(April 1999) 
including the „NMA Management Workshop”.


Tomasz Potkanski, Knud Erik Asak. August 14, 1999

Table of Contents:

  1. Terms of Reference for the Consultancy Mission
  2. Itinerary of the Mission

  3. Assessment of Performance and Financial Management of the 11 NMA Maize Mill Projects

  4. Report from the „NMA Management Workshop” and the NMA General Assembly

  5. Internal Mid-Term Evaluation of the Results of the „NMA Institution Building Project”


 1.     Terms of Reference for the Consultancy Mission 

The NGO-Management Course should as a minimum enable the participants to:

  • -have reflected on the institutional, political, legal and economic context in which NGO's in Tanzania operate.
  • -be able to identify and discuss the unique features and problems of managing NGO's in Tanzania.
  • -have consulted and discussed the different options available to them on the constitutional and operational structures of NMA and their respective member organisations.
  • -have attained a firm grasp of a few simple, but central and relevant accountancy management concepts, including desegregation of activities.
  • -have exercised judgement in case studies on pricing, depreciation, saving and salary policies, and market assessment.
  • -have appraised their NGO's on the basis of key principles and processes of participatory management.
  • -be sensitised on the need for a longer term Organisational Development (OD) process.

In addition the NMA participants will on the last day have a forum to conduct a regular General Meeting, and to close the course with a "Strategy planning meeting" of  their own.


2.   Itinerary of the Consultancy Mission

Arrival to KIA, Arusha from Copenhagen and Warsaw
Travel to Endulen (NGOPADEO)
Travel to Loliondo (LADO)
Site visits to LADO projects: Enguserosambu, N’garwa, travel to Samunge
Site visit to BUDEA projects in Samunge, Mdito and OldonyoSambu
Site visit to Malambo project (SADA)
Travel to Endulen, site visit to Olbalbal project (NGOPADEO)
Travel to Bujora
NMA Management Training Seminar in Bujora, attendance of  observers from the Sukuma Mill
NMA General Assembly in Bujora
Travel to Endulen, site visit to Irmisigio project (NGOPADEO)
Site visit to Ndiyan, Esere projects (NGOPADEO)
Travel to Arusha

Departure from KIA to Europe


3.     Assessment of Performance and Financial Management of  the 11 NMA Maize Mill


Enguseru Sambu








26/11/96-1/4/97 193.000 145.500 48.000
Enguseru Sambu


1.005.900 622.600 383.000

The average productivity calculated from the raw data during the Bujora workshop shows 3,75 debe of grain per 1 litre of diesel oil.

The Mill was renovated by the AMU Centre, and the Aarhus Lion Club has donated funds for building the Mill house in Sakala (and Enguserusambu?)

The Mill between Oct/96 and Apr/97 worked in Sakala, but due to improper market location did not have enough customers and was moved to Enguserusambu. It worked there since Nov/97 till January 99, with some minor technical problems (belt broken) and produced 383,300 of net profit (38% of all Income). In Feb/99 it has stopped because of the broken handle and the management did not buy the new proper handle by the time of workshop in April 99. 

Existing Accounting Practices:
The Mill Operator/Fee collector used Cash Sale Book for the Month of January 1999 only, while it was bought by LADO management, previously only a monthly record. On a be-monthly basis monies were collected by the LADO treasurer, from the fee collector when he was coming to Loliondo. Entry in the LADO analysis book were made we were told by the LADO treasurer, but it was not brought to the workshop.





Dec 98

107 200

57 859

49 341

Jan 99

91 400

74 200

17 200

Feb 99

91 540

71 400

20 140

March 99

66 930

52 500

14 430








The Mill was installed in November 1998 with the assistance of the Horsens Senior Metal Club members who have renovated the mill in Denmark. The Mill House construction was supported by the Horsens Lion Club. The Mill serves the large community of Ngarwa, but most of people go to Loliondo madukani to grind as they can buy grain there.

The average productivity of the Mill was calculated as 1440 Tsh from 1 litre of Diesel oil and this was declared as the major controlling tool for the LADO management against the mill operator/fee collector. Net profit (101,111 TSH) equals to 28% of the Gross Income (367,070).  However, it was difficult to know what has actually happened with this profit for what it was used by the project or NGO.

