Dissertation (MA Development Studies)This study was conducted in order to assess the market relations between smallholder seaweed farmers and buyers for poverty reduction in Zanzibar. Specifically, the study was set in order to meet three objectives, namely; to examine the benefits of seaweed to farmers at household level with regards to livelihood improvement, to understand challenges facing seaweed farmers and buyers, to analyze the relationship between seaweed farmers and buyers. The Study was conducted in Uroa village in Zanzibar and it employed a descriptive cross-sectional survey research design. Data were gathered using questionnaires for seaweed farmers and by using face to face interviews for government officials and seaweed buyers. Data were then analyzed using both qualitative and quantitative methods. The study revealed that, the benefits that seaweed farmers are getting through seaweed farming are earnings for meeting their daily needs, having self-employment and improving standard of living, among others. In general, the benefits accrued contribute to poverty reduction in Zanzibar. Apart, from that, the study also found out that, seaweed farming is facing some challenges, most notable ones are; low prices of the product, low supply of seaweed materials, climatic changes and seaweed disease. For the case of relationship between seaweed farmers and buyers, the study uncovered that, majority of farmers have good relationship with their buyers and this was mostly due to the loyalty of farmers. However, there were few farmers who reported that, their relationship with their buyers was hostile. This was caused by cheating behaviour of the buyers especially during weighting of seaweed. The study recommended to the Government that, it should intervene and regularize production and selling of seaweed using known methods so as eradicate bad behaviour which ultimately cause buyers to grab the seaweed from the small producers. On the same line, the Government was urged to provide education on the appropriate way to handle seaweed for it to fetch good quality. On the other side, seaweed buyers were requested to do away with the behaviour of reducing weight of seaweed when measuring. Finally, seaweed farmers should also not breach contracts with their suppliers of the planting materials during harvesting and selling of the dried seaweed.