February 1, 2003 - The Hills of Dowa Enterprise Zones: The Hills of Dowa Enterprise Zones (HODEZ) Project was started by a United States Peace Corps Volunteer in 1990 in Malawi
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February 1, 2003 - The Hills of Dowa Enterprise Zones: The Hills of Dowa Enterprise Zones (HODEZ) Project was started by a United States Peace Corps Volunteer in 1990 in Malawi
The Hills of Dowa Enterprise Zones (HODEZ) Project was started by a United States Peace Corps Volunteer in 1990 in Malawi
The Hills of Dowa Enterprise Zones (HODEZ) Project was started by a United States Peace Corps Volunteer in 1990 in Malawi
The Hills of Dowa Enterprise Zones (HODEZ) Project was started by a United States Peace Corps Volunteer in 1990 in Malawi, Africa. It was then called his Peace Corps "secondary project". He completed his Peace Corps service at the end of 1991, returned to his home in Chicago, and in late 1993 founded Village Enterprise Zone Associations International (VEZA). VEZA is a non-profit private voluntary organization, working only in Malawi, that aims to replicate the HODEZ Project in other parts of Malawi. VEZA's objective is to create new democratically elected agricultural producer associations which it can then work with to:
· end the food deficit for the smallest (and poorest) family farm unit.
· operate nurseries for the multiplication of tree and grain seed and soil conserving grass.
· teach farmers land husbandry and agro-forestry techniques.
· build viable community-based banking systems.
· create community owned agricultural marketing and supply service institutions.
The first of the VEZA producer associations is now financially independent. It expects to produce at least 1,000 metric tons of excess maize and soya in 1997 alone. Over 100,000 trees will be planted and over 550 farmers will begin practicing conservation farming before the end of the year.
Read the HODEZ Project concept paper
Read the 'HODEZ Project Report' Newsletter
Read a research paper on VEZA written by a Rockefeller Foundation agronomist.
For more information please contact our office in Chicago: VEZA International, 1212 West Lill Avenue, Chicago, IL 60614 USA. Fax/Phone: 773871-8140; Email <vezaint@aol.com>
or our office in Malawi: VEZA International, Private Bag 91, Lilongwe, Malawi. Fax/Phone: 265742790; Email<vezaint@eo.wn.aoc.org>
--Contributions to VEZA International are taxdeductible under section 501(c)(3) of the Internal Revenue Code.
This web site is maintained for VEZA International, courtesy of OPENAIR-MARKET NET.
The VEZA/HODEZA Partnership
Acronym glossary
INTRODUCTION
Undernutrition is widespread in Malawi. In 1990/91, 56% of the children under five years of age were stunted both physically and mentally. Malnutrition in Malawi has its roots in poverty which results in lack of access to sufficient food at the household level, resulting in frequent infections. The Village Enterprise Zone Associations (VEZA) International was established in Malawi, Africa in 1990 to provide assistance to resource poor, risk averse smallholder farmers whose children are most affected by malnutrition.
Access to agricultural credit for this group of farmers had been constrained because other seasonal credit schemes favored larger smallholder farmers through their almost exclusive focus on credit worthy borrowers, and strong linkages with the Agricultural Development and Marketing Corporation (ADMARC), a government parastatal. Pricing and marketing of agricultural production until 1994 was governed by legal and administrative regulations and ADMARC had the legal monopsony for marketing. Since then the closure of some ADMARC bush markets and the slow development of private trading activities and alternative credit schemes have impaired small holder access to market facilities and credit. In addition, with the removal of subsidies on farm inputs, and a drastic devaluation of the local currency, a considerable hardship has been imposed on these fooddeficit smallholder Malawi farmers. The creation by the Village Enterprise Zone Associations (VEZA) International of its indigenous development partner, the Hills of Dowa Enterprise Zones Association (HODEZA), was a move to end the food deficit for small holders and to give farmers alternatives to inadequate savings, credit and marketing schemes.
