Evolution, performance and role of traditional credit system on poverty reduction: a case of Ifogong’ho of the wasukuma, Tanzania
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Date
2007
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Publisher
Sokoine University of Agriculture
Abstract
A study on ifogong’ho traditional credit system was conducted in Magu District,
Mwanza region, Tanzania. The general objective of the study was to explore the
contribution of ifogong’ho to poverty reduction. Specifically, the study aimed at
describing the evolution and operational procedure of ifogong’ho; assessing
performance of ifogong’ho as indicated by repayment, interest and default rates;
assessing accessibility to ifogong’ho by age, gender, education, household type and
wealth; and determining the contribution of ifogong’ho credit to poverty reduction
using income, food security and health indicators/A cross-sectional survey approach
was employed, whereby four villages that practice ifogong’ho were selected
purposively and respondents were selected randomly. Semi-structured and structured
questionnaires were administered to ifogong’ho committee members and 131
respondents, respectively. Likert scale questions were employed to determine attitude
of members towards access to ifogong’ho by sex, age, household type, education and
wealth. Data were analyzed using the Statistical Package for Social Sciences whereby
frequencies, percentages, means and cross-tabulations, were used to elaborate
analytical results. Qualitative data were summarized and presented in tables to
supplement ifogong’ho important information. The chi-square test statistic was used
to determine attitude of ifogong’ho members towards ifogong’ho access and sex, age,
household type, education and wealth. Results showed no statistical significant
relationship between access to ifogong’ho and sex, age, household type, education and
wealth of respondents. The t-test results at p < 0.05 level of significance proved that
net income, food security and health expenditure among ifogong’ho members beforeiii
getting credit differed significantly after using credit. Net income, food security and
health expenditure after credit were higher than those before credit. These results
substantiated the need of credit for poverty reduction. The study came up with
pertinent recommendations. One of the recommendations given was to boost
ifogong’ho fund portfolio size by introducing saving practice in the system.
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Thesis
Keywords
Ifogong’ho traditional, Poverty reduction, Gender, Health indicator