Balanced growth through local entrepreneurship: The Komba coffee project in southern Tanzania

Abstract

This case study describes the approach and learnings of the Komba Coffee Project in Songea, Tanzania. The social start-up, which is driven by local entrepreneurs from the NGO Songea Network Center, aims to improve coffee farmers’ economic conditions by allowing them a larger share of the value-creation process and giving them bargaining power. Thanks to the re-designed supply chain and the direct export to roasters, farmers have a greater share of the value added and, thus, the profits. In line with Banerjee and Duflo (2011), this case study argues that regional socioeconomic deficits can be successfully addressed when their specific characteristics are taken into consideration. For sustainable growth, economic activities should be supported by the important stakeholder groups and driven by local citizens: Balanced growth is ultimately a question of creating self-confident communities with project ownership and leaders committed to sustainability. Finally, developing a project that is financially self-sufficient and sustainable takes time: Citizens should not only understand the concept and its intentions, but also accept responsibility and ownership for it to be a success.