUCCESS) project and proved to be more productive than the
off-bottom method (data at hand). Materials needed for a 20 x 12 m raft are
as shown in table 2.
Table 2: Materials for construction of a 20 x 12 m deep water floating raft

for seaweed farming
Item Material
Raft side lines Nylon ropes – 12 mm diameter
Anchor lines Nylon ropes – 12 mm diameter
Anchors *Plastic bags filled with sand (50 kg fertiliser
bags)
Floaters – at the four 4 large buoys (20 litre cooking oil containers
sides can be used)
Floaters at the seaweed Plastic bottles (at least two 1.5 l bottles)
lines
Planting Rope for tying seaweed seed (4 mm diameter)
“ Tie tie
*In areas where the sediment contains a high percentage of clay, stones may
be used instead of the plastic bags to avoid frequent replacement of the
anchors

Two small (5 x 5 m) rafts were constructed and deployed at sea in April

2006. Small rafts were used to test if the rafts can be kept at sea for at least
six weeks, the harvesting time of farms in ordinary off-bottom method,
before putting bigger rafts. They were also aimed at testing the occurrence
of conflicts between farmers and fishermen experienced in Bagamoyo. A
diagrammatic representation of such a raft is shown in Figure 3.
Following the success of the small 5 x 5 m rafts, two larger rafts (12 x 20 m)
were constructed (Figure 4). In both rafts, the high price Kappaphycus is
planted; in one raft the variety cottonii is planted and in the other K.
striatum (kikarafuu) is planted. The first signs show good growth of the
seaweed than the ordinary method with higher growth rates and deeper
colour on the seaweed.
Increased Interest in Seaweed Farming
There have been positive effects on the interest in seaweed farming after the
introduction of the deep-water floating rafts. One person (man) has asked
to be provided with materials to make his own raft saying that he feels that
his efforts will pay. Men are coming back to farm seaweed. Before
introducing the method 10 men were farming seaweed, now there are 17 of
them. (Caution needs to be observed so that men will not take over the
activity that has been done by mostly women for years now). Kidoti soap
manufacturers who are also seaweed farmers have asked to be helped to
use the deep-water floating rafts method to farm cottonii as they farm only
spinosum. Uroa farmers have asked to be helped to use the method to
increase production of cottonii and to farm it for those whose areas do not
favour the farming of the species.
Standardisation of Farms
To place farms facing the same direction as opposed to different directions

used by farmers. The activity has started with farms in one village in Pemba
(Wingwi) being standardised. Standardisation of farms will increase the
farming area due to omission of unnecessary spaces that are unused
between farms that are not standardised and reducing the breakage of
seaweed due to strong winds. It is expected that this activity will increase

seaweed production. A representation of the standardised and un-

standardised farms is shown in Figure 5.
Seaweed
Floaters-large buoys or
12 m cooking oil cans
20 m
Frame -12 mm
Anchor line
(12 or 10 mm)
Sinkers-sand bags
Hooks for attaching
seaweed lines
Figure 3: A diagrammatic representation of the deep water floating raft

used for seaweed farming in Zanzibar
Figure 4: Construction of the deep-water rafts and tying of seaweed

How it is now – un-

standardised farms
Unused spaces between

farms
What we are doing

– standardised
farms
Figure 5: A representation of the current placement of farms and what the

CI is doing to standardise the farms
Baseline Data
Seaweed production data was collected for the targeted villages, i.e. villages
that the CI will be working with during the planned time frame. The
villages are Wingwi in Pemba where trial standardisation of farms is being
done, Bweleo in Unguja where the deep-water floating raft is being tried,
and Kidoti in Unguja where trial making of soap and snacks has been done.
Production data was obtained for Bweleo and Kidoti. The data for Wingwi
is being collected. In Bweleo village, cottonii was farmed but the species has
failed in recent years and farmers are now farming kikarafuu and
spinosum. One aim of the CI is to try to farm cottonii in this village. It is
planned that if the method is successful, it will be tried in Kidoti too where
only spinosum is farmed. The seaweed production data for two target
villages is shown in Table 3.

Table 3: Seaweed production in targeted villages in Zanzibar

Village Production
Spinosum Cottonii
Bweleo 108 -
Kidoti 292.6 -
It was also thought good to obtain annual total seaweed production in

Zanzibar as baseline data that may give an indicator of how much the
production has increased after e.g. ten years of the CI activities. The
production is shown in table 1 above.
INFORMATION ON THE NEW SEAWEED SPECIES
Apart from interviews with researchers who worked with the new species,
Gracilaria, and showed that there are two interesting seaweed species of the
Gracilariales: G. salicornia which has up to 50% agar and G. edulis is known
to have high agar content (Kivaisi and Buriyo 2005), additional information
was collected which showed that Gracilaria that may be farmed through the
Seaweed CI will be bought by the mushroom CI. And, on farming method,
researchers from South Africa were contacted in order to learn about their
farming method. It was found that there were experiments with a species of
Gracilaria farmed in cages (Prof. Bolton, personal communication). The
cluster continues to look for other methods. It is planned that the method to
be used by the CI will be the line and peg (off-bottom) method as a starting
point since this is cheaper than cages. The method is used in some parts of
South Africa. The CI also plans to study agar content of G. edulis and use in
laboratory cultures, and do market survey on agar users apart from schools.
OTHER ACTIVITIES
1. Possibilities of Financing CI Activities:

Discussion was held with the officials of the Department of Fisheries
and Marine Resources on the activities of the CI. It was mentioned that
the activities of the CI are within the areas of the Marine and Coastal
Environment Management Project (MACEMP), and that the project
could assist some of the activities of the CI when requested and
presented with what is required.

During the presentation on the efforts of the Zanzibar government to

help the farmers in the key actors’ workshop, it was explained that if a
proposal is written detailing exactly what is required for the CI,
MACEMP can help the proposed activities.
2. Collaboration with other Institutions/Projects

A meeting was held with TIRDO researchers/leadership on 3rd August
2006. After a briefing on CI activities, TIRDO explained that they have
been working on possibilities of extracting the gel from the seaweeds
for medicinal purposes. They also explained that their aim is to be able
to make a processing plant for local use. It was agreed that CI and
TIRDO might collaborate in arranging and finally making and using a
small-scale processing machine for trial extraction of the gel.
3. The Sustainable Coastal Communities and Ecosystems (SUCCESS)

Project has supported some activities of the deep-water floating rafts
method.
4. Discussed with a representative of the Japan Social Development Fund

(JSDF) on possibilities of joining forces during the long-term activity of
improving seaweed quality through the construction of drying racks.
NEW LONG-TERM ACTIVITIES
After the six months of the activities of CI, new long-term activities are
proposed as follows:
(a) To produce (and disseminate) video programmes detailing the
activities of farming in deep waters, making seaweed soap, and
making seaweed snacks;
(b) Produce (and disseminate) workshop reports for the two workshops;
(c) To produce a booklet on making of seaweed products in Kiswahili
and English etc; and
(d) Hold regular meetings of the Leadership Team.
BUDGET
The budget allocated for the activities was surpassed spending more than
US $ 8000 (Table 4).
Table 4: Expenditures for the activities conducted so far by the Seaweed CI

Activity Who (to be No. Unit Total
contacted) (US$) (US$)
1. Low hanging fruit activities
1.1 Appointments with main key Developers
actors 5 90 450
Microbiology Unit 1 300 300
Department of
Fisheries 1 50 50
1.2 Data collection - seaweed
production Developers/Buyers 3 120 360
Other business
people 1 120 120
1.3 Workshop with key actors-
Create LT 1 2000 2000
1.4 Workshop with farmers (1
village) 1 2500 2500
1.5 Expanding
farms/standardisation of
method 1 150 150
1.6 Setting up of a trial raft in 1
village 1 500 500
1.7 Collect information on the new
seaweed species Microbiology Unit 1 400 400
Developers 1 90 90
1.8 Monitoring & evaluation 1 500 500
1.9 Travel (Facilitator 2 from
Tanga) 2 200 400
1.10 Communication 1 250 250
1.11 Stationery 1 200 200
Total 8270
Immediate Needs
Funds are needed to continue with the planned activities of the CI.

REFERENCES
Kivaisi A. K. and Buriyo A. S. (2005). Assessment of native gar extracted

from Gracilaria cornea and Gracilaria salicornia harvested along the
Tanzanian coast fro culturing microorganisms. Presented at the
Fourth Western Indian Ocean Marine Science Association
(WIOMSA) Scientific Symposium: Advances in Marine Science in
Eastern Africa: Contribution of Research in Improving Human
Welfare and Poverty Alleviation, 29 August 3 September 2005,
Grand Baie, Mauritius.
Mmochi A.J., Shaghude Y.W., and Msuya F.E. (2005). Comparative Study of
Seaweed Farms in Tanga, Tanzania. Report submitted to SEEGAAD
Project, August 2005, 37 pp.
Msuya F.E. (2005). Seaweed Farming in Tanzania: Farming Processes and

Interactions between farmers and other stakeholders In Mwamila
B.L.M. and Temu A.K. (Eds). Proceedings of National Stakeholders
Workshop on Establishment of an Innovation Systems and Clusters
Programme in Tanzania, Bagamoyo, January 24-25, 2005, pp 195-
206.

E.9 THE SISAL CLUSTER INITIATIVE

by Enock Masanja
College of Engineering and Technology, University of Dar es
Salaam
RATIONALE OF THE CLUSTER
Sisal was introduced in Tanzania by the Germany colonialists in 1893. The

characteristic Tanzanian coastal belt calcareous soils, the average annual
rainfall ranging between (500 - 1500 mm) and high average annual
temperatures ranging between (25 - 32ºC) are ideal for growing the hard
crop sisal. These conducive, agro climatologically conditions for the sisal
growth are found within the altitude of 0 - 300 m., resulted into the
successful propagation of the exotic species Agave sisalana in 1893 was later
followed by the Agave hybrid H 11648. The successes of sisal hybrid H
11648 which is widely used in commercial plantations in East Africa
prompted the rapid sisal economy growth for Tanzania to be the leading
producer, until the stranglehold of the synthetic fibres. Currently sisal
agronomy is regaining its popularity because it is still cheaply produced at
450,000 Tanzanian shillings TAS /tonne, whereas the sales from fibres are
about 750,000/= TAS/tonne. This attribute, has attracted interest of private
investors.
The main product from the sisal

plant is still fibres, however the
extracted fibres constitute of only
2% of sisal plant, the remaining
98% is thrown away mainly as
solid waste. The liquid wastes
from decortications processes
have high biological oxygen
demand (BOD). Typically about
125 tonnes of leaves are
Plate 1: Small holder farmer sisal decorticated by day; this process

harvest waiting collection requires 40 metric tonne,
resulting into 106 metric tonnes
E Masanja 261 Sisal Cluster Initiative

of liquid discharges. The liquid is normally discharged into nearby streams.

During the decortications process between 15-20% of fibre produced is lost
in a form of flume tow. It is worth mentioning here that new advances, that
of utilizing hammer mills in fibre extraction significantly reduces this loss.
Based on the recommended seedlings population, about 4,000 plants/ha, it

is envisaged that annually, the solid waste would amount to 4,000 sisal
boles left behind as part of the 98 % sisal waste. Most part of this fibrous
solid waste is burned or left to decompose slowly “production to waste”
with significant environmental consequences.
Of high interest in this research is the sisal

bole, whose juice main constituent is water
and inulin and can be fermented to produce
citric acid. on average a sisal bole weighs
about 50kg, with 83.50% (w/w) juice, when
hydrolysed gives 116.10 g/l fructose which
corresponds to 81.22g/l or 584.14g of CA,
Plate 2: Sisal fibres on therefore 4,000 boles could produce 14,603 kg/ha
drying lines at Hale, Tanga CA, which is equivalent to 63,000 US$/ha. This
suggests that, it is possible to improve economic
potential of sisal agro-processing industries while at the same time reduce waste
production. Thus the sisal industrial is unique in that it provides the largest
biomass concentration in normal agricultural settings. The innovation
potential relies on the utilisation of waste, the 98%w/w part that is
currently discarded to produces products that have a significant market
potential. These products include:
(a) Citric acid, an acidulant, used in food, beverage, in pharmaceutical
and cosmetics products. For recommended plant spacing, 4,000
plants/ha, it is estimated that 2.34 tonnes citric acid/ha, which is
equivalent to 21,000 US$/ha can be realised;
(b) Ethanol as a bio fuel or as a beverage. Ethanol is increasingly
becoming an important bio fuel. A number of developing countries
are changing their legislations demanding the use of composite fuels
e.g. petrol and ethanol mixture. Ethanol from biomass will
increasingly become popular and the export potential likely to
expand. This market is currently serviced mainly by Brazil which
produce ethanol from sugar cane;
(c) Pulp and paper (from both long and short fibres) famous for
speciality paper, bank notes, etc.;
(d) Soluble pulp for the production of viscose rayon;
(e) Geo-textiles;
(f) Composite materials; and
(g) Other chemicals.
The focus of this initiative is the production of ethanol and citric and lactic
acids.
VISION
Tanzania used to be the number one producer of sisal fibres, the potential in
terms of possible acreage that can be brought under sisal cultivation is
there, and the potential for growth of the acreage is also significant with the
emergence of the small holder farms.
The vision to produce chemicals is also not without foundation. Mexico

produces its branded brandy Tequila from sisal; this is produced via a
fermentation process, the same process that will be used to produce a
number of the chemicals listed. The demand for citric acid as food
preservative and acidulant in beverage also have solid footing, the demand
for bio fuel is also well documented and projected to rise. The vision is thus
realistic and attainable.
To make the Tanzanian sisal industry vibrant producing high value-added products
by quality, variety and volume which will make it acknowledged world leader.
PROJECT OBJECTIVES
The cluster initiative objectives are:

(a) To introduce value-added products to the sisal industry and move
the focus away from the traditional fibres products;
(b) To improve resource utilisation of the sisal estate/industry and
thereby red;
(c) Improve income generation potential and poverty eradication in sisal
growing area;

(d) To improved economic performance of the sisal industry so as to

improve quality of life of the rural sisal growing areas;
(e) Introduce new sisal species that are rich in inulin (rather than fibre
content);
(f) Increase production and marketing of value-added products; and
(g) To develop new technologies for whole plant harvesting and
processing of the sisal plant.
KEY ACTORS
a) Small holder Farmers
There are cooperatives of small holder sisal farmers in the Tanga region.
These are currently engaged in sisal cultivation for the fibre market.
The farmers will rely on the big estates for equipment for decortication
process and they might end up selling raw/green leaves without a say on
the marketing of the finished products. A few of the farmers have started to
harvest their sisal but the majority will start in about two years.
The small holder sisal farmers’ programmes were revived in 1999 in the
Tanga region and has since expanded to the lake, central and eastern zone
as well. This cluster initiative however be focused in the Tanga area only.
b) Government
Various ministries are expected to play a key role, particularly the Ministry
of Agriculture, Food Security and Cooperatives for sisal cultivation related
activities, the Ministry of Industry, Trade and Marketing for the
industrialization and marketing of the value added products. The Ministry
of Planning, Economy and Empowerment will have a key role in facilitating
and sourcing the investment funds that will be required in the
industrialisation process so as to enable the farmers to acquire equipment
and machinery and the Ministry of Energy and Minerals especially taking
into account the potential of the sisal waste to generate energy (e.g. via
biogas). The Ministry of Agriculture, Food Security and Cooperatives will
be the focal point of entry through the Tanzania Sisal Board.

c) Universities
Chemical and Process Engineering Department (CPE) of the College of

Engineering and Technology (CoET) is responsible for research and
development. The R&D activities in the department will be responsible for
process development for the production of the value-added products both
current target chemicals and new ones. The department will work with
other R&D institutions and service providers e.g. in the manufacture of
equipments, cleaner production mechanisms, etc.
d) Private Sector
These are potential users of the value-added products who current import
the chemicals from abroad. This need to be kept informed of the
developments to cultivate interest and market and can help in providing
the specification of their key products.
This sector also include the potential service providers i.e. institutions
capable of providing such services as the manufacture/fabrication of plant
equipment and machinery. Some of these institutions include: the
Kilimanjaro Machine Tools, the Tanzania Automotive Technology Centre
(TATC), the Morogoro Metal Manufacturing Cluster, etc.
RATIONALE AND MARKET INDICATORS
i) The main raw materials will be the sisal bole, Plate 3, which is
currently, basically waste, this a comparative advantage that many
other producers of the target chemicals in question can not match;
ii) The food and beverage consumption, and demand for
pharmaceuticals and cosmetics can safely be assumed to keep rising
as there is population growth both locally and globally, also there is
sign of economic development locally so the demand for foods of
long shelf life will increase which can be translated into rise in
demand for citric acid;
iii) Environmental concerns, particularly air pollution and global
warming is forcing countries to switch to clean fuels and renewable
energy, so demand for ethanol will definitely rise locally and in the

world at large, thus there is a scope and potential for using ethanol
locally and also for export; and
iv) Some smaller holder farms started harvesting their first crop since
mid 2003, as they are new into the industry, it should be possible to
motivate them to sale the sisal bole instead of the sisal leaves
especially as they have to pay overheads for processing the leaves.
v) Add value to the sisal fibres for example by producing composite
materials, regenerated cellulose, pulp and paper, etc.
Plate 3: Sisal Bole
PREFERRED FUTURE
(a) Production of non-traditional, value-added products (ethanol, citric

and lactic acids, regenerated cellulose/bio-plastics);
(b) Mechanization of the sisal harvesting;
(c) Increased cultivation of sisal, and sisal of the right specie and
rehabilitation of the declining sisal estates;
(d) Improved environmentally friendly sisal production processes; and
(e) Sustained R&D and technology development, and diffusion of
technology to improve the economic viability of the sisal industry.
STEPPING STONES
(a) Mobilising and creating awareness on the benefits of value added

products (ethanol, citric and lactic acids);
(b) Mobilize farmers, government leadership and research community;
(c) Mobilize Farmers to increase planting sisal of right species (rich in
inulin);
(d) Mobilize and strengthen extension services;

(e) Training farmers on cultivation methods and new optimum
harvesting time to match the peaking of inulin rather than the
traditional ten-year cycle;
(f) Training farmers and the sisal industry in general on cleaner
production processes; and
(g) Mobilize private industry and importers of the target chemicals on
the impending development of a local production capacity of the
same (cosmetics, pharmaceuticals, and beverage and food
industries).
TRIPLE HELIX
(a) Agro-industrial sector / private sector
i) Small holder farmers of sisal; and

ii) Consumers of the value-added products (cosmetics,
pharmaceutical, beverage and food industries).
(b) Government
i) The Ministry of Agriculture, Food Security and Cooperatives;

ii) The Ministry of Industry, Trade and Marketing;
iii) The Ministry of Planning, Economy and Empowerment; and
iv) The Ministry of Energy and Minerals.
v) The Division of Environment of the Vice President’s Office.
(c) Academia
i) Department of Chemical and Process Engineering, CoET,

UDSM;
ii) Department of Materials Technology, CoET;
iii) Applied Microbiology Unit of the University of Dar es Salaam;
iv) Food Science and Technology and Agricultural Engineering
Departments of the Sokoine University of Agriculture; and
v) ARI – Mlingano
vi) R&D Institutions (ARI – Mikocheni, and others).

FACILITATING TEAM
(a) Dr. Enock Masanja (Academia and Facilitator);

(b) Mr. Fredrick Malika (Farmer);
(c) Dr. Leonard Mwaikambo (Academia);
(d) Hamisi Mapinda (Tanzania Sisal Board for The Ministry of
Agriculture, Food Security and Cooperative);
(e) Dr. Zacharia Masende (Academia); and
(f) Francis Nkuba (Sisal Industry).
KNOWLEDGE, INFORMATION AND RESEARCH GAPS
(a) Knowledge on processing technology and new products: Some

Research has been conducted within CoET, the research need to be
scaled up before commercialization;
(b) The economic potential of the value-added products being promoted
need to be disseminated to the different sectors to cultivate interest
and attract funding;
(c) Collaboration with other R&D institution and service providers e.g.
metal working firms for the production of equipment and machinery
needs to be explored;
(d) Information on local market capacity for value-added while expected
to be large, needs to be surveyed and confirmed. Initial promotion of
the products might be useful in promoting the market;
(e) Knowledge on farming practice in terms of establishing the optimum
harvesting (when inulin concentration is a maximum) needs to be
established. This time is likely to vary according to the sisal specie,
soil type, and rainfall pattern; and
(f) Knowledge of the available sisal species that are suitable for inulin
production needs to be developed. Previous R&D work on sisal
propagation was mainly focused on developing species that are
capable of producing high fibre content and long fibres in particular
and these might not necessarily contain the highest sugar/inulin
content. Different R&D institution and the Mlingano Agriculture
research Institute in particular will be required to develop/refine this
information and disseminated to other stakeholders.
(g) List of service providers e.g. equipment and machinery
manufactures, marketing firms, etc.
ACTION PLAN
(i) Short-term activities
(a) Meeting key actors in the cluster initiatives (government, farmers

and potential consumers (markets). These are:
i) Government both local and central government will be
consulted with a view of soliciting support e.g. for future
funding. Government support is essential in establishing
confidence;
ii) University: the College of Engineering and Technology
(CoET) will play a key role in this initiative and also in
providing technical backstopping. Dr. Masanja, the facilitator
of this initiative is an employee of CoET;
iii) Farmers: these are small holder farmers of sisal are key
players as will provide the raw materials for the production
of value added products. There several cooperatives in the
area and will need to be contacted to introduce the cluster
initiative and to get their views on the development and
implementation the initiative; and
Plate 4: One of the female Small Plate 5: Promoting the Cluster

holder farmers participating in the Initiative concept to Ngombezi
debate on Sisal Cluster concept in Small colder farmers
Mwelya village, Tanga

iv) Consumers: these are potential consumers of the value

added products i.e. the industries and institutions that are
currently importing ethanol, citric acid and lactic acids so
that they are informed of the cluster development.
(b) Data collection on the size of the sisal estates in the different
cooperatives, the quantity of the imported citric acid, ethanol
and lactic acid so as to predict the size of future markets. A
study of global market trends of these products will also be
studies. The data can also help in predict economic viability
of the cluster;
Plate 6: Facilitator Dr. Masanja Plate 7: Promoting the Sisal

(2nd Left) and Mr. Malika in Cluster concept to Mwelya and
one of the small holder farmers Usambara small holder framers
farm in Mwelwa village, Tanga
(c) Conduct meeting with key stakeholders: Key stakeholders

need to meet and create the leadership team that will enable
the running of the different activities;
(d) Conduct a workshop for small holder farmers with a purpose
of:
i) Creating awareness on market potential of the value added
products which are non-traditional to the sisal industry.
The workshop will give an overview of the possible
products and market potential in the locally and global
markets;

ii) Creating awareness on the technology involved in he

production of the value added products. The knowledge
and experience from the academia, research institution and
other support industries will be shared; and
iii) Improving farming practice particularly on developing of
sisal species that are richer in sugar content rather than the
traditional long leaves richer in fibre content. This too
needs to be discussed with the farmers to increase
awareness on the subject matter.
(e) Conduct workshops with farmers: these are producers of sisal

plant which is the main raw material for the production of the
target chemicals: ethanol, citric acid and lactic acid. This is thus
a crucial group in the development of the initiative.
Workshops will be conducted in the existing cooperatives,
depending on the distances; some workshop might involve
more than one cooperative. The workshop will be used to
create awareness on increasing the farming areas, farming
techniques and on production of the target chemicals; and
Plate 8: The Sisal Cluster Plate 9: The Facilitator exchanging

Initiative Facilitator promoting views on sisal cluster with Mr. Nyiti,
the cluster concept to Hale the Ngombezi estate manager
small holder farmers (Katani Ltd.)
(f) Collecting information on size the land under sisal cultivation.

The information available in the academia will be acquired by
contacting the College of Engineering and Technology, the
Applied Microbiology Unit of the University of Dar es Salaam
and the Mlingano Agriculture Research Institute. The contact

will also enable to collect information on ongoing research in
this area.
(ii) Immediate needs
Funding for the following activities:

(a) Transport and communication with main key actors to introduce,
develop and consolidate the cluster initiative;
(b) Transport and communication for data collection on sisal estate
sizes, sisal varieties, ages of plantations, environmental baseline
information, water bodies, potential market statistics (for the
chemicals), main competitors, etc;
(c) Preparation of awareness creation materials (i.e. writing, printing,
scanning, photographing, presentation media);
(d) Conduct planning meetings of leading team members to design
and produce strategies for the cluster initiative;
(e) Conduct a workshop with key stakeholders to create the
leadership team;
(f) Conduct a workshop with potential consumers to create
awareness on the chemicals (non-traditional sisal products),
processing technology, and farming techniques, etc.;
(g) Conduct workshops with farmers to create awareness on
increasing farming areas, farming techniques, sisal verities richer
in sugar content;
(h) Stationery; and
(i) Communication costs
(iii) Long-term activities
(a) Strengthen extension services:

i) Training personnel on cultivation of sisal species richer in
sugar content;
ii) Development of whole sisal harvesting (instead of harvesting
of sisal leaves only)
(b) Introducing new non-traditional, value added products:

i) R&D on new non-traditional value added products aimed at

whole utilisation of the sisal plant;
ii) Technologies are diffused and communicated to relevant users:
individuals, communities, institutions and small to large scale
entrepreneurs for adoption and commercialization of
technologies;
iii) Improving income generation and quality of life in the rural
areas;
iv) Participatory approach to develop Information, Education and
Communication (IEC) materials on production of value added
products.
(c) Introduction/demonstration of process plant for producing non-

traditional value added products from sisal plant:
i) Contact the academia, research institutions (CoET, MU,
Chemistry Department of UDSM; SUA, TIRDO, and others)
and other support industries on the technology of producing
the target chemicals;
ii) Development of processing technology
iii) Commissioning of processing plant (acquiring and using)
(d) Dissemination of information on sisal species; and
(e) Research on new innovative non-traditional value added

products such as ethanol, citric and lactic acids.
CONTACT PERSON
Dr. Enock Masanja (Facilitator) : emasanja@cpe.udsm.ac.tz

Mr. Fredrick Malika : fpsmalika@hotmail.com
Dr. Leonard : lmwaikambo@yahoo.com
Mwaikambo
Mr. Hamisi Mapinda : tansisal@hotmail.com
Dr. Zacharia Masende : zpmasende@yahoo.co.uk
Mr. Francis Nkuba : fnkuba@yahoo.com

PROJECT DURATION
The duration of this project is 18 months.
The schedule of activities is shown in Table 1.
BUDGET
The budget will cover the following items:

(a) Transport and communication with main key actors to introduce the
cluster initiative (in Tanga region and government offices mainly in
Dar es Salaam);
(b) Transport and communication for data collection on current sisal
cultivation, and markets;
(c) Transport and communication for data collection on current imports
of ethanol, citric and lactic acids;
(d) Preparation of awareness creation materials (i.e. writing, printing,
scanning, photographing, presentation media);
(e) Conduct planning meetings of leading team to design and produce
survey instrument;
(f) Convey a workshop with key stakeholders to create the leadership
team;
(g) Convey a workshop with developers to create awareness on
promoting functional foods, processing technology, and farming
techniques;
(h) Convey workshops with farmers to create awareness on cultivation
techniques;
(i) Stationery; and
(j) Communication costs.
MAJOR FINDINGS
Some of the major findings include:

(a) Small holder sisal farming started at Kabuku village in the 1950s. On
getting better returns diversified into other trade;
(b) Similar efforts in Kimamba and Kingolwira villages in Morogoro
were not as successful;

(c) Present efforts introduced by Katani Ltd in 1998, target lease 40%
of estates acquired through privatization;
(d) Currently Katani Ltd owns no estate at all! And rely on solely on
small holder sisal farmers;
(e) Two types of small holder farmers: peasant type owning less than
20 ha and big growers owning between 50 ha and 200 ha;
(f) Farmers sale green leaves and currently there are various
complaints on the scheme (conduct and pricing related); and
(g) Land lease titles are now held by government and are yet to be
issued to farmers.
The cluster received an advance payment of US$ 5,000. Out of this sum, US$
4,700 was used to purchase equipment (laptop, video projector and data
backup device). A total of US$ 575 was used for travel and meeting costs
related to small sisal holder farmers meeting in Tanga. Thus a total of US$
5275 has been spent so far.
THINGS YET TO BE DONE
The following are yet to be concluded/done:

● Formal meetings with the key government ministries;
● Holding a stakeholder workshop at national level. This is scheduled
for early next year, and at least one organization, the SME
Competitive Facility has indicated willingness to sponsor this
workshop; and
● Developing a bankable project proposal for eventual investment.

