This study addressed a gap in knowledge about the outcomes of in-kind agricultural microcredit projects on the welfare of the poor and ultra-poor smallholders. This research focused on an in-kind agricultural micro-credit project in Marrambajane village (Ch6kwe district, in southern Mozambique). Within the framework of the project, beneficiaries were given in-kind credit (seeds, fertilizer) to grow cash crops (tomatoes, onion, cabbage). To participate in the project farmers joined an Association which was part of a larger Union of Associations. The study measured the changes in material wellbeing of beneficiaries and development of social capital as a result of participation in the project. Material wellbeing was measured through income gene~ation and acquisition of assets through participation in the project. In addition, the sustainability of the intervention was also assessed. The study made use of a case study design adopting both quantitative and qualitative methods. Multiple data collection tools were used to collect data. Participatory methods were used to develop a wellbeing ranking of beneficiary households. A questionnaire was administered with beneficiaries (farmers) as the primary unit of analysis; this was used primarily to measure acquisition of assets and levels of trust in Association and Union. Data on amount of income generated and credit owed was compiled from the project archives. Observation was used to assess condition ofinfrastructure and equipment. The microfinance triangle model was used to evaluate whether the project had achieved poverty outreach, improved the welfare of participants and was financially sustainable. Findings showed that the project led to slight increase of income and household asset value. This increase of income and growth of household asset value was exclusively observed during the period of project implementation (2001-2004), and one year after the end of sponsorship (2005). While participating in the project, households ranked as 'rich' and 'middle' received 1.2 times more credit and 1.6 times more income was generated compared with 'poor' and 'poorest' households. While there is no evidence of a difference in average median number of items bought in each of the wellbeing categories, the monetary value of the items acquired appeared to correlate with household wellbeing categories. The project was successful in building social capital through formation and legalisation of Associations integrated into one fanners Union, the Union of Association Uamechinga. However, high levels of trust between the beneficiaries and project technicians and between the beneficiaries and the Union management team were not achieved. The project collapsed in late 2005. Based on my analysis I argue this occurred because of multiple factors. Firstly, the emphasis on farming tomatoes, a high return but unpredictable cash crop, was problematic. A more effective project design would include production of tomatoes in combination with more reliable crops such as rice and beans. Secondly, the project enforcement of loan repayments was very weak and there was extensive subsidisation of operational and administrative costs. Analysis suggested that the project was distributing income above the real profit generated by the fanners. It is recommended that future projects implement direct or indirect methods to achieve stronger levels of repayment. Thirdly, the project's irrigation system was inadequate. In spite of the fanners recommending a furrow system an unsustainable piped system was implemented. This reflects lack of communication between project technicians and the community during the project design, and partly explains the poor level oftrust between the project staff and fanners. I argue that to ensure sustainability of in-kind micro-credit projects like the Marrambajane case, stronger capacity and infrastructure must be in place before state and donor assistance is withdrawn. / Thesis (M.A.)-University of KwaZulu-Natal, Durban, 2008.

Thesis (PhD)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: This thesis deals with poverty and inequality in Mozambique and with the link of education to wellbeing through the labour market. Earlier studies that analysed well-being in Mozambique drew counter-intuitive conclusions about the spatial distribution of poverty and inequality. They focused excessively on money-metric indicators of well-being and adjusted the poverty line so as to make it reflect taste and price differentials across regions. This thesis suggests the use of a wealth index based on asset holdings and derived by employing Multiple Correspondence Analysis to support the money-metric results. If results are not also confirmed by other indicators of well-being, one should be sceptical of simply unquestioningly applying best practice approaches. In this thesis the moneymetric results drawn by earlier studies are not confirmed by this other indicator of well-being. Since education is a policy lever that can be used to influence the existing patterns of poverty and inequality, one needs to understand how it operates through the labour market in improving wellbeing. Developing and poor economies such as Mozambique are characterised by a very segmented labour market and by a small wage sector. A large proportion of the working-age population is engaged in subsistence agriculture and self-employment activities. Using a multinomial logit model this thesis demonstrates that schooling has an influence on the choice of employment segment. For instance, schooling increases an individual’s chances of getting a public sector job, but lowers his or her chances of falling into self-employment activities. This study also links schooling to earnings. It argues that when analysing the relationship between schooling and earnings in a poor developing economy one should account for the multiple segmentation of the labour market as well as for sample selection bias. To estimate the effects of schooling on earnings this thesis thus employs a modified version of Dubin and McFadden’s model. It finds a positive association between education and earnings in the public wage sector, the private wage sector and in the selfemployment segment. Convex returns to education are also found, and accounting for selectivity bias does improve the earnings functions relative to those based on ordinary least squares regressions. Education quality has a bearing on an individual’s performance in the labour market and therefore affects the role of education in alleviating poverty. Thus, this thesis identifies the correlates of education quality in Mozambique. Employing education production functions based on ordinary least squares