Existing Accounting Standards:

Cash Sale book did not exist, only daily entry to the Daftari la Mapato (internal daily record), no control of how much money was received by the Fee Collector. On the positive side the LADO Treasurer visits the mill weekly to collect funds and check accounts, based on diesel consumption.

Technically the mill works most of the time, and the Loliondo fundi (mechanician)  does the maintenance when the need occur.

BUDEA (Sonjo):






Jan 99 - March 99 1 010 0 00 395 000 615 000

The Mill was installed in Nov 1998, the mill house construction will be financed by the Lion Club in Viby, but as of April only materials were bought and stored, while the mill operated in the rented house in Mdito. The machine operates well except for one small repair (16,000 Tsh). During the 3 months of operation the margin of profit (profit/income) was 60% which is a very high result, achieved due to good maintenance of the mill, making it to operate all the time, and due to availability of grain in the area as well as good supervising by the BUDEA coordinator, Mr Simon Soinda. Of  the whole profit,  500,000 Tsh is in the bank in Loliondo. This was unusual case.

Existing Accounting Standards:

There is no cash sale book but only a daily informal record of transactions (Daftari la Mapato).  No BUDEA analysis book was mentioned nor presented.

The Mdito project as the second, beyond Malambo mill, paid (once) a 10% of profit contribution to NMA in January 1999.

Samunge (Group):

Accounts of the project were unclear. On one side the informal records of all the transactions (monthly income and all expenditures) do exist, and for some time the Cash sale book was maintained, but in the recent period the amounts in the existing account did not match with the reality and internally. They showed the following minimal surplus during the period Oct/97 – March/99:

Period: Mapato: Matumizi: Faida:
Oct/97-March/99 409 905 380 900 29 005

However, expenditures recorded (loan repayment) were made in the situation where there was no cash at hand, which shows poorness of the accounting methodology, or its inconsistency. At the time of consultancy there was no cash at hand in the project.

The review of the management style showed that during 2,5 years the mill operated only 250 days in total, while a neighbouring private mill operated all the time, every day. The Subject mill was opened and closed in hardly expectable timing, the only key was with one of the operators, and while he was on the fields cultivating them, no one was able to open the door, despite of availability of the second mill operator.

Additionally the mill engine was broken due to poor maintenance shortly before the time of our visit and would require overhauling at the cost of approx. 300,000Tsh.

The Nr. Djurs Youth Production School renovated the Mill, in 1996. The Mill house was built in July—Sept 97  using the material and funds provided as individual loans by the mill committee members. Of the total amount of 297,800 Tsh, max. 73,000 Tsh was repaid from the operating profit. The situation and management of the Samunge mill was later on one of the key topics at the Bujora workshop and NMA general assembly. The difficulty was that BUDEA coordinator was refused any control functions by the Samunge Mill Committee, who felt the owner of the mill, and to some degree, based on the NMA constitution was right, but clearly misused the property.

PS.  After discussions at the General Assembly the MS-Djursland and UCA have provided the necessary 300,000 Tsh. to recondition the Lister Engine in this special case, to give the project a chance of a fresh start.

Oldonyo Sambu:

The Mill was renovated by the Nr. Djurs Youth Production School, and sent to BUDEA in late 1995. After staying at the Endulen Hospital for almost a year it was transported to Oldonyo Sambu and installed in the BUDEA village branch office. The transport was financed by BUDEA loan to the Village and the village fund itself. Some of the debts remain till now (275,000 + 144,000 Tsh).

The only existing accounts – for last 9 months (July 98 – March 99) show the following profit of 447,940 Tsh (in the books, not at hand), which represent the 29,6% margin of profit, however deckling with time over the months:

Period: Mapato: Matumizi: Faida:
July98-March99 1 515 000 1 067 060 447 940

Existing accounting system includes a monthly informal record of income and expenditures only. Accounts for 96-97-98 do not exist.

There are three major problems:

  1. Ownership problem. The local Budea branch having indebed mill decided in Oct 97 to give over the management (which was understood as ownership) to the informal women group given the fact that the leader of the group, being the councillor was able to get a 1 mln Tsh loan from the District council to pay off the debts. In a meantime the engine broke down and 50% of the loan was used to repair it, the other 500,000 of the loan was not used. There is a dispute over who is the owner, and the management is mixed (BUDEA branch and women group).