E.10 POTENTIAL AND CHALLENGES OF THE MUSHROOM

INDUSTRY IN THE EASTERN REGIONS OF TANZANIA
by Asman, S., Msabila, H., Sumba, J.1, Shemdoe, G.2. and
Mshandete, A.M.3
Tanzania Mushroom Growers’ Association P.O. Box 31664 Dar es
Salaam
1 P.O. Box 698 Ifakara, Morogoro, Tanzania
2 Tanzania Commission for Science and Technology (COSTECH)
P.O. Box 4302 Dar es Salaam. Tanzania

3 Department of Molecular Microbiology and Biotechnology,
University of Dar es Salaam, P.O. Box 35179, Dar es Salaam.

Tanzania.
ABSTRACT
In the eastern regions of Tanzania mushroom industry is still in its infancy and is
growing slowly and oyster mushroom is mainly cultivated. This paper reviews the
progress so far made under the Eastern Regions Mushroom Cluster Initiative since
its establishment using questionnaires, dialogue and discussions approaches. The
synopsis of mushroom cultivation in Tanzania is provided. A situational analysis of
the status of the mushroom industry in the Eastern regions of Tanzania namely;
Dar es Salaam, Coast and Morogoro is presented. The situational analysis
indicators covered the growing skills and practices, substrates and supplements,
cultivation techniques employed and practices as well as the problems encountered
by mushroom growers. The survey results showed that although there was a little
different between the regions in respect to situational analysis indicators, the level
of skills and the problems faced by mushroom growers are almost similar in all the
places covered by the survey. It was concluded that there is a potential for a vibrant
mushroom industry in these regions but some work especially in standardizing of
the training and accrediting of spawn makers, improving exchange of information
between researchers and growers as well as in establishing collective mushrooms
marketing strategies must be done to support the industry.
INTRODUCTION
Africa generates huge quantities of organic waste materials annually

through the activities of her agricultural, forest and food processing
industries. These wastes are conceived as a negative factor in both the
S Asman et al. 276 Mushroom Industry in Tanzania
industrial and agricultural settings, since they generate adverse

environmental effects related to their disposal. Mushrooms can be
cultivated on a wide variety of organic wastes: wastes from wild grass,
cereal straw, maize cobs, cotton crop residues, forest sawdust; coffee bean
residues, cashew-nut residues, sugar cane bagasse, banana leaves, brewery
wastes, water hyacinth biomass, etc. The spent substrate residues left after
mushroom harvesting are also valuable. They can be used as livestock feed
supplements, as soil conditioners, or as feed for earthworm farming
ventures. Thus the utilizations of these materials for innovations such as
mushroom cultivation can help in solving problems of global importance
such as food security, waste utilization, and better environmental
management.
The cultivation of mushrooms, particularly tropical mushrooms, in

tropical/subtropical countries, is still primitive in Africa. There are several
reasons amongst them are social factors due to the fact that the price of
cultivated mushrooms is usually higher than what the poor can afford, this
may give one the impression that mushrooms constitute a luxury food item
and there is lack of awareness on the enormity of wealth that could be
generated from mushrooms and mushroom products. In Tanzania,
mushroom cultivation is a new idea but the value of the product and relatively
low cost production, high profit and quick return make this potential
profitable viable small business and a basis for enterprise. Therefore,
mushroom cultivation could serve as an alternative source of income
generation hence an effective strategy for poverty alleviation in the near
future of Tanzania. However, mushroom growing is not easy; it involves
many steps, from selecting a suitable technique and strain to spawn
manufacturing, growing the crop and marketing the final crop (Oei, 1996).
Tanzania has a potential for mushroom industry both in terms of climatic

conditions, cheap labor and the availability of organic wastes which could
be used as substrates for mushroom cultivation. The current production of
mushrooms in Tanzania is about 30 tons per annum, which is very low. It is
estimated that there are more than 1.0 million tons of agricultural waste
produced yearly in the country, which if utilized has a potential of
producing 800,000 metric tons of mushrooms (COSTECH, 2004). However,
in Tanzania mushroom industry is still in its infant stage and mushroom
growing is done by individuals or small groups of individuals mostly
women (64%).The production is still very low and marketing of the little
that is produced has proved to be problematic. Several reasons can be
attributed to this state of affairs. According to a recent study on the status of
mushroom industry in Tanzania commissioned by the Tanzania
Commission for Science and Technology (COSTECH), it was revealed that
85% of the mushroom growers lacked sound knowledge in mushroom
production, 93% could not handle pests and disease problems. Also 94%
lacked the skills for post harvest handling and almost all farmers reported
lack of availability of quality mushroom spawn (mushroom seed). The
farmers also face unreliable market situation which is further aggravated by
the seasonality of mushrooms as result of the whether changes. Most of the
mushrooms consumed in big hotels are imported. Furthermore, the study
revealed the lack of consumers’ awareness on the nutritional benefits as
well as medicinal value of mushrooms and this contributes to low demand
(consumption) of mushrooms hence unreliability of the mushroom market.
Low demand is one of the major challenge facing mushroom industries in
developing countries. Encouragement of consumption using various
strategies could increase per capita mushroom consumption then the
possibility of expanding the local market can become a reality.
With regard to wild mushroom, Tanzania is endowed with rich diversity of

both edible and medicinal mushrooms, which could be picked from forests
and anthills during rainy seasons. They have a ready market for export,
however, the pickers, who are often rural communities with no knowledge
of the market potential or value of mushrooms, do not earn much income
from this business (Härkönen et al., 2003). The pickers need to be taught
picking skills and post harvest handling that will ensure quality product
devoid of grits and moulds to meet export standards. Furthermore,
properly picked wild saprophytic wild edible mushrooms could be used for
tissue culture to obtain new species, which will be used to produce
mushroom spawn (mushroom seed) for mushroom growers. These local
species are more adapted to local climate and could generally grow fast and
fruit readily. Above all it has been observed that to many people,
mushroom growing is still a myth because there is lack of communication
between the researchers in this field and the growers, and the exchange of
cultural knowledge is rather poor. This lack of strong bondage among key
players in the mushroom industry has caused slow development of the

industry in a country that has a great potential for producing mushrooms

for local, East Africa and foreign markets.
The establishment of the Eastern Regions Mushroom Cluster Initiative

could contribute towards accessing sound training, quality spawn supply,
and diversification of mushroom cultivated and collective marketing. This
will enable the fast growth of the Tanzanian mushroom industry become a
reality.
EASTERN REGIONS MUSHROOM CLUSTER INITIATIVE (ERMCI)
Eastern Regions Mushroom Cluster Initiative is among eight clusters

established through the initiative of the College of Engineering and
Technology, University of Dar es Salaam. Clusters concept is one of the
strategies for nurturing innovation. In Tanzania, the concept of clusters was
not well embraced until recently when the College of Engineering and
Technology (CoET) of the University of Dar es Salaam took initiative to
promote the concept.
Vision, Objectives and Activities of ERMCI
Vision and Mission
As one of the clusters under the CoET initiative, the vision of ERMCI is to
develop into a network that will contribute significantly to improved food
security, sustainable environmental management, improved mushroom
industrial production and enhance livelihood in Tanzania. The Mission is to
build capacity in mushroom production and mushroom products through
collaborative initiatives, policy advocacy and outreach for improved
livelihoods
Objectives
The major objective of ERMCI is to develop a mushroom industry in the

Eastern Regions of Tanzania (Morogoro, Coast and Dar es Salaam). The
• To create awareness, trust building among members of the cluster;

specific objectives are:
• To promote Cluster activities and products; and

• To conduct R&D Activities.
Activities of ERMCI
In order to achieve the objectives of ERMCI, the following are the envisaged
activities:
i) Establish contacts with potential members of the cluster;
ii) Make situational analysis;
iii) Conduct meetings of cluster members;
iv) Advertise through radio programmes, print media, posters,
calendars, T-shirts, seminars, news paper articles and brochures;
v) Establishment of a Mushroom Collection Centre/Office;
vi) Training on wild mushroom picking and handling techniques;
vii) Upgrading training on mushroom production;
viii) Identify and recommend best locally available substrates; and
ix) Introduction of new mushroom varieties.
METHODOLOGY
Assessment of the Status of Mushroom Industry in the Eastern Regions

of Tanzania
To assess the status of mushroom industry in the eastern regions of

Tanzania awareness creation meetings were conducted. In order to
stimulate and inculcate sense of ownership and maximize participation of
the mushroom growers to cluster concept; short presentations on cluster
concept, nutritional and medicinal mushrooms benefits, spawn production
were given. Each presentation was followed by discussions and question-
answer sessions and other relevant interactions among the facilitators and
cluster members. Thereafter, a questionnaire in Kiswahili language
(attached as appendix I) was administered to obtain information on the
current status of the mushroom industry in the regions.
RESULTS
Status of the mushroom industry in four different areas of the regions was
analyzed and the following are the results from the collected data. For
convenience the results in each region covered by the survey will be
presented separately.
Status in Dar es Salaam and Neighbouring Places - Mkuranga and Pugu
There were a total of 28 mushroom growers’ respondents. Twenty questions

were asked in the questionnaire. The following are the analysis of the
responses:
Farming Skills, Practices and Training
Perhaps the most critical input in any enterprise is skill. Prospective

growers need to undergo training. This training may be done over a short
period of time of less than a week in some cases. 16 respondents have
farming skills, which they attained in the period from 1995 to 2005. Out of
the 16 respondents with farming skills: practicing farmers are 12 and there
are 4 non-practicing farmers. Out of these farmers with farming skills,
93.8% grow oyster mushrooms and only 6.3% grow Ganoderma and 6.3%
grow button mushrooms. The obvious reason for growing mushrooms is
for income generation whereby 100% response was obtained. Furthermore,
the results showed that most of the growers up to 87% do eat mushrooms.
However, not all growers grow mushrooms through out the year. Only 62%
of the respondents grow mushrooms throughout the year while the rest
(38%) grow mushrooms during cool season between April and August. This
is due to the hot and humid climatic conditions during the rest of the period
of the year, which is not conducive for mushroom production. The result
showed an interesting scenario that most of the growers were middle aged
between 36-50 years old (10 respondents), there were 4 respondents who
were above 51 years of age, and only 1 respondent was below 35 years.
The mushroom growers have obtained the farming skills from different
institutions and individuals both locally and abroad. The training differed
in time and varied from institution/individual to institution/individual.
The following are the institutions and individuals who were indicated by
the growers as training providers. The duration of the training is put in
brackets: Dar es Salaam Mushroom Growers Association, DMGA (2 weeks);
NODOLE (2 weeks); Other trained farmers (1week); Honorable
R.M.Kawawa Mushroom farm at Kiluvya (4 weeks); CARE (2 weeks);
Tanzania Industrial Research Organization, TIRDO (1 week); TITO (4
weeks); Vocational Education Training Authority, VETA at Kibaha (4

weeks); Judith Muro (3-4 weeks); Julius Sumba (3 days); Mtupili (3 days);
K.FARM (Uganda) (12 weeks); Japan (24 weeks); and GTZ.
Substrates, Materials and Additives
The mushroom growers are using a variety of substrates. According to this

survey, the substrate, which is used by many growers, is paddy straw-
62.5%, followed by banana leaves and wood shavings with 37.5% each,
respectively. Only one respondent representing 6.3% of the respondents
uses cotton wastes, baobab seeds. Supplements are being used as follows:
Lime by 31.3 %; Sugar by 37.5%; Urea by 12.5%; Rice bran by 31.3%;
and Chicken droppings by12.5%. Most of the growers obtain their
substrates through purchasing 75% and only 25% indicated that they obtain
their substrates free.
Cultivation Techniques and Practices
Out of the two methods of pasteurization of substrates, 68.8% of the

respondents use the boiling method for a period between 6-8 hours and
43.8% of the respondents use the steaming method between 2-4 hours. All
respondents use bag cultivation method for mushroom cultivation. The
sizes of the plastic bags vary from between 1-3.5 kg. From the respondents,
62.5% use the 1kg bags, 31.3% the 2kg bags and 6.3% use the 3.5kg bags.
The result also revealed a remarkable difference on spawning rate
employed by growers using100gm spawn jar. The number of bags
inoculated varied also from one individual grower to the other. From the
data obtained from the respondents; 31.3% inoculated 15 bags, 6.3%, 12
bags; 18.8% 20 bags; 18.8%, 5 bags; and 6.3%, 4 bags. This disparity
demonstrated the different sources of training they received from trainers.
Spawn Supply and Sources
Spawns are obtained from different sources both locally and abroad and the
following were mentioned to be the sources of spawn for the Dar es Salaam
mushroom growers: Dr A.M. Mshandete [Elshaddai (Genesis 17:1)
Mushroom Centre]; University of Dar es Salaam (UDSM); Honorable
R.M.Kawawa Mushroom farm at Kiluvya; CARE; Dar es Salaam Mushroom
Growers Association (DMGA); UGANDA; Tanzania Industrial Research
Organization, TIRDO; MWASHA mushroom farm (Kibaha); MSHOBOZI

and MTUPILI.
Harvesting and Marketing
Production of high quality mushrooms is one of the best and self-evident

ways to best market one’s products. The harvesting stage of mushroom
plays paramount role on the quality and shelf life mushrooms. In this
study, it was observed that the growers have different ways of harvesting
and also harvest at different stages of maturity of the mushrooms. 36.4%
indicated they harvest the mushrooms while young and 63.65 have
indicated that they harvest when fully grown. 16.7% of the respondents
indicated that they harvest by cutting the stalk and 83.3% has indicated that
they harvest by uprooting the stalks. Selling mushrooms at their freshest
and well packed attracts more customers to buy. Most of the mushrooms
marketed in Dar es Salaam are fresh in a net mass of 250g. Different
packages are used for packing mushrooms during selling: Most of the
mushroom growers (71%) of the respondents use clear plastic bags and only
29% use the polythene trays. Although prices vary greatly, there are general
price guides; the prices of a kg of mushroom ranged from Tshs 1,200/= to
Tshs 4,000/= but mostly the price was Tshs 4000/=.
Mushroom Growing Houses
Providing good conditions growing can lead to higher yield of mushrooms.

An ideal mushroom growing house does not necessarily need to be a high
tech, high cost structure with all automatic controls. Results in Dar es
Salaam showed that growers use a wide variety growing room construction
and capacity. The common growing rooms were constructed differently
along the following; mud walls with thatched roof; concrete walls with
thatched roof; and concrete walls with galvanized iron roof. The range of
the capacities indicated by the respondents is between ranged between 30 –
10,000 bags.
Constraints of the Mushroom Industry in Dar es Salaam Region
The set-up of the questionnaire did not give the respondent to chose among
a series of problems, but the following were indicated by the respondents to
be the problems facing the growth of the mushroom industry in Dar es

Salaam region; lack of capital by 56.2%; unreliable market by 50%; lack of
clean water by 6.3%; lack of good substrates by 12.5%; non availability of
spawns by 18.8%; lack of preservation skills by 12.5%; lack of pests and
diseases management by 12.5%; and lack of farming skills by18.8%.
Status of Mushroom Industry in Kibaha, Coast Region

were asked in the questionnaire. The following is the analysis of the
responses:
Mushroom growing is one of the most viable enterprises when one uses low
cost inputs to produce the crops. However, one needs proper training and
knowledge to be able to produce mushroom in an environmentally
sustainable and financially profitable manner. 8 respondents have farming
skills, which they attained in the period from 1995 to 2001. Out of the 8
respondents with farming skills, practicing farmers were 7 and there was 1
non- practicing farmer. Out of these farmers with farming skills, 100% grow
oyster mushrooms and only 8.1% (one grower) grow Ganoderma and no one
grows button mushrooms (Agaricus spp). 84.6% have indicated that the
reason for growing mushrooms is for income generation whereby 69.2%
grow mushrooms as a source of food. All growers grow mushrooms
through out the year. The result showed that most of the growers were
middle aged between 36-50 years old (10 respondents), there was no
respondent who was above 51 years of age, and 3 respondents were below
35 years.
The mushroom growers have obtained the farming skills from different
institutions and individual locally. The training differed in length varying
from institution/individual to institution/individual. The following are the
institutions and individuals who were indicated by the growers to provide
training. The duration of the training is put in brackets: Dr. Mtango (1
week); Mwasha (2 weeks); Honorable R.M.Kawawa Mushroom farm at
Kiluvya (4 weeks); University of Dar es Salaam, Department of Molecular

Biology and Biotechnology (2 weeks); TIRDO (1 week); VETA Kibaha (8

weeks) and J. Sumba (3 days).
There are different organic wastes, which are available for mushroom
cultivation. According to this survey, the substrate, which is used by many
growers in Kibaha, was banana leaves and rice straw-62.5% followed by
wood shavings with 37.5% and cotton wastes 25%. The common additives
used were lime by 8.1 % and rice bran by 42.9%. On the other hand sugar,
urea and chicken droppings additives were not used at all. Most of the
growers obtained their substrates through purchasing 71.4% and only 28%
indicated that they obtained their substrates free.
Prior to inoculation of the substrate with the spawn, the substrate should be
treated either chemically, biological or physically to minimize potential
contaminants. The respondents indicated to use three methods of treatment
of substrates. 50% of the respondents use the boiling method for a period
between 1-8 hours and 63% of the respondents use the steaming method for
3 hours, and 12% use chemicals (hydrogen peroxide) for treating the
substrate. All respondents use plastic bags as containers for their substrate.
The capacity of the plastic bags varied between 1-1.5 kg. From the
respondents, 42.9% use the 1kg bags, and 28.6% the 1.5kg bags.
Furthermore, the number of bags inoculated by 100gm spawn jar varies also
from one individual grower to the other. From the data obtained from the
respondents; 37.5% inoculate 15 bags, 62.5%, 10 bags; and 12.5%, 5 bags.
Mushroom seed commonly called spawn in the mushroom industry is a

result of mycelia expansion. High quality spawn will give high mushroom
yield if other cultural practices are met. At Kibaha, spawn was obtained
from different sources and the following were mentioned to be the sources
of spawn: University of Dar es Salaam (UDSM); Dr. A.M. Mshandete
[Elshaddai (Genesis 17:1) Mushroom Centre]; Honorable R.M.Kawawa

Mushroom farm at Kiluvya; Mwasha mushroom farm; TIRDO; BARUKI;

Sokoine University of Agriculture (SUA) and MTAZAM.
The way and the stage mushroom are harvested is crucial for quality of the
product. It was observed that the growers have different ways of harvesting
and also harvested at different stages of maturity of the mushrooms. 50%
indicated they harvest the mushrooms while young and 50% have indicated
that they harvest when fully grown. 25% of the respondents indicated that
they harvest by cutting the stalk and 75% has indicated that they harvest by
uprooting the stalk. Furthermore, the survey results shown that different
packages are employed used for packing mushroom during selling. About
71% of the respondents use clear plastic bags while only 29% use the
polythene trays. The prices of a kg of mushroom ranged from Tshs 2,000/=
to Tshs 4,000/= but mostly the price was Tshs 4000/=.
The walls and roofing materials are determinants of the type of mushroom
growing houses can be constructed. There those built for temporary use and
those erected for long-term use. The results have shown that the mushroom
growers have different mushroom houses with different capacities. The
houses are constructed using concrete walls with thatched roof or made up
of coconut leaves for roofing and walls, mud walls and roofed with coconut
leaves. The range of the capacities indicated by the respondents is between
500 – 1,500 bags.
Constraints of the Mushroom Industry in Kibaha, Coast Region
Mushroom production may appear to be lucrative, but before one ventures

into this business there are some constraints. At Kibaha mushroom growers
indicated two main problems facing the growth of the mushroom industry
namely; lack of farming skills and unreliable market.

Status of Mushroom Industry in Ifakara, Morogoro Region

were asked in the questionnaire. The following is the analysis of the
responses:
Mushroom growing is an attractive crop to cultivate in rural areas however

one needs sound farming skills, practices and training. 19 respondents have
farming skills, which they attained in the period from 2001 to 2002. Out of
the 19 respondents with farming skills: Practicing farmers are 4 and there
are 15 non-practicing farmers. All of these farmers with farming skills grow
oyster mushrooms. The obvious reason for growing mushrooms is for
income generation whereby 84.2% response was obtained but also most of
the growers do consume the mushrooms 84.2%. Not all growers grow
mushrooms through out the year. Only 10.2% of the respondents grow
mushrooms throughout the year. 10.2% grow mushrooms in the period
from April to August and 52.6% grow mushrooms in the period from
August to December. The result showed that most of the growers are
middle aged between 36-50 years old (10 respondents), no respondent was
above 51 years of age, and only 9 respondents were below 35 years. The
mushroom growers have obtained the farming skills from different
institutions and individual. The training differed in length varying from
institution/individual to institution/individual. The following are the
institutions and individuals who were indicated by the growers to provide
training. The duration of the training is put in brackets: SUA TP II (1 day); J.
SUMBA (4 weeks).
Substrates Materials and Additives
At Ifakara the mushroom growers are using a variety of substrates.

According to this survey, the substrate, which is used by many growers, is
maize straw-84.2%, followed by wood shavings- 52.6%, paddy straws-
36.8% and banana leaves- 26.3%. The additive that has been used is salt by
only one respondent. Most of the growers obtain their substrates freely-
78.9%.

Out of the two methods of pasteurization of substrates commonly used in

the eastern regions, 100% of the respondents use the boiling method for 2.5
hours and only 15.8% of the respondents had used the steaming method for
3 hours. All respondents use plastic bags as containers for their substrate
and pack 1 kg per bag.
The number of bags inoculated by 100gm spawn jar varied from one
individual grower to the other. From the data obtained from the
respondents; 47.3% inoculate 10 bags and 15.7%, 3 bags.
Spawn were obtained mainly from two sources: J.SUMBA and SUA who
happened also to be the trainers of these growers.
It was also observed that the growers have different ways of harvesting and
also harvest at different stages of maturity of the mushrooms. 21% indicated
they harvest the mushrooms while young and 42.1 have indicated that they
harvest when fully grown. There was no response on the method of
harvesting whether by cutting the stalk or by uprooting the stalk. Different
packages are used for packing during delivering mushrooms to customers:
5.1% of the respondents use plastic bags, the rest did not indicate which
package they use, but polythene trays are not used. The price of a kg of
mushroom is mostly Tshs 1,000/=.
The mushroom growers have different mushroom houses with different

capacities. The range of the capacities indicated by the respondents is
between 50 – 100 bags. The houses are constructed with concrete walls with
galvanized iron roof.

Constraints of the Mushroom Mndustry in Ifakara, Morogoro Region
There are different constraints facing the growth of the mushroom industry
at Ifakara. The survey results revealed the following crucial problems: non
availability of spawn by 84.2%; lack of skills by 68.4%; Unreliable market by
42.1%; Unfavorable weather by 15.7%; and pests and diseases by 10.5%.
Status of Mushroom Industry in Morogoro Urban, Morogoro Region
There were a total of 7 mushroom growers’ respondents out of the 42

participants who attended the ERMCI-Morogoro meeting. Twenty
questions were asked in the questionnaire. The following are the analysis of
the responses:
Matching the correct mushroom strain with the most suitable substrate and
climatic condition of the cultivated mushroom combined with sound
knowledge and skills are crucial for successful mushroom industry. Seven
respondents have farming skills, which they attained in the period from
1999 to 2005. Out of the 7 respondents with farming skills: practicing
farmers are 2 and there are 5 non-practicing farmers. No response was
obtained on the type of mushrooms grown as well as on the reason for
growing mushrooms, and the period of cultivation. The result showed that
most of the respondents are middle aged between 36-50 years old (20
respondents), there were 3respondents that were above 51 years of age, and
only 8 respondents was below 35 years. The mushroom growers have
obtained the farming skills from Mwasha mushroom farm at Kibaha and
some from fellow farmers.
No response was obtained on the type of substrates and additives used in

mushroom cultivation and on how they obtain their substrates.

There were also no responses on the method used for pasteurization of the
substrates, on the sizes of the plastic bags used and also on the number of
bags inoculated by 100gm spawn jar and on the types of mushroom houses
and capacities. The packaging used is plastic bags- 62.5% and polythene
trays- 37.5%.
Constraints of the Mushroom Industry in Morogoro Urban, Morogoro

Region
Although the set-up of the questionnaire did not give the respondent to
chose among a series of problems, but the following were indicated by the
respondents to be the problems facing the growth of the mushroom
industry in Morogoro urban were; unreliable market by 85.7%; lack of free
substrates by 25%; non availability of spawns by 62.5%; lack of pests and
diseases management knowledge by 25%; and poor communication
by14.3%.
DISCUSSION
The Mushroom Industry in Dar es Salaam Region
In Dar es Salaam region there are a number of different institutions and

individuals providing mushroom cultivation skills training as well as
providing spawns. The results have shown that individual growers use
different methods for cultivation and harvesting of mushrooms, indicating
that different trainers train them differently. From the information gathers
we have managed to get the list of trainers and spawn producers therefore
there is a need to conduct a retraining course for these trainers. Experiences
could be shared and a common standard should be agreed upon. A training
manual on the Tanzania context should be developed, which will be used
for re-training of the mushroom growers. Standardizing the cultivation
methods might be very important for local, regional and export markets.
The pool of spawn makers could also be retrained to produce quality
spawns. Those without the capacity for tissue culture could obtain the
strains from those with the capability. Here the idea of clustering could be
built up and practiced to make the mushroom industry move ahead. More
or less similar situation on problems such as lack of availability of quality

mushroom spawn, low mushroom demand hence poor marketing,
disparity in training and lack of capital reported in this study have been
recently reported from Kenya (Wambua, 2004).
The Mushroom Industry at Kibaha in Coast Region
At Kibaha there are a number of different institutions and individuals

providing mushroom cultivation training as well as providing spawn as
what were observed in Dar es Salaam. Similar to the Dar es Salaam results,
the Kibaha survey results have shown that individual growers use different
methods for cultivation and harvesting of mushrooms, indicating that
different trainers trained them differently. From the information gathered
we have managed to get the list of trainers and spawn producers therefore
there is a need to conduct a retraining course for these trainers. Experiences
could be shared and a common standard should be agreed upon. A training
manual on the Tanzania context should be developed, which will be used
for re-training of the mushroom growers. Standardizing the cultivation
methods might be very import for export market. The pool of spawn
makers could also be retrained to produce quality spawn. Those without
the capacity for tissue culture could obtain the strains from those with the
capability. Here the idea of clustering could be built up and practiced to
make the mushroom industry move ahead. Similar constraints,
observations, advices and recommendations have reported from
Zimbabwe’s current mushroom industry situation by Chiroro (2004);
Mabveni (2004).
The Mushroom Industry at Ifakara in Morogoro Region
In Ifakara mushroom cultivation skills training as well as providing spawns

have only been done by two entities. The results have shown that
individual growers use different methods for cultivation indicating that
different trainers trained them differently. It indicates that there is a need to
develop a training manual on the Tanzania context, which will be used for
re-training of the mushroom growers. Standardizing the cultivation
methods might be very important for improving mushroom production
hence. Nshemereirwe (2004) gave similar observations and advice to
prospective mushroom growers in Uganda mushroom industry status.
The Mushroom Industry in Morogoro Urban, Morogoro Region
In Morogoro the results indicated that there are less practicing growers.
However, the problems indicated of unreliable market and non-availability
of spawn may be the course. The growers may be required to be re-trained
in mushroom cultivation and in entrepreneurship skills so that they may be
in a position to secure markets for their mushrooms. This is in agreement
with what have been reported on development of the local mushroom
industry in Swaziland (Choi, 2004).
EMERGING ISSUES FROM THE ERMCI MEETINGS
ERMCI has held four meetings in four different places including Kibaha,
Morogoro, Ifakara and Dar es Salaam in the eastern regions of Tanzania.
The aim of the meetings was to create awareness and build trust among the
members of the cluster. The facilitators’ team thought that one of the
methods to achieve this objective was to organize meetings of the potential
members of the cluster and inform them about the initiative and request
them to join. At the same time understand the status of their activities and
constraints they face in promoting the mushroom industry in these regions.
Thus besides presentations and discussions in the meeting members were
also requested to fill a questionnaire which was used to assess the situation
of mushroom industry activities in their respective areas. During the
discussions in these meetings a number of issues emerged. The following is
the summary of the issues that has emerged in the different meetings:
(i) In all meetings the issue of clustering was agreed upon.
(ii) One of the hindering factors of good mushroom production was
identified to be poor quality spawn. Participants were eager to know
how to differentiate poor quality spawn and good quality and how
could they obtain quality spawns.
(iii) It was noted that there are many people who are interested to know the
mushroom cultivation skills. Among the participants there were ones
who have no skills in mushroom cultivation but wishing to acquire
such knowledge.
(iv) The issue of proper (appropriate) mushroom housing arose.
(v) Issue of creating awareness in the public on the importance of
mushrooms for both nutritive and medicinal uses was also raised.