In 1993 VEZA International was incorporated in Chicago, Illinois, USA and in 1994 HODEZA was established in Dowa District, Malawi by community leaders for the purpose of continuing development of the project concept started in 1990 by U.S. Peace Corps Volunteers. In October of 1995 both organizations received approvals from the Government of Malawi to operate as development partners. HODEZA has been financially independent and autonomous of VEZA since October of 1996. Today, with financial support from The Rockefeller Foundation, The British High Commission and the European Union, VEZA International is ready to expand its food security program and continue building new democratically elected institutions. VEZA intends to do this by replicating the HODEZ Project in other parts of Malawi.
(34k) Female-headed households constitute 30% of the poor living in rural areas. In 1990/91, 56% of the children under five years of age were stunted both physically and mentally, and 25% die before age two.
VILLAGE ENTERPRISE ZONE ASSOCIATIONS INTERNATIONAL
VEZA International has a seven member Board of Directors that is part of a fourteen member VEZA Council consisting of individuals, including Malawians, prominent in the field of international development. VEZA is managed by the Board of Directors and run by the President from an office in Lilongwe staffed by Malawians. He commutes between Chicago, USA and Lilongwe, Malawi as the need dictates. The Chicago office is managed by part time staff and volunteer Board members.
A field staff of 46 men and women are located at the district town of Dowa, at Chezi Trading Centre, and at Nalunga Trading Centre in Dowa District. Field operations are divided into four sections: Adaptive Research; the Agriculture Development section (which includes land husbandry and agroforestry); and the Community Development section (which consists of community organizers who also are involved in business and credit training). The Administration is under the Programme Officer who is assisted by a bursar.
A Research Director, who has a degree from Malawi's Bunda College of Agriculture, heads the Adaptive Research Program. The Research staff establishes a wide range of demonstration plots of hybrid maize, selfinoculating magoye soya and other leguminous crops, aided by cooperating farmers. In addition, they oversee the tree and grass nurseries and supervise the commercial production of high quality seed for leguminous crops for HODEZA, not normally available to Malawi's smallholder farmers. The VEZA Research Staff also supports the Chitedze Agricultural Research Centre's (ARS) program of maize demonstration and fertilizer verification plots for the benefit of small holders. In addition, the Research Staff supports two Action Groups of the Ministry of Agriculture's Maize Productivity Task Force, and assists other agricultural research organizations by helping verify their research in the field.
VEZA's HODEZ Project is unique in Malawi. Our field staff operates nurseries for seed and grass production so that soil and water losses caused by excess rainfall runoff can be significantly reduced. It also teaches farmers land husbandry and agroforestry techniques and new ways of managing their crops, which include conservation tillage. Income produced by farm businesses started by VEZA have helped build membership and a viable banking system for HODEZA, assuring its sustainability. VEZA's goal is to develop the HODEZ Project as a model for a large scale, villagebased, environmentally sustainable, gender sensitive, food security program that can be replicated in Malawi and other developing countries.
(22k) More than 550 farmers have been provided by VEZA with vetiver grass to prevent soil and water losses caused by excessive rainfall runoff. Previously, 3.5% of fertile top soil was lost each year, drastically affecting food production.
VEZA staff have established Enterprise Zones at three rural locations, each serving dozens of villages. Working in partnership with HODEZA, and its more than 550 members, thousands of tons of excess maize and leguminous crops can be produced. In 1996 alone over 1,000 tons of excess grain, maize and soya, are expected to be produced. Almost 80 tons of water and soil conserving vetiver grass and 300,000 nitrogen fixing fidherbia albida tree seedlings have been supplied to HODEZA=s resource poor farmers to help reduce soil erosion and improve crop productivity.
VEZA has a small budget compared to other international private voluntary organizations operating in Malawi. Since 1994 the major donor has been the Rockefeller Foundation, which is expected to continue its funding through 1998 on a yeartoyear basis. In 1996 the British High Commission has contributed funds mainly for the purchase of agricultural inputs. Recently, the Poverty Alleviation Programme Pilot Project Agroforestry (PAPPPA) of the European Community (EU) has contributed agricultural and agroforestry inputs.
The Trickle Up Program of New York has been a collaborator and donor since 1990. TUP has provided VEZA businesses with two matching conditional business start up grants of $50 each, a business training program and business planning materials successfully used in 90 countries. The HODEZ Concept would not be a reality without TUP's steady support over the years.