multivariate regressions it finds that most of the correlates of educational achievement suggested by the literature are indeed associated with educational outputs. Employing Oaxaca-Blinder decomposition techniques often used in labour studies to study earnings discrimination, the thesis attempts to explain the reasons behind the average deterioration in education quality in Mozambique. The initial hypothesis on this matter was that the average deterioration in education quality over time was associated with the increase in the proportion of pupils from low socioeconomic backgrounds. This hypothesis, however, is not confirmed. Likely explanations include the decline in the efficiency of the education system and more lenient pupil promotion policies. / AFRIKAANSE OPSOMMING: Hierdie proefskrif handel oor armoede en ongelykheid in Mosambiek en die effek van onderwys op welsyn deur die arbeidsmark. Vroeëre studies het gevolgtrekkings oor welsyn in Mosambiek getrek wat nie met intuïsie oor die ruimtelike verdeling van armoede en ongelykheid strook nie. Sulke studies het slegs geldelike maatstawwe van welsyn gebruik en die armoedelyn aangepas om pryse en smaak in verskillende streke te reflekteer. Hierdie tesis stel die gebruik van nie-geldelike maatstawwe voor om geldelike maatstawwe aan te vul, en spesifiek ’n bate-indeks van welsyn wat verkry word deur die gebruik van Veelvuldige-Korrespondensie-Analise. Daar is rede tot skeptisisme wanneer die sogenaamde ‘beste’ metode vir die berekening van geldelike maatstawwe sonder bevraagtekening gebruik word en die resultate nie deur ander indikatore van welsyn bevestig word nie. Aangesien onderwys ’n beleidsinstrument bied om bestaande patrone van armoede en ongelykheid te beïnvloed, is dit nodig om te verstaan hoe dit deur die arbeidsmark werk om welsyn te verbeter. Ontwikkelende en arm ekonomieë soos Mosambiek word gekenmerk deur ’n baie gesegmenteerde arbeidsmark en ’n klein loonsektor. Groot persentasie van die bevolking van werkende ouderdom is by onderhoudslandbou en ander self-indiensneming betrokke. Veelvoudige-logit-model toon hoe opvoeding die keuse van indiensnemingsektor beïnvloed. Onderwys verhoog byvoorbeeld iemand se kanse om pos in die openbare sektor te kry, maar verlaag die waarskynlikheid van selfindiensneming. Die studie koppel verdienste ook aan onderwys. Daar word aangevoer dat die groot arbeidsmarksegmentasie en seleksie-sydigheid in berekening gebring moet word wanneer die verband tussen onderwys en lone in arm ontwikkelende land bestudeer word. Dus word aangepaste vorm van Dubin en McFadden se model in hierdie proefskrif gebruik om die effek van onderwys op verdienste te bereken. Positiewe verband bestaan tussen onderwys en lone in die openbare loonsektor, die private loonsektor en self-indiensname. Die opbrengsstruktuur op onderwys is konveks, en inagneming van seleksie-sydigheid verbeter die verdienstefunksies relatief tot gevalle wat net op gewone kleinste-kwadrate-regressies gebaseer is. Onderwysgehalte het invloed op persoon se vertoning in die arbeidsmark en raak daarom die rol van onderwys in armoedeverligting. Faktore wat met onderwysgehalte in Mosambiek verband hou word dus geïdentifiseer. Die gebruik van gewone-kleinste-kwadrate-veelvoudige-regressies in onderwysproduksiefunksies toon dat die meeste van die bepalende faktore wat in die literatuur genoem word inderdaad met onderwysuitsette verband hou. Deur gebruik van Oaxaca-Blinder dekomposisie-tegnieke – wat meer dikwels gebruik word om arbeidsmarkdiskriminasie te ontleed – word gepoog om die redes vir die agteruitgang van gemiddelde onderwysgehalte in Mosambiek te verklaar. Die aanvanklike hipotese hieroor was dat die agteruitgang in die gemiddelde vertoning deur die toename van leerlinge van laer sosio-ekonomiese agtergrond verklaar sou kon word. Ontleding van die data bevestig egter nie hierdie hipotese nie. Moontlike verklarings sluit in agteruitgang in die doeltreffendheid van die onderwysstelsel en minder streng beleid rakende promosie van leerlinge na hoër grade.

Poverty in its many guises - poor housing, no employment, indifferent health and hunger is a driving force for scavenging. In most developing countries, the informal recovery of material from waste is a common survival strategy for the poor. In fact, up to 2% of populations in developing countries depend on recovering, re-using and selling waste materials from streets, dumpsite or landfills for their livelihood. The aim of this study was to develop an understanding of the socio-economic conditions affecting the scavengers and scavenging activities at the Hulene dumpsite in Maputo. This study set out to develop a conceptual framework depicting scavenging, its problems and opportunities. This was used to structure the research. The main issues addressed were: • The driving forces of scavenging where poverty is the major factor. • The organization of scavengers and scavenging activities showing that there is no formal organization of scavengers, which leads to exploitation of vulnerable groups. • The reaction from the national and local authorities, with the prevalence of a repressive policy and absence of support. • The gender dimension on scavenging activities; and • The perception of health risks. The findings are that scavenging constitutes a means of livelihood for poor people. These activities respond to the market demand and not to environmental considerations. However, in performing scavenging activities which results in informal recycling and resources recovery, people generate environmental benefits, economic benefits and social benefits. Other findings are that the informal organization of scavengers increases the exploitation and the health risk of scavengers. Thus, organization is a key to the success of scavengers and indirectly to the municipal economy. It is concluded that the framework set out in this thesis is useful in the sense that it illustrates the factors which influence scavenging activities. This framework can be used for further research in similar situations. It is also concluded that prohibition of scavenging activities would have undesirable consequences for the economy of Maputo in particular and of Mozambique in general. Thus, since this activity brings benefits to scavengers and to society, the government should support and stimulate this activity and not persecute those who provide this service. Consequently, as a recommendation, government, local communities and NGOs are called upon to support scavengers. The formation of scavenger co-operatives can promote sustainable grassroots development in this sector of the population. / Thesis (M.Env.Dev.)-Unversity of Natal, Pietermaritzburg, 2001.