Mundindi village in the Njombe region has made headlines by transforming a TSh 400 million compensation from the Mchuchuma and Liganga project into a sustainable investment.
With remarkable foresight, the villagers invested the amount in CRDB Bank's "Kijani Bond," securing an annual dividend of TSh 41.5 million. RC Anthony Mtaka has publicly praised the village for its innovative and effective use of the funds, highlighting Mundindi as a model for rural development in Tanzania.
The village leadership has channeled these dividends into providing health insurance for all residents and is considering establishing a higher education loan and vocational training board for local children.
According to Regional Commissioner Anthony Mtaka, the determined villagers plan to establish a fund to provide loans to youth, women, and individuals with special needs, showcasing their commitment to inclusive and sustainable community development.
"Mundindi's strategic decisions are a model for rural development," says Dr. Gration Rwekaza from Moshi Cooperative University, who has extensive experience in community development strategies from India.
"The use of CSR (Corporate Social Responsibility) funds often leads to conflicts and mismanagement. Mundindi has shown that even leaders with primary education can make highly effective decisions that challenge the status quo."
In stark contrast to the usual mismanagement of CSR funds, Mundindi's actions highlight the potential for positive impact when resources are wisely utilized. "Their approach is a wake-up call for local councils," Dr. Rwekaza adds. "It's time to rethink revenue streams beyond traditional taxation."
Commendations go to the village leaders, particularly Councilor Wise Mgina. Mundindi serves as a vital lesson in leadership resilience. "Communities with CSR funds should aspire to emulate Mundindi's achievements," notes Albert Msangi, who spent three months in Bangladesh studying rural development projects. "Their model shows the power of collective decision-making and strategic investments."
The people of Njombe extend their gratitude to President Samia Suluhu Hassan and her administration for reviving the massive Liganga and Mchuchuma project.
The project involves TSh 15 billion in compensation and the construction of a concrete road from Njombe to Ludewa, paving the way for production and Public-Private Partnership (PPP) investments in a railway from Ludewa to Mtwara Port.
The implementation of this project is poised to revolutionize not only the economy of the Njombe region but also have a profound impact on the national economy, leaving a lasting legacy for President Samia Suluhu Hassan. With coal and iron deposits estimated to endure for over a century, the projected investment value averaging $3 billion promises sustained economic growth and prosperity for generations to come.
To uplift rural communities, various strategies from India and Bangladesh could be adapted and implemented in Tanzanian villages like Mundindi.
Microfinance institutions like Bangladesh's Grameen Bank have empowered millions by providing small loans without collateral, enabling individuals to start small businesses and achieve financial independence. "Implementing similar microfinance schemes in Tanzania could foster entrepreneurship and economic growth," Msangi suggests.
India's Self-Help Groups (SHGs) have played a crucial role in rural development. These groups, primarily composed of women, pool their savings to provide loans for income-generating activities, promoting social cohesion and collective decision-making. "Establishing SHGs in rural Tanzania can enhance community participation and economic stability," Dr. Rwekaza asserts.
Mundindi Village, Liganga Division, Ludewa, Njombe. Photo courtesy.
Both India and Bangladesh have invested in skill development initiatives to equip rural youth with vocational training. Programs like India's Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have successfully trained millions, improving their employability.
"Similar training programs in Tanzania can help bridge the skills gap and provide rural youth with better job opportunities," Msangi emphasizes.
Digital literacy and access to technology have transformed rural economies in India. Initiatives like Digital India aim to provide internet connectivity and digital services to remote areas.
Promoting digital literacy in Tanzanian villages can facilitate access to information, e-commerce, and online education, driving socio-economic development.
Collaborations between government and private sector entities have also led to infrastructure development in rural areas.
For instance, PPPs in India's rural roads and electrification projects have significantly improved connectivity and living standards. "Encouraging PPPs in Tanzania can lead to better infrastructure, enhancing overall rural development," says Dr. Rwekaza.
Accelerating socio-economic progress in Tanzania's rural communities, such as Mundindi village, hinges on leveraging three key laws mandating responsible plans, particularly in the extractive industry.
Encompassed within these statutes— the Mining Act of 2010 Cap 123 [R. E 2019], the Petroleum Act No. 21 of 2015, and the Tanzania Extractive Industries (Transparency and Accountability) Act No. 23 of 2015— lies the framework for implementing Corporate Social Responsibility (CSR) initiatives.
Defined as industries dealing in natural resources, the extractive sector holds significant potential for driving sustainable development. However, it's notable that beyond this realm, there's currently no legal provision recognizing CSR plans across other economic sectors.
By amplifying the impact of these existing laws and expanding CSR frameworks to encompass diverse industries, Tanzania can forge a path towards holistic and inclusive development, fostering improved livelihoods for all its citizens, including those in Mundindi village.
