The Impact of Stock Market on Smallholder Farmers’ Livelihoods: Lesson from TATEPA in Tanzania

This study aimed at examining the contribution of Stock Market (SM) on socio-economic wellbeing of the local communities in Tanzania. It specifically analyzed the impact of Tanzania Tea Packers Limited (TATEPA)on the livelihoods of smallholdertea growers in Rungwe District. The study adopted case study research design; whereas, interviews, documentary review, and focus group discussion (FGD)were employed. The Statistical Package for Social Science (SPSS) was used for data analysis. Findings indicate that there were indirect SM benefits to livelihoods of the smallholder tea growers include employment opportunities created from investment diversification by TATEPA, using funds solicited through the SM.Findingsalsoshow the amount of income earned from tea determines whether or not farmers choose tea as primary source of income. Most importantly, despite trainings offered by TATEPA to its members, there is lack of or little awareness and knowledge about the SM among majority of the smallholder tea growers.  It was recommended that the government should establish more friendly corporate taxation regimes, which can encourage companies to initiate Initial Public Offerings (IPOs).Also, concerted efforts are required to enlighten youth in secondary and tertiary education on the basics of SM.   Key Words: Stock market, smallholder farmers, socio-economic wellbeing