(vi) Marketing of mushrooms was also a major concern among the

participants.
COMPARATIVE STUDY OF THE STATUS OF MUSHROOM

INDUSTRY AT MOSHI IN NORTHERN OF TANZANIA
A similar survey using the same approach employed in eastern regions was
done in Moshi as a control. The result revealed the problems, potentials and
challenges facing the mushroom industry in Moshi were very similar to the
ones in the eastern regions. From this comparative study it could infer that
a similar situation exist in Tanzania, as far as mushroom industry is
concern.
LOW HANGING FRUITS
ERMCI has managed to get some achievements in the past few months
since its establishment. The following is the summary of the achievements
so far.
(i) Built trust among members in different places. Currently 155 people
(Dar es Salaam 69, Morogoro 38.Ifakara 48) have agreed to be members
of the cluster.
(ii) Held 4 meetings for awareness creation on the cluster concept.
(iii) Made a brochure to disseminate information about the cluster.
(iv) Negotiated and allowed to use an abandoned CCM building at Kibaha
for cluster activities. The building is planned to be used as mushroom
cultivation training centre, a laboratory for production of spawn, a
place to carry research on the various issues for optimization of
mushroom cultivation, e.g. matching the correct mushroom species
with the most suitable substrate and climatic conditions for optimal
mushroom production, and processing of mushrooms into value added
products such as mushroom soap, mushroom extracts, etc.
(v) Encouraged one of its members to participate at exhibitions during the
First Science and Technology Conference organized by the Tanzania
Commission for Science and Technology (COSTECH) from 24-26 May
2006. The member won a second award.
(vi) Managed to make a situational analysis of the status of mushroom
industry in the eastern regions of Tanzania, and hence be in a position
to institute appropriate interventions.
(vii) Encouraged the members from Mkuranga to request for financial

assistance from the Tanzania Commission for Science and Technology
(COSTECH) for mushroom cultivation training, where there is a high
possibility to obtain the assistance.
(viii) Prepared and submitted proposals to MKUKUTA and SME
Competitive Facility for funding consideration for further development
of ERMCI activities.
CHALLENGES AND POTENTIALS
The mushroom industry in Tanzania is being faced by a number of

challenges. Among the challenges are:
(i) Lack of adequate and appropriate knowledge/skills in mushroom
cultivation and spawn making among the players.
(ii) Lack of proper mindset. People must be prepared to learn and adopt
what is appropriate.
(iii) Marketing of mushrooms is being faced by a challenge of lacking
linkages. Consumers are looking for mushrooms but do not find them
and growers are looking for someone to buy the mushroom, but also do
not find them. So there is a missing link between the growers and the
consumers. ERMCI should be involved to create the link either through
establishing collection centers and popularize the use on mushrooms
through the mass media.
(iv) Lack of post harvest and mushroom processing equipments and
technologies.
(v) Lack of quality caring-quality unconsciousness.
(vi) Lack of standard, simple mushroom house.
(vii) Lack of proper knowledge/skills in merging mushroom spices,
substrate and climatic conditions for optimal harvest.
(viii) Lack of adequate funds for growth of the mushroom industry. i.e. lack
of access to credit facility.
The aspects favouring vibrant mushroom industry growth are as follows:

(a) Already there are some people with some skills on mushroom
cultivation and are engaged in mushroom production though in small
scale.
(b) There is a huge amount of agro-wastes, which is a source of substrate
for mushroom cultivation.
(c) Suitable climatic conditions and cheap labor exist.

(d) The nutritive and medicinal values of mushroom could be used as
potential bites to establish mushroom markets.
(e) Initiatives such as the ERMCI will foster the mushroom industry.
(f) Possibility of growing organic mushrooms exists. Although demand for
organically produced foods is still low in developing countries like
Tanzania, but wider markets exists in Europe and USA.
THE WAY FORWARD
From the results obtained from the survey, ERMCI is planning to conduct
the following:
i) Standardization of the mushroom cultivation training so as to have an
appropriate training manual.
ii) Identification of capable spawns makers and re-training them to
produce quality spawns. Those without capability of tissue culture
should take mother spawn from the ones with the capability. This
will foster the issue of clustering.
iii) Retrain wild mushroom pickers to take care of appropriate picking
techniques in order to ensure good quality of the wild mushrooms.
iv) Identification of potential markets.
v) Training on value addition to mushrooms for diversifications of
mushroom products
vi) Promotion campaigns through mass media and other means on the
importance of mushrooms for nutrition as well as medicinal.
vii) Research on matching substrates and type of mushroom and
climatically conditions for optimal production/harvesting
viii) Introduce cultivation of medicinal mushroom species to the growers
for future development of the nutriceutical industry in the eastern
regions as well as giving people a choice, which will also widen the
market.
ix) Build a strong mushroom cluster.
x) Development of simple and appropriate mushroom growing house.
xi) Sensitize financial institutions to support development of mushroom
industry in the region.

CONCLUSION AND RECOMMENDATIONS
There is a potential for a vibrant mushroom industry in the eastern regions

of Tanzania but also in the country as a whole. Some of the hindrance
factors for the growth of the mushroom industry have been identified and
there is a potential for getting remedies for them. There is a need to
standardize mushroom cultivation training through making a standard
training manual in the Tanzanian context. Since spawn production is
perhaps the most important limiting mushroom industry, not only in
eastern regions, but in other regions as well as in other developing
countries. There will be also a need to accredit the spawn makers in order to
guarantee that the growers obtain quality spawns. Unreliable mushroom
market was also identified as one of the problems for the growth of the
mushroom industry. This necessitates a need to actively promote the
consumption of mushrooms through television, radio talks, print media,
posters, calendars, T-shirts, seminars and having a special day dedicated for
‘eating mushrooms’. There is also a need to sensitize entrepreneurs to
establish mushroom processing factories, to guarantee market for the
mushroom growers. For the wild mushroom pickers there is also a need to
explore export markets for the same. It is quite a short period to evaluate
the success or failure of the ERMCI, but to a big extent ERMCI is on good
footing and if facilitated it will make the image of the mushroom industry
change.
ACKNOWLEDGEMENT
The authors express their gratitude to Sida/SAREC via College of

Engineering and Technology (CoET) of the University of Dar es Salaam for
financial support. Tanzania Commission for Science and Technology
(COSTECH) for material support. We are also very grateful to CoET for the
initiative to promote the cluster concept in Tanzania and for including the
mushroom sector to be one of the pilot cluster in the eastern regions for
nurturing innovation.

REFERENCES
Chiroro, C.K. (2004), Mushroom Industry in Zimbabwe. In: Mushroom

Growers’ Handbook 1, pp 204-211. MushWorld. Available at
http://www.mushrworld.com. Viewed on 30th August 2006.
Choi, W.K. (2004), Oyster Mushroom Cultivation, Mushroom Project in

Swaziland. In: Mushroom growers’handbook 1, pp 38-47.
MushWorld. Available at http://www.mushrworld.com. Viewed on
30 th August 2006.
COSTECH, (2004), “Report on the Status of Mushrooms Marketing in

Tanzania”, Unpublished Report of the Tanzania Commission for
Science and Technology.
Härkönen, M., Niemelä, T., Mwasumbi, L (2003), Tanzanian Mushrooms.

Edible, Harmful and Other Fungi. Botanical Museum, Finish
Museum of Natural Histroy, Helsinki.
Mabveni, A-R.S. (2004), Mushroom cultivation in Zimbabwe. In: Mushroom

http://www.mushrworld.com. Viewed on 30 th August 2006.
Nshemereirwe, F. (2004), Mushroom cultivation in Uganda. In: Mushroom

Oei, P. (1996), Mushroom Cultivation with Special Emphasis on Appropriate

techniques for developing countries. . Tool Publ Amsterdam, The
Netherlands.
Wambua, J. (2004), Mushroom cultivation in Kenya. In: Mushroom


APPENDIX I
KILIMO CHA UYOGA TANZANIA
Dodoso inayofuata inatumika kwenye utafiti juu ya kujua hali ya kilimo

cha uyoga katika mikoa ya Morogoro, Pwani na Dar es Salaam.
Uyoga unaovunwa porini in msimu, unaliwa katika maeneo mengi katika

Tanzania hususani wakati wa masika. Teknolojia ya kilimo cha uyoga ni
ngeni katika Tanzania, hivyo inakabiliwa na changamoto nyingi ambazo
hazina budi kutatuliwa ili kuifanikisha. Kutokana na umaarufu huo
TANZANIA MUSHROOMS GROWERS ASSOCIATION (TMGA)
ikishirikiana na Eastern Region Mushroom Cluster Initiative (ERMCI)
inafanya utafiti ili kuendeleza kilimo cha uyoga kama mkakati wa
kuongeza kipato na kupunguza umasikini. Aidha taarifa kamili kuhusu
kilimo cha uyoga na umuhimu wake haziko wazi sana. Hii inapunguza
upana wa kilimo cha uyoga. Kutokana na sababu hii tunakuomba kama
mdau kujaza fomu iliyoambatanishwa ili tuweze kujua hali halisi ya kilimo
cha uyoga na jinsi ya kukiendeleza. Taarifa hizi tutazitumia tu kwa ajili ya
utafiti huu na sivinginevyo.
Tunatanguliza shukrani

1. Jina la Jinsia Umri Anuani Eneo la kazi

Mhojiwa SLB---------------------------------------- Kata--------------------------------------
Simu-------------------------------------- Wilaya-----------------------------------
B/Pepe----------------------------------- Mkoa-------------------------------------
2.Ukulima wa 3.Madhumuni ya kilimo 4.Walengwa wa biashara 5.Aina za uyoga ulimazo:

uyoga hicho: Watu binafsi----------------------------- Mamama--------------------------------
umeanza lini Kupata lishe------------------ Mahoteli---------------------------------- Ganoderma-----------------------------
Biashara----------------------- Taasisi------------------------------------- Button------------------------------------
Kutengeneza dawa---------
6.Kipindi cha 7. Mafunzo ya uyoga: 8.Vimeng’enywa 9.Virutubisho 10.Upatikanaji 11.Usafishaji
kulima Ulifundishwa na nani?---- unavyotumia: wa vimeng’enywa:
Mwaka mzima- Vimeng’enywa:
-------------------- Kwa mda gani?---------- Kuchemsha-----
Kuanzia--------- Kwa kununa-----
-hadi------------- Mvuke-----------
Bure----------------
Kemikali--------
12.Mda wa 13.Hifadhi ya 14.Uzito wa kila 15.Upatikanaji wa mbegu: 16 Ubora wa

kusafisha: vimeng’enywa: hifadhi: mbegu:
Kilo…………. Toka kwa--------------------------------- Zinatanda na

Saa----- Mifuko plastiki-------------- Toka kwa--------------------------------- kutoa mazao----

---------------------------------- Gramu………. Toka kwa--------------------------------- Zatanda bila
Toka kwa--------------------------------- kutoa mazao----
Hazitandi
kabisa-------
17.Upandaji 18. Mavuno 19.Uvunaji 20. Uyoga 21.Bei.
Gramu ngapi sokoni
Hifadhi/mifuko mingapi kwa chupa moja kwa mfuko Unavuna kwa: Bei kwa kilo ni-
ya mbegu?----------------------------------------- mmoja---- Kung’oa shina--- Hutiwa kweye: ---------
Unavuna ukiwa: Kukata shina---- Mifuko ya
Mchanga---------- - plastiki-------
Umekomaa------- Vitrei vya
Wenye kutoa -------------------- plastiki-------
unga-------- ----------------------
22.Shamba 23 Ukubwa wa 24.Matatizo makuu ni:
Limejengwa kwa shamba: a)-------------------------------------------
Tope-------------------------------------------------- Lina uwezo wa b)-------------------------------------------
Makuti juu------------------------------------------ kubeba c)-------------------------------------------
Tofali------------------------------------------------- hifadhi/mifuko-- d)-------------------------------------------
Bati juu-----------------------------------------------

E.11 ARUSHA VEGETABLE SEEDS CLUSTER (AVSC)

by Hussein Mongi
INTRODUCTION
The 1st Progress report for the Arusha Vegetable Seeds Cluster (AVSC)
covered activities carried out during the period March-May 2006. The main
activity then carried out was preliminary planning for the 1st Stakeholders
Meeting and Kick-Start Workshop for the creation of awareness among
identified stakeholder groups and the sensitization of key policy leaders
and opinion leaders on the critical place of innovative clusters in facilitating
speedier and sustainable economic growth in the country. The present
report mainly covers the holding of the stakeholders meeting and
workshop.
AVSC MEETINGS HELD
Three meetings were held to plan activities, review implementation

arrangements, to assess achievements and/or constraints met and to
determine further actions particularly following views, recommendations
or resolutions of the 1st Stakeholders Meeting-cum-Workshop.
The workshop was held on 29 June 2006 at the Wold Vegetable Centre’s
Regional Centre for Africa in Arusha and attended by 49 people, 44 of
whom were the initial potential Cluster members.
COVERAGE OF THE 1ST STAKEHOLDERS MEETING/WORKSHOP
The AVSC Task Force had determined that it was essential that the Seed
Cluster’s initial activity must be the holding of the 1st Stakeholders’ meeting
together with a kick-start workshop on the role of innovative systems and
innovative clusters in socio-economic development measures with
particular reference to Vegetable Seeds Development and Use Promotion.
Most of the participants were being introduced to the “clustering”
mechanism for the first time. The approach chosen by the Task Force is
claimed to have duly instilled the gist of the clustering phenomenon and
philosophy to the addressed stakeholders and to have created greater
H Mongi 301 Arusha Vegetable Seeds Cluster
awareness for the essentiality of use and increased production of quality

seed for bigger returns to investments.
The keynote address stressed that the main achievement of the Cluster’s
efforts would depend on cluster members in:
(i) Jointly analyzing constraints in goods and services delivery;
(ii) Considering ways and means to solve problems extant or met;
(iii) Evolving and establishing mechanisms for bringing out the desired
changes in the good’s delivery;
(iv) Designing projects or programmes for achieving set goals, improved
products and their delivery to target consumers;
(v) Seeking knowledge (from far, near and among the stakeholders base),
including causing innovative engagements that seek improvements in
the product (physical and aesthetic); and
(vi) Strategic “marketing” of the product in ways and means that bring
satisfaction to all stakeholders in the “chain”.
SELECTION OF PARTICIPANTS FOR KICK-START WORKSHOP
Guided by cost considerations, among other criteria, the AVSC Task Force
selected participants on the basis of the Triple Helix composition of the
AVSC group.
Guest of Honour
The choice of Guest of Honour fell on the Regional Commissioner for
Arusha Region. Other desired leaders were then tied up in the on-going
Budget Session of the Tanzania Parliament. His speech covered: (i)
Importance of Indigenous African Vegetables, (ii) Research and
Development for the Local Vegetable Industry Sub-sector, (iii) Seed
Production Infrastructure, (iv) National Vegetable Seeds Development
Programme, (v) Unguarded Seed Imports, (vi) Role of NGOs (including
Religious Bodies) in Seed Production/Delivery, (vii) Markets and
Marketing, (vii) Training of Cluster Members, Extension Personnel and
Farmers, and (viii) uniqueness of Land Requirements for Seed Farms. The
views he expressed and the implicit recommendations for action by
government were apt and will be communicated to government for
attention.

CONTENT OF PAPERS BY SELECTED PARTICIPANTS
The Task Force chose areas for a keynote address and other papers
according to relevance for intended effect on both awareness creation,
sensitization of leaders and farmers representatives, and as indicators of
what most needs attention in the seed sector at this time.
Guidance on the content of the keynote address, the presentation by the

Cluster’s facilitator and the main stress in the requested papers/addresses
Papers requested covered the following:

1. Critical place of Clusters in fostering industrial growth for national
economic development;
2. Vegetables as Neutraceuticals;
3. Vegetable Seed Genetic Resources - Biodiversity preservation and
Guarded Exploitation as Aspects of Food Security, highlighting the
value of Indigenous African Vegetables (IAVs);
4. Strategic place of the World Vegetable Centre’s Regional Centre for
Africa in supporting vegetable seed production in Tanzania through the
Arusha Vegetable Seed Cluster;
5. Machinery, tools and equipment design and development for the seed
sector by TEMDO and CAMARTEC;
6. Plant health control and protection services provision by TPRI; and
7. Building effective and sustainable associations by DAIPESA.
Dr. Dietlef Kirchow, Director of the Africa Regional Centre of the World
Vegetable Centre, was among people approached for support in
accomplishing the AVSC’s objectives. His response was positive and most
encouraging particularly as the Centre (based at Tengeru/Arusha) has
virtually all the vegetable crops, tested varieties, training facilities, R&D
experts and the production technologies intended to be made part of the
vegetable production, processing and marketing strategies in the projected
AVSC activities.

ARUSHA VEGETABLE SEEDS CLUSTER (AVSC) 29 JUNE 2006

STAKEHOLDERS’ WORKSHOP
Draft Workshop Resolutions
Exploitation of Biodiversity for Seed Genetic Quality Improvement

Opportunities available in Tanzania’s wide plant biodiversity – and
holdings in the national seed banks - should be exploited to the fullest
extent possible in collaborative stakeholders actions in joint planning and
implementation aiming at value addition in efforts made and thereby
making the cluster’s system support the rapid and sustainable development
of the seed industry, rural livelihoods and national income as a whole.
Strategic Positioning of Farmers in the Seed Production and Usage Chain
Because farmers are the ultimate end-users of seed and other planting
materials, they should be strategically positioned and targeted in the seed
chain so as to provide a firm link among all stakeholders in the seed cluster.
Recognition of the Triple Helix Base for the Seed Cluster’s Composition
The need to build a firm cluster based on three pillars (the Triple Helix),
was affirmed as most appropriate, with the Triple Helix for the seed cluster
being comprised of: (a) the affected or related enterprises; (b) technology-
related or technology-oriented educational and training institutions
(academia); and (c) government entities responsible for setting up policy,
legal, regulatory, micro-and macro-economic framework conditions that are
conducive to technology development, innovation and exploitation.
Central Support Position of HORTI Tengeru in the Seed Industry’s

Growth
Recognizing that HORTI Tengeru was established to be the national

vegetable seed sector’s king pin and target development centre, besides
catering to horticultural R&D and technical training, the government is
urged to give it (HORTI) due development support so that it can continue
to develop towards becoming the dream national horticultural centre for

R&D and Training that would uplift rural enterprises and livelihoods in
Tanzania.
Remedial Measures to Increase Production and Wider Use of Quality

Seed
As the quantity and quality of vegetable seeds produced and used in

Tanzania is still very low (mostly partly due to knowledge gaps in seed
R&D, production technology), the Cluster should immediately engage in a
dialogue with academia, training colleges, agricultural research institutions,
representatives of farmers, extension agencies, seed regulatory agencies,
TASTA, TAHA and inputs providers to determine pressing training needs
and jointly review and revise existing training curricula, training materials
and approaches.
Sourcing Financial and other Supports for Seed Cluster Development
In view of the importance of seed in national development and the Cluster’s

aspiration to provide a serious link in the seed industry’s better growth, the
Cluster should seek adequate financial support for the realization of its
vision of unique approach to integrate the participation of all key
stakeholders in the development and use of proven technologies and for the
cluster’s sustainability.
Awareness Creation and Sensitization of Peers in Quality Seed Use
As the Mission/Vision of AVSC is increased production, availability and

usage of quality vegetable seeds, due attention should be given to the
popularization, wider availability, use and marketing of Indigenous African
Vegetables (IAVs) in view of their recognized high value in human
nutrition and their greatly increased appearance in both local and export
markets. The World Vegetable Centre (WVC) already has an appropriate
internationally supported project on the IAVs. Hence, the Cluster should
join in with the WVC to exploit the seed materials that are already tested
and ready for commercialization. These materials should find easier
adoption and wider use in Eastern and Central Africa than the more
traditional foreign vegetables (e.g. cabbage, carrot, cauliflower, eggplant,
and Swiss chard, among others).
Wider Recognition of Vegetables in Tanzania’s Revised Agricultural

Policy
Because of the great importance of vegetables in human nutrition and

current constraints for their production and guarded use, vegetables should
have a higher stake in agricultural production strategies now and in the
future. Therefore, the place of the vegetable crops sector should be
recognized through its incorporation in the national agriculture policy now
under consideration for a major revision.
Role of Farmers in Quality Seed Production through Farmers Groups
In view of the present poor recognition of aspects of quality seed and hence
low adoption of such seed, and since the growth of seed companies owned
and managed by farmers per se will take time to be realized, the Seed
Cluster should work closely with public bodies and NGOs to promote the
production of Quality Declared Seed (QDS) in order to transfer seed
technology to farmers, make seed available to remote areas where
commercial seed companies are not yet operative so as to cater to the timely
supply of affordable quality seed of desired crop species and varieties to
farmers.
Markets and Marketing of Vegetable Seeds
Because markets and marketing are major constraints in vegetable crops

and seed production, these systems development should be nurtured and
the respective support activities encouraged in R&D institutions in response
to market demand and the creation of awareness about the benefits of the
R&D services amongst the clientele and grass roots production that is based
on the market demand of horticultural crops.
Integrating Investment Incentives in Policy Implementation Strategy
There is need to integrate policy implementation strategies with investment

incentives so as to provide the necessary enabling environment for agro-
processors and exporters to invest and provide ready markets for the small
scale growers.

Critical Place of Sub-Clusters in Seed Sector Development
It was widely viewed and resolved that there was value in the Arusha
Vegetable Seed Cluster to be supported by activities resulting from “sub-
clusters” (constituted as divisions of the main cluster). Such sub-clusters were
considered to be roughly constituted by groups of: (i) seed companies, (ii)
research and training institutions, and (iii) growers/farmers and extension
agencies. The sub-clusters were expected to form their own fora and play
their assigned roles and responsibilities of action groups of the main seed
cluster.
Need for the Registration of the AVSC
As there appeared to be constrains to the smooth implementation of cluster

activities that would receive public attention if the Cluster were formally
recognized through a form of registration, it was recommended that the
Cluster should seek such registration in a form to be determined as most
appropriate.
AVSC Database
It was viewed and agreed that the Cluster needed to have its activities and
outputs preserved and communicated in the best way possible and be at the
disposal of cluster members and the general public for easy and prompt
use. It was recommended that the cluster should undertake to establish a
database of stakeholders’ profiles, activities, publications and information
of a general nature that is critical to the seed sector and helpful in the
sharing of experiences.

E.12 DEVELOPING KAMPALA MANAGEMENT CONSULTANCY

CLUSTER
by John Musajjakawa,
Senior Investment Executive, Investment Promotion Division,
Uganda Investment Authority, Uganda
BACKGROUND
Innovative cluster that facilitate the interaction and exchange of knowledge

and opportunities between academia, business and Government have been
proven to be important in the development of new products, services and
processes. The world over has over the last twenty years, recognized this
fact and Africa as well as other least developed regions have been left
behind. Uganda like the rest of Africa has woken up to this new reality and
beginning to identify already existing innovations systems and clusters
with the objective of strengthening them and fostering the formation of new
ones in order to address the issues of poverty and unemployment.
In September 2003 participants from Uganda Tanzania and Mozambique

attended the 6th Global Conference on Innovation Clusters organized by
The Competitive Institute (TCI) and the Swedish Academy for Innovation
systems (VINNOVA, Sweden). A similar regional conference under the
same theme was organized by the College of Engineering and Technology
of the Faculty of Dar es Salaam in 2004 at Bagamoyo and sponsored by
Sida/SAREC.
The Bagamoyo Conference gave birth to the Innovation System and Cluster
Programme for East Africa (ISCP-EA) sponsored by Sida/SAREC. The
ISCP-EA Programme is spearheaded by the Faculty of Technology
Makerere University. The faculty organized a National Stakeholders
• Introduced the concept of innovation systems;

Conference that:
• Identified the key actors and support institutions as for promoting of
• Identified the policy directions required;

innovation and cluster are concerned;
• Prepared the ACTION PLAN; and
J Musajjakawa 308 Management Consultancy Cluster

• And appointed the National Steering Committee composed of

stakeholders selected using the “Triple Helix Model” and its main task
was to implement the Action Plan.
• Awareness creation,
The Action Plan included among other things the followings:
• Competence building,
• Coordination, and
• Establishment of pilot innovation systems and/or cluster initiatives.
In September 2005, the National Steering Committee sponsored organized

the first ever Innovation Systems and Cluster Development Training Course
in Uganda. The graduates of the course were destined to become cluster
facilitators and advocates of cluster development.
Seven pilot clusters initiatives are currently being piloted in Uganda. These
include Uganda Quality Basketry Luwero District Fashion and Textile
Kampala, Pineapple processing Kayunga Management Consulting
Kampala, Metal Fabrication in Katwe, Salt Mining in Lake Katwe, and
Ethanol Production Kakira.
After six months of awareness campaign, training and mentoring, Kampala

Management Consultancy Cluster operating under the name of Kampala
Management Consultancy Cluster Associates (KMCCA) was launched on
15th July 2006.
The Kampala Management Consultancy Cluster main aim is to provide

timely multidisciplinary management consultancy services through a network of
integral professionals.
• The establishment of a reliable network of at least 50 firms/individuals,

After the launch, the Facilitators team is focused on
• Identify and respond to the gaps in the field of management

i.e., membership recruitment drive;
• Introduce new ways of assisting the cluster to become more effective

consultancy;
and efficiency;

• Through best practices and high standards make this cluster a show
•
case in the great regions and beyond;
•
Get jobs for members and boost the cluster; and
Act as lobby group for government support and better investment
environment.
FACILITATORS TEAM
The KMCCA original facilitators’ team was formed after September 2005
Innovation Systems and Cluster Development Training Course in Jinja,
Uganda. The team was composed of a specialist in investment promotion
(Government), two practising /teaching consultant engineers (Makerere
University), a business services consultant (private sector), three
educational and skills development specialists (semi-private), a research
consultant specialist and a Member of Parliament.
Therefore, it near presentation of the triple helix format (concept) of cluster

development and a pillar of strength for cluster development. This
composition played a critical role in the process of the cluster development
and unveil availability of the range of latent untapped skills that are
commonly used in consultancy services. All the Facilitators were based in
Kampala; they had e-mail accounts, telephones and were specialist in their
fields of occupation.
The core financial base for development facilitation was provided by

Sida/SAREC through Faculty of Technology (FoT) Makerere University
and the office logistics used belonged to Uganda Investment Authority
(UIA) and FoT. Individuals used the personal offices PC stationary but
above all put in time.
FACILITATORS TEAM APPROACH
The team draw up a comprehensive programme with milestones for the

cluster formation. The programme included regular preparatory meetings
and team consultations. Individual members were assigned research work
which they reported back to the team on a weekly basis. This included
visited visits to consultancy (firms small or big) prominent individual
consultants. The team planned for several workshops and launched the
Facilitators approach. The launch of the approach was to determine how the
cluster will operate. And the operation was based on what was termed the
KMCCA CLUSTER SURROUND CONCEPT summarised in Figure 1.
Environment
Institutions Influencing Factors
Organizations
System Political
Economic
Skills Networks Socio-

Groups People Consultancy Processes
Cultural
Media
Technology
Markets Legal
Figure 1
The concept looked at all possible factors that can make any product to be
put on the market successfully. The concept was needed because the
product was unique nature. It was a service.
The concept was to allow the accomplished Management consultancy firms

and individuals to form the leadership of local champions to run the cluster
with clear understanding of the operatability issues of the cluster.
This made the team members to appreciate that the cluster success depends
on the political awareness of the impact of cluster on the economy. And it is
necessary to put in place the appropriate policy guidelines, legal framework
for national & cluster operations. These clearly defined how each cluster
member will operate, ensured the sharing of competencies; quality of work
and the branding of the cluster with a desired future define below Figure 2.

Our Desired future

The Management Consultancy Cluster will be a network of the leading
management consultancies in Kampala. The desired future is to take up
75% of the Management Consultancy work in the Great Lakes region by
2015. We shall launch a website where all information on firms’ capability
profiles will be hosted. We shall be able to bid for consultancy work in the
Great Lakes Region, Africa and beyond.
Figure 2
OUT COMES
The efforts of the Facilitators resulted to three major workshops, a training

retreat, monitoring and evaluations, and three mentoring sessions.
The main purpose of the workshops was to create awareness about the
clusters as another mode of approach to national development, recruit the
local champions and develop the cluster to a recognisable level. A number
of gaps and failures were recognised during these workshops. These were
rectified after the Facilitators training retreat.
GAPS, DELAYS AND FAILURES
Because of the social –culture operations of the targeted groups, set time
frames and deadlines (process), the team failed to establish the exact
number of micro/pico and consultancy firms and individuals.
This resulted into failing to get the appropriate local champions on the first
attempt. It is presumed and the team is still convinced that it failed to
recognise the expectations of the consultancy firms/individuals. One of the
major expectations was the availability of easy funding mechanism and
financial framework that would bring in quick returns.
Five main factors were recognised as the causes which delayed the speedy
process of developing the KMCCA. They may necessarily not be of any
consequences to other clusters but recognising their existence may help in
the speedy development of other clusters which passes a services product.

1: Nature of the Cluster
Management Consultancy as a product or produce is a services. It is not

physical and therefore more complicated to conceptualise by the
communities.
2: Existing Organisations
Many professional associations and organisation do exist in Uganda and do

view the cluster as a rival association in making. There is therefore a nature
tendency to rival the new and emerging initiatives. However through
awareness campaigns the e cluster initiative is viewed a board spectrum
approach to a wide range consultancy fields. Cluster members are therefore
encouraged to be members of these associations.
3: Awareness
Cluster concept was new to most people at all levels in both the political
and economic sectors. A vigorous campaign to all national segments was
recommended.
4: Information
There is limited or nor market analysis or statistical information to make

cases for clusters in Uganda. It comes even more difficult to present cases
for invisibles (none physical) products like services.
5: Sustainability
Whenever new community and national initiatives are proposed, funding

them to maturity has been problematic. Sustainability and dependence
issues are chronicle to Africa development processes. Therefore the
question of how the cluster will be sustained in its initial needed to be
addressed.

