Impact Assessment Report: Tanzania · PDF file P4P in Tanzania Tanzania buys from Savings and Credit Cooperatives (SACCOs), SACCOs networks, and Agricultural Marketing Cooperatives

Impact Assessment Report:

Tanzania March 2014

Global Learning Series P4P

The Impact of P4P on SACCOs and

Smallholder Farmers in Tanzania

March 2014

Author: Douglas Krieger

Assessing the Impact of P4P in Tanzania i

TABLE OF CONTENTS Executive Summary ........................................................................................................................................................... vi

Introduction ......................................................................................................................................................................... 1

Results Framework ............................................................................................................................................................. 3

FO Capacity .................................................................................................................................................................... 7

Household Marketing .................................................................................................................................................... 9

Household Production ................................................................................................................................................ 10

Household Welfare ...................................................................................................................................................... 10

Data and Methods ............................................................................................................................................................ 11

Data Analysis Methods ................................................................................................................................................ 12

Comparability of P4P and Non-P4P Groups .......................................................................................................... 13

Comparability of SACCOs ..................................................................................................................................... 13

Comparability of Households ................................................................................................................................ 13

P4P in Tanzania ................................................................................................................................................................ 14

WFP Procurement ....................................................................................................................................................... 15

Investments in Infrastructure and Equipment ........................................................................................................ 16

Training .......................................................................................................................................................................... 17

Impact of P4P on SACCO Capacity ............................................................................................................................. 18

Impact of P4P on Organizational Capacity ............................................................................................................. 18

Visual Inspection ..................................................................................................................................................... 19

DiD Estimates of the Impact of P4P on Organizational Capacity ................................................................. 22

Impact of P4P on SACCOs’ Marketing Capacity ................................................................................................... 24

Visual Inspection ..................................................................................................................................................... 24

Impact of P4P on Household Production, Marketing, and Welfare ........................................................................ 29

Impact of P4P on Household Maize Marketing ..................................................................................................... 31

Visual Inspection ..................................................................................................................................................... 31

DiD Estimates of the Impact of P4P on Household Maize Marketing ......................................................... 33

Impact of P4P on Household Maize Production ................................................................................................... 35

Visual Inspection ..................................................................................................................................................... 35

DiD Estimates of the Impact of P4P on Maize Production ............................................................................ 38

Impact of P4P on Household Welfare ..................................................................................................................... 39

Visual Inspection ..................................................................................................................................................... 39

Assessing the Impact of P4P in Tanzania ii

DiD Estimates of the Impact of P4P on Household Welfare ......................................................................... 41

Conclusions ........................................................................................................................................................................ 41

Impact of P4P on SACCO Capacity ......................................................................................................................... 42

Impact of P4P on Household Maize Marketing ..................................................................................................... 45

Impact of P4P on Household Maize Production ................................................................................................... 47

Impacts of P4P on Household Welfare .................................................................................................................... 51

Annexes .............................................................................................................................................................................. 52

Annex A: Comparison of P4P and Non-P4P SACCOs and Households .......................................................... 53

Annex B: P4P Treatment Details .............................................................................................................................. 57

Assessing the Impact of P4P in Tanzania iii

LIST OF TABLES AND FIGURES

Table 1: Household Sample ............................................................................................................................................ 11

Table 2: Procurement Details ......................................................................................................................................... 16

Table 3: Investments in Infrastructure and Equipment ............................................................................................. 17

Table 4: Summary of Training Activities ...................................................................................................................... 17

Table 6: Covariates Used in Analysis of SACCO Impacts ......................................................................................... 18

Table 7: DiD Estimates of the Impact of P4P on SACCOs’ Organizational Capacity ......................................... 23

Table 8: Summary of SACCO Organizational Capacity Results ............................................................................... 24

Table 9: DiD Estimates of the Impact of P4P on SACCOs’ Marketing Capacity ................................................. 28

Table 10: Summary of SACCO Marketing Capacity Results ..................................................................................... 28

Table 11: Covariates in Household Analysis ................................................................................................................ 30

Table 12: Selected Characteristics of P4P Operational Regions ............................................................................... 31

Table 13: DiD Estimates of the Impact of P4P on Household Maize Marketing ................................................. 34

Table 14: Summary of Household Marketing Results ................................................................................................ 34

Table 15: DiD Estimates of the Impact of P4P on Maize Production Facilitators ............................................... 38

Table 16: DiD Estimates of the Impact of P4P on Household Maize Production ............................................... 39

Table 17: DiD Estimates of the Impact of P4P on Household Maize Marketing ................................................. 41

Table 18: Baseline Differences Between P4P and Non-P4P SACCOs ................................................................... 53

Table 18: Baseline Differences Between P4P and Non-P4P Households ...........