  2. The Mill is heavily indebted. The loan of 275,000+144,000 still remains. And the new 500,000 Tsh from the group emerged.

  3. Under the new management the profit margin ratio dropped down. This may suggest that operator and treasurer of the project do not declare all the income, therefore the official profit is declining.

All the issues were later on discussed at the workshop, and plans to resolve them were approved by BUDEA group. 



The Malambo Mill was installed in June 1996 after reconditioning at the Aalborg University by the six-second year students. The mill house, the 100 ton grain store, and the SADA office construction was financed by the LOLWE foundation.

The mill is technically and financially well managed. Two major repairs were done locally and in time. It continuously produces a high profit. In the whole year 1998 the data were the following:

Period: Mapato: Matumizi: Faida:
Jan98 - Dec98 3 208 350 2 490 862 717 488

The margin of profit was 22%, and productivity of 1 litre was approx. 1200 Tsh, which was lower than a year ago, as the Treasurer noted. Fuel consumption is also an additional way of controlling the fee collector, and already one fee collector lost her job, as the fuel consumption per Tsh was constantly going down.

The Accounting system is a model one for NMA mills and all NGOs. SADA has an analysis book and each of its projects (Malambo and Piaya) has one. Cash sale book is used, receipts are being issued to customers, and the NGO Treasurer weekly controls the finances.

The only problem identified were loans against the profit. There are no accounts of loans, and NGO leaders claim that most of loans were given at the request of „village” to poor people who later on were not able to repay. As a result, although the project on the books has a significant profit, but in practice there is no cash at hand. A good inventory of loans is needed as soon as possible.

Otherwise, this is a good model of maintenance and accounting. The project is the only one, which was submitting financial reports to UCA and was paying the 10% NMA contribution.


The mill was renovated by the Aarhus Youth Production School and was brought to Piaya in April 1998. 12 youths and 2 teachers from Denmark went for one month to Piaya to assist in building the maize mill house and install the machine. The Lolwe Foundation financed the construction materials. Soon after the machine broke down but was repaired in the coming months, and works so far uninterrupted.

The mill has produced the following financial output during the period

Nov 98 – March 98:

Period: Mapato: Matumizi: Faida:
Nov98 - March99 1 205 220 845 452 359 768

The margin of profit was high – 29,8%, The productivity was not reported, and because the mill itself was the only one that was not visited on site by us, I have no data to calculate the productivity.

Accounting system keeps up to the Malambo standards, although we were not shown the documents as they were in Piaya. No any problems were reported. The group, which operates the mill in Piaya, is the SADA member group, so the issue of who is the owner do not exist.



The mill started operation on 11.9.96. Reconditioning of the machine was done by 14 seniors from the Senior Metal Club in Grenaa together with 4 youths from Grenaa Youth Production School. The construction materials were financed by the Dan Church Aid. As in other places, here the Ngopadeo members from Esere worked voluntarily on construction of a maize mill house and the store for 100 tons of grain. The toilet has to be completed.

Accounting standards:

Lack of cash sale after 8/1/98, only monthly informal records of income and expenditure. Lack of the analysis book. The financial results were, staring from Nov 98 till Feb 1999 the following:

Period: Mapato: Matumizi: Faida:
Apr 98 37860 29500 8360
May 98 92250 70000 22250
June 98 118850 75000 43850
July 98 132550 71000 61550
August 98 154100 108700 45400
Sept/98 163 80400 -80237
Oct 98 212450 106000 106450
Nov 98 118000 103000 15000
Dec 98 144150 77250 66900
Jan 99 101000 69000 32000
Feb 99 87200 80000 7200
March 99 45820 50000 -4180
Total: 1244393 919850 324543

The Esere mill has historical problems with the ownership. The dispute is whether this is a NGOPADEO mill or the Esere inhabitants’ mill, since they built the mill house. In 1997 the Fee collector run away with monies (approx. 1 mln Tsh), and village government did not follow him. In 1998 an agreement was striken between the community and Ngopadeo, and 50% of net profit was owned by the NGO and 50% by the village community represented by the Village council – to be used for local development projects. This first thing takes place but the second does not yet, as the fee collector has borrowed the amount, but Ngopadeo believes will return.

