Contribution of youth development fund in creating youth employment opportunities in Kilosa district, Tanzania

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Date

2022

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Volume Title

Publisher

Sokoine University of Agriculture

Abstract

Youth unemployment is a worldwide challenge. Tanzania is among the Sub-Saharan African countries which face the problem of unemployment. Lack of capital to venture in informal income generating activities is among the causes of youth unemployment. Youth Development Fund (YDF) was introduced in Tanzania with the aim of reducing youth unemployment through providing soft loans to youth. This study aimed at investigating how YDF contributed to the performance of youth IGAs and employment creation. The specific objectives were: i) To assess loan utilization practices and the types of youth enterprises/ investments after accessing loans from YDF, ii) To assess the non-financial support services and youth economic activities performance and iii) To examine the youth who managed to employ themselves or employ others as a result of YDF. A cross-sectional study was conducted. A survey was used to collect data from 100 respondents. The study held 10 focus group discussions and 6 key informant interviews. Inferential and descriptive statistics were analysed through IBM-SPSS and STATA software. Association between YDF and youth employment creation was determined through a multiple linear regression model which was run using STATA. Content analysis was used in the analysis of qualitative data. Findings indicate that 89% of the respondents managed to employ themselves and employ others while 11% managed to employ themselves. Age of respondents, amount of capital invested, business experience had significant influence on youth employment at P ≤ 0.05 level while marital status, income generated per year had significant influence at P ≤ 0.01 level on employment creation. Loan from YDF was utilized for establishment of new businesses (59%) while the income generating activities mentioned were agriculture and livestock keeping (50.8%), transporyouth were training and business linkages. The study concludes that YDF loan has positive contribution towards employment creation in terms of self-employment to youth and other youth in the established business enterprises. Therefore, it is recommended that the Ministry of Labour, Youth, Employment, and Persons with Disability in Tanzania should strengthen youth support through YDF loan and other non-financial support services. Also, the programme should continue with coaching and monitoring of YDF beneficiaries so as to improve business performance hence a reduction in youth unemployment.t (16.7%) and petty business (32.6%). The non-financial support services provided to the

Description

Dissertation

Keywords

Youth development fund, Employment opportunities, Kilosa district, Tanzania

Citation