ACHIEVEMENTS
Despite the gaps, delays and failures the team made these achievements.
Through refocusing on the specific market segment of the, i.e. the
individual consultants, the retired Chief Executive Officers and the
pico/micro consultancy firms the naturally form the clusters. The
Facilitators invented 30 consulting firms/Individuals to a recruitment and
awareness workshop. Twenty six (26) invitees turned up and agreed to
form the core members of the cluster. These became the local champions
who have formed the champions’ leadership team. The leadership team has
undergone training and mentoring sessions and has been able to use the
cluster surround concept as defined by the Facilitators team, to draft the
rules and regulations that fall within the national legal frame work and
acceptable to all the national professional bodies and organizations. After it
launch, KMCCA cluster now boosts of fifteen individuals/firms
specialising in six disciplines ranging from NGO management to
Agribusiness development.
The cluster has a temporary office accommodation and PC offered by one of

the local champions.
The KMCCA has vigorously started to hunt for bids and has so far made
local two bids and one regional (Sudan).A work plan has been developed
and the Facilitators team has started the process of handing over the cluster
development process to the local champions.
CHALLENGES
There have been challenges to both the Facilitators and the local champions.
These are listed as
(a) Balancing of Facilitators activities and the jobs activities,
(b) Facilitators commitment and honesty (three Facilitators are no longer
active),
(c) National awareness campaign to all levels has not been a smooth as
expected,
(d) Sustaining capacity building and qualified pool of facilitators to replace
those who drop off as short term strategy,

(e) Identification of the firms/individuals to join the Cluster. There is no

specific recruitment criteria,
(f) Trust and recognition as true product/services to benefit the country,
(g) Suspicion by other Associations,
(h) Political /economic factors,
(i) Cluster members intentions and attitude towards the cluster,
(j) Market limitation and Funding (Initial and sustaining,
(k) Legal and procurement procedures,
(l) Corruption,
(m) Impact on the Market, and
(n) Recognition by the Government as a tool of faster development.
TARGETS
The Facilitators and the local champions worked out targets which were
realist and achievable and listed below
• Establish and realize a network of 50individual consultants / firms by
June 2007.
• Secure at least 2-3 jobs worth US$50,000 each within the next 6 months.
• Identify and respond to the gaps the field of consultancy by December
2006.
• Run 12 SME entrepreneurship/business management courses for the 7
Clusters.
WAY FORWARD
As a way of strengthening and keep focused on developing the cluster, the

Facilitators and the local champions listed the followings as the way
forward for the cluster growth:
(i) Establishment of the exact number of individuals’ pico/micro
consultancy forms.
(ii) Network and establish linkage with other clusters and other
professional associations.
(iii) Robby Government to include clustering as one of the processes to
innovations and industrial development.
(iv) Encourage and support the development of clusters and formation.
(v) Have more awareness in cluster development processes and benefits.
(vi) Establishment of a cluster centre.

PART F
ASSESSMENT OF THE CLUSTER

INITIATIVES

F.1 CLUSTER INITIATIVES EVALUATION: A BRIEF REPORT

FROM 8 TANZANIAN PILOT CLUSTERS INITIATIVES
by B. D. Diyamett* and A. A. Komba**
* COSTECH and National Coordinator, ATPS-Tanzania
**Institute of Development Studies, University of Dare s Salaam
and member of ATPS-Tanzania
INTRODUCTION
The 8 Cluster Initiative project is the outcome of the first Conference on

Innovation Systems and Innovative Clusters in Africa held in 2004 in
Tanzania. The broad objective of the conference was to establish the status
of innovation systems and innovative clusters in Africa. Emanating from
the conference was the fact that very little is known about the functioning of
innovation systems and innovative clusters in Africa. More specifically, the
concept of cluster initiative is hardly known, indicating that there are very
few, if any, cluster initiatives taking place in the region. A plan of action to
address some of these shortcomings was therefore developed. This
included the 8 clusters initiative pilot projects that began in January 2006
and expected to run for 18 months with generous funding from Sida.
However, it should be noted that the initiative was not preceded by a

baseline survey of the clusters to inform the cluster initiative process, but
rather designed to combine the process of study and intervention in a kind
of learning-by-doing and action oriented research. In other words, potential
clusters were selected on the basis of some limited information about their
potential for growth and contribution to poverty reduction/alleviation. The
pilot project started with training of the cluster facilitators on the cluster
initiative concept and identification of “low hanging fruits” by the cluster
facilitators; that is, identification of the immediate needs with lowest cost
possible. However, as a result of this initial survey, there might be a need to
change the approach. It seems there is a need to conduct a baseline survey
to establish the status of the cluster before a cluster initiative can start. This
is from the fact that it appeared that the low hanging fruits as identified by
some cluster facilitators are really not low hanging.
BD Diyamett & AA Komba 318 ATPS Evaluation of CI in Tanzania

The 8 clusters are as follows:

1. Metalworks Cluster Morogoro
2. Mushroom Cluster Dar es Salaam, Coast
and Morogoro
3. Vegetable Seeds Cluster Arusha and Kilimanjaro
4. Seaweed Cluster Zanzibar
5. Cultural Heritage & Tourism Cluster Bagamoyo
6. Nutraceuticals Cluster Dar es Salaam
7. Sisal Cluster Tanga
8. Vegetable & Fruit Processors Cluster Morogoro
This report is on the follow up of the progress-cum-achievement made by

the cluster initiatives 8 months, less than mid-term review, since their
inception. The main objectives are: first to further assess potential for cluster
growth; and second, to redirect the cluster initiative activities if need be. It
should however be noted from the outset that cluster evaluation is a new
endeavour, not only for us in Africa, but the world over. It is still a subject
of unsettled debate. This brief report should therefore be taken as a
contribution to ongoing debate on cluster evaluation and selection process.
When were requested to undertake the exercise we thought of two possible

ways of doing it. First is to go by the individual cluster initiative proposals
by evaluating the extent to which they have achieved the objectives they set
to achieve. We however quickly discarded this approach because the ex-ante
evaluation was not done. That is, the assessment of the extent to which the
set objectives would produce the desired outcome (cluster development)
was not carried out. The second alternative, which was chosen, was to go by
collecting information from existing cluster theories and case studies, in
terms of what normally works and what does not, and from this, develop
some indicators for monitoring and evaluation of the 8 clusters. In future
however, both the approach will be used, especially when enough ex-ante
preparation has been done. That is assessing the extent to which cluster
initiatives have achieved the objectives they set, and extent to which the
objectives have produced the desired outcome.
The rest of the report is structured as follows: the section that follows, that
is section two, is on brief conceptual framework on cluster development.
The aim is to identify some appropriate conceptual tools and therefore
develop some indicators for monitoring and evaluation of the cluster

initiatives. Section three briefly describes the developed indicators, while
section four is devoted to brief methodological framework. Section five
describes the 8 clusters, headways made after the inception and potential
for further growth using the developed indicators. Section six provides
some overall concluding remarks and section seven proposes framework
for cluster evaluation in future.
CONCEPTUAL FRAMEWORK
Definition and Economic Advantage of Clusters
Clusters are group of firms engaged in similar or related economic activities

in a national economy. In most cases they have been defined by two
important attributes, namely spatial agglomeration and sectoral dimension.
According to Rosenfeld (1997), cited in Le Veen, (1998), an industry cluster
is a geographically bounded concentration of similar, related or
complementary businesses, with active channels for business transactions,
communications, and that are faced with common opportunities and
threats. According to Porter (1990), clusters are basically of two types:
horizontal and vertical. Vertical clusters are made up of firms that are
linked through buyer-seller relationships. Horizontal clusters include firms
that share common market for the end products, use a common technology
or labour force skills or require similar natural resources; they are basically
competitors. However, in most cases clusters are made up of both
horizontal and vertical relationships. Recognition and categorization of
clusters in terms of vertical and horizontal is especially important during
cluster initiative as it is more challenging to embark on cluster initiative for
those clusters that are predominantly horizontal, where technology
management requires careful balancing between which information to
share and which not to with counterparts who are both collaborators and
competitors. As it will later on be noted, these are some of the challenges
facing the Morogoro metal work cluster.
Clusters have, in most cases, been associated with dynamism, innovation

and competitiveness, basically because of collective efficiency, linkages and
externalities that enable enterprises to overcome many constraints in the
area of capital, skills, technology, markets, etc. (Oyeyinka and McCormick,
forthcoming). The collective efficiency model provide at least four variables

that determine competitiveness in enterprises in clusters namely market
access, labour market pooling, intermediate inputs and technology
spillovers and external economies or unintended benefit of economic action
of another enterprise in the cluster (positive externalities). In short, clusters
are able to survive and succeed, mainly because they are able to upgrade
their business activities towards more diversified and sophisticated
products and services, and reach a certain scale through building up a
supply-production-distribution value chain, acquiring knowledge and
technology (both domestic and foreign) and dissemination and adaptation
of them. Other by-products are: building a relatively educated labour force,
achieving collective efficiency through joint actions and cooperation,
gaining government and institutional support as well as international
support (Cluster Policy White book). When a cluster grows and achieve
economies of scale and visibility, many stake holders are attracted to it.
Thus one of the indicators of the well performing cluster is its growth in
terms of number of firms.
Apart from defining and describing clusters, of much interest in cluster

evaluation is to understand the process of cluster formation. Knowledge of
cluster formation, especially in terms of conducive environment is very
important for embarking on the cluster initiative as it tells a lot on the
potential for cluster growth. Thus the following few paragraphs paints a
rough picture for Africa.
Factors Contributing to Cluster Formation in Africa
According to some limited information on cluster formation and growth in

Africa, the following are the most important factors in cluster formation and
•
growth:
•
Natural resource endowment;
•
Proximity to major market;
Local entrepreneurs with tacit knowledge and basic skills in trading,
design or manufacturing. Most have started very simple and gradually
expanded e.g., for metal, the business started with, trading and repair
•
but gradually evolved into assembling and manufacturing activities;
Market push-there has to be a demanding market for products and
services; and
• Limited government intervention. Although in some of the clusters

governments were responsible for their formation, but was not a
formal conscious effort to create clusters, but rather enforcement of
laws and regulations, such as those pertaining to town planning
(Oyeyinka and McCormick, forthcoming).
The above factors indicate that to a large extent factors that leads to cluster
formation in Africa are very much similar to those related to cluster
formation elsewhere in the world. This fact gives a sure opportunity to
learn from best practices in cluster initiatives elsewhere in the world. In
most cases, the world over, government interventions in cluster formation
are manifested in the following areas: defining sectoral policies; regulation
and standard and enforcing them; creating a special agency or organization
to promote, coordinate and facilitate development of clusters; establishing
various public institutions (such as councils, incubator, technology clusters
and institutes) to provide technological and technical support, provide
incentives such as tax holidays, special funds, duty free, cheap lands;
promote alliances and partnership among local firms and with foreign
firms; provide infrastructure, road, water, power, warehouse, IT facility, etc.
(The Cluster Policies White Book).
Steps in Cluster Formation
Many clusters evolve spontaneously and take shape gradually over

extended period of time. The process fall in 4 main phases, (i) creating trust
(ii) forming linkages (iii) vision or strategic direction (iv) undertaking
actions (Cluster Policies White book). The cluster initiative can start at any
given phase, and in literature there is no one fit approach to trigger the
process. There are however three major alternatives cluster initiative
processes (i) the engineered (ii) the organic (iii) and the re-engineered. Each
goes through the same general phases explained above, but with different
entry points as shown in figure below.
It is very important to recognize the phase at which a certain cluster is when

embarking on initiative, as this gives a rough picture of the “low hanging”
fruits to start with.

Improve new tech.

and firm growth
Improve inter-actor
network creation
Engineered
Clustering entry Building social Developing
Improve cluster
point capital linkages &vision
formation
Improve factor
markets
Improve cluster basis

Re-engineered Clustering
entry point
Organic Clustering entry

point
Figure 1: Cluster initiatives different entry points (Source: Adapted from

Cluster Policies white book)
The Engineered
This is generally a top-down approach cluster initiative. It is typical for

those clusters that are still at the early stage of development. In Europe,
policy makers lead and in North America, it is the private individuals who
are important. In Africa who leads or rather who can lead? University?
NGO’s? Development Partners? The initial catalyst of an engineered cluster
process could be a given investment opportunity, a dynamic leader, or a
regional/national economic crisis (poverty for Africa). Then general steps
• Form or develop existing social capital to anchor the cluster idea.

are as follows:
• Maintain or establish new mechanisms for building trust, formulate a

vision and strategy and then undertake action.

The Organic
This is a bottom-up approach. These clusters initially display spontaneous

development towards the establishment of linkages and joint strategy. From
this platform of continuous or re-curing instance of cooperatives, an
innovative cluster appears. Intervention or cluster initiative is targeted at
tightening of networks and collaboration, introduction of supportive
framework the acquisition of things such as such new technology, and
removal of rigidities.
The re-Engineered
The re-engineered cluster is when an existing cluster (engineered or

organically developed) is viewed as having specific competitive significance
or potential, but is hindered from progress for some critical reason. Key
linkages are broken or never formed, or there are other crucial delimiting
factors within the cluster itself or its surrounding that are blocking its
dynamism. For such reasons the process is started ( or re-started) through
corrective actions such as re-establishing, or establishing key linkages,
dismantling or breaking of adverse rigidities or through the communication
of new vision and strategy.
SOME DEVELOPED INDICATORS FOR ANALYSIS OF PILOT

CLUSTERS PROJECT
From the above brief conceptual framework, the following monitoring

indicators are therefore proposed. To a large extent the indicators indicate
the potential for cluster initiative development, rather than cluster growth
in economics terms. And we believe this is what is important at this early
stage of cluster initiatives.
.
Environmental Factors
Geographical proximity- at least two firms collaborating in close proximity;

in the same production chain; close to research or higher learning
institution; effective or potential demand for the products; proximity to
market; natural resource endowment; presence of highly educated
entrepreneurs; potential for beneficial externalities. Such environmental
factors are especially important to note for cluster initiative at early phase of
the cluster formation, that is the engineered cluster initiative type.
Cluster Type and Phase at the Point of Intervention
When a certain cluster spontaneously develops to later stages, there is a

great potential for initiative to succeed. Additionally, it is also much easier
to establish linkage to co-located firms, especially if they are in the same
production chain (users and suppliers).The engineered cluster initiative,
especially if the cluster is predominantly horizontal, i.e. competitors, has a
much less potential to succeed.
Social Capital and Trust
This is measured in terms of awareness of potential mutual benefit among

the key cluster actors, common vision, open communication, transparency
between the key actors, broader scope for information sharing which is
measured in terms of number of committed actors to the cluster, and
openness. The existence of associations and clubs of cluster members also
signifies a degree of trust and social capital.
Already Established Linkages
Geographical proximity coupled with involvement in related activities

necessitate formation of mutually reinforcing and/or beneficial linkages
both back and forward linkages. Development and growth of clusters
depends on established linkages not only between members but also with
supporting institutions. Therefore, their existence, strengths and
weaknesses can be a good indicator for cluster potential. This can be
measured in terms of extent of collaborative activities between cluster firms
and support organizations.
Active Participation from the Private Sector
Cluster formation is a private endeavour. If the initiative is strongly

supported by the entrepreneurs themselves there is much greater chance for
success than if the need is felt only by the government and academic

officials. Thus knowing how cluster came into being should provide
indication of future prospects, that is, potential for sustainability.
Good Governance
Although in 3.5 above it is stated that clusters formation is a private

endeavour, good governance, especially at the local level is of paramount
importance. This is in terms of supportive policies, provision of
infrastructure, space, business incentives, match making between and
among actors and host of other things. In other words, clusters can thrive
only under two conditions: private commitment and good governance.
METHODOLOGICAL FRAMEWORK
The point of departure was to get names and physical addresses of the key,
if not all cluster members for each cluster. Clusters members were then
visited individually, asked question in regard to the following: extent to
which they are aware of the cluster initiative, whether they know all or
most other members of the cluster, whether they share the same vision,
whether they feel a strong need to collaborate with each other, whether
there are already existing collaborative activities with other members in the
cluster and research institutions. Members were also asked about their farm
and firm level activities in regard to problems and possible ways of solving
them, with the view to assessing the extent to which they would need each
other in solving the problem. All these were supplemented with
observation.
OUTCOME OF CLUSTER STUDIES
Some General Observations
Nearly all clusters have made some progress, some more than others, in
areas such as resource mobilization (to a lesser extent) and raising
awareness of potential benefits of participating in cluster. Key to this is
consultative meetings and workshops that have brought together cluster
members and other interested parties. For all cluster initiatives, leadership
teams have been formed. Some clusters have done official launching and
others are in the process of doing so in the near future.
Worthy of mention here is that most of the clusters are pro-poor initiatives,
especially for the disadvantaged group such as women. For instance for
mushroom, seaweed, contract farmers for the vegetable seeds, most active
members are women. Nutraceuticals and Vegetable and Fruit clusters are
also dominated by women. Even the metal cluster which is dominated by
men produces technologies that to a large extent cater for rural women in
the way of reducing drudgeries. For Cultural Heritage and Tourism cluster,
most food vendors and processors are women.
Following is some assessment of individual clusters in regard to the

indicators presented above. Indicator for good governance will be discussed
as a cross-cutting issue for all clusters.
Morogoro Metalwork Cluster
Background and Cluster Environment

The cluster is located in Morogoro municipality, comprising of 14 firms
working in the metalwork and engineering sector, and 27 other micro
enterprises working on charcoal stoves. In terms of spatial proximity, i.e.
distance from one firm to the other, the metal working firms exhibit typical
characteristics of any other township in Tanzania. The charcoal stove
enterprises, however, exhibit unique characteristics in the sense that they
are very close together, concentrating along the main road and close to the
major market in Morogoro. The cluster lack long term involvement of the
research or higher learning institution, but most of the members, especially
the metal work group, have relatively higher education level compared to
other clusters. This is a very important strength of this cluster.
Cluster Type
The charcoal stove enterprises that started with one enterprise in 2003
appear to be a rapidly growing organic cluster. But what about the metal
work firms? Is geographical concentration of manufacturing firms in cities
and towns considered clusters? What should be the spatial distance
between firms to be considered clusters?

The word about cluster initiatives has spread to most members. Regarding
cluster benefits, most members praise the effort made in training and study
tour during cluster initiative – they seem to have learned new and
important things. The charcoal stove makers have actually already started
implementing the new technology learnt by the time of our visit, and
successfully so. This notwithstanding, however, the level of social capital
and trust is very much underdeveloped – there is still a strong tradition of
individualistic and independent business strategies, especially for the metal
working group. The potential benefit of clustering or rather working
together is still not very much valued among the cluster members-there is
no enthusiasm about the idea of collective efficiency. It seems members
joined the initiative for individual gain such as access to capital. This is a bit
different for the stove makers – they seem to value the idea of working
together to minimize costs.
Going back to low hanging fruits, the focus for this cluster should have
been on building trust and linkages, but the focus has been on acquiring
new technology and knowledge. According to fig. 1 above and type of the
cluster, this seems to be a wrong entry point. Of course the idea of bringing
people together through study tour could be one way of bringing people
together, talking business and get to know each other better, but there must
be a deliberate effort to bring on board aspects on collective efficiency.
Existing Linkages
There is some limited informal collaboration, especially between those firms
that are neighbours. The charcoal stoves groups are doing a lot more
together, especially in regard to the transportation of the raw materials such
as clay. There is however very minimum collaboration, if any, between the
two sub-clusters to the extent that one wonders why they have been put
together. The relationship in the cluster is largely of a horizontal type; that
is, these are largely competitors. Bringing them to work together can
therefore be a very challenging task. The cluster also exhibit a hierarchical
structure- There are those firms that are micro with very little means and
those that are larger and relatively affluent, when such firms are not in the
supplier-buyer relationship, they have very little in common. The benefit of
clustering would have been for those larger firms to assist, the smaller, in
terms of multi purpose machine. But as things are, there is very little
interaction between the two segments of the cluster initiative; and there is
no trust.

Active Participation of the Private Sector

The facilitator is an entrepreneur, and very much motivated. However, the
same zeal is not shared among other members, especially from the metal
working.
Conclusion
The cluster needs to put much more effort in developing social capital and
mutual trust. How this can best be done is still an issue for debate; but more
meetings, discussion of common problems and how they can be solved can
be a very important starting point. This however could be a challenging
endeavour since technological management requires balancing act between
which information to share and which not to with counterparts who are
basically competitors.
In regard to cluster growth, while there is clear growth for stoves group,
especially in terms of number of enterprises, it is difficult to predict the
direction of growth of metal working enterprises; will it be in terms of
number of enterprises or size of enterprises? Is this visible in isolation to the
growth of the Morogoro Township itself? However, if successful, the cluster
initiative can be a model for the development of the micro and small scale
metal working enterprises in all other cities and towns in Tanzania.
Eastern Region Mushroom Cluster Initiative

The cluster covers the whole regions of Morogoro, Dare s salaam and
Pwani. It consists of mushroom farmers, spawn makers, wild mushroom
pickers and processors. The activities are not yet located in any special area,
but done in a household setting as back yard initiatives. Important
environmental factors are huge natural resource endowment, potential
market, both internal and export, presence of stakeholders association, and
close involvement of the higher learning institutions such as the University
of Dar es Salaam.
Cluster Initiative Type

Whether this is an engineered or organic cluster is not easy to say because
of the definitional problem regarding spatial proximity. There seem to be
already some existing mechanisms for strong networking among actors, but
not necessarily in the close proximity. To be a cluster, as against network or

system of innovation, how close should the actors be? What should be the
difference between a system of innovation and an innovative cluster? Is
sectoral systems of innovation same as innovative clusters?

The word about the cluster initiative has spread and members show clear
enthusiasm of working together. There is a clear indication that members
see the benefits of collective efficiency as against individual effort. This
quality is so much demonstrated in this cluster more than any other. There
could be two major reasons for this. First mushroom production is so much
knowledge intensive. Somebody has to know the right spawns, the right
substrates, right temperature, etc. A small mistake ruins everything; people
therefore need each other for good practices. Another possible reason as
explained by the farmers is that individual farmers can only produce a
small amount of mushrooms, while the major customers require
mushrooms in bulk. There is therefore a need for several farmers to join
forces to services a certain common market. Another important contribution
to the high level of social capital might have come from the existence of
mushroom growers association. These people have been meeting and
discussing issues of common interest long before the cluster initiative.
Existing Linkages
There is already some interaction between actors, including research
institutions and universities. The interactions are both horizontal (among
mushroom farmers) and vertical (farmers, spawn makers and processors)
whereby members share information on markets and knowledge on best
practices.
Active Participation of the Private Sector

The private sector is so much motivated and in the fore front and this is
reflected in large number of new entrants to join the cluster initiative.
Conclusion
Mushroom cluster initiative covers a wide area, and activities still
conducted in the back yard with substantial networking among actors. This
coupled with existing high level of social capital and trust, there is a great
potential to strengthen the interaction and knowledge flow between and
among actors and thereby cluster growth. But will it be a cluster or a

network? What is the difference? Will it matter in terms of development
and growth?
Seaweed Cluster

Sea weed farming is a resource based whereby the ocean is a major
resource. The farming was introduced in Zanzibar during the late 1980s
after researchers had indicated its potential as cash crop. Since then the
number of farmers has increased from a handful in the early 1990s to about
100 to date. It is a collection of small scale farmers, majority of them being
women, engaged in common activities of sea weed farming and soap
making. At the moment the cluster activities are cantered in two villages:
Bulelwo and Kidoti both in Unguja. Just like mushroom cluster most
important environmental factors for this cluster is huge natural resource
endowment, huge potential for export market and close involvement of the
higher learning institution, the Institute of Marine Sciences.

Although in the beginning it received some impetus from the government,
the cluster organically evolved over time, where by more people joined the
business spontaneously. It can therefore be termed as a spontaneous cluster.

The word about the cluster initiative has spread, and quite like the
mushroom cluster, people have so much zeal in working together. This is
shown in a relatively strong linkages already developed between cluster
members. This notwithstanding however, the relationship between traders
and farmers could be of the subordinate nature as farmers depend so much
on traders for inputs. To lessen such dependence the farmers are thinking of
having saving and credit cooperative society where members can access
low interest loans.
Existing Linkages
There are strong established linkages between farmers, researchers at the
IMS and trading firms. The latter also supply farmers with inputs on

credits. There is also evidence of sharing knowledge on new techniques and

market conditions essential for sustainability of the cluster.
Private Sector Participation

Although the overall facilitator is from the academia, there is a very active
participation and zeal for cooperation from the private sector.
Conclusion
Having basic requirements and for cluster formation, i.e. social capital and
some established linkages in place, what remains is to improve cluster
formation in terms improving production technology, product
diversification, developing markets and improve linkages. Given the
existing cluster environment, it has a great potential for growth, especially
if effort in embarking on value adding activities, such as locally processing
of seaweeds will succeed. Currently there is effort in using seaweeds in
soap making.
Cultural Heritage and Tourism Cluster
Background and cluster environment

The Cultural Heritage and Tourism cluster is based in the historic town of
Bagamoyo. The town has rich history dating back to 13th century with
arrival of Arabs and later on slave trade. The place is renowned for ancient
buildings and other antiquities combined with its unspoiled beaches; and of
recent, Sadani National Park nearby, both are potential for tourist
attraction. With construction of hotels during the 1990’s the town is also
playing host to numerous national and international conferences and
seminars. Additionally, Bagamoyo is in the process of being declared World
Heritage Site by UNESCO.
The Bagamoyo Cultural Heritage cluster has historically evolved over time
and in the process a number of activities have emerged to cater for the
industry. Organizationally, the cluster is comprised of the following sub-
clusters:
(i) Hotels
(ii) Transport operators
(iii) Tour guide operators
(iv) Restaurant and bars
(v) Traditional healers and herbalists.

(vi) Guest houses and Lodges
(vii) Food vendors and processors
(viii) Handcrafts producers and sellers
(ix) Theatre and sculpture

Given the geographical close proximity and some existing level of linkages,
this cluster can be placed within re-engineered cluster type.

The cluster is characterized by high level of motivation and organizational
capacity. Representatives of the sub-clusters regularly meet to discuss
pertinent issues; and the meetings are well attended. The social capital is
very high and so is mutual trust among cluster members. If anything,
members are over motivated and this raises the possibility of
demoralization if the existing social capital and trust is not properly
directed and/or exploited. As expressed by one of the hoteliers, “We have
to also be engaged on tourism advertisement to do good business, but
thanks to cluster initiative, because this role can now be left to it”.
Existing Linkages
There exist relatively well developed linkages among sub- clusters
members. There are also beneficial externalities because of the co-existence
of the sub-clusters. For instance an improvement of the tourist sites means
inflow of more tourists; meaning it is good business for the hoteliers and
other sub-clusters. So there is huge interest in sharing of tourist information
among sub-clusters, especially tourists needs regarding services and tourist
sites. The existence of Bagamoyo College of Arts and its representation in
the cluster is another strong point.

The private sector is in the forefront where most developments within the
cluster are private initiatives.
Conclusion
Potential for growth for this cluster is very evident. What is needed is to
improve tourists sites and services to attract more tourist, and this is not a
difficult thing to do as long as the will on the part of the government and
other stakeholders it there. The success of this cluster is so much evident
more than any other.
Morogoro Vegetable and Fruit Processors Cluster

Morogoro region is famed for its weather conducive for agricultural
production supplying markets such as Dar es Salaam with plenty of
vegetables and fruits. The cluster initiative deals with processing of such
vegetables and fruits into forms easier for preservation or into new and
more valuable products. It brings together individuals and groups involved
in the processing of vegetables and fruits. These include drying and
packaging and production of such products as beer and wine from
agricultural products. In essence it is a natural resource based cluster.

This is an engineered cluster initiative type. Most members of the cluster
have been doing business in isolation before the idea of cluster came into
being. The cluster initiative has been helpful in raising awareness of
potential benefits of working together.

Cluster members are engaged in related activities producing more or less
similar products: drinks (beer, wine and juices); vegetable and fruit canning
and drying. In essence they are competitors especially considering limited
market. However, spirit of collaboration is much stronger than competition.
This is reflected in creation of common market outlet and ongoing efforts to
have common processing facilities. Thus if properly exploited there is huge
potential for further growth.
Existing Linkages
The linkage between cluster actors and support organization (as explained
by cluster facilitator) is strong. The organizations include Sokoine
University of Agriculture, College of Engineering and Technology,
University of Dar es Salaam, Small Industries Development Organization
(SIDO), Tanzania Chamber of Commerce, Industry and Agriculture

(TCCIA) and government authorities both local and central including

Tanzania Food and Drugs Authority (TFDA).