Accounting practices so far show that there is an informal record of daily income and expenditures, and once per two weeks monies are being transferred to the Ngopadeo treasurer or coordinator. As of April 99 the problems of management seemed already under control.


The mill was renovated by the Senior Metal Club in Assens/Hadsund in May 1998 and installed with assistance of 5 seniors from Denmark in November 1998. The Maize Mill house was financed by MS.

The mill is being managed by the women group advised by NGOPADEO, and employing a men – operator. The machine works technically well but during the dry season business was minimal, which will change with the harvest, plus the grain was available in the hospital areas and was grinded there during the dry season.

Financial results are the following.  

Period: Mapato: Matumizi: Faida:
Nov-98-Jan99 209 060 127 800 81 260  

Only the informal records of income and expenditures kept. It is not known to the consultant where physically the profit is being kept.


The Mill was renovated and installed in November 1998 with assistance of the Senior Metal Club members from Denmark. Construction of the Mill house was financially supported by the Lolwe Foundation and the Green Foundation. Not all the receipts were received by now, but this is not an exceptional case among the NMA mills.

The mill started operation on  29.11.1998, broke down two days later, and resumed operation on 27.3.99 working till well the day of the consultancy visit (15.4.99). The turnout during 52 days of operation was not too big, but a good rainy season and crops in 1999 will dramatically change demand for the mill services.

Period: Mapato: Matumizi: Faida:
29.11.98-1.12.98 7250 7000 250

37 800

29 500   8 300  
Total   45050 36500 8550

Accounting standards:

Only an informal daily record of expenditure and income. Ngopadeo Treasurer did not collect any funds from there. Ngopadeo at the time of consultancy did not follow the Analysis book pattern per each mill project. The mill house was covered with the corrugated iron, which was not adjusted to the local unique landscape. The NGOPADEO coordinator has promised to paint the iron sheets with the green paint.


The Olbalbal mill is managed by the women group in Olbalbal being advised by Ngopadeo. The group is also running the beekeeping project. The mill arrived in April 98 and was installed locally in November 1998. The reconditioning of machine took place at Brusgaard Youth Production School in Randers. The maize mill house was constructed with support of local people in Olbalbal using a loan from NGOPADEO.

The mill has technical problems do to bad installation (vibration) and between installation and the time of visit in  April 99 worked only 19 days (13-26/2 and 8-12/4) with the following results:

Period: Mapato: Matumizi: Faida:
Feb99-April99 209 060 127 800 81 260  

The profit margin was 38,9%, which was among the highest. In the coming months the mill should have expected high demand for services due to good harvest of maize in the upper Olbalbal.

Accounting standards included as always informal records of income and expenditures per day, and nothing else. NGOPADEO treasurer have not visited the mill. What should be noted was that in none of the mills (perhaps except for Esere – which was an old mill) the staff did not receive fixed salaries but only a daily allowance for food, until the time the mills would be highly profitable.



4.     Report from the „NMA Management Workshop” and the NMA General Assembly



  • Emanuel Goroi, Samunge Village Chairman
  • Simon Soinda – Budea Coordinator
  • Laurence Ledio – Assistant Secretary of Budea
  • Nelson Bessanda – Vice Chairman
  • Abraham Gibeni – Machine operator from Oldonyo Sambu


  • Metui Ole Tipap – Exec. Secretary
  • Maraswa Keritany – Treasurer
  • Edward Pararia – Chairman
  • Rev. Saltel Maoi – Chairman of the Board of Trustees


  • Stephen Hillary – Chairman
  • Lazaro Ole Kosyando – Exec. Secretary
  • Joseph Burra – Treasurer


  • William Ole Seki – Exec. Secretary
  • Sanguyan Ole Dorrop – Chairman
  • Chistopher Oloju – co-ordinator from Olbalbal
  • Ngakenya Olenjiro – Machine operator from Ndiyan

  Utamaduni Cultural Association:

  • Knud Erik Asak
  • Tomasz Potkanski  


  • Ruben Ole Kuney, District Commissioner in Magu,
  • representatives of the Sukuma Mill groups,
  • J. Nguma, the accounting trainer from FAIDA/Arusha (two days)

