A Research Report to be submitted in partial/fulfilment of the Requirements for the Award of the Bachelor of Science in Economics-Economic policy and planning of Mzumbe University
This study aimed at investigating the factors affecting the youth groups on loan repayment in Tanzania with a case of Mbezi ward. The study involved a sample of 70 respondents who are the loan beneficiaries of the Youth Development Fund in Mbezi ward. The study used questionnaires to collect information from youth group members and the study employed a logit econometric model to measure the relationship between dependent and independent variables. Data collected were analyzed using statistics and data (STATA) and Excel software and presented in tables.
The study revealed that 59 (84.29%) youths are faced with challenges which hinder them to repay loans advanced to them some of the mentioned challenges were fluctuation of prices of agricultural product which led to the earning of low income, pests which lead to the low output, the unreliable market for selling their products which lead to the low sales and sometimes low prices. Also, some of the youths who were conducting agribusiness at the time of research complained that there is no modern farming system and irrigation.
This study recommended that the government should establish the youth centres where different business skills can be provided to help youths to acquire necessary knowledge which in turn will guide them when conducting their business activities. Also, the government should enhance the creation of enabling environment for small and medium enterprises such as improving transport and information systems. Furthermore, the government official should be trained on macro credits so as the can perform their duties efficiently.