The cluster is wholly a private sector initiative and given collaboration and
linkages there is potential for sustainability.
Conclusion
As country’s major source of vegetables and fruits Mororgoro region has
great potential of becoming food processing centre. This is reinforced by
presence of higher learning institutions and proximity to the Dar es Salaam
City which serve as important market. However, the cluster will have to
deal such issues as processing technologies, quality control and markets
(the cluster have to compete with large scale producers in the country)
which are major constraints to further development and growth.
Nutraceuticals Cluster

According to the Facilitators, the cluster initiative deals with production
and processing of food products known to provide nutrition (supplements)
and have some medicinal values. These include soybeans, moringa, aloe
vera and mushrooms. The main objective is to raise public awareness on
functional foods and facilitate production of quality and safe products. It
was not possible to hold discussion with members because it is not clear
who will be included in the cluster. Cluster potential members are
individuals and/or firms producing wide range of products mostly for Dar
es Salaam market. As such it would be an engineered cluster initiative type.
Since we were not able to talk to other cluster members individually, we

can not say much about the rest of the indicators. This will be done during
the next round of evaluation.
Arusha Vegetable Seeds Cluster

The cluster initiative, according to the Facilitators, incorporates Arusha and
Kilimanjaro regions, covering the districts of Arumeru (Arusha), Hai and
Moshi rural (Kilimanjaro). The region is blessed with agro ecological zone
well suited for agricultural production. It has equitable climate virtually
throughout the year. The region is also a home for more than 90% of
Tanzania’s seed companies (both local and foreign). The region is also
blessed with world class vegetable seeds research institutes, including
World Center for Vegetable seeds, regional center for Africa.
It must also be born in mind that more than 80% of the vegetable seeds are
imported. The popularly asked question has been, can’t Tanzania produce
its own seeds, given the available infrastructure? What does it take to do so?
Could cluster initiative be an answer?
Following is a description of the vegetable seed cluster actors.
Training and Research Organizations

1. AVRDC: This is part of the world vegetable seed center. It is a
regional centre for Africa that was established in 1992. It is mandated
to conduct vegetable research, training, and information services for
the benefit of national research programmes in Africa. The center
trains farmers in vegetable growing and produces foundation seeds for
the seed companies. The center is very close to Tengeru and seed
companies. The center is some of the rare location advantage for the
Arusha seed cluster initiative.
2. HORT – TENGERU: Tengeru Horticultural Research Institute, a public
institution for horticultural research, farmers training, producer of
vegetable foundation seed for seed companies for multiplication. The
institute work very closely with the private company, Alpha Seed
Company. The relationship between Alpha Seed and Hort-Tengeru is,
in Tanzania, regarded as good example of public private partnership
(PPP).
3. TVSP: Tanzania Vegetable Seed Program, a private initiative which is
funded by Multiflowers, Royal Sluis vegetable trade mark, involved in
testing and introduction of improved vegetable varieties to help raise
farmers’ incomes through high yielding and quality economic
produce.

Seed Companies
1. Alpha Seed Company Ltd.: An indigenous seed company involved in
vegetable seed production and marketing. Successful in organizing
women groups who hire land and produce for Alpha Seed quality
vegetable seed. Alpha works in PPP spirit with Horticultural Tengeru
by using its seed processing facilities for cleaning and packing the
seed. Also work in close collaboration with AVRDC by obtaining
screened or fresh basic seed for multiplication on researched materials.
2. East Africa Seed Company, Multiflower, Suba Agro-tech Company Ltd

and Kibo Seed Company Ltd.: These are seed companies which
imports and also produce and pack locally produced vegetable seed.
They use various small holder farmers to produce the seed. They get
their planting materials from Horti- Tengeru and AVDRC.
3. Arusha Foundation Seed Farm, This is a public organization that deals

with obtaining breeder seed from research station, multiplies it to
foundation seed. Then sell these to Seed companies who use it for
multiplication again to get Certified Seed which is packed and sold to
farmers.
4. Vegetable companies and fruit processing companies.
Other Organizations
1. TOSCI: Tanzania Official Seed Certification Institute that deals with
certification of seeds through field inspections and laboratory testings.
All seed must be checked by them before marketing. There are 3
stations – Morogoro, as Headquarters and branches in Tengeru and
Njombe.
2. Tanzania Seed Trade Association (TASTA): This is basically an

association for the seed companies.

With close proximity, an appreciable degree of linkages among companies
and strong linkage between companies and research institutes, the cluster
initiative can be placed within re-engineered cluster initiative. The major

focus of the initiative should therefore be on strengthening existing linkages

and forming new ones.

There is an appreciable degree of trust between and among some
companies. But more work needs to be done to bring every body else on
board.

The private sector is in the fore front.
Conclusion
Given the conducive environmental factors and market potential, the
cluster initiative has a lot of potential for growth. What need to be further
done is to strengthen the existing linkages and form new ones. It is
especially important for cluster members to link with large exporting
vegetable companies such as Gomba Estate Ltd. These will enable the
cluster to have access to information about export markets and knowledge
on the production of quality seeds.
Sisal Cluster

This cluster is basically made up of small scale sisal farmers and sisal
processors, mainly one private company named Katani Limited. Katani
Limited has a monopoly of buying sisal from the farmers following special
arrangements.
Although there is no active communication, both the farmers and Katani

Limited are connected to research institutions. The farmers are linked to
Mlingano Agricultural R&D Institute which basically focuses much of its
research on sisal. On the other hand Katani Limited has some linkage with
the University of Dare s salaam, College of Engineering and Technology
(CoET) in the development of new and value adding activities to sisal.
Currently sisal is processed to produce fiber only. Other potential products
include, sugar, alcohol, bio-fuels and sugar.


Given the existence of linkages and close proximity, especially the farmers,
the cluster initiative can be placed within re-engineered cluster initiative.
What therefore need to be done is to strengthen the existing linkages,
remove rigidities and work on trust building.

There is serious lack of social capital and trust, first among farmers
themselves and second, between farmers and Katani Limited. This is
evident from the fact that farmers could not trust any one of them to
represent them to witness the field test to establish price for their produce at
the Katani Limited’s site.
Existing Linkages
There exist strong linkages between farmers and Katani Limited as the only
buyers of sisal. The linkage is however full of subordination and suspicion,
and therefore not healthy. Additionally, although the major mandate of
Mlingano R&D Institute is to conduct research on sisal, there is no strong
and healthy linkage between the institute and farmers.

From the cluster initiative proposal, one gets the feeling that this particular
cluster initiative idea is driven by academia. Much of the cluster initiative
thrust is on research on alternative innovative products from sisal. While
this is a very important cluster initiative activity and it good to break the
monopolistic behavior of Katani Limited, we feel that the early “low
hanging fruits” should focus on alleviating the above mentioned problems
that is removing rigidities that are hindering smooth and productive
linkages and building trust among cluster members.
Conclusion
The current activities of the cluster should focus on strengthening linkages
and building trust. However as a long term goal, the idea of developing
alternative and innovative products from sisal is very important. As the
number of sisal processors increase, the sisal prices will also increase, which
is good for the farmers as well.

GOOD GOVERNANCE
Since most of the cluster initiatives involve SMEs, at the national level the
policy environment is very supportive. There are currently various
government initiatives in support of SMEs. These include special policy for
SMEs, incubator programs of CoET, SMEs Competitiveness Facility and
host of other microfinance institutions in support of SMEs. When this is
combined with current government interest and conviction to improve
environment that can spur innovative activities in the productive sector,
cluster approach have all the blessings of the government at the national
level. This however is not enough; individual clusters have to seek support
from the local government. This is already happening with some clusters.
For example, for the Cultural Heritage and Tourism cluster, the negotiation
between the cluster leadership and local government regarding allocation
of land or space for cluster activities is at an advanced stage. There is also
an ongoing discussion with the department of antiquities on the state and
status of some of the historical buildings in Bagamoyo Township. This is
also true for Mushroom cluster. Through negotiations with the local
government, Mushroom cluster have acquired a building in Kibaha. The
building is to be used for various cluster activities, including being the
mushroom collection center. The Vegetable and Fruit cluster in Morogoro
has negotiated 100 million shillings under poverty reduction programme,
popularly MKUKUTA, to put up common processing facilities. The
Morogoro metal work cluster has acquired a land space where cluster
members can move in, bringing them in close proximity, which is very
important for cluster performance.
OVERALL CONCLUDING REMARKS
Overall, it can be concluded that the Tanzanian policy environment is

conducive for cluster initiatives, and since most of the clusters are pro-poor,
it is an added advantage in attracting government’s attention in line with
the national poverty reduction strategy. At the individual cluster level, most
of the clusters are of the engineered or re-engineered type, which mean
overall a lot more work is needed in strengthening and building linkages,
removing rigidities and building trust. To some extent the issues of trust
can be addressed by appointing neutral cluster initiative facilitators; that is
a facilitator must not own a firm within the cluster. These people should be
those with passion for cluster initiative without any vested interest. The
example could be the facilitator for the Bagamoyo Tourist cluster and
Seaweed cluster. These have neutral facilitators, but who show a lot of
commitment and passion for cluster initiative success.
For those clusters that have achieved some level of linkage and cooperation,
geographical co-location is still a debatable subject-is sectoral systems of
innovation the same as innovative clusters? Regarding private sector
participation, with few exceptions, it is worth noting that generally the
cluster programme is well received.
Though it is too early to say for sure the ultimate outcome and benefits to
be accrued from the venture, the evidence suggests that there is every
reason to be optimistic regarding success. The only major worry, for most
clusters, is markets-demanding local market could emerge as a major
stumbling block for most clusters! This needs a concerted effort at the
national level; to be addressed in the framework of “MKUKUTA” Some of
the cluster can however break this vicious circle by targeting the export
market. This can easily be done by sea weeds, vegetable seeds and
mushroom cluster initiatives if appropriate mechanisms are put in place.
Final word on this concluding remark is on the modalities of selecting

clusters initiative. From the experience of this monitoring exercise, it has
become evident that some baseline information is needed before the
selection of the cluster initiatives. This is important for selecting those
clusters that show greatest potential for growth and assessing the “low
hanging fruits” as identified by the facilitators if they are really “lowly
hanging” fruits.
The beginning of the selection process could be advertising the cluster

initiative program, and criteria for selection. After application has been
received, a quick baseline survey is then conducted for each application.
PROPOSED EVALUATION CHART
Below is a proposal for cluster potential for growth evaluation, the

indicated indicators will be weighted depending on their relative
importance, and total scores be given to each cluster initiative.
The exercise of giving total scores to all cluster initiatives is useful in the
case that a project needs to drop some of the clusters for various reasons,
including resources constraints. This has been a practice for most countries;
the initiatives start with a bit more than the number of clusters to be given
long term support. The scoring also gives clusters basis for competition,
which is good for the overall clusters performance
Cluster Cluster Cluster Level of Level of Level of Level of Cluster

name type phase at social linkages and private environmental potential
the point of capital positive sector factors For
intervention and trust externalities participation growth
1
2
3
4
5
REFERENCES
Anderson, T., Serger, S.S., Sorvik, J. and Hanson, W.E.(2004), The Cluster
Policies White Book. IKED, VINNOVA and TCI.
Le Veen J. (1998), “Industry Cluster Literature Review”. Urban and

Regional Development-plan 261.
Oyeyinka, B.O and McCormick, D. (forthcoming), Clusters and Innovation

Systems in Africa: Learning, Institutions and Competition. UNU Press.
Porter, M. (1990), The Competitive Advantage of Nations. New York.
Rosenfield, S.A., (1997), “Bridging Business Clusters into Mainstream of

Economic Development” . European Planning Studies 5(1): 3-23

F.2 INNOVATION SYSTEMS AND CLUSTERS PROGRAMME IN

EAST AFRICA (ISCP-EA): ATPS’S PERSPECTIVES ON THE
ESTABLISHMENT AND PERFORMANCE OF CLUSTER
INITIATIVES IN UGANDA
by Joseph Obua,
National Coordinator, ATPS Uganda Chapter, Kampala, Uganda
E-mail: obua@forest.mak.ac.uq Mobile: +256-772-444492
INTRODUCTION
African Technology Policy Studies (ATPS) Network is a multidisciplinary

network of researchers, policy makers, and actors in the private sector and
other end users interested in generating, promoting and strengthening
innovative science and technology policies in Africa. ATPS’s major thrust is
the support for development and strengthening of policies that increase the
integration of science and technology in national development
programmes. The purpose of ISCP-EA is consistent with ATPS’s mission of
contributing to sustainable human development by strengthening
institutional capacity for technological development. ATPS’s goal and
aspiration is to make a difference in the people's livelihoods by enhancing
the capacity to produce goods and services that can compete internationally
and globally through utilization of appropriate and affordable technologies.
ATPS has chapters in Uganda, Tanzania and Mozambique. The institution
is therefore is a key stakeholder in the development and promotion of
innovative systems and clusters in these three countries that are currently
piloting ISCP-EA.
In view of the above commonalities that A TPS shares with the ISCP-EA
programme, it was deemed necessary to involve ATPS Uganda Chapter in
the monitoring of the seven cluster initiatives namely Metal Fabrication,
Pineapple processing, Basketry, Fashion and Textiles, Management
Consultancy, Ethanol and Bio-fuel and Lake Katwe Salt processing. The
views presented in this paper are based on the observations and outcomes
of meetings and discussions during the visits to five of the cluster initiatives
together with the international team from Sweden in June 25-27 2006.
J Obua 343 ISCP-EA: ATPS-Uganda Perspectives

The overall objective of the monitoring exercise was to present an

independent opinion on the performance of the cluster initiatives in
Uganda. The specific objectives were:
(i) To establish the current status and progress made in establishment of
the cluster initiatives and whether they are on course.
(ii) To assess the expectations of the stakeholders about the CI.
(iii) To identify bottlenecks and challenges being faced by the CIs.
(iv) To establish whether the CIs are being developed within the policy
frameworks.
(v) To recommend actions that would enhance the development and
performance of each cluster initiative.
GUIDING QUESTIONS
The following questions guided the monitoring process: Have the cluster
initiatives been formed and are functional? Was a baseline survey carried
out to reveal the profile of each firm/institution in each cluster? Is the
cluster concept clearly understood and well embraced in each cluster
initiative? Do cluster members feel that the concept of cluster initiative is
feasible to implement in Uganda? What are the challenges encountered so
far in each cluster initiative? To what extent has each cluster initiative
linked its current and proposed activities to relevant policies in Uganda?
POLICY ENVIRONMENT REQUIRED FOR DEVELOPMENT OF

CLUSTER INITIATIVE IN UGANDA
Generally, all economic development activities in Uganda are guided by

relevant policy regimes that are linked to the attainment of the United
Nations millennium development goals (MDGs) and the Poverty
Eradication Action Plan. The MDGs are stated as follows:
Goal 1: Eradicate extreme poverty and hunger

(1) Reduce by half the proportion of people living on less than a dollar a
day.
(2) Reduce by half the proportion of people who suffer from hunger.

Goal 2: Achieve universal primary education

(1) Ensure that all boys and girls will be able to complete a full course of
primary schooling.
Goal 3: Promote gender equity and empower women

(1) Eliminate gender disparity in primary and secondary education
preferably by 2005, and to all levels by 2015.
Goal 4: Reduce child mortality

(1) Reduce by two thirds the mortality rate among children under five.
Goal 5: Improve maternal health

(1) Reduce by three quarters the maternal mortality ratio.
Goal 6: Combat HIV/AIDS, malaria and other diseases

(1) Halt and begin to reverse the spread of HIV/AIDS.
(2) Halt and begin to reverse the incidence of malaria and other major
diseases.
Goal 7: Ensure environmental sustainability

(1) Integrate the principles of sustainable development into country
policies and programmes; reverse loss of environmental resources.
(2) Reduce by half the proportion of people without sustainable access to
safe drinking water.
(3) Achieve significant improvement in the lives of at least 100 million
slum dwellers, by 2020.
Goal 8: Develop a global partnership for development

(1) Develop further an open trading and financial system that is rule-
based, predictable and non- discriminatory. Includes a commitment
to good governance, development, and poverty reduction -
nationally and internationally.
(2) Address the least developed countries' special needs. This includes
tariff- and quota- free access for their exports; enhanced debt relief
for heavily indebted poor countries; cancellation of official bilateral
debt; and more generous official development assistance for
countries committed to poverty reduction.

(3) Address the special needs of landlocked countries and small island
developing states.
(4) Deal comprehensively with developing countries' debt problems
through national and international measures in order to make debt
sustainable in the long term.
(5) In cooperation with the developing countries, develop decent and
productive work for youth.
(6) In co-operation with pharmaceutical companies, provide access to
affordable essential drugs in developing countries.
(7) In co-operation with the private sector, make available the benefits of
new technologies -especially information and communications
technologies.
In the absence of a national innovation policy, the cluster initiatives in

Uganda should be developed within the provisions of the national
economic planning and development strategies contained in the Vision 2025
(strategy for national development) and the Poverty Eradication Action
Plan (PEAP). PEAP provides an overarching framework to guide policy
action to eradicate poverty (Ministry of Finance, Planning and Economic
Development, 2004). It is hypothesized in the PEAP that “in order to
achieve middle-income status, Uganda needs to industrialize by enhancing
its competitiveness”. This hypothesis is in congruence with the goal of
cluster initiatives development.
The PEAP aims at contributing towards transforming Uganda into a

middle- income country. Such a process of transformation will involve
industrialization based on private investment in competitive enterprises.
Uganda recognizes that the best way to industrialize is not to protect
domestic industry, but to enhance competitiveness. Uganda is
implementing economic development programmes aimed at expanding the
country's ability to compete in international markets and the development
of cluster initiatives is both timely and essential because it will augment the
implementation process.
Industrialization in Uganda will depend on using the resource base and

good understanding of the technical and quality requirements of
commercial production. In consonance with the concept of the triple helix,
Government of Uganda is committed to provision of public goods to
support agriculture (mainstay of the economy) and industry and increase

the capacity in both the public and sector to participate in economic
development activities. It is believed that as Uganda's economy develops,
the ways in which people earn incomes will change and the development of
the cluster initiative will contribute to diversified and enhanced incomes.
There are five pillars of the PEAP and each has a set of priorities. I have
attempted to relate the cluster initiatives in Uganda with each pillar in
Table 1.
Table 1: Relating the pillars of PEAP with the cluster initiatives

Pillar Priorities Relevant cluster initiative
Economic ● Maintenance of ● Metal fabrication
management macroeconomic Management
stability Consultancy
● Fiscal consolidation ● Pineapple processing
● Boosting private ● Ethanol and Bo-fuel
investment ● Basketry
● Lake Katwe Salt
● Fashion& Textile
Production, ● Modernization of ● Metal fabrication
Competitiveness agriculture ● Management
and Incomes ● Preservation of the Consultancy
natural resource base ● Pineapple processing
● Improving ● Ethanol and Bo-fuel
infrastructure ● Basketry
● Private sector ● Lake Katwe Salt
participation ● Fashion & Textile
Security, ● Ending rebel ● Management
Conflict- insurgency Consultancy
resolution and ● Ending cattle rustling
Disaster ● Dealing with internal
Management displacement and
abduction
Governance ● Human rights and ● Management
democratization Consultancy
● Development of legal
system
Pillar Priorities Relevant cluster initiative

● Transparency,
Accountability &
Elimination of
corruption
Human ● Education ● Metal fabrication
Development ● Health ● Management
● Community Consultancy
empowerment ● Pineapple processing
● Ethanol and Bo-fuel
● Basketry
● Lake Katwe Salt
● Fashion & Textile
ATPS’S PERSPECTIVES OF THE ISCP-EA
The following questions guided the monitoring and evaluation of the

performance of the clusters in Uganda:
Have the cluster initiatives been formed and are functional?

All the cluster initiatives have been formed and are functional. The concept
of "low hanging fruits" appears to have been utilized to kick-start the cluster
initiatives. Some clusters e.g. the Management Consultancy, Basketry and
Metal fabrication initiatives already had some organizational structure in
place and were able to move fairly fast to form the cluster initiatives.
Was a baseline survey carried out to reveal the profile of each

firm/institution in each cluster?
None of the cluster initiatives carried out a baseline survey to compile
information about each member firm or organisation and individual
members. An attempt was made by the Fashion and Textile cluster
initiative to collect data about the member firms but the data were
inadequate and do not reveal a true profile of each firm and the members.
As a result, most cluster initiatives do not adequately know about each
other and the information existing among them is largely limited to that
shared by word-of-mouth during the early meetings convened to kick-start
the cluster initiatives.

What are the challenges encountered so far in each cluster initiative?

Clusters have faced various challenges since they were launched in Uganda.
These challenges were identified and ranked by the clusters facilitators at
their meeting with the international team on 27th June 2006 in the
Conference Hall of Uganda Manufacturers' Association (UMA) as given in
Table 2.
Is the cluster concept clearly understood and well embraced in each cluster?
The majority of members in the various clusters appear to have grasped the
concept of cluster initiative. The cluster leaders and facilitators have applied
the knowledge gained during the training course to a good start of the
cluster initiatives in Uganda. However, it was noted that there are a few
members who still seem to refer to each of the member firms as a 'cluster'.
This situation can be corrected by further sensitization of the members so
that they fully grasp the' concept of cluster initiative. This will also help to
answer the following question that has been asked in the metal fabrication
cluster initiative: “how different is this cluster initiative from the
cooperative societies and associations we are already familiar with”. Is this
a new Government project to assist small-scale enterprises?
Do cluster members feel that the concept of cluster initiative is feasible to

implement in Uganda?
There is a general feeling among the members of the clusters that cluster
initiative can be developed in Uganda to the benefit of the small and
medium scale enterprises. But there are also fears that the initiative may be
abandoned when members do not realise the expected benefits from it. It is
important to assure the members that the benefits of belonging to a cluster
may not be realised in a matter of days or weeks and that it requires
commitment, investment and patience to reap the fruits.
Participation by Member Firms and Institutions
It was clear that member firms and individual members were sufficiently
involved in the activities of the cluster initiatives. Such involvement gives
room for building trust and ownership of the cluster. Cluster leaders have a
crucial role to play in this respect. Assigning roles and responsibilities to
members will help to keep them actively involved in the affairs of the
cluster initiatives.
To what extent has each cluster initiative linked its current and proposed
activities to relevant policies in Uganda?
All the clusters have overlooked the need to link cluster development to
relevant policies in Uganda. This is a serious flaw in the cluster
development process because all clusters need to operate in favourable
policy environments and must be supported by relevant policy regimes.
The management Consultancy cluster initiative is in the process of
developing regulatory policy and statues for guiding the management of
the cluster. It remains to be seen whether or not these will be linked to
relevant national policies and legislation.
Table 2: Challenges faced by the cluster initiatives in Uganda

CHALLENGE RANKING
Capacity building 1
● Refresher course
● Open forum
● Reference materials
● Benchmarking: how other CIs have worked
● Test beds: to demonstrate how a technology works
Awareness building 2
● Media activities/publicity
● Policy advocacy and lobbying
Resource centre 3
● A facility to meet and work
Budget clarifications 4
● How CIs should use the seed money
Sustainable cluster strategy 5
● Role of the National Steering Committee
Knowledge of current status of CIs 6
● Where the Cis are in the process
Language barrier 7
● Various languages to explain cluster concept to local
communities
Quality of the local facilitator 8
● A person who can mobilize and is trusted by
members to run the affairs of the CI
Cluster mapping 9
● Specialization and segmentation: too many products
CHALLENGE RANKING
that are not possible to cluster
Linkage with other related national activities 10
● Relating the CI activities to other on-going
development programmes so that the CI is not seen as
a new project
● Need to know other related activities and capacities in
them.
● Need to know government information related to CI
How to differentiate CI from Cooperative and 11
Associations
● Is this a new organization with a new agenda?
Sustainability of ISCP in Uganda
At this stage it is hard to comment on the sustainability of the activities in

the cluster initiatives. However, one of the ways of sustaining the
development of cluster initiatives in Uganda would be to integrate
innovation systems and innovation clusters in the curricula of post
secondary institutions that can be taught as a subject in the Business,
Technical and Vocational Education Training Institutions e.g. Community-
based Polytechnics, Colleges of Commerce, Technical Institutes and
Colleges, and in the universities. Furthermore, there is a need for a national
innovation systems and cluster policy.
Empowerment and Perceived Benefits
It is not possible to comment on this at the moment because the cluster

initiatives have just started. Some information may be available at the end
of the pilot phase.
Potential for stimulating economic growth and up scaling to impoverished

areas
The potential role that cluster development can play in stimulating
economic development is enormous as clearly demonstrated by the Uganda
Quality Basketry Cluster Initiative. It was noted that the members are
continuously undergoing training to upgrade their skills in order to
produce high quality of basketry products not only for the local market but
also export. There are plans to export the products initially to the
Democratic Republic of Congo, Sudan and Rwanda and to explore the
possibility to accessing the American and European markets.
Advocacy for acceptability and lobbying government support

This has not been done and needs to be included in the work plan and
strategies of all the cluster initiatives.
COMMENTS ON EACH CLUSTER INITIATIVE
Management Consultancy Cluster Initiative (Kampala)
The cluster provides a platform for retired (but not tired) and unemployed
persons with capacity to carry out consultancies. It was largely clear that the
concept of cluster initiative is yet to be fully embraced by the group's
members as some members sought clarification on certain issues by asking
questions that indicated the existence of "gray areas" in their understanding
of clusters. Although the cluster leaders seem to understand the concept of
cluster development, there has been little effort to link their activities with
policies that support of influence their activities. The group was informed
by the international team that the cluster initiative should not curtail their
activities but should help to make them more competitive nationally and
internationally. It was further noted that the unique strength of the cluster
is the knowledge of the local environment that should enable them to
compete favorably with other consultancy firms. One member of the cluster
introduced the concept of the 4Cs to the others i.e. a consultant in a cluster
should be able to compare, compete, collaborate and consult. It was
recommended at the end of the discussion that the international team
should conduct a crush course on cluster management before end of the
year.
Ethanol and Bio-fuel Cluster Initiative (Kakira, Jinja)
This is a cluster that clearly demonstrates the concept of the Triple Helix as
there were representatives from district local Government (public), the
industry/private sector (Kakira Sugar Works) and academia (Kyambogo
University) present at the meeting and pledged to work together to develop
the cluster and the activities related to bio-fuel/ethanol production.
Although the initiative is good and welcomed by the local community,

there is no law in Uganda to permit sale of bio-fuel to the public by
petroleum companies and service stations operators. The pilot project
provides a good opportunity to start the process of lobbying government
and advocating for the formulating of such a law in Uganda.
The project also promises clear environmental benefits through reduction of

fire wood usage by in traditional distillation of ethanol and hence tree
cutting for firewood. It is envisaged that firewood usage will be reduced by
60% when the new technology for producing ethanol is fully operational. In
addition, better techniques of waste disposal will reduce the current
environmental pollution by substrates from the traditional distillers.
Risks of accidents and bums suffered from exploding drums will be

significantly reduced.
It is estimated that over 150 vehicles and 50 motorcycles used by staff and
workers in Kakira Sugar Works could use the bio-fuel and reduce the cost
of petrol substantially.
Basketry Cluster Initiative (Luwero)
Group members have renamed the cluster initiative as "Uganda Quality

Basketry Cluster". This cluster does not exhibit the triple helix concept
because the role of universities is missing. However, it is the only cluster
with a training programme that is functional. The cluster trained 30 persons
as trainers with an expected multiplier effect on the quality basketry
produced. The group is chaired by a man although the membership is
composed of >90% female.
Fashion and Textile Cluster (Kampala)
Consultative process, sensitization workshops and election of cluster

leadership were used to form the cluster. Fifty key stakeholders were
identified in a quick/rapid appraisal. The cluster has planned to undertake
seven main activities including data collection on stakeholders' views about
the cluster initiative and a SWOT analysis. The planned data collection
needs to be expanded into a proper baseline survey to gather information
on the profile of each firm/member organisation. The triple helix concept is

theoretically known and not applied in the formation of the cluster
initiative yet. Lobbying and advocacy are to be mainstreamed in the cluster
as part of the next steps to move the cluster forward. Members strongly feel
that this would help to increase access to markets/trade fares, promote
business, meet large-scale demands, reduce costs, increase competitiveness,
add value and create more jobs. It is envisaged that the cluster initiative will
work towards branding and exporting their products.
Pineapple Processing (Kayunga)
The main activity is processing of pineapple juice that is bottled and sold
fresh in the nearby schools, trading centres and individual homes. The
cluster is expected to process, bottle and sell wine made from pineapple
juice but is still facing major challenges such as lack of clean/quality piped
water and bottling facilities.
This cluster could explore the possibility of producing ethanol from

pineapple pulp and diversification of products from pineapple. In addition,
the cluster can benefit from networking with other firms that are bottling
locally made wine. This aspect is not clearly thought about at the moment
although the cluster leadership perceives it as good.
CONCLUSIONS
(1) The concept of cluster initiative had generally been well grasped by
members of the clusters.
(2) The cluster initiatives have been established and are functional.
(3) Comprehensive baseline studies have not been conducted to inform
the formation of each cluster initiative.
(4) The clusters are at different levels of development and face different
challenges. The clusters have not linked their activities to national
policy and development frameworks such as PEAP.
(5) There is a strong feeling that the cluster initiative can be established
in Uganda for the benefit of small and medium scale enterprises.
(6) Advocacy and lobbying for acceptability are not included in the work
plans and budgets of the clusters.

RECOMMENDATIONS
(1) There is a need for each cluster initiative to conduct a baseline survey
to compile the profile of the firms/member organisations and
individual members. This is important because the planning of
activities of each cluster should be based on knowledge of the
characteristics of the firms and members
(2) There is a need for refresher training in cluster management and to
ensure continuous flow of information among cluster firms and
individuals.
(3) The National Steering Committee should develop a programme of
meetings (a year planner) that bring together all cluster facilitators
and leadership to share experiences, challenges and develop the way
forward.
(4) There is a need to fully sensitize the members and explain to them the
concept of cluster initiative so that they do not mistake it for a 'new
project' in which they are being involved.
(5) There is a need to maintain the momentum in the clusters through
innovative programme of activities that are explicitly beneficial to
members so that they do not drift away.
(6) There is a need for each cluster initiative to develop strategies of its
activities within the provisions of relevant sector policies and laws e.g
the Uganda Investment Policy and Statute, the Environment Statute,
PEAP, Plan for Modernization of Agriculture, National Forest Plan
and Uganda Forest Policy, Trade Policy, Energy Policy, Science and
Technology Policy, National Biodiversity Strategy etc.
(7) There is a need to teach innovation systems and innovation clusters in
the Business, Technical and Vocational Education Training
Institutions e.g. Community-based Polytechnics, Colleges of
Commerce, Technical Institutes and Colleges, and in the universities.
The national Curriculum Development Centre and the National
Council for Higher Education need to be involved in the integration
of the subject in the curricula of the different post secondary and
tertiary institutions.
(8) There is a need for a national innovation systems and clusters policy
(Lyden and Link, 1992; Mani, 2000)

REFERENCES
Leyden, D. P. & Link, A. N. (1992), Government's role in innovation.