  Agenda of the Workshop – approved by participants on 18.04.99

18.04.99         Arrival to Bujora Cultural Centre (evening)

19.04.99         Opening session on the objectives of the training course by the Magu District Commissioner – Ruben Ole Kuney, „Food Security: Government of Tanzania policy and the role of NGOs”

Afternoon session: Case study reports from all Maize Mill Projects;

20.04.99      Morning Session: Continuation of individual Maize Mill Project reports; facilitated by William Ole Seki  
Afternoon Session: Analysis of common problems in all NGOs and mill projects  (issues + conclusions for NMA) – facilitated by Tomasz Potkanski

21.04.99        Finance and accounting management: principles of pricing, depreciation, saving, salary policies – facilitated by J.Nguma

22.04.99       Morning: Visit to the Sukuma Museum
Afternoon: Continuation of Discussion on Common Problems

23.04.99  NMA General Assembly: Strategy Planning and Confirmation of Decisions.

During the initial discussion each NGO identified the list of problems important for them. The following list resulted out of this exercise:


  1. Technical problems

  2. Lack of capital for investments (donor, local, loan)

  3. Lack of know-how on Accounting and Reporting

  4. Lack of appropriate buildings (mill houses)

  5. Wrong allocation of mills to different sites

  Internal issues:

  1. Insufficient reporting from mill projects to BUDEA (lack of will)

  2. Mismanagement by mill project leaders


  1. Mills at the time of arrival were not functioning

  2. Know-how – Accounts, reporting

  3. Historical problems between NGO and local community over ownership

  4. Poverty – how can we assist poor families

  5. Competition between mills and pricing policy

  6. Lack of capital for repair


  1.  Loans to poor families from the project income

  2.  Scarce grain – seasonal shortages of grain

  3.  Communication with other NMA members or Piaya branch – transport

  4.  Know-How on Accounting and Reporting

  5.  Technical problems of machines – when arrived


  1.  Lack of technical skills of machine operators

  2.  Lack of accounting skills

  3.  Seasonal marketing – lack of grain

  4.  Communication – transport of fuel

  5.  Fuel – expensive and not always available

  6.  Low skills of maize mill project leaders

  7.  Transparency: Responsibility of NMA vs. LADO in terms of ownership and management of mills

  8.  Is round house construction necessary (agreement with donor)

  As a result the following list of  Common problems was identified

   and agreed to be discussed at the workshop:

  1. Technical problems with machines;

  2.  Communication an transport (motorcycle, NMA car, radio-calls)

  3.  Know-how in Accounting and Reporting (main theme of discussion);

  4.  Competition at the market (wrong placement of mills)

  5.  Lack of capital fore investment

  6.  Design of houses

  7.  Expensive and not available spare parts

  8.  Salaries for Maize Mill staff

  9.  NMA 10% profit fee or flat fee from each project.

  10.   Planning the timing and agenda for the Accounting seminar in Loliondo (17-23 May 1999) by Joseph Nguma

Case study reports from each mill were folded into the description of the performance of each Maize Mill Project (notes in hand writing – as attachment). Each subject was thoroughly discussed and decisions were reach and confirmed during the General Assembly.

J. Nguma has given a lecture on Pricing Policy, Salary Policy, presented methodological approach to calculating Break-Even Point, discussed and approved the Financial Reporting Sheets.

NMA General Assembly on the last day:

Agenda and main decisions: 

  1.  Acceptance of the Agenda - done

  2. Report from Executive Committee –  the Committee almost did not work, except for registering the Association in Dar Es Salaam.

  3.  Change of Constitution – Samunge group excluded from membership and placed under BUDEA; fixed fee established  instead of 10% of profit; exclusion from membership after 6 months of not paying, final text to be voted again during the next meeting of the General Assembly to clear the English language problems in the text.

  4.  Job descriptions for NMA Coordinator, Treasurer and Chief Technician.

  5.  Approval of a joint NMA technical servicing system under contract with SADA  

  6. Division of net profit in every mill project and at NGO level (60% machine depreciation fund, 20% other local development projects, 20% NGO Administration (allowances for the NGO staff  for supervision of the projects – these are not salaries to employed staff –  this is a way of  compensating NGO leaders (elected people) for time used  for real work done under the project = 5000 Tsh for 8 hours work-day. 

