Nonfarm Activities and Rural Livelihood in Tanzania : The case of Njombe District

This research paper studied the relationship between nonfarm activities and rural livelihood in Tanzania. More specifically the study examined the driving factors that enable the rural household to participate in the nonfarm activities, the linkage between nonfarm and farm activities and identified the significance of nonfarm activities as a livelihood strategy. A field survey was conducted at Lupembe and Matembwe villages in Njombe Districts whereby a total of 100 households 50 in each village were administered. Unstructured interview was also used exclusively to the interview that involves the key informants in the study area. The findings of the study were as follows, First; the household’s decision to engage in nonfarm activities largely influenced by push and pull factors. The push factors included; low income from agriculture activities, land inadequacy, seasonality of agriculture activities and minimizing risk from poor agriculture performance. The pull factor involved; increased opportunities in the nonfarm sector and the growth of timber industry. Second; there were a strong relationship between farm and nonfarm sector especially in the flow of capital and consumption between the two sectors. This findings shows that the income obtained from agriculture activities were used as a start-up capital in nonfarm activities and the income obtained from nonfarm activities were used to finance farm activities. Third; the study found that there is a significant share of the income from nonfarm activities to the overall household income. In additional the income obtained from nonfarm activities are used to purchase different household needs such as purchases of nonfarm inputs, paying school fees, buying food, consumer consumption, buying home assets, paying house rent and health expenses. The study concluded that rural nonfarm activities are significant livelihood strategy for the rural households.