Kluwer Academic Publishers, Boston.
Mani, S. (2000), Globalization, markets for Technology and the relevcance of

innovation policies in developing economies. Paper presented at
the 1h Annual African Technology Policy Studies (A TPS) Network
workshop, Lusaka, Zambia, October 31-5 November, 2000.
Ministry of Finance, Planning and Economic Development (2004), Poverty

Eradication Action Plan 2004/5-2007/8. Government of Uganda, Kampala,
Uganda.

F.3 THE POTENTIAL OF UDSM-COET

TECHNOLOGY/BUSINESS INCUBATION PROJECT FOR
SUPPORTING THE INNOVATION SYSTEM AND CLUSTERS
PROGRAMME IN TANZANIA
by I.B. Mshoro
College of Engineering and Technology (CoET), University of Dar
es Salaam P. O. Box 35131, Dar es Salaam. TANZANIA
E-mail: imshoro@uccmail.co.tz
ABSTRACT
Small and Medium-Sized Enterprises (SMEs) in Tanzania are unable to effectively

start up and/or substantially grow quantitatively as well as qualitatively due to
various reasons. These include the inability to access loan financing and markets,
use of obsolete technology and weak support infrastructure, among other causes.
All these result to poor quality products and/or higher production costs making
respective businesses not competitive. In response to the above, the University of
Dar es Salaam (UDSM) through its College of Engineering and Technology
(CoET) is executing a project on Technology/Business Incubation (TBI) in
Tanzania that is aimed at promoting growth of SMEs. The same is to be achieved
through improved access to new and adapted technology as well as business support
services. Specifically, CoET aspires to have an incubator with walls in its vicinity
to provide technology and business support services to its primary customers
within the hub, as well link and provide services to all other various interventions
being implemented by the College to promote SMEs. These include the virtual
incubators and SME clubs already established/to be established in various locations
in the country, and the innovative clusters being established within the Innovation
System and Clusters Programme in Tanzania (ISCP-Tz).
However, for more effective and efficient implementation of such related various
interventions by CoET. Their differences should be clear in order to ensure that
overlaps/duplications are minimum, if' any. Based on the analysis of the UDSM-
CoET strategy in business/technology incubation, the author of the present paper
describes the logic linkage between the two major interventions, namely TBI and
ISCP-Tz, and clarifies possible areas of overlaps. It is observed that within ISCP-
Tz, the business/technology incubation project, through its hub, has potential to
provide support to the innovative clusters in addressing innovations of relevant
SMEs at product/service level,. These could be in the form of expert advises, quality
IB Mshoro 357 Technology Incubation and ISCP-Tz
assurance services and certification of products and/or services through its high
quality/nationalry accredited and other laboratories. The incubator hub can also
provide specialized training to members of clusters in areas of competence, and can
serve as a platform for supporting innovativeness of clusters. This can be through
providing effective linkages to patent information as well as brokerage/promotion of
proven technologies developed by members of clusters to potential users through its
normal incubation activities. In fact, the above are some of the key roles expected of
an R&D institution in the triple helix of ISCP-Tz.
INTRODUCTION
Generally, in many developing countries the SME sub-sector is considered

to have great potential in creating jobs and hence contributing towards
economic '.growth of the respective countries. However, in Tanzania the
sub-sector is still largely informal, under- performing and in need of
considerable assistance to overcome entrenched disadvantages and barriers
so that its contribution to the national growth becomes more significant.
This is attributed to the fact that most SMEs in Tanzania are constrained by
finances as well as lack of managerial, technical and
business/entrepreneurial skills. Other constraints include high costs of
doing business and inadequate support infrastructure services, as well as
labour market barriers, among others. Some of these factors have been
apparent following a survey conducted throughout Tanzania by the College
of Engineering and Technology (CoET) of the University of Dar es Salaam
(UDSM) between 2002 and 2004 to establish the status and needs of SMEs
(UDSM, 2004). It was found that the majority of the SME owners were not
satisfied with the performance of their enterprises. The main reasons for
dissatisfaction were underperformance of equipment and machines, lack of
market for their products, inability to access loan financing, and use of
obsolete technology. All these result to poor quality products and/or higher
production costs making their businesses not competitive.
This undesirable situation has persisted for a long time, despite the efforts
by the Government of Tanzania to adopt various measures for economic
development through fiscal and monetary policies. There are several
policies and legal frameworks which have been put in place to provide
SMEs with the enabling environment, thereby enhancing economic growth
and achieving rapid and sustainable poverty reduction. To mention the few
are: the Human Resources Development Act of 1983; Small Industries

Development Organization (SIDO) Act of 1973; National Investment Policy
of 1996; Sustainable Industrial Development Policy (SIDP) of 1996; Micro
Finance Policy of 2000; National SMEs Development Policy of 2003; Trade
Policy of 2003; National Strategy for Growth and Reduction of Poverty of
2005 and Programme for Formalization of Businesses in Tanzania,
popularly known by its Kiswahili acronym MKURABITA (Mpango wa
Kurasimisha Biashara Tanzania).
Experience from elsewhere in the world indicate that with existence of

supportive policy t and legal frameworks at national level,
business/technology incubations can contribute significantly to minimize
some of the constraints indicated to affect the development of SMEs in
Tanzania. Specifically, the weaknesses related to technology, training,
marketing, finance and competitiveness can be resolved. This fact led to the
current initiative by CoET to pilot business/technology incubation in
Tanzania through its Technology Development and Transfer Centre (TDTC)
and other UDSM units, in close cooperation with the (SIDO) and the SME
Section of the Ministry responsible for Industry and Trade.
UDSM-CoET BUSINESS TECHNOLOGY INCUBATION PROJECT

DESIGN
Main Rationale
The overall goal and objectives of this particular intervention by UDSM-
CoET have been derived to facilitate the achievement of objectives in the
National SME Development Policy 2002 -2012, having particular regard for
incubator facilities for emerging companies. Specifically on this issue, the
Policy recognizes that technology advancement and transfer are important
aspects for SMEs development. SMEs have limited access to technology
development partly because they lack the relevant information. The
problem is further compounded by the existence of industrial support
institutions, which are weak and operate in isolation without focusing on
the actual requirements of the SME sector. Furthermore, technologies
available are not disseminated to the potential clients. In addition, SMEs
cannot afford the services provided by the relevant institutions. As a result
of the above, SMEs continue to mainly use poor and obsolete technologies.

In redressing the situation, the National SME Development Policy

advocates facilitation of the acquisition and adaptation of technologies as
well as enhance networking between R&D institutions and SMEs in a bid to
upgrade technologies so as to raise the productivity and competitiveness of
the sector. One of the four key strategic directions for the achievement of
the policy is to facilitate the establishment of incubators. The vision is to
have a national network of business incubators, which by 2012 will be a
fully functional, dynamic business development process reducing the
failure rate of early stage companies and speeding the growth of companies
which have the potential to become substantial generators of employment
and wealth and thereby contribute to poverty reduction.
Overall Goal of the Project

In this regard, the overall goal of the project is to have a positive impact on
economic development in Tanzania by contributing to the achievement of
objectives as stated in the National SME Development Policy, having
particular regard for the improvement of SME's access to new and adapted
technology and business support services.
Developmental Objective
The developmental objective of the project is to enable SMEs to grow
quantitatively and qualitatively under the umbrella of a nationwide
business incubator programme, yet to be designed and approved based on
the conclusions evaluation of the Pilot Phase.
Institutional Objectives
The UDSM-CoET objective is to pilot replicable case studies of demand
driven business/ technology incubators that are sustainable, demonstrably
technically feasible, economically viable, and relevant to national policy
objectives. In doing so, the project is expected to enhance the transfer of the
technologies developed by the College and other developers, contribute in
enhancing the institution since the staff members will gain practical
experience from the field, which would help in enhancing their enterprising
attitudes and teaching. Enterprising staff members would use enterprising
approaches in their teaching, hence resulting into more enterprising
graduates, who in turn would become better job creators. Moreover, having

the technology/business incubators will assist the innovative graduates,

staff and retirees wishing to realize respective imaginations but short of the
enabling environment to do so.
CONCEPTUAL FRAMEWORK OF TECHNOLOGY/BUSINESS

INCUBATION AT UDSM -CoET
Before the start of this intervention, there was practically no experience in

business/technology incubation in Tanzania. However, there is a
considerable accumulation of knowledge and experience on
business/technology incubation worldwide. Different countries including
USA, European Union, Australia, India, China, Brazil, Colombia, Iran,
Jordan, Malaysia, Ghana, Nigeria, South Africa, Botswana, Mozambique,
Ukraine, Thailand, Srilanka, Senegal, Philippine, Namibia are implementing
business and technology incubation programmes and projects of various
forms. Some of the above mentioned countries have national level
programme and organisations, which oversee the implementation of the
incubation concept. Apart from reviewing the experiences of others from
literature and other platforms, some UDSM- CoET members visited
Business/Technology Incubators in India and United Kingdom. Experience
obtained from the two countries helped to enrich the UDSM project. In
general, it was observed that the type and approach of incubation used in
different countries vary widely depending on the target group and
objectives of the incubators. There is no such thing as an incubator model
for all countries, neither for one country.
In order to realise the overall goal and objectives of the UDSM-CoET

technology/business project as stated above, CoET aspires to have an
incubator hub in its vicinity to link and provide services to the various
interventions by the College being implemented to promote SMEs. The
latter include the virtual incubators, SME clubs and innovative clusters as
depicted in Fig. 1, hereunder.

Figure 1: The Proposed UDSM-CoET Incubator Hub and its links
Target Group
The UDSM-CoET Project will focus to support three main types of
beneficiaries, namely:
(i) Proven entrepreneurs wishing to start businesses that are technology
based. Under this group, College graduates, staff and retirees will
also benefit. These will access most of the support within/directly
through the Hub.
(ii) Innovative/creative, engineers wishing to realize respective
imaginations but short of the enabling environment. This may be
considered the "high- tech" group, in which too, College graduates
and staff will benefit. These will also access the project's support
within/directly through the Hub.
(iii) Existing entrepreneurs with businesses that are technology based
wishing to be more competitive in respective undertakings. These
could access the project support either within/directly through the
Hub, or through the virtual incubators, SME clubs, innovative
clusters, as the case may be. However, the latter arrangement will be
predominant one, in that the hub will be providing support, as
appropriate, to the virtual incubators, SME clubs and innovative
clusters, and not to individual entrepreneurs.
Anticipated Project Outputs

When fully operational, the UDSM-CoET incubator concept will yield the
following key outputs:
(a) A single point entry to quality technology and business support
services for the incubator clients.
(b) A communication and marketing platform for incubator clients that is
recognized nationally and internationally as a point of entry for
enterprise development.
(c) A platform for supporting innovativeness of incubator clients that
also include an information platform for supporting effective linkages
to patent information.
(d) A hub for supporting operations of the various satellite virtual
incubators, innovative clusters, and SME clubs in the country that are
nurtured by the College.
Specifically, the following services will be provided by the Hub:
(i) To the Clients within the Hub/With Walls Incubator

Training, quality control services (particularly measurements and
metrology), office support, workspace, internet services, business advice,
shared equipment and machinery, support on patent information and other
IPR issues, marketing assistance and link to markets, consolidated
purchase, linkage to financial services, networking.
(ii) To the Virtual/without Walls Incubators and SME Clubs

Quality assurance services, certification of products and/or services,
training, networking facilitate information exchange on markets, for
lobbying and experience sharing, market link to include facilitation the
participation in exhibitions, advertising and improved image. In the latter,
clients in virtual incubators who would like to look more professional to
their customers/be seen as if they are located in a business center or
technology park may be allowed to use the address of the Hub for business
cards and letterheads and, forwarding of mails, access to discounted
conference facilities and/or display of own marketing materials at the Hub
and be accommodated in the website of the Hub.

(iii) To the Innovative Clusters

Expert advises, quality assurance services, certification of products and/or
services, specialised training, and platform for supporting innovativeness of
clusters to include an information platform for supporting effective linkages
to patent information and brokerage/promotion of proven technologies
developed by members of clusters to potential users through normal
incubation activities.
Expected Impacts
(a) Target Group Level
Having easy access to quality and in some cases accredited laboratories and
workshops of the College, expert advises from a wide spectrum of highly
qualified and experienced professionals within and without the College,
quality control services, market networks, funding links and patent
information, the incubator clients will be empowered to start and consolidate
businesses through more effective and efficient value addition in line with
the respective market expectations. This intervention will also promote
effective innovativeness among the individual clients and firms being
incubated and empower them to realize respective technological innovations.
(b) Institutional Level

Having an operational, effective and efficient infrastructure for research,
technology and business innovations as well as their development closely ,
linked to the main function of teaching will ensure that proven research
results and innovations provide effective and continuous feedback to
training programmes hence assisting the College to improve quality and
relevance of its graduates at undergraduate and postgraduate levels,
strengthen commercialization/transfer of technologies developed by CoET and
its research findings, including acquisition of patents.
(c) National Level

The incubator will spearhead the development of technology
entrepreneurship in Tanzania, enhancing capacity building, and promoting
creativity and innovativeness. These results will ultimately stimulate
venture capital as well as foreign direct investment in the country which are
among the key inputs to economic growth and hence reduction of income
poverty.

PRESENT SCOPE OF TECHNOLOGY/BUSINESS INCUBATION BY

CoET
Virtual Incubators/lncubators without Walls
UDSM-CoET is so far piloting three virtual incubators in Kibaha, Morogoro

and Lushoto.
While preparations started as early as 2002/03, the actual operations only

started in January 2006. The preparatory activities involved survey of SMEs
in the country to establish the role of CoET in their promotions,
understanding and promotion of the incubation concept nationwide,
background analysis and feasibility study to identify suitable locations and
type of incubators to be piloted, preparation of business plans for
incubators, establishing promotional partnerships, identifying and
formulating mechanisms for tenants’ support and corresponding support
providers, recruiting incubator management teams, securing physical
facilities for incubator operations, developing/brokering technology that is
appropriate for the incubator clients, preparing clients' admission and exit
criteria, and admitting/signing contracts and Memorandum of
Understanding with the selected incubator clients and potential
supporters/promoters of the project. The project has so far provided to the
selected clients training, technology support in processing of cassava,
cashew nut, and fruits/vegetables, expert advice, assistance to the incubator
clients to prepare bankable business plans and linkages to microfinance
institutions.
The training programmes that are already being offered are those on
incubator policies and procedures; legal aspects of incubator operations
including registration, contracts and taxation; introduction to the processing
of various agricultural products; and fundamentals of business
management and entrepreneurship skills. With regard to support in
technology acquisition for cashew nut processing, two small-scale cashew
nut processing plants are currently being installed at the factory of one of
the clients of the Kibaha and Lushoto Business/Technology Incubators.
These will form central facilities in the locations. The other machines and
equipment, including hand operated cashew nut shellers and cassava
processing machines, have been allocated to selected clients of the
incubators. Various fruit/vegetable/diary processing machines earmarked

for the incubator clients are in various stages of development at CoET
Technology Development and Transfer Centre.
Generally, the source of technology for clients of UDSM-CoET incubators

will come from CoET itself through development and transfer, as well as
other SMEs/sources through technology brokerage. In the latter direction,
the project is promoting/brokering certain cassava processing technology
by Ms. Intermech Company of Morogoro, and cashew nut processing
equipment from Lila- Kilosa Company. This is only a beginning but the
arrangement will better realized when the various innovative clusters are
fully operational and hence the same could provide such complimentary
services to the incubators in a more effective way.
Brief descriptions of each of the three pilot incubators are as follows:
(a) Kibaha Business/Technology Incubator
The Kibaha Business Technology Incubator was designed to be a

“hybrid incubator” i.e. a combination of “incubator with walls”1 and
“incubator without walls”2. It has a total of twenty-six
enterprises/groups, which have been selected as the clients. The
selection was based on set criteria. They are divided into four
processing categories as follows:
(i) Fruit and Vegetable Processing: This category consists of four small
enterprises that are owned by private individual and dealing with
post harvest processing of fruits and vegetables into various
products such as wines, juices, jams, pastes, pickles and dried
products;
(ii) Cashew Nut Processing: This category consists of nine groups of
cashew farmers (Primary Cooperative Societies) with number of
members ranging from 12 to 36 (Total 199 members) dealing with
cashew nut processing. The cashew nut processing has been split
1
All business support services are assembled in one location
2
Business support services provided for enterprises occupying their own premises
in a common locality
into two levels, whereby the groups will be handling the initial
processing. The final processing, including packaging, will be
done in two centres, which are also clients/tenants of the
incubator. The Centres are owned by large Cooperative Unions,
one with a total of 690 members and the other 2,400 members;
(iii) Cassava Processing: This category consists of ten groups of cassava
farmers with number of members ranging from 15 to 75 (Total 262
members) dealing with cassava nut processing. They will be
involved in the processing of both the sweet and bitter cassava
varieties in one level of processing;
(iv) Dairy Products Processing: In this category, there is one
Cooperative Society with a total of 55 members. They are
currently involved with the collection and distribution of fresh
milk. Most of them are diary farmers. The project will assist them
to do processing of milk into various products, preservation and
packaging, which are all not being done at present.
In total, the Kibaha Business/Technology Incubator involves a total of

3626 people (households) when it is fully operational.
(b) Lushoto Business/Technology Incubator

The type of business/technology incubator being implemented in
Lushoto is an incubator without walls. A total of twelve (13) clients
were selected for the Lushoto incubators. They are all either Groups or
Cooperative Societies, with numbers of members ranging from 10 to
126. In total 645 people (households) are included in the Lushoto
Business/Technology Incubator. The majority of them are women. The
nature of their businesses include fruits and vegetables processing into
juice, jam, pickle, etc; processing of diary products (fresh milk, yoghurt
and cheese); production and supply of fresh potatoes, fruits and
vegetables; processing of sugar cane into local beer (“boha”); drying of
fruits, vegetables and spices; cashew nut processing; and baking.
(c) Morogoro Business/Technology Incubator

The Morogoro Business/Technology Incubator is also an incubator
without walls having a total of nineteen (19) clients. The clients
comprise of small enterprises and groups of less than ten members
each (most are privately owned by a single individual. Clients in

Morogoro manly deal with the processing of various food products
including fruits and vegetables into wines, juices, jams, pastes, pickles
and dried products; diary processing; mushroom production and
processing; soya processing; honey production and processing; and
poultry processing.
CONCLUDING REMARKS
Situation analysis has revealed that despite the existence of supportive

policy and legal frameworks at national level and the generally significant
improvements in the business environment, SMEs in Tanzania are still
unable to effectively start up and/or substantially grow quantitatively as
well as qualitatively. Various reasons are attributed to this fact, including
lack of finances, limited access to effective and efficient technology, and
existence of industrial support institutions, which are weak and operate in
isolation without focusing on the actual requirements of the SME sector. As
a result of the above, SMEs continue to mainly use poor and obsolete
technologies, making respective products not competitive.
In this regard, UDSM-CoET is executing a project to incubate

entrepreneurs, with a view to improving SME’s access to new and adapted
technology and business support services. Specifically, CoET aspires to
have an incubator hub in its vicinity to link and provide services to the
various interventions by the College being implemented to promote SMEs.
Hence, there exist a clear relation between business/technology incubation

and various other interventions by the College for promoting growth of
SMEs such as innovative clusters. However, it is a strong opinion of the
author that for more effective and efficient implementation of the various
interventions as elaborated above, the difference between such
interventions should be clear to all parties and overlaps/duplications
should be minimum, if any. For example, when looked in isolation
business/technology incubation is more considered a short-term innovation
strategies mainly involving intervention at product/service level that can
have visible results for enterprises within a fairly short timeframe, either
through complete innovation, adaptation, or re-design of products in line

with market expectations, as well as improvement of production and

marketing techniques.
On the other hand, innovative clusters are more effective in realizing

medium/long term innovation strategies, focusing on functional
innovations including ways in which individual enterprises are developing
products and services within an innovation cluster or system and along
value chains, and integration of functions of different firms. While with
innovative clusters, firms can have collective representation and other kinds
of joint collaboration as well as creating cooperative competition, the same
is not characteristic in business/technology incubators when looked in
isolation. Moreover, in the longer term, innovation system and clusters aim
at promoting industry-society interactions, whereby economic
responsibilities of industries go hand in hand with their social
responsibilities in all their operations.
Based on the above facts, the logic linkage between business/technology

incubation and innovation systems and clusters programme in Tanzania is
therefore characterised by the required link between interventions to
support SMEs at product/service level on one hand, and the functional
innovations as demonstrated by ways in which individual SMEs are
functioning within an innovative cluster/value chains, as well as
integration of functions of different SMEs, on the other. Within the
innovation systems and clusters programme in Tanzania, the
business/technology incubation project, through its hub, therefore plays the
role of an R&D institution in the triple helix, by providing support to the
clusters in addressing innovations of SMEs at product/service level, in the way of
expert advises, quality assurance services and certification of products
and/or services through its high quality/nationally accredited laboratories,
specialised training, and providing platform for supporting innovativeness
of clusters to include effective linkages to patent information as well as
brokerage/promotion of proven technologies developed by members of
clusters to potential users through its normal incubation activities.

PART G
SPEECHES
371
G.1 INTRODUCTORY REMARKS

by Prof. Burton LM Mwamila
Principal, College of Engineering and Technology, UDSM
The Permanent Secretary, Ministry of Agriculture, Food Security and

Cooperatives, Mr. Peniel Lyimo;
The Chief Academic Officer of the University of Dar es Salaam, Prof. Mayunga
Nkunya
His Excellency Jorma Paukku, Ambassador of Finland to Tanzania;
Representative of Sida/SAREC from Sweden, Maija Lindroos;
The President of The Competitiveness Institute, Mr. Lars Eklund;
The Chief Administrative Officer of the UDSM, Prof. John Mshana;
The President, WFEO Standing Committee on Capacity Building, Russell C. Jones;
Representatives of other International and Regional Organizations;
The Deans of the Faculty of Technology, Makerere University, Uganda;
Distinguished Guests;
Ladies and Gentlemen.
It gives me great pleasure to be allowed this opportunity to make some

introductory remarks on this 3rd Regional Conference on Innovation
Systems and Innovative Clusters in Africa. Before doing so I wish to thank
you Hon. Chief Guest and Distinguished Guests and Conference
Participants for responding to our invitation positively.

University of Dar es Salaam (UDSM), Faculty of Technology of Makerere
University and the Faculty of Engineering of Eduardo Mondlane
University, with the generous support of Sida/SAREC of Sweden, have
been collaborating in an initiative towards the establishment of an
Innovation Systems and Clusters Programme in Eastern Africa with a view
to enabling our countries fast-track socio-economic development in this
region. In February 2004, CoET hosted the 1st Regional Conference on
Innovation Systems and Innovative Clusters in Africa, in Bagamoyo. At the
end of 2004 and the beginning of 2005 each of the three institutions
organized a National Stakeholders Workshop on the Establishment of an
Innovation Systems and Clusters Programme in Tanzania (ISCP-Tz). And,
in March 2005, a 2nd Regional Conference on Innovation Systems and
Innovative Clusters in Africa was hosted, in Jinja, by the Faculty of
BLM Mwamila 372 Opening Remarks
Technology of Makerere University. The two Regional Conferences and the

National Stakeholders Workshops resolved to establish an Innovation
Systems and Clusters Programme in Eastern Africa (ISCP-EA).
In September 2005 week-long training courses were held in Bagamoyo,

Tanzania and Jinja, Uganda on; “The Development of Innovation Systems
and Clusters”. And, in June this year a similar course was run in
Mozambique. The courses were intended to prepare ground and
participants for the implementation of the pilot phase of ISCP-EA, selected
pilot cluster initiatives – 8 in Tanzania, 7 in Uganda and 9 in Mozambique.
Prompted by demand from stakeholder a second round of the training
course was held last giving rise to the possibility that another set of may be
launched in due course.
Hon. Chief Guest, Distinguished Guests, Ladies and Gentlemen;

Salaam has once again been given the honour and privilege to organize and
host the 3rd Regional Conference on Innovation Systems and Innovative
Clusters in Africa, from September 3-7, 2006. The Sub-theme of the
Conference has been chosen to be “Stimulating Competitiveness for
Sustainable Economic Development”.
The primary objective of this Conference is to facilitate consolidation of the

progress made to-date and ensure wider stakeholder understanding and
support, including the Government, through:
Ü Creation of enhanced awareness and appreciation of the effectiveness
of innovation systems and innovative clusters in promoting
competitiveness;
The specific objectives of the Conference will be to afford participants to

learn and discuss issues that relate to the following, among other things:
(i) Innovation systems and clusters as means for enhancing
(ii) Development of innovation systems and clusters in the African

Region and efforts towards achieving competitiveness;
(iii) Development of innovation systems and clusters in Eastern Africa as
a way of stimulating speedy economic growth and poverty
reduction;
(iv) Lessons from cases of innovations at firm level; and
(v) Establishment of a forward agenda for the achievement of enhanced
poverty reduction.
The Conference is expected to enable refinement of implementation aspects

of the Innovation Systems and Clusters Programme in Eastern Africa (ISCP-
EA) and thereby ensure success of the same. It is also expected to facilitate
enhanced awareness and appreciation, by the various actors, of innovation
systems and innovative clusters as means towards achieving
innovativeness, competitiveness and hence economic growth. Finally, it is
expected to establish a forward agenda for the achievement in Eastern
Africa of enhanced dynamism, competitiveness, and sustainable economic
growth and poverty reduction.
◊
The programme has been designed to include sessions on:
Innovation Systems and Clusters for Competitiveness at International
◊
Level;
Development of Innovation Systems and Clusters in the African
◊
Region and Efforts towards Achieving Competitiveness;
Review of the progress made to-date including presentations from the
◊
15 pilot Cluster Initiatives in Tanzania and Uganda;
◊
Cases of Innovations at Firm level; and
Group Discussions on “Establishment of a Forward Agenda for the
Achievement of Enhanced Innovativeness, Dynamism,
Competitiveness, and Sustainable Economic Growth and Poverty
Reduction”.
Participants from have been drawn from amongst members of the academia
and R&D institutions, industry, Government and other policy bodies,
financial institutions, NGOs, and regulatory bodies. Participants from
Kenya, Rwanda, Zimbabwe, Ghana and South Africa have also been
invited. In addition to resource persons, some representatives of regional
and international organizations as well as development partners have also
been invited.
The Conference is being co-sponsored by Sida/SAREC, the World Bank

Institute, the Tanzania Investment Centre and the SME Competitiveness
Facility. We are most grateful to all the sponsors for their generous support.
Having said this it is my pleasure to invite the Chief Academic Officer of

UDSM to deliver his Welcome Speech.
I thank you for your attention

G.2 WELCOME SPEECH

by Prof. Mayunga Nkunya,
Chief Academic Officer, University of Dar es Salaam
The Permanent Secretary, Ministry of Agriculture, Food Security and

Cooperatives, Mr. Peniel Lyimo;
His Excellency Jorma Paukku, Ambassador of Finland to Tanzania;
Representative of Sida/SAREC from Sweden, Maija Lindroos;
The President of The Competitiveness Institute, Mr. Lars Eklund;
The Chief Administrative Officer of the UDSM, Prof. John Mshana;
The President, WFEO Standing Committee on Capacity Building, Russel C. Jones;
Principal of the College of Engineering and Technology, Prof. Burton Mwamila;
Representatives of other International and Regional Organizations;
The Deans of the Faculty of Technology, Makerere University, Uganda;
Distinguished Guests;
On behalf of the Vice Chancellor and on behalf of the University of Dar es

Salaam first of all, I wish to take this opportunity to welcome you a l l to
this four-day 3rd Regional Conference on Innovation Systems and
Innovative Clusters in Africa which is hosted b y the College of
Engineering and Technology of the University of Dar es Salaam.
I wish to express my sincere thanks to you Hon. Chief Guest for agreeing
and setting aside time to come and officiate at the Opening of this
conference. Your acceptance to come and grace the Opening Ceremony of
this Conference on a Sunday is clear demonstration of your support to the
University of Dar es Salaam and the College of Engineering and
Technology, in particular, in their efforts to stimulate, catalyze and
promote sustainable socio-economic in our country and the Eastern
African Region.
As we have been informed, the theme of the Conference is Stimulating

Competitiveness for Sustainable Economic Development. The primary objective
being to consolidate the progress made to-date with respect to the
Innovation Systems and Clusters Programme in Tanzania and Eastern
Africa (ISCP-Tz/EA), and strategize on the way forward. The Innovation
Systems and Clusters Programme in Tanzania and Eastern Africa (ISCP-
M Nkunya 376 Welcome Speech
Tz/EA) which is a collaborative undertaking between UDSM, Makerere

University and Eduardo Mondlane University, is expected to instill change
of mindset amongst Small and Medium Enterprises (SMEs) and businesses
in general towards enhanced quality, productivity and hence
competitiveness.
On behalf of the University of Dar es Salaam, I wish to express my very

sincere thanks for the support that the University has continued to receive
from Sida/SAREC of Sweden. In addition, the University is very grateful
to all the other co-sponsors of this Conference and the Training Workshop
which ended last Friday, namely; the World Bank Institute, the Tanzania
Investment Centre, and the SME Competitiveness Facility.