THE "HILLS OF DOWA ENTERPRISE ZONES ASSOCIATION"
HODEZA is the indigenous partner of VEZA. HODEZA became financially independent of VEZA in October of 1996 and in 1997 is expected to produce a net surplus in excess of MK 350,000 (Malawi Kwacha) from its commercial operations alone.
HODEZA is an agricultural producers association involved in delivering agricultural marketing and supply services and seasonal credit to member small holders living in Traditional Authority (TA) Chiwere, Dowa District. HODEZA members and non-members both enjoy low interest credit, higher profits for farm outputs, as well as discounted prices for farm inputs.
(24k) HODEZA Agricultural Retail Stores sold more than 150 tons of seed, fertilizer, and chemicals in 1996-97, packaged in sizes poor farmers could afford to buy.
A network of six HODEZA grain collection points and three agricultural retail stores are operational throughout the western part of TA Chiwere. The 3 retail stores also operate grain banks and provide office space for HODEZA's credit staff. HODEZA's Seed/Fertilizer Retail Stores in 1996 are expected to sell about 150 tons of seed, fertilizer and chemicals alone, which are packaged in sizes poor farmers can afford to buy. In 1997 HODEZA's network of grain collection points are expected to purchase and sell more than 1,000 tons of grain. The grain banks will store and sell or loan maize to members during the long "hunger season". The credit scheme will provide only seasonal credit now but short term loans will also be made available later for off-farm enterprises.
HODEZA has a five member Board of Trustees established under the Trustees Act of Malawi. The Government of Malawi has approved the partnership arrangement which is covered in VEZA's Memorandum of Agreement and in HODEZA's Constitution, both approved in October 1995. The Constitution provides for an Executive Committee to manage the affairs of the members and for a Secretariat to implement the programs.
( 14k) A HODEZA seasonal bush market. HODEZA members received seasonal credit to help produce more than 1,000 tons of excess maize and soya in the 1996-97 cropping season. Members now get higher prices for excess grain, enabling them to pay off their loans.
The Executive Secretary currently manages HODEZA's senior staff of accountant, business manager and credit manager under the supervision of the HODEZA Board of Trustees. HODEZA has accounts with the National Bank of Malawi which are used to pay operating expenses for the grain collection points and seed/fertilizer stores, and also safeguard member savings. All costs of operating the producer association=s commercial businesses are paid by HODEZA from income produced by its agricultural marketing and supply services operations.
Office buildings in the town of Dowa and at Chezi and Nalunga Trading Centers are shared and operated by the two development partners. HODEZA contracts on its own however for land, retail store and grain bank space used by its marketing and supply service businesses.
(26k) HODEZA Board of Trustees at the joint VEZA/HODEZA Field Headquarters (background) in the District Town of Dowa.
All profits generated by the agricultural marketing and supply services side of HODEZA are expected to benefit the members of HODEZA. Membership rights are spelled out in the HODEZA Constitution. However, resource poor, risk averse farmers are initially being assisted with grants provided by VEZA which are then loaned to the farmers for the purchase of farm inputs. Later, membership will be open to other farmers who are able to purchase shares in HODEZA. The VEZA grant program will then be discontinued and HODEZA, at which time, is expected to become 100% independent and autonomous of VEZA International.
For more information please contact our office in Chicago: VEZA International, 1212 West Lill Avenue, Chicago, IL 60614 USA. Fax/Phone: 773871-8140; Email <vezaint@aol.com>
or our office in Malawi: VEZA International, Private Bag 91, Lilongwe, Malawi. Fax/Phone: 265742790; Email<104542.3452@compuserve.com>
Contributions to VEZA International are taxdeductible under section 501(c)(3) of the Internal Revenue Code.
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This story has been posted in the following forums: : Headlines; COS - Malawi; Special Interests - Undernutrition
PCOL2341
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My name is Altemius Millinga, former board member of VEZA. I was a member at a time I was at the University of Illinois, Urbana-Champaign. Would like to re-estblish communication with VEZA. I based in Tanzania.