Assessing the role of local government (council) loans in boosting the income of Tanzania's youth: a case of Kasulu Town Council

This study aimed at assessing the role of local government (council) loans in boosting the income of Tanzania's youth using a case of Kasulu Town Council. The study employed cross-sectional survey with 100 sample size selected from 10 registered youth groups in the study area. The study was conducted by using mixed methods which encompass qualitative and quantitative methods. Qualitative method included Focus Group Discussion (FGD) and interviews while quantitative data were collected from questionnaires. The results in this study indicate that individuals who received small loan, medium loan and large loan their net incomes decreased by 272123, 289878 and 405834 (Tanzania Shillings) respectively compared to those who did not receive loan which is statistically significant at p<0.000, p<0.012 and p<0.000 respectively. These findings suggest that all loans are significantly negative associated with net income where the larger the loan, the greater the negative impact on net income. All the same, the study identified both obstacles and facilitators in accessing council loans. Identified barriers which have reported to limit youth from accessing and benefiting from loans include but not limited to corruption and bureaucracy, not having a Ruling Party Membership Card, not known to government officials, lack of enough money from the government, complicated application process, nepotism and favouritism and lack of information. Likewise, factors facilitate for better accