Access to Rural Non-Farm Livelihoods - Natural Resources Institute

The “very poor”, a small group (6% of households), were described as undertaking none of
the IGAs listed, while the “poor”, the largest group (63%) were described as depending on
paid farm labour, with men also ranking trade in fish, and women also ranking handicrafts as
important. Households in the “average” group (23%) were described as undertaking all of the
IGAs listed, except paid farm labouring and handicrafts, with trade in agricultural produce,
and the rearing and selling of cattle and small livestock ranked most highly overall.
Households in the “rich” group were described as undertaking trade in agricultural produce,
shopkeeping, and rearing and selling cattle 101 .
5.3 Non-farm IGAs
Of the IGAs listed above, all except rearing and selling small livestock and cattle, growing
and selling crops, paid farm labour and cattle herding can be classified as non-farm (non
primary production) activities.
5.3.1 Trade
The shops owned by people living in Kitambuza are primarily in Lwentulege, but one has
just opened in Kitambuza itself.
Box 11. Mark Donato, shopkeeper and trader
Mark is 27 years old and has lived in the village since his parents came there from Ankole
when he was just a baby. He and his wife, Mary, do not have any children of their own, but
look after Mark’s seven year old brother Matthew. Mary farms, but most of the produce is
consumed, so in 1998 Mark started trading coffee and beans during their respective seasons to
supplement their income. He copied friends who were traders, travelling by bicycle from farm
to farm in Kitambuza and the neighbouring villages and then selling the produce on to other
traders who come to Lwentulege from Kyotera. He opened his shop in Kitambuza in February
2000, having got the idea when he saw that everyone was having to go down to Lwentulege to
buy even small household items, like soap and batteries, and everyday commodities, like salt,
sugar, and maize flour. He raised the capital from farming and trading, and invested about
1,500,000 shillings in having the shop (which is also their home) constructed and purchasing
the initial stock. The stock comes from Kyotera – he brings it as far as Lwentulege in a taxi,
and then up to Kitambuza on his bicycle. He goes to Kyotera once a fortnight, and spends
about 150,000 shillings. Problems are limited working capital due the high costs of
constructing the shop (he hired two professional builders from Dwaniro), which means that he
can not always stock enough of the more popular items, and people taking goods on credit and
then failing to pay. He is thinking about stopping serving those with outstanding debts. He is
continuing with the trading business in season – during the bean season in April and May,
Mary helps with the shop, but during the coffee season he shuts it completely. He would like
to expand the shop, but worries about security if he were to have a lot more stock on the
premises. Both security and the number of customers would be better in Lwentulege, and if he
gets enough capital he might move the business there. He and Mary have also just bought two
piglets and are building a pigsty for them – he thinks raising pigs will complement the
shopkeeping and the trading, but the shop comes first. He only went up to P5 and never had
any business training – he would like to get some, but has never had the money.
As identified in the group meeting, traders are some of the more prosperous individuals in the
village.
101 See Appendix 12 for details.
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