Contribution of women development fund to poverty reduction in Geita District, Tanzania

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Date

2010

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Publisher

Sokoine University of Agriculture

Abstract

Despite the effort made by the government to create good environment for women to access credit for income generation to reduce poverty, reduction of poverty through Women Development Fund (WDF) is not impressive. Therefore, the main objective of this study was to determine the contribution of Women Development Fund to poverty reduction. Specifically, the study was meant to determine the amount of capital and costs for various income generating activities, determine the gross and net revenues from various income generating activities (IGAs), compare the income from IGAs done with credit and other activities done without credit between women who received credit and those who did not, ascertain the impact of some credit factors on overall income, and identify constraints facing income generating activities supported by WDF. Data were collected from a sample of 128 respondents, 64 of whom had received credit and 64 were those who had not. Simple random sampling was used to obtain the desired sample. Data were analysed using the Statistical Package for Social Sciences (SPSS). Multiple regression model was used to establish the relationship between factors influencing women’s income and gross margin tool was also used to determine the gross margins of women with and without credit in IGAs. The results showed that the average amounts of capital value and costs for various IGAs for recipients and non-recipients were 40 381 57 and 35 881 501 respectively. The amount of capital value of recipients before and after credit were 34 535 750 and 40 381 571 respectively. The average net margin was Tsh 10 530 150 under use of credit while non-credit users obtained an average net margin of Tsh 12 643 136 per annum. The amount of credit received had positive impact on poverty reduction (P=0.062) and it statistically insignificant (p>0.1). Based on the results it is concluded that access to credit by women has positive impact on household welfare. Therefore, it is recommended that policy makers should re-formulate policies that are in favour of WDF and increase the budgetary fund in order to increase the amount of credit provided to women for economic activities.

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Keywords

Women development fund, Poverty reduction, Geita District, Tanzania

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