Salaam is also commended for organizing this 3rd Regional Conference on
Innovation Systems and Innovative Clusters in Africa.
Ladies and Gentlemen;
I believe you will all agree with me that the crux of the processes governing
national development and the position of a country within the world
economy hinges on developments in Science and Technology (S&T),
especially innovative activities. We, therefore, have no option other than
embrace innovations as a vital tool for accelerating not only the transition of
our country to an industrial economy, but also for modernization of our
agriculture to provide meaningful backward and forward linkages which
are very important anchors for the achievement of economic growth as
underscored in the Millennium Development Goals (MDG).
The University of Dar es Salaam being a national university and the largest
in the country feels duty-bound to respond to the needs of our society and
thereby contribute towards speeding up the socio-economic development of
our country. The terms of reference of UDSM include community service
and the university’s Strategic Plan gives due attention to the same.
Organization of this Conference is thus in fulfilment of the university’s
responsibility to our society, for it is understood that cluster development
has attained considerable attention over the last decade as a means to
enhance the competitiveness of firms and regions. This is largely due to
the fact that innovative clusters are responsive to demands of the new
economy for; speed, quality, flexibility, innovation, networking and
building critical mass. Thus, establishment of the clustering behaviour is
particularly important in supporting the development of competitiveness
of emerging industries, and hence laying of a solid foundation for a
competitive and dynamic economy with high productivity. I have been
made to understand that through clustering, even a small firm can gain
the necessary critical mass to service world markets.
Distinguished guests, Ladies and Gentlemen,
Once again welcome to this 3rd Regional Conference on Innovation

Systems and Innovative Clusters in Africa. We thank you most sincerely
for responding positively to our invitation to participate in the
Conference. We are very thankful to the resource persons for offering to
share with participants their knowledge and experience.
My duty was to welcome you to the Conference which I have done.
I therefore conclude by saying I thank you for your attention.

G.3 OPENING SPEECH

By Mr. Peniel Lyimo
Permanent Secretary, Ministry of Agriculture, Food Security and
Cooperatives, Tanzania
The Vice Chancellor Prof. M.L. Luhanga,

His Excellency, the Ambassador of Sweden, Mr, Torvald Akesson,
Sida/SAREC Representatives from Sweden, Dr. Maija Lindroos;
The President of The Competitiveness Institute, Lars Eklund;
Representative of the World Bank Institute, Justine White;
The Chief Academic Officer, Prof. Mayunga Nkunya;
The Chief Administrative Officer, Prof, J. S. Mshana;
The Principal of the College of Engineering and Technolog; Prof. Burton
Mwamila;
International and Regional Resources Persons;
The Deans of the respective Regional Institutions;
Distinguished Delegates;
Mr, Chairman
At the outset, let me take this opportunity to warmly welcome all foreign
participants to Tanzania. In Kiswahili we say: "KARIBUNI SANA
TANZANIA”. I hope you will have an excellent time in this country and
that besides participating in the Conference, you will spare some time to
visit different parts of the country including our various tourist
attractions, so as to enable you to get a complete picture of Tanzania, and
not only an impression of Kunduchi Beach Hotel and Resort.
Mr. Chairman
May I express my sincere appreciation to the University of Dar es Salaam
for according me the honour to officiate at the opening of this 3rd Regional
Conference on Innovation Systems and Innovative Clusters in Africa. As I
have been informed, the primary objective of the Conference is to
consolidate the progress made to-date and ensure wider stakeholder
understanding and support, including the Government, through:
P Lyimo 379 Opening Speech

Ü Creation of enhanced awareness and appreciation of the effectiveness

of innovation systems and innovative clusters in promoting
competitiveness;
On behalf of the Government of the United Republic of Tanzania and my

own behalf, I wish to convey our profound gratitude to the Swedish
Government for generously supporting, through Sida/SAREC, the
initiation of collaborative research in engineering and technology among
the faculties of engineering in our region, in partnerships with Swedish
counterpart institutions, and specifically for co-financing this Conference. I
am also thankful to co-sponsors, namely; the World Bank Institute,
Tanzania Investment Centre (TIC) and the SME Competitiveness Facility
(SCF) for making it possible to organize both the Training Course and this
Regional Conference.
Further, I wish to commend the College of Engineering and Technology of

the University of Dar es Salaam for organizing both the Training Course
and the Conference.
Mr. Chairman, Distinguished Delegates, Ladies and Gentlemen,

As we move towards increasingly globalized economies, we witness an
accelerated but segmented and uneven process of development, with
concentration of total global wealth in certain countries, regions and cities
of the world; and marginalization of production and the people engaged in
them, in some other parts of the world.
In recognition of the above developments, the Government of Tanzania

formulated the National Development Vision, VISION 2025, and the
National Strategy for Growth and Reduction of Poverty. These
documents have been prepared to provide a framework for the
development of our country in a manner that accommodates the emerging
national and global realities, as outlined in Agenda 21 and the UN
Millennium Development Goals (MDGs), in the long-term. The overall
national development goal as defined in the VISION 2025 is to attain
sustainable human development. The goal has economic, social, political,

institutional, environmental and above all, technological dimension.

While some of the world leaders are already crossing to the post-industrial
era, most countries of Africa have not been able to adequately embrace even
the technologies of the first industrial revolution. Development in Science
and Technology (S&T), especially innovative activities is an important
determinant of these processes governing national development and the
position of a country within the world economy. Countries like Tanzania
have therefore no option other than embracing technological innovations as
a vital tool for accelerating not only their transition to an industrial
economy, but also for modernization of their agriculture to provide
meaningful backward and forward linkages which are very important
anchors for the achievement of economic growth.
Mr, Chairman, Distinguished Delegates, Ladies and Gentlemen

African industrialization has to be closely tied to the development of Small
and Medium Scale (SMEs) enterprises, not only because the process of
industrialization has always been linked to the development of SMEs, but
also because small scale firms have a greater potential to generate
appreciable employment opportunities thereby facilitating reduction of the
abject poverty existing in Africa. For more than two decades observers have
recognised that small-scale activities generate employment for a vast
growing number of men and women in Africa. Unfortunately, in Africa, the
relationship between small enterprise developments and the process of
industrialisation is being constrained by a number of obstacles, which
include; low level of product and process technology, small product
markets, lack of access to capital, poor physical infrastructure and above all,
lack of institutional framework for addressing these.
Mr. Chairman, Distinguished Delegates, Ladies and Gentlemen

This is precisely the reason I was greatly heartened when the organization
of this 3rd conference on Innovation Systems and Innovative Clusters was
brought to my attention. I am convinced that the systems approach, and
especially the innovative clusters initiative, is the most appropriate way in
addressing the above structural problems. Clusters give rise to collective
efficiency, which enhances firms' competitive advantage and helps firms to
respond to opportunities and crises easily. Most importantly, clusters offer

a fertile ground for technological innovations. There are at least three
critical arguments as to why innovation and collective efficiency tend to be
•
connected with clusters:
The need for incremental reduction of technical and economic
•
uncertainties;
The need for repeated and continuous interaction between related
firms and specialised institutions (including, those in research and
•
education); and
The need for face-to-face contact between the actors in the cluster in
the exchange and creation of new knowledge.

The above arguments are especially crucial for Africa. With weak physical
infrastructure such as roads and railways, telecommunications systems, and
computer-based communication and the Internet; enterprises in clusters
enjoy the advantage of easier communication and therefore facilitate
learning from each other compared to the isolated firms.
Policy documents prescribe the following, among other things, in respect of
◊
institutions of higher learning:
Intensification of Research and Development (R&D), and directing it to
◊
serve the community and its developmental needs;
Search for solutions to problems that affect social and economic
◊
development; and
Imparting scientific knowledge and technical know-how and expertise
to the future stock of specialists.
Universities in Africa have to playa leading role towards achieving national

socioeconomic advancement through the development of appropriate and
sustainable technologies. They are potentially the most capable institutions
in their countries in this respect.

In this increasingly globalized world, the importance of a regional outlook on
matters related to sustainable development is ever increasing. In addition to
the linkages and cooperation among the national organisations, we
therefore also need cooperation and linkages at the regional and sub
regional levels. The importance of South-South Co-operation cannot be

over-emphasised but should also not be perceived as a replacement of
North-South Partnerships, but rather a complement to it. Some of the
African countries have already moved towards this direction, Tanzania and
Uganda for instance are members of the East African Community (EAC);
Tanzania and Mozambique are members of the Southern Africa
Development Community (SADC); all three nations are members of the
African Unity (AU), the Commonwealth of Nations and the United Nations
(UN).
In the same spirit of regional and international cooperation, this Regional

Conference involves universities included in the Sida/SAREC programme
for Africa, i.e. the University of Dar es Salaam (UDSM), Makerere
University (MU), and the Universidade Eduardo Mondlane (UEM). I once
again, I wish to express my very sincere thanks for the financial support
that the University of Dar es Salaam has continued to receive from various
donors. In particular, Sida/SAREC of Sweden has been, as for the other
participating universities, a very important partner in this respect.

While wishing you a fruitful Conference, I do understand that the
Conference is expected in the main to enable refinement of implementation
aspects of the Innovation Systems and Clusters Programme in Eastern
Africa (ISCP-EA) and thereby ensure success of the same. It is also
expected to facilitate enhanced awareness and appreciation, by the various
actors, of innovation systems and innovative clusters as means towards
achieving innovativeness, competitiveness and hence economic growth.
Finally, it is expected to establish a forward agenda for the achievement in
Eastern Africa of enhanced dynamism, competitiveness, and sustainable
economic growth of the local industry and businesses and hence poverty
reduction. I am mentioning the local industry and businesses because there
is no country that has successfully built a buoyant private sector without a
strong indigenous participation.
I have been made to understand that the ISCP-EA programme aims at

contributing towards stimulating, catalyzing and promoting the growth of
SMEs and hence the establishment of a buoyant indigenous based private
sector in the Eastern African Region.
In your case, however, I am encouraged to note that apart from members of

the academia, there is also appreciable representation of the industry and
policy bodies. That being the case, I wish to encourage you to proceed with
your commitment to contribute towards speeding up economic growth in
our Eastern African region through promotion of innovations and
innovative clusters in the industrialization process.
Mr, Chairman, Distinguished Delegates, Ladies and Gentlemen,

Having said all this, it is now my pleasure to end my address by declaring
the 3rd Regional Conference on Innovation Systems and Innovative
Clusters in Africa officially open. I wish you fruitful deliberations.
I thank you all for your attention.

PART H
APPENDICES
385
H.1 LIST OF PARTICIPANTS
S/n Title Surname Other Position Organisation Address Country Telephone Fax Email
Names
1. Mr. Alexander Mathias Electromechanical TIRDO P.O. Box Tanzania +255-72-3765481 +255-22- mathalexa@yahoo.co.uk
Engineer 23235 Dar 2666034
es Salaam
2. Mr. Asman Samuel J. Chairman Tanzania P.O. Box Tanzania +255-78-7280742 s_asman@hotmail.com
Mushroom 31664 Dar +255-22-2647095
Growers es Salaam
Association
3. Mr. Azaria Fred B. Executive Director Dodoma TCCIA P.O. Box 693 Tanzania +255-75-4265354 +255-26- fredazaria2000@yahoo.com
Dodoma 2324201
4. Dr. Bagampadde Umaru Lecturer Makerere P.O. Box Uganda +256-77-2605495 +256-41- bumaru@tech.mak.ac.ug
University 7062 530686
Kampala
5. Dr. Bagenda Jerome Head, Department Kyambogo P.O. Box 1, Uganda +256-41-287341 jbagenda@yahoo.com
Ssengonzi of Mechanical & University Kyambogo +256-77-473416
Production
6. Mr. Balu-Tabaaro W. Mineral Dressing Department of P.O. Box 9 Uganda +256-41- +256-41- eng_balutabaro@yahoo.com
Engineer/Asst. Geological Survey Entebbe 320656/320559 320364
Commissioner Lab and Mines +256-75-2629802
7. Mr. Bankobeza Bennett Senior Manager, CRDB P.O. Box 268 Tanzania +255-22-2137473 bbankobeza@yahoo.co.uk
Institutes Grant Dar es +255-75-4581413 bbankobeza@crdbbank.com
Salaam
8. Mr. Blankley William Director: Innovation Centre for Private Bag South Africa +27 (21) 466 7806 +27 (21) wblankley@hsrc.ac.za
and Indicators Science, X9182 461 1255
Technology and Cape Town
Innovation 8000
9. Mr. Byoma IVN Managing Director BSK Engineering P.O. Box Tanzania +255-22-2604550 bskengin@hotmail.com
2030 +255-71-3296238
386 List of Participants
Names
Morogoro
10. Eng. Chisawillo Peter Director Intermech P.O. Box Tanzania +255-71-3771182 +255-23- pchisawillo@intermech.biz
Engineering Ltd. 1278 2602345 pchisawillo@yahoo.com
Morogoro
11. Mr. Christensen Lars Senior Advisor VINNOVA S-11857 Sweden +46-705-910777 LARS@LLAB.SE
Stockholm
12. Dr. Crudelli Luca Advisor Ministry of P.O. Box Tanzania +255-22-2112681-
Planning, 9242 Dar es 4
Economy & Salaam
Empowerment
13. Dr. Crul Marcel Design for Delft University of Fuculty of Netherlands m.r.mcrul@tudelft.nl
Sustainability, Technology Industrial
Industrial Design Design
Engineering Engineering
14. Mr. Diehl Jan Assistant Professor Delft University of Netherlands +31 15 2782231 +31 15 j.c.diehl@io.tudelft.nl
EcoDesign Technology 2782956
15. Ms. Diyamett Bitrina National ATPS P.O. Box Tanzania +255-78-4420850 bitrind@yahoo.com
Coordinator - Tz 4302 Dar es
Salaam
16. Mr. Dola Saleh Said Managing Director Discover Tanzania P.O. Box Tanzania +255-22-75- tycoondola@yahoo.com
Heritage 63014 Dar 4296207 bagamoyocluster@yahoo.com
es Salaam
17. Mr. Eklund Lars President, TCI The VINNOVA Sweden +46703618875 lars.Eklund@VINNOVA.se
Competitiveness Competitiveness SE-10158
Agenda for Africa Institute (TCI) Stockholm
18. Dr.. Eskola Elina Advisor/Team Sida/INEC SE-105 25 Sweden +46-8-6985029 elina.eskola@sida.se
Leader Stockholm,
19. Mr. Ffowcs- Ifor Chief Executive Cluster Navigators 9 New Zealand +644 388 1449 e4@clusternavigators.com
Williams Officer Ltd Beerehaven
Steps,
Wellington
Names
6022
20. Mr. Graftstrom Jan 1st Secretary Embassy of P.O. Box Tanzania +255-22-2196500 +255-22- jan.graftstrom@sida.se
Sweden 9274 Dar es 07 54 000243 2196503
Salaam
21. Ms. Gwarasa Gelagister Human Nutrition Ilala Municipal P.O. Box Tanzania +255-22-2121488 ggwarasa@yahoo.com
Specialist Agricultural and 63188 Dar +255-78-4233318
Livestock es Salaam
Development
Office
22. Prof. Halfani Mariamu Head, Department CoET-UDSM P.O. Box Tanzania +255-78-4695084 +255-22- mrhalfan@ud.co.tz
of Chemical 35131 +255-22-2410368 2410029 mhalfani@cpe.udsm.ac.tz
Process Dar es
Engineering Salaam
23. Mr. Hazali Lameck Representative Ministry of P.O. Box Tanzania +255-22-2862003 ++255-22- lameckhazali@yahoo.co.uk
Agriculture, Food 9192 Dar es +255-75-4865529 2862003
Security and Salaam
Cooperatives
24. Prof. Higenyi James Faculty of Makerere P.O. Box Uganda +256 –772 404104 jhigenyi@tech.mak.ac.ug
Technology University 7062
Kampala
25. Mr. Hozza Charles L. Executive Officer TCCIA - Tanga P.O. Box Tanzania +255-27-2646114 +255-27- tanga@tccia.com
5293 Tanga +255-78-4286158 2646114
26. Ms. Ishengoma Mwantumu Director General Mhenga P.O. Box Tanzania +255-78-4531887 mwat45@yahoo.com
Investment 60446 Dar
es Salaam
27. Prof. John Geoffrey R. Department of CoET-UDSM P.O. Box Tanzania +255-22-2410369 +255-22-
Energy 35131 Dar 2410114
es Salaam
28. Prof. Jones Russel The President, WFEO 2001 Mayfair The United +1 (703) 534-6383 rcjonespe@aol.com
Committee on Mclean ct, States of
Engineering Falls Church, America
Capacity Building in VA 22043
Names
Developing
Countries
29. Ms. Jumbe Leilla Treasurer Tanzania Women P. o. Box Tanzania +255-75-4384442 gorongaleilla@yahoo.com
Mineral 22741, Dar tawaomat@yahoo.com
Association es Salaam
30. Eng. Kabadi Alex K. Director Classy Green P.O. Box Tanzania +255-22-2125271
Enterprises Ltd. 110112 Dar +255-75-4278002
es Salaam
31. Mr. Kabuka Godfrey SME P.O. Box Tanzania
competitiveness 5789
Facility Dar es
Salaam
32. Ms. Kahara- Audrey Nakawa Campus Makerere P.O. Box Uganda +256-75-2412822 akawuki@yahoo.com
Kauruki University 1337
Business School Kampala
33. Mr. Kakwira Raphael Engineer Small Industries P.O. Box Tanzania +255-22-2150132 kakwira@yahoo.co.uk
Development 2476 Dar es +255-22-75
Organisation Salaam 4327584
(SIDO)
34. Mr. Kankiko Gordian Principal Technologie Sans P.O. Box Tanzania +255-713 563977 kankiko@gmail.com
Frontieres 7292 Dar es http://tsforg.googlepages.com
Salaam
35. Eng. Kassera Swaleh N. A. Executive Secretary IET P.O. Box Tanzania +255-748-349920 +255-22- iet@iet.co.tz
2938 2124265/2
Dar es 150626
Salaam
36. Prof. Katalambula Hassan Deputy Director, CoET – UDSM P.O. Box Tanzania +255-22-2410376 +255-22- hkatala@uccmail.co.tz
Technology 35131 Dar +255-75-4468171 2410411
Development es Salaam
37. Prof. Katima Jamidu HY Dean, Faculty of CoET-UDSM P.O. Box Tanzania +255-22-2410754 +255-22- jkatima@cpe.udsm.ac.tz
Mechanical & 35131 Dar +255-75-4265864 2410114
Chemical es Salaam
Names
Engineering
38. Mr. Katunguka Samwiri Task Manager, Makerere P.O. Box Uganda +256-41-531067 +256-41- iatmak@utlonline.co.ug
Innovations at University 7062 256-77-492896 531069
Makerere
Committee
39. Hon. Kavuma Nvumetta Member of RESS Initiatives P.O. Box Uganda +256-772-479045 +256-41- rkavuma@parliament.go.ug
Ruth Parliament Government of 7178 236183 ssesei@hotmail.com
Chairperson Uganda Kampala
40. Dr. Kibazohi Oscar Lecturer Department of P. O. Box Tanzania +255-22-2410368 +255-22- kibazohi@coe.udsm.ac.tz
Chemical and 35131, +255-71-3296883 2410114
Process Dar es
Engineering, CoET Salaam
41. Mr. Kihedu Joseph PhD Student CoET - UDSM P.O. Box Tanzania +255-22-2410369
35131 Dar +255-75-4835648
es Salaam
42. Dr. Kissaka Muhidin Lecturer Department of P. O. Box Tanzania +255-22-2410377 2410377 mkissaka@yahoo.com
Telecommunicatio 35131, Dar +255-75-4364956
ns Engineering, es Salaam
CoET
43. Dr. Komba Adalgot A. Researcher African P.O. Box Tanzania +255-22-71 akomba@udsm.ac.tz
Technology Policy 35169 Dar 3414586
Studies Network es Salaam
(ATPS)
44. Dr. Kwesiga Charles G. Executive Director Uganda Industrial P.O. Box Uganda +256 41 286245 uiri@utlonline.co.ug
Research Institute 7086 +256 712 701070
Kampala +256 772 382195
45. Dr. Kyaruzi Alexander Director, Bureau for CoET - UDSM P.O. Box Tanzania +255-22-2410113 +255-22- kyaruzi@ee.udsm.ac.tz
Industrial 35131 Dar +255-713 339273 2410114
Cooperation (BICO) es Salaam
46. Dr. Kyaruzi John Joel Director, Research Tanzania P.O. Box 938 Tanzania +255-75-4288278 +255-22- jkyaruzi@tic.co.tz
& Information Investments Dar es 2118253
Systems Centre Salaam
Names
47. Mr. Kyukyu Robert Business Uganda Private Sector P.O. Box Uganda +256 41 +256 41 rkyukyu@psfuganda.org
Development Foundation 7683 342163/230985 259109
Scheme Uganda Kampala
48. Mr. Lanya Peter Counsellor Tanzania Private P.O. Box Dar Tanzania +255-713 564955 +255-22- bil114@hotmail.com
Sector Foundation es Salaam +255-22- 2112753
2112752/4
49. Prof. Lema Ninatubu Deputy Principal CoET – UDSM P.O. Box Tanzania +255-22-2410486 +255-22- gmrema@cpe.udsm.ac.tz
(Planning External 35131 Dar 2410411 pefa@foe.udsm.ac.tz
Links, Finance & es Salaam
Administration)
50. Dr. Lindroos Maija Senior Research Natural Sciences SE-105 25 Sweden +46-8-6985348 maija.lindroos@sida.se
Advisor/Head of for Sustainable Stockholm,
Division Development
Sida/SAREC
51. Mr. Lugome Allan S, Dean of Students Bagamoyo College P.O. Box 32 Tanzania +255-78 4305880 +255-23- a.lugome@sanaabagamoyo.com
of Arts Bagamoyo 023 2440032 2440149 bagamoyocluster@yahoo.com
52. Prof. Lugujjo E. Head, Department Makerere P.O. Box Uganda +256-41-531046 elugujjo@tech.mak.ac.ug
of Electrical University 7062
Engineering Kampala
53. Mr. Lyimo Peniel Permanent Ministry of P.O. Box Tanzania +255-22-2862003 ++255-22-
Secretary Agriculture, Food 9192 Dar es 2862003
Security and Salaam
Cooperatives
54. Mr. Mabagara Julius Executive Secretary Tanzania P.O. Box Tanzania +255-71-3756584 +255-23- morogoro@tccia.com
Agricultural 6023 +255-23-2602345 2602345
Society (TASO) Morogoro
55. Mr. Mackanja Geoffrey Business Consultant Confederation of P.O. Box Tanzania +255-22- 2114954 +255-22- thecklamyovela@yahoo.com
Tanzania 71783 +255-741 424062 2115414
Industries Dar es
Salaam
56. Mr. Madongo Zahoro Secretary General Tanzania Carvers P. O. Box Tanzania +255-75-4865670 chawasawata@yahoo.com
Association 33612, Dar
Names
es Salaam
57. Ms. Magambo Julieth Economist Ministry of P.O. Box Tanzania +255-22-2112681- julliettek@yahoo.com
Planning, 9242 Dar es 4
Economy & Salaam +255-75-4771111
Empowerment
58. Mr. Maganga Johanes Standards Officer Tanzania Bureau P.O. Box Tanzania +255-22-2440206 +255-22- johanes742000@yahoo.com
of Standards 9524 Dar es +255-71-3455589 2450959
Salaam
59. Mr. Maillard Emmanuel Attache Commercial French Embassy P.O. B ox Tanzania +255-22- +255-22- emmanuel.maillard@missioneco.org
2349 Dar es 2666021/2/3 2666939
Salaam
60. Mr. Makau Bashiru Director TCCIA - Lushoto P. O. Box Tanzania +255-27-2640215 bmakuu2001@yahoo.co.uk
hassan 104, +255-78-4674231
Lushoto,
Tanga
61. Prof. Makungu Patrick Director General CARMATEC P.O. Box 764 Tanzania +255-22-75- pjmakungu@yahoo.com
Arusha 4376375 pmakungu@suanet.ac.tz
+255-27-2553214 carmatec@hotmail.com
62. Mr. Malekela Aloys E. Guiding Manager Ancient P.O. Box 104 Tanzania +255-78-4408110 ancient.entertainers@hotmail.com
Entertainers Bagamoyo
63. Mr. Malika Frederick Chairman, Sisal Mwelya Sisal P.O. Box 61 Tanzania +255-75-4814435 fpsmalika@hotmail.com
Smallholder Estate Mombo
Growers Korogwe
64. Dr. Maronga Savin Head, Department CoET - UDSM P.O. Box Tanzania +255-22-2410490 +2410-22- smaronga@cpe.udsm.ac.tz
of Mining & Mineral 35131 Dar +255-75-4692151 2410114
Processing Eng. es Salaam
65. Dr. Masanja Enock Sen. Lecturer, Dept. CoET-UDSM P.O. Box Tanzania +255-78-4282528 emasanja@cpe.udsm.ac.tz
of CPE 35131 Dar enockmasanja@yahoo.com
es Salaam
Ms. Massawe Flotea Founder/Managing Marvellous Flotea P.O. Box Tanzania +255-22-2761260 +255-22- marvbatik@yahoo.com
Director Company Ltd 1751 +255-713 313784 2760972
Names
Dar es
Salaam
66. Prof. Mawenya Awadhi S. Director Design Partnership P.O. Box 568 Tanzania dpl@catz.com
Ltd Consulting Dar es
Engineers Salaam
67. Eng. Mbise Hosea A. Commissioner Ministry of Energy Tanzania +255-22-2137142
and Minerals
68. Mr. Mdanku Idd Director TCCIA - Morogoro P.O. Box Tanzania +255-23-2602345 +255-23- morogoro@tccia.com
1691 +255-75-4897322 2602345
Morogoro
69. Mr. Mdogwa Kampeni Executive Officer TCCIA Morogoro P.O. Box Tanzania +255-23-2602345 +255-23- morogoro@tccia.com
Region 1691 +255-75-4897322 2602345
Morogoro
70. Mr. Mgonja H. O. Assistant Registrar, BRELA P.O. Box Tanzania +255-22-2180141 +255-22- kirangare@yahoo.com
Intellectual Property 9393 Dar es +255-75-4802041 2180371/4 hakielm@yahoo.co.uk
Division Salaam 11
71. Dr. Mhamilawa E.E. Chairman NUSESA P.O. Box Tanzania +255-75-287937 nusesa-tz@yahoo.com
35091 Dar
es Salaam
72. Ms. Mhando Nandera E. Assistant Lecturer Sociology & P.O. Box Tanzania +255-75-4268984 nanderam@yahoo.com
Anthropology, 35043
UDSM
73. Prof. Mjema Emmanuel Head, Department CoET - UDSM P.O. Box Tanzania +255-22-2410369 +255-22- emjema@uccmail.co.tz
of Engineering 35131 Dar 2410114
Management & es Salaam
Entrepreneurship
74. Dr. Mkhandi Simon Coordinator, CoET-UDSM P.O. Box Tanzania +255-22- 2410029 +255-22- s_mkhandi@yahoo.com
Research & 35131 Dar +255-75-4285069 2410029
Publications es Salaam
75. Prof. Mkilaha Iddi Head, Department CoET - UDSM P.O. Box Tanzania +255-22-2410369 +255-22- grkjohn@uccmail.co.tz
of Energy 35131 Dar 2410114
Engineering es salaam
Names
76. Mr. Mkwawa Bakari Seaweed Farner C-Weed P.O. Box 829 Tanzania +255-75-4779191 bmkwawa@yahoo.com
Corporation Tanga
Ltd/Mwani
Mariculture Ltd.
77. Prof. Mongi Hussein Director, Research Alpha Seed P.O. Box Tanzania +255-78-4377097 +255-27- mbegutech@yahoo.com
& Development Company Ltd. 1743 Moshi 2750893 hussein.mongi@kicheko.com
78. Prof. Mrema Godwin D. Coordinator, MIEM CoET-UDSM P.O.Box Tanzania +255-22-2410368 +255-22- gdmrema@yahoo.com
35131 Dar +255-75-4466292 2410113
es Salaam
79. Mr. Mrema Januarius, G. Director Policy & Ministry of P.O. Box Tanzania +255-22-2180075 +255-22- dp@mit.go.tz
Planning Industry, Trade 9503 +255-75-4319988 183138
and Marketing Dar es
Salaam
80. Mr. Mrope Raphael SPAO, Head CoET-UDSM P.O. Box Tanzania +255-22- 2410380 +255-22- admin@coet.udsm.ac.tz
Administration 35131 Dar +255-75-6712518 2410114
Office es Salaam
81. Dr. Msemwa Paul Director National Museum P.O. Box Tanzania +255-22- 2117508 houseofculture@museum.or.tz
of Tanzania 511, Dar es +255-74-4820686 bagamoyocluster@yahoo.com
Salaam
82. Prof. Mshana J. S. Chief Administrative UDSM P.O. Box Tanzania +255-22-2410394 +255-22- cado@udsm.ac.tz
Officer 35091 2410394
Dar es
Salaam
83. Dr. Mshandete Anthony Lecturer, SCIENCE - UDSM P.O. Box Tanzania +255-75-6054614 anthonymshandete@yahoo.co.uk
Department of 35179 Dar
Molecular Biology es Salaam
and Biotechnology
84. Prof. Mshoro Idrissa, B. Deputy Principal, CoET - UDSM P.O. Box Tanzania +255-22-2410024 +255-22- imshoro@uccmail.co.tz
(Academic 35131 Dar 2410411
Research & es Salaam
Consultancy)
Names
85. Dr. Msuya Flower E. Chief Laboratory Institute of Marine P.O. Box 668 Tanzania +255-77-7490807 +255-24- msuya@ims.udsm.ac.tz
Scientist Sciences Zanzibar 2233050
86. Prof. Mtalo Felix Ag. Dean, Faculty of CoET - UDSM P.O. Box Tanzania +255-75-4365008 +255-22- lema@ce.udsm.ac.tz
Wenceslaus Civil Engineering & 35131 Dar +255-22-2410752 2410752
the Built es Salaam
Environment
87. Ms. Muffui Esther Natai Vice Chairman Mwammbomo P.O. Box Tanzania +255-75-4518161 nataiesther@yahoo.com
Clusters 3124
Morogoro
88. Eng. Mukama Benedict Ass. Registrar Engineers P.O. Box Tanzania +255-22-2136208 +255-22- bmukama@yahoo.com
Registration Board 14942 Dar +255-71-3425424 2115373
es Salaam
89. Arch. Mukiibi Stephen Head, Department Makerere P.O. Box Uganda +256-41-531860 smukiibi@tech.mak.ac.ug
of Architecture University 7062 +256-752696157
Kampala
90. Dr. Mukiibi- M. Head, Department Makerere P.O. Uganda +256-772-422737 katende@tech.mak.ac.ug
katende of Surveying University Box7062
Kampala
91. Mr. Mumba Gabinus D. J. District Area Bagamoyo District P.O. Box 54 Tanzania +255-23-2440002 bwanahaya@yahoo.com
Secretary Office Bagamoyo +255-78 4515396
92. Mr. Musajjakawa John Snr. Investment Uganda P.O. Box Uganda +256 41 301161 +256 41 musajja@ugandainvest.com
Executive Investment 7418 +256-752529336 342 903 www.ugandainvest.net
Investment Authority Kampala
Promotion Division
93. Mr. Mutambi Joshua Senior Industrial Ministry of P.O. Box Uganda +256-41-314228 +256-41- jmutambi@yahoo.com
Officer Tourism, Trade 7103 +256-782-679530 340427 jmutambi@miti.go.ug,
and Industry Kampala jmutambi@gmail.com
94. Dr. Muyanja Charles Snr. Lecturer Makerere P.O. Box Uganda +256-772 577708 256-41- ckmuyanja@agric.mak.ac.ug
University 7062 431641 ckmuyanja@yahoo.co.uk
Kampala
95. Dr. Mvungi Nerey, H. Head, department of CoET - UDSM P.O. Box Tanzania +255-22-2410377 +255-22- mvungi@ee.udsm.ac.tz
Computer Systems 35131 Dar 2410377
Names
Engineering es Salaam
96. Dr. Mwaikambo Leonard Head, College CoET-UDSM P.O. Box Tanzania +255-22- 2410501 +255-22- lymwaikambo@udsm.ac.tz
Planning Office 35131 Dar +255-78-7028066 2410114
es Salaam
97. Mr. Mwaikono Ezekiel Executive Officer TCCIA Coastal P.O. Box Tanzania +255-23-2402482 +255-23- mwaikono@yahoo.com
Region 30321 Pwani +255-784-384931 2402482
98. Prof. Mwakali Jackson A. Head, Department Makerere P.O. Box Uganda +256 41 530686 +256 41 mwakali@tech.mak.ac.ug
of Civil Engineering University 7062 +256 772420502 530686
Kampala
99. Mr. Mwakaswaga John Secretary Morogoro Metal P.O. Box Tanzania +255-22-2604550
Works Cluster 1278 +255-71-3296238
Initiative Morogoro
100. Prof. Mwamila Burton L. M. Principal CoET-UDSM P.O. Box Tanzania +255-22- 2410753 +255-22- mwamila@udsm.ac.tz
35131 Dar +255-78-4524291 2410114 principal@coet.udsm.ac.tz
es Salaam
101. Ms. Mwasha Tina Tanzania Chamber P. o. Box Tanzania +255-22-2601214 theo@chamberofmines.org
of Mines and 13369, Dar +255-744-035625
Energy, es Salaam
Chole Rd, Masaki
102. Mr.. Mwesigwa Nuha Executive Director Makerere P.O. B ox Uganda +256 41 374119 +256-712- anmwesigwa@yahoo.co.uk
University Private 7062 +256-782-610260 862872 edforum@admin.mak.ac.ug
Sector Forum Kampala
103. Prof. Nawangwe Barnabas Dean Makerere P.O. Box Uganda +256 77 366430 +256 41
University 7062 530685
Kampala
104. Prof. Ngirane- Gaddi Chartered/Professio NKC Company Ltd P.O. Box Uganda +256-41-534227 +256-41- gngiranek@tech.mak.ac.ug
Katashaya nal Engineer 16625 530686 gaddin-k@excite.com
Kampala
105. Mr. Nindie Robert Ag. Director of TIRDO P.O. Box Tanzania +255-22-2666034 +255-22- rnindie@hotmail.com
Engineering Dept. 23235 Dar 2666034
es Salaam
106. Prof. Nkunya Mayunga Chief Academic UDSM P.O. Box Tanzania +255-22-2410077 +255-22- caco@udsm.ac.tz
Names
Officer 35091 2410023
Dar es
Salaam
107. Mr. Nkwera Primus D. Deputy Executive NACTE P.O. Box Tanzania 255-22-2780077 +255-22- nkwera@nacte.go.tz
Secretary 7109 Dar es 2780060
Salaam
108. Dr. Nnunduma Bakar Programme Officer Royal Danish P.O. Box Tanzania +255-22-2113887 +255-22- baknnu@um.dk
embassy 9171 Dar es +255-78 6111510 2116433 daramb@um.dk
Salaam
109. Dr. Nshama William Head, Dept. of CoET - UDSM P.O. Box Tanzania +255-22-2410367 +255-22- nshama@uccmail.co.tz
Design & Production 35131 Dar 2410114
Engineering es Salaam
110. Prof. Nyichomba Bavo B. Director, CoET-UDSM P.O. Box Tanzania +255-22- 2410376 +255-22- nyichomba@udsm.ac.tz
Technology 35131 2410411 tdtc@uccmail.ac.tz
Development and Dar es
Transfer Centre Salaam
111. Prof. Nzali Aggrey, H. Dean, Faculty of CoET - UDSM P.O. Box Tanzania +255-22-2410762 +255-22- nzali@ee.udsm.ac.tz
Electrical & 35131 Dar 2410762
Computer Systems es Salaam
Engineering
112. Prof. Obua Joseph ATPS National Makerere P.O. Box Uganda +256 41 543647 +256 41 obua@forest.mak.ac.ug
Coordinator University 7062 +256 772 444492 533574
Kampala
113. Dr. Oluoch Mel Training Specialist, The World P.O. Box 10 Tanzania +255-27-2553093 +255-27- mouluoch@avrdc-rca.co.tz
Regional Centre for Vegetable Centre Dululi, +255-27-2553102 2553125
Africa Arusha +255-75 4379317
114. Mr. Quinlan Kevin Growth Policy Department for P.O. Box Tanzania +255 22 +255 22 k-quinlan@dfid.gov.uk
Adviser International 9200 Dar es 2110141/5/7/9 2110130/8
Development Salaam
115. Dr. Raphael Matheo Director Centre for P.O. Box Tanzania +255-744 815351 mrisingo@yahoo.com
Development and 4302 Dar es +255-22- rmatheo@costech.or.tz
Transfer of Salaam 27800751
Names
Technology,
COSTECH
116. Mr. Roman Mark Head – Training CoET - UDSM P.O. Box Tanzania +255-774-456931 +255-22- m-materu@hotmail.com
Workshops 35131 Dar +255-75-5864820 2410114
es Salaam
117. Ms. Rwakasisi Joyce Solaire Fashions P.O. Box Uganda +256-772 520888 matovu_joyce@yahoo.co.uk
Managing Director 10002
Kampala
118. Dr. Rweyemamu Leonard Lecturer, CoET – UDSM P.O. Box Tanzania +255-22-2410368 +255-22- leo_rwey@uccmail.co.tz
Department of 35131 Dar 2410114
Chemical Process es Salaam
Engineering
119. Ms. Sabano Robinah National UIP/UNIDO P.O. Box Uganda +256-41 286765/6 +25641- npcuip@ucpc.co.ug
Programme 7184 +256-77-452847 286767 upipunido@ucpc.co.ug
Coordinator Kampala
120. Mr. Sambua Sosthenes Manager SME P.O. Box Tanzania 0713 254226 sambua@marketaccess.or.tz
competitiveness 5789
Facility Dar es
Salaam
121. Ms. Sangeu Melania M. Sr. Environmental National P.O. Box Tanzania +255-75-4753179 +255-22 - melania_sangeu@yahoo.com
Mngmt Officer Environmental 63154 Dar 111579
Management es Salaam
Council
122. Mr. Satara Yusuf Education Officer Ministry of P.O. Box Tanzania +255-22-2111258 +255-22- sayuu2002@yahoo.com
Science, 2645 +255-75-5032932 2112533
Technology and Dar es
Higher Education Salaam
123. Mr. Saule Julius CPRO UDSM P.O. Box Dar Tanzania +255-22-2410751 +255-22- relation@admin.udsm.ac.tz
es Salaam +255-78-4583755 2410751
124. Ms. Sekindi Lyidia Assistant Manager Exposure Africa P.O. Box Uganda +256 772 406874 +256 41 expocrafts@utlonline.co.ug

