Assessment of quasi-formal credit for poverty reduction: a case of women and youth development fund Nachingwea district, Lindi – Tanzania.

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Date

2007

Journal Title

Journal ISSN

Volume Title

Publisher

Sokoine University of Agriculture.

Abstract

A study on assessment of quasi-formal credit on poverty reduction was carried out in Nachingwea district focusing on Women and Youths Development Fund (WYDF) as a case study. The study was prompted by inefficient of income generating activities towards poverty reduction a part from good environment for micro-credit services. The general objective of the study was to assess the contribution of quasi-formal credit on poverty reduction in the study area; specifically the study first, sought to investigate the operational procedures and performance of WYDF. Secondly, the study examined the target beneficiaries under WYDF. Thirdly, the study intended to identify factors that influence credit accessibility by borrowers from WYDF and fourthly, the study examined the contributions of credit on income and the livelihood of borrowers from WYDF. A cross- sectional research design was adopted. A structured questionnaire was used to collect primary data from a sample of 102 respondents obtained through multi stage sampling technique. SPSS 11.5. was used to analyze the data. Study findings show that there was inadequate facility in meeting credit needs of women and youths in Nachingwea District. WYDF programme has limited scope and experienced serious operational inefficiencies. Lending procedures, conditions and target beneficiaries differ significantly. Findings also revealed that there is positive impact of credit to household income and livelihood. T-test indicates that there is significant difference between credit users and non-users in relation to income levels and value of household assets. The study recommended first that critical screening of target beneficiaries should be done. Second, Ministries responsible for the fund should make WYDF operate with minimal dependence on the district council. Third, credit policy should link the WYDF programme to formal financial institutions.

Description

Master's Dissertation

Keywords

Quasi-formal, Credit, Poverty reduction, Women and youth, Nachingwea district

Citation