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Economic Viability of Smallholder Agroforestry and Beekeeping Projects in Uluguru Mountains, Tanzania: A Cost Benefit Analysis

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Document pages: 25 pages

Abstract: Agroforestryand beekeeping are widely promoted as prospective Nature- Based IncomeGenerating Activities (NIGAs) to improve livelihoods while at the same time enhancing biodiversity conservationin degrading agro-ecologies. These activities can diversify and increasefamers’ incomes and support instinctive biotaand fauna resilience. However, evidence to showcase and compare their long-termbenefits is scant. We use the case of Uluguru Mountains in Tanzania to evaluateand compare viability of agroforestry and beekeeping projects using the Cost BenefitAnalysis (CBA) approach. The results of analysis yielded positive NPVs for bothagroforestry and beekeeping projects at discount rates not higher than 8.2 and8.5 respectively. Overall, the comparison of economic viability between agroforestryand beekeeping projects revealed that the former was relatively more profitablethan the later in terms of both the NPV and Benefit Cost Ratio(BCR) criteria. However, the Internal Rate of Return (IRR) for beekeeping was slightlyhigher than that of agroforestry. Yet, we underscore the fact that these two projectscan jointly be implemented to enhance livelihoods of farmers and support biodiversityconservation in the study area and other parts with similar agro-ecologies in developing countries. However,farmers in these agro-ecologies need to be supported by governments and non-governmentdevelopment partners in terms of training and inspiration to shift from orthodoxfarming to sustainable NIGAs.

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