  7.  Approval of  NMA budget for 1999 (from May 1, - Dec 31, 1999)
    (both income, included;. Membership fees and flat fees and the expenditures side)

  NET Income per year :

1. NMA Coordinator salary @120,000 Tsh x 6 months =            720,000 Tsh

2.     Contract: SADA Technical Mills supervision

4 quarters x  (12 days @ 5000 Tsh + 15,000) =         300,000 Tsh

3.     Contract with SADA for Mills’ accounting supervision

4 quarters x (12 days @ 5000 Tsh + 15,000) =         300.000 Tsh

4. Communication costs: phone, e-mail, stamps =                       100,000 Tsh

5. NMA Annual Meeting Costs =                                              100,000 Tsh

6. NMA Board Meeting                                                        80,000 Tsh

7. Office Equipment                                                          100,000 Tsh

                                                                          TOTAL:     1,700,000 Tsh  

NET Expenses:

1. NMA member fee from NGOs (4 x 50,000 Tsh)                 =    200,000 Tsh

2. 11 Maize Mill Project fixed fee to NMA (below)                 = 1,150,000 Tsh

3. Land Rover project surplus                                               =     350,000 Tsh

                                                                          TOTAL:                 = 1,700,000 Tsh  

8.     Approving the plan of action for NMA till December 1999: 2 seminars (accounting in Loliondo and technical in Malambo, 3 round trips by accountant and technician (under SADA contract with NMA), UCA project Coordinator Knud Erik Asad’s visit in November, before the end of the project for final assessment of the project.

  Job descriptions for the NMA employees:

NMA Coordinator:

The NMA Coordinator will implement duties given by the Executive Board of NMA. He will ensure that the NMA income is collected, kept and spent according to the budget agreed by the Board. The NMA Coordinator will on behalf of NMA take full responsibility for the NMA Land Rover and run it according to the agreement signed by the NMA Executive Director. The Coordinator will maintain contacts with all NMA activities, and will ensure that his advice is provided in time, or his action is undertaken in case of problems, so that mismanagement of projects does not occur. In necessary cases he will report to the Board for decisions. In such cases he would call for an urgent meeting of the Board and will facilitate  its organization.

The Coordinator will work as a secretary  for the NMA Board and will call board meetings according to NMA constitution and will take minutes of the meeting.  The Coordinator will provide  the UCA with a hort monthly summary report of activities/funds (by e-mail or fax).

NMA Accountant

The NMA Chief Accountant will do whatever necessary to receive from every Mill Project a monthly financial report and will have the responsibility to visit

All the NMA Maize Mills, not less often than once per quarter.

He will advise and control accounts of all NMA Mill Projects . In case his advice and comments are not being followed in practice, he will immediately report to NMA Coordinator and the Board.

The NMA Chief Accountant will keep the NMA Accounts according to the procedures agreed by NMA and present the status every quarter to the NMA coordinator.

NMA Mechanics

The NMA Mechanics will pay a visit to all maize mill projects every months. His visit will be used to take a look at the maize mill and give technical services according to the standards for the Lister engine and grinding/hammer mills. Filters, fluids, oil, etc will be replaced at the expenses of the individual NGO. However, the expenses of the visit will be paid by the NMA.

When the situation concerns the major repairs of NMA maize mills, the NMA Mechanic has to be called in.  This expenses have to be paid by the NGO itself. It is important that NMA uses its own mechanic or assign a mechanic who has been checked and accepted by the NMA Chief Mechanic.

The NMA Chief mechanic will together with the NMA coordinator and Chief Accountant is responsible for keeping the NMA spare parts store in Malambo up to date.

Approved NMA fixed fee from each project (based on capacity of the mill and the grinder – i.e., capacity to produce profit):

  • Engusero Sambu        - 100,000 Tsh
  • Ngarwa -                   - 100,000 Tsh
  • Piyaya -                      - 150,000 Tsh
  • Malambo -                  - 150,000 Tsh
  • Ndiyan -                    -   75,000 Tsh
  • Ilmisigio -                  -   75,000 Tsh
  • Esere-                       -   75,000 Tsh
  • Olbalbal-                    - 100,000 Tsh
  • Samunge -                  - 100,000 Tsh
  • Mdito -                       - 100,000 Tsh
  • Oldonyo Sambu          - 100,000 Tsh

  • Total:                     - 1,150,000 Tsh  

5. Internal Mid-Term Evaluation of the Results of the „NMA Institution Building Project

Objectives of the Project:  

1). Generate maximum benefits from maize mill operations for community                 development purposes.