Names
Crafts 10338 +256 41 348283 348283 www.expocraftsafrica.co.ug
Kampala
125. Prof. Senkoro F. E. M. K Professor Institute of P.O. Box Tanzania +255-77-3281327
Kiswahili
Research, UDSM
126. Mr. Shuma Bob Executive Director Tanzania Seed P.O. B ox Tanzania +255-27-2548054 +255-27- bobshuma@hotmail.com
Trade Association 15216 +255-71 3653320 2548054
(TASTA) Arusha
127. Ms. Simon Francisca Regional Manager SIDO/Nkonkilange P.O. Box 327 Tanzania +255-26 2502803 singida@sido.go.tz
M. Salt Mining Project Singida +255-75-4347833
128. Mr. Sjogren Dan Project Manager The Dahmen S-10158 Sweden +46-84733143 +46 84 dan.sjogren@vinnova.se
Institute/VINNOVA Stockholm 733005
129. Ms. Ssekimpi Catherine Medium Term P.O. Box Uganda +256 77 2 503350 cssekimpi@mtcsuganda.com
Competitiveness +256 41 255435
Strategy
Secretariat
130. Mr. Tandari Clifford Senior Economist Ministry of P.O. Box Tanzania +255-744 377295 ctandari@yahoo.com
Planning, 9242 +255-78-4420850
Economy and Dar es
Empowerment Salaam
131. Mr. Sumba Julius Mushroom TMGA P.O. Box Tanzania +255-78-4399981 juliussumba@hotmail.com,
Practitioner 31664 Dar gacoca2001@yahoo.com
es Salaam
132. Dr. Temu Abraham K. Coordinator, CoET-UDSM P.O. Box Tanzania +255-22-2410486 +255-22- atemu@cpe.udsm.ac.tz
External Links 35131 Dar +255-75-4375691 2410411
es Salaam
133. Mr. Tibikunda Richard Director Morogoro P.O. Box 415 Tanzania +255-748-580194 +255-23- richamorobrew@yahoo.com
Breweries Ltd. Morogoro 2602345
134. Prof. Tickodri- Sandy S. Head, Faculty of Makerere P.O. Box Uganda +256-41-530481 +256-41- stogboa@projects.mak.ac.ug
Togboa Technology, University 7062 Dar es +256-772-410590 530481 stogboa@tech.mak.ac.ug
Engineering Maths Salaam +256-712-412-
410590
Names
135. Mr. Toroka Epaineto Trustee Tanzania Gatsby P.O. Box Tanzania +255-22-2112900 +255-22- ebtoroka@hotmail.com
Trust 8695 Dar es +255-78-4694831 2112899
Salaam
136. Prof. Trojer Lena Division of P.O. Box 214 Sweden +46 733 800133 lena.trojer@bth.se
Technoscience SE-37424
Studies Blekinge Kaulshaum
Institute of
Technology
137. Mr. Tumukunde Ananias Presidential Private State House P.O. Box Uganda +256-41-251253 +256-41- tumukunde@yahoo.com
Secretary for 25497 +256-782-513627 235462
Science & Kampala +256-712-513627
Technology
138. Prof. Turyagenda John-Bosco Dean, Faculty of Makerere P.O. Box Uganda +256 41 532055 jbturya@tech.mak.ac.ug
Technology University 7062 +256-77-402502
Kampala
139. Mr. Utou Frumence Lecturer, Dar es Salaam P.O. Box Tanzania +255-75-4312128 +255-22- utoufrumence@hotmail.com
Electromechanical Institute of 2958 Dar es 21150174
Engineering Transport Salaam
140. Mr. Wagara Walter Deputy Managing Palm Tree Village P.O. B ox Tanzania +255-23-2440247 +255-23- wasaga@palmtreevillage.com
Director 211 244-247
Bagamoyo
141. Ms. Waitara Leticia Tutorial Assistant Hubert Kairuki P.O. Box Tanzania +255-2700021/4 letty-waitara@yahoo.com
Memorial 65300 Dar Ext. 284
University es Salaam +255-75-4009986
142. Mr. White Justine Research Analyst World Bank Paris France +33 1 40 693349 +33 1 40 jwhite@worldbank.org
Knowledge for Institute 693151
Development
Program
143. Mr. Wong Michael Country World Bank, Dar Dar es Tanzania +255-78-4411133 mwong1@worldbank.org
Representative es Salaam Salaam 255-22-
2116197/99
144. Dr. Yonah Zaipuna Consulting Engineer TTCL P.O. Box Tanzania +255-78-4786429 +255-22- zaipuna.yonah@ttcl.co.tz
Names
on Data Networks 9070 +255-22-2135555 2138559
Services Dar es
Salaam
145. Mr. Zuku Adam A. Executive Officer TCCIA Head P.O. Box Ta nzania +255-22-2184670 +255-22- drc@tccia.com
Quarters 14409 +255-784-527750 2184670 adzuku@gmail.com
Dar es
Salaam

H.2 CONFERENCE PROGRAMME
CoET- UDSM
THIRD REGIONAL CONFERENCE

ON
INNOVATION SYSTEMS AND INNOVATIVE CLUSTERS IN AFRICA
KUNDUCHI BEACH HOTEL & RESORT, DAR ES SALAAM, TANZANIA

September 3 - 7, 2006
THE PROGRAMME
Sponsors:
SME Competitiveness Facility
Sida/SAREC TIC The World Bank Institute
402 Conference Programme

Organising Committee:
Prof. Burton LM Mwamila, CoET-UDSM - Chairperson

Dr. Simon H Mkhandi, CoET-UDSM - Member
Mr. Januarius G Mrema, MoITM - Member
Eng. Peter Chisawillo, Inter Mech/TCCIA - Member
Prof Mariamu R Halfani, CoET-UDSM - Member
Dr. Leonard Y Mwaikambo, CoET-UDSM - Member
Dr. Abraham K Temu, CoET-UDSM - Member
Mr. Raphael Mrope, CoET-UDSM - Secretary
Ms. Ruth J Kigera, MoID - Member
Mr. Julius O Saule, PRO-UDSM - Member
Ms. Julieth Magambo, MoPEE - Member
Mr. Peter Lanya, TPSF - Member
CoET - College of Engineering and Technology;

MoID - Ministry of Infrastructure Development
MoITM - Ministry of Industry, Trade and Marketing
MoPEE - Ministry of Planning, Economy and Empowerment
PRO - Public Relations Office
TCCIA - Tanzania Chamber of Commerce, Industry and
Agriculture
TPSF - Tanzania Private Sector Foundation
UDSM - University of Dar es Salaam

SUNDAY, 3rd SEPTEMBER, 2006

RESPONSIBLE /
TIME ACTIVITY / ITEM
FACILITATOR
Secretariat / All
12.00 - 16.00 Registration
Participants
Chairperson:
Opening Session
Prof. Burton L.M. Mwamila,
Events Manager: Mr. Januarius Mrema
Principal CoET-UDSM
Prof. BLM Mwamila
17:00 – 17:10 Introductory Remarks
Principal CoET-UDSM,
Prof. Matthew L. Luhanga
17:10 – 16:20 Welcome Address
VC-UDSM,
Representative form
17:20 – 17:30 Statement from Sida/SAREC
Sida/SAREC
Mr. Justin White,
17:30 – 17:40 Statement from World Bank Institute
The World Bank Institute
Mr. Lars Eklund,
17:40 – 17:50 Statement from TCI - Sweden
President, TCI
17:50 – 18:00 Statement from VINNOVA Mr. Dan Sjögren
Mr. Peniel Lyimo
18:00 – 18:20 Opening Address Permanent Secretary,
MoFSC
Prof. Barnabas Nawangwe,
18:20 – 18:30 Vote of Thanks Dean Faculty of Technology,
Mak
18:30 – 18:55 Group Photo / Health Break All
19:00 Reception Cocktail All
MONDAY, 4th SEPTEMBER, 2006

RESPONSIBLE /
FACILITATOR
Secretariat / some
08.00 - 09.00 Registration continues
Participants
Session I: Chairperson:
Innovation Systems & Clusters for Prof. Awadhi Mawenya,

Competitiveness at International Level Director, Design

Partnership
Paper 1:
The Role and Contribution of the World
Justin White
Bank Institute in Promoting
09:00 – 09:30 Representative from the
Competitiveness and Sustainable
World Bank Institute
Economic Growth Worldwide and How
Africa can Benefit
09:30 – 09:50 Discussion All Participants
Paper 2:
Mr. Lars Eklund
09:50 – 10:20 The TCI’s Competitiveness Agenda for
President, TCI
Africa
Paper 3: Mr. Russel Jones,
10:20 – 10:50 Engineering Capacity Building in President, WFEO Committee
Developing Countries on Capacity Building
11:10 – 11:40 Health Break All
Chairperson:
Session I (continues):
Prof. Samwel Wangwe,
Innovation Systems & Clusters for
Economic & Social
Competitiveness at International Level
Research Foundation
Paper 4: Prof. Ifor Ffowcs Williams
11:40 – 12:10 Cases of Innovation Systems and Clusters Chief Executive, Cluster
for Enhancing Competitiveness Worldwide Navigators Ltd. New Zealand
Paper 5:
Mr. Dag Sjögren,
12:10 – 12:40 VINNOVA’s Experience in Promoting
VINNOVA, Sweden
Competitiveness in Sweden
13:00 – 14:00 Lunch Break All

RESPONSIBLE /
FACILITATOR
Session II:
Development of Innovation Systems Chairperson:
and Clusters in the African Region and Mr. Lars Eklund
Efforts towards Achieving President,TCI
Competitiveness
Paper 6:
Cases of Innovation Systems and Clusters Prof. Dorothy McCormick,
14:00 – 14:30 in Eastern Africa and How they Impact on Director, IDS Nairobi
Productivity, Competitiveness and University
Economic Growth
Paper 7:
Cases of Innovation Systems and Clusters
Dr. William Blankley
14:30 – 15:00 in Southern Africa and Measurements on
Human Sciences Research
How they Impact on Productivity,
Council, South Africa
Competitiveness and Economic Growth
Paper 8: Dr. Marcel Crul & Mr. Jan
15:00 – 15:30 Cases of Innovations at Firms Level in Diehl
Developed and Developing Countries TU Delft, The Netherlands
15:30 –15:50 Discussion All Participants
Session III:
Chairperson:
Which Way Eastern Africa Towards
Eng. Immanuel Ole Naiko
Realization of the Millennium
Executive Director
Development Goals and National
Tanzania Investment
Strategies for Growth and Poverty
Centre
Reduction
Paper 9: Prof. Burton LM Mwamila
A Short Overview Presentation of Regional Coordinator, ISCP-
16:20 – 16:50
Innovation Systems and Clusters EA
Programme in Eastern Africa (ISCP-EA)
Paper 10: Prof. John-Bosco
A Short Presentation of Innovation Turyagyenda
17:00 – 17:30
Systems and Clusters Programme in National Coordinator ISCP-
Uganda (ISCP-UG) UG

TUESDAY, 5th SEPTEMBER, 2006

RESPONSIBLE /
FACILITATOR
Session IV :Parallel Sessions
Chairpersons:
Cluster Initiatives Reports
Lars
Room 1:
Christensen
IforFfowcs
Room 2:
Williams
09:00 – 09:20 ROOM 1 Metal Fabrication in Katwe Cluster 1 from Uganda
Morogoro Fruit and Vegetable
ROOM 2 Prof. B. Tiisekwa
Processors
09:20 – 09:40 ROOM 1 Morogoro Metal Works Mr. P. Chisawillo
Pineapple Processing in
ROOM 2 Cluster 2 from Uganda
Kayunga
09:40 – 10:00 ROOM 1 Discussion All Participants
ROOM 2 Discussion All Participants
10:00 – 10:20 ROOM 1 Basketry in Luweno Cluster 3 from Uganda
ROOM 2 Nutraceuticals Prof. M. Halfani
Bagamoyo Cultural Heritage
10:20 – 10:40 ROOM 1 Dr. P. Msemwa
Tourism
ROOM 2 Salt Processing in Katwe Cluster 4 from Uganda

11:30 – 11:50 ROOM 1 Biofuels – Ethanol in Kakira Cluster 5 from Uganda
ROOM 2 Zanzibar Seaweeds Dr. F. Msuya
11:50 – 12:10 ROOM 1 Sisal Dr. E. Masanja
12:10 – 12:30 ROOM 1 Fashion Design/Textiles Cluster 6 from Uganda
12:30 – 12:50 ROOM 1 Arusha Seeds and Seedlings Prof. H. Mongi
ROOM 2 Management Consultancy Cluster 7 from Uganda

RESPONSIBLE /
FACILITATOR
ROOM 2 Eastern Region Mushroom Mr. Sumba
Chairpersons:
Session V : Prof. Lena Trojer
Cluster Initiatives Assessments Blekinge Institute of
Technology
Paper 11:
Presentation of Independent Monitoring Ms. Bitrina Diyamett
14:30 – 15:00
and Evaluation of the Performance of the 8 ATPS National Coordinator,
Pilot Cluster Initiatives in Tanzania Tanzania
Paper 12:
Presentation of Independent Monitoring Prof. Joseph Obua
15:00 – 15:30
and Evaluation of the Performance of the 7 ATPS National Coordinator,
Pilot Cluster Initiatives in Uganda Uganda
Paper 13:
Prof. Idrissa Mshoro
15:30 – 16:00 Linking CoET’s Technology Incubation
CoET - UDSM
Programme to ISCP-EA
17:20 – 18:30 Special Meeting of Facilitators
Kunduchi Beach Hotel &
19:30 – 21:30 Conference Dinner
Resort

RESPONSIBLE /
FACILITATOR
WEDNESDAY, 6th FEBRUARY, 2006
Chairperson:
Prof. Barnabas Nawangwe
Session IV:
Dean Faculty of
Preparing for Group Discussions
Technology, Makerere
University
Paper 14:
Observations by Moderators of the Parallel
09:00 – 09:30 Mr. Ifor Ffowcs Williams and
Sessions on Presentations by Cluster
Mr. Lars Christensen
Initiatives
Presentation of Issues for Group Prof. Burton LM Mwamila
10:00 – 10:30
Discussions and Group Formation CoET - UDSM
11:00 – 13:00 Group Discussions All Participants

Session V:
Establishment of a Forward Agenda for Chairperson:
the Achievement of Enhanced Dr. S. Tax-Bamwenda
Innovativeness, Dynamism, Deputy PS – Ministry of
Competitiveness, and Sustainable Planning, Economy and
Economic Growth and Poverty Empowerment
Reduction
14:00 – 16:00 Presentation of Group Discussions Group Chairperson
Presentation of Observations and
16:00 – 16:20 Conference Rapporteurs
Recommendations

RESPONSIBLE /
FACILITATOR
Chairperson,
Closing Session: Prof. Burton LM Mwamila,
Principal CoET, UDSM
17:00 – 17:05 Concluding Remarks Prof. BLM Mwamila, CoET
Representative from
17:05 – 17:10 Statement from INEC
Sida/INEC
Statement from The Competitiveness Mr. Lars Eklund, President,
17:10 – 17:15
Institute TCI
Statement from WFEO’s Committee on
17:15 – 17:20 Prof. Russel Jones
Capacity Building
Statement from SME Competitiveness Mr. S. Sambua, SCF
17:20 – 17:25
Facility Manager
17:25 – 17:30 Statement from TIC Representative from TIC
17:30 – 1735 Statement from CRDB Representative from CRDB
17:35 – 17:40 Statement from Sida/SAREC Headquarters Representative from Sida
Dean Faculty of
17:45 – 17:50 Statement from FoT, Makerere University
Technology, Mak
Prof. Matthew L Luhanga
17:50 – 18:10 Closing Speech
Vice Chancellor, UDSM
Prof. JB Turyagyenda
18:10 – 18:15 Vote of Thanks
FoT, Makerere University
END OF REGIONAL CONFERENCE
THURSDAY, 7th SEPTEMBER, 2006

09:00 – 11:00 Visits and Departure from Dar es Salaam Delegates other than those
from FoE-UEM, FoT-Mak
and CoET
09:00 – 12:00 Annual General Meeting on Regional Delegates from FoE-UEM,
Collaboration by Faculties FoT-Mak and CoET
12:00 – 13:00 Lunch Break Delegates from FoE-UEM,
FoT-Mak and CoET
13:00 - Departure from Dar es Salaam Delegates from FoE-UEM,
FoT-Mak and CoET

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INNOVATION SYSTEMS AND CLUSTERS

PROGRAMME IN EASTERN AFRICA (ISCP-EA)

PROCEEDINGS OF THE THIRD

Stimulating Competitiveness for Sustainable

September 3 -7, 2006, Dar es Salaam, Tanzania

ABBREVIATIONS AND ACRONYMS ..........................................................vi

PART A: CONFERENCE ORGANIZATION, OBJECTIVES,

PART B: INNOVATION SYSTEMS AND CLUSTERS FOR

PART C: DEVELOPMENT OF INNOVATION SYSTEMS AND

PART D: WHICH WAY EASTERN AFRICA TOWARDS

D.2 AN OVERVIEW OF INNOVATION SYSTEMS AND

PART E: REPORT FROM THE CLUSTER INITIATIVES REPORTS. 167

PART F: ASSESSMENT OF THE CLUSTER INITIATIVES ................ 317

F.2: INNOVATION SYSTEMS AND CLUSTERS PROGRAMME

PART G: SPEECHES..................................................................................... 371

PART H: APPENDICES ............................................................................... 385

ABBREVIATIONS AND ACRONYMS

AAP African Action Plan

ATPS African Technology Policy Studies

AVSC Arusha Vegetable Seeds Associaiton

BOD Biological Oxygen Demand

CCB Committee on Capacity Building

CIDA Canadian International Development Agency

CIS Community Innovation Survey

CRDB Cooperative and Rural Development Bank

D4S Development for Sustainability

vi Acronyms and Abbreviations

Development Alternatives Inc. Private Support

DMGA Dar es Salaam Mushroom Growers Association

EAC East African Community

EPZ Export Processing Zone

ERMCI Eastern Region Mushroom Cluster Initiative

FAO Food Agriculture Organization

FIDIC International Federation of Consulting Engineers

FoT Faculty of Technology

Mak Makerere University

FRD Foundation for Research Development

GDP Gross Domestic Product

GNP Gross National Product

vii Acronyms and Abbreviations

INEC Infrastructure and Economic Cooperation

IPR Intellectual Property Rights

JSDF Japan Social Development Fund

K4D Knowledge for Development

KAM Knowledge Assessment Methodology

KEI Knowledge Economy Index

KIDT Kilimanjaro Industrial Development Trust

MNRT Ministry of Natural Resources and Tourism

MoPEE Ministry of Planning, Economy and Empowerment

MoU Memorandum of Understanding

MTAC Management Training and Advisory Centre

NAADS National Agricultural Advisory Services

NARO National Agricultural Research Organisations

NORAD Norwegin Agency for International Cooperation

NSC National Steering Committee

PMA Plan for Modenisation of Agriculture

PPP Public Private Partnership

QDS Quality Declared Seeds

R&D Research and Development

RSA Republic of South Africa

ix Acronyms and Abbreviations

S&T Science and Technology