5. RECOMMENDATIONS

With all the positive attributes the credit scheme has created on the fish farming industry, it would be advantageous to still retain the Credit Scheme, but for it to be sustainable now and at the end of the donor funding to the project, the following are recommendations (Humphrey's & Associates Consultancy of September-October 1994 and Evaluation Mission of January-February 1995) suggested for the future of the scheme :-

• The Credit Scheme though part of the overall Fish Farming Project, should be operated as a separate entity and should generate its own funds from lending activities. As such, the recovering officer should be different from the one giving the farmer extension. The number of personnel working in the credit scheme would in therefore be reduced to 4, i.e., 1 Credit Coordinator and 3 DFFE's, so that the scheme could serve the farmers' needs better.

• The Credit Scheme should in future only lend in kind to Fish Farmers Associations / Groups. It would be better and easier for management purposes to give loans to these associations. However for the association / group to be cohesive and therefore succeed in their fish farming business, it is recommended that they have not more than 5–10 members. Therefore, farmers should be encouraged to form these associations in cases where the site suitability and availability is limited per farmer. These associations will also act as a single unit for the purchase of inputs, or the organization of marketing. The lending to the associations would only be done once to allow as many associations to benefit. Before giving any association / group loan in the future, it would be essential for the project to find out the following details about them :-

  1. In which year was the group was established?
  2. Who owns the land on which the group ponds are situated?
  3. What influence do the male members have in the group?
  4. What previous problems have the group experienced?
  5. Has the group received financial assistance from other sources, and were they able to repay that loan on time?
  6. The lease agreement for the land where the ponds are situated should be signed in presence of at least the local Chief if not the Do.
  7. All group members should sign a declaration that they are collectively responsible for repaying the loan.
  8. As many as possible of the group members should be trained in both simple financial management and maintenance of the ponds.

  9. Groups being considered for loans should be made to understand that loans are not grants, and must be repaid in full. In some cases, the geographical locations of some existing farmers may not preclude the formation of Fish Farmers Associations. In such cases, farmers who are interested and have more than one pond of 300–500 m² should be assisted to go commercial. The point in having several ponds is to ensure a regular monthly cash flow.

• A credit management manual should be prepared, and all the officers directly dealing with the scheme should also be trained on credit management.

• It would be better in future for the project to deal with one fish feed manufacturer than several ones. This way it will be easier to control the quality of feed to the farmers, i.e., the quality will be consistent. The distribution of feeds should also be made through centralized Fry Production Centres.

• The project should concentrate on developing new and cheaper technology for fish farming and fingerling production, and also continue to provide technical services to the farmers to ensure the fish farming industry's sustainability.

• A task force should be organized by the project on a regular basis, say quarterly, to visit the seriously defaulting clients of the scheme, to collect and also advice them on repayments. The project should in future seek the assistance of the GOK Administration in recovering loans from difficult clients. Information at Chief's Barazas to the effect that no further loans would be available to the locations or districts with low rates of loan repayment should be encouraged in all districts.

• The moratorium on loans should still be in effect until at least 70–90% of the loans are recovered. Monthly repayments should still be encouraged, with a Statement of the Loanee's Account being sent to him / her every three months. Repayments from the farmer's other sources of income should also be encouraged.

• Market surveys should be done to look at possibilities of marketing clarias in the districts where its sale seems difficult.

• As it had proven almost impossible to hold Sub-Committee Meetings, it was necessary to ensure that the District Fisheries Officers (DFO's) and the District Development Officers (DDO's) were informed in writing that such a loan had been given, and also giving details of the repayment schedules of the same loan.