  2). Reach sustainability of operation for the maize mills under the NMA service system.

  3). Operate efficient technical and financial business administration in the management of NMA. 

Status of implementation of the objectives:


None of the NMA capacity building project objectives was not achieved by the time of this consultancy mission. Unless there will be a dramatic increase of own self-motivation/commitment on the part of each NGO leaders and the leaders of NMA, these objectives will not be achieved by the end of the project. Lack of commitment exemplified by lack of appropriate action at the time of need  seems to be the major reason for delay in the process of implementing the project and achieving objectives. Another issue is why there is insufficient commitment. The potential answer is complicated and points to a number of reasons: (a) lack of technical knowledge and experience in running NGO and performing its technical/accountancy activities, (b) lack of time on behalf of NGO leaders who perform these duties as volunteers, while having to sustain families – i.e., having to work for money, (c) objective local socio-economic and ecological problems which constrain activities of network-type of organizations like NMA, i.e., physical distance between projects and NGO headquarter, as well as between NGOs themselves, (d) lack of tradition for cooperation between modern type NGOs.

  Although objectives are still far from being achieved but a number of secondary arguments and developments should be taken into account to have the full picture of positive and negative experiences of the UCA project:

  1) 16 key NGO leaders from four organizations forming NMA are fully aware of the shortcomings of their performance – as it was openly discussed during the Bujora „NMA management workshop”. Above issues were discussed in details between each other. Through this fact we were able to increase general consciousness of the NGO leaders, who are otherwise the elite of  modern, highly educated Maasai leaders in the Ngorongoro District. They are the future of the District. In short future they may assume key leadership positions in the local and regional government in the District. Long discussions and careful building of consciousness of  ethics of civil service or voluntary work, with modern, but simple management principles is an important contribution to the success of Maasai survival in the Ngorongoro District. This project gives the forum for constructive dialogue between UCA and Maasai NGOs forming NMA, and between the Maasai NGOs themselves.


  Ad. 1) Generate maximum benefits from maize mill operations for community                 development purposes

  This objective by the time of consultancy mission  was not achieved. In none of the NGOs nor projects, with one exception for Malambo (SADA), the net profit was not calculated and divided according to NMA agreements. In Malambo, though, the net profit after deduction of  NMA share was distributed to local community as a series of loans to poor people, bus has never been returned (people died, are sick, fled away in fear of Somali raiders);

  Ad.2) Reach sustainability of operation for the maize mills under the NMA service system.

  The experience of all 11 NMA Maize Mill projects was that a proper technical service would have significantly reduced technical problems they have experienced. Therefore they have approved a concept of  joint  NMA technical services, performed on a quarterly basis by SADA technician, on the NMA contract, free of charge from the side of individual projects (except for accommodation). They have pre-paid this service through NMA member fees. If during the regular check-up technician finds symptoms of major technical problem and major spare parts would be needed, the total costs would be covered by the project. It is yet to be verified how this service works in practice, as it has only been decided during the General Assembly in Bujora.

  Ad 3). Operate efficient technical and financial business administration in the management of NMA.

  So far, this objective is far from being implemented. The basis accounting and reporting standards and procedures were agreed already in  December 1996, and never implemented, except for good work of NMA Treasurer, Joseph Burra, who run the NMA accounts properly but did not receive any membership fees except for Malambo and Mdito mills.

  Other  elements important for assessment of the value of the seminar/project:

  Throughout the six days discussions in Bujora, and through the practical implementation of the project, leaders of  four NGOs were exposed to:

  • - discussion on the role of voluntary work in NGOs
  • - discussion on the good business rules for paying per-diem/allowances for elected officials

  • - thorough discussion regarding good business practice in NGO leadership responsibility, including financial responsibility and reporting requirements

  • - All the 16 NGO leaders are professionally much better prepared to conduct and account for activities and they are technically better prepared to play in future a role of  elected local government/community or NGO leaders.


Utamaduni Cultural Association,
Projektgruppens startside

Opdateret af Webmaster, 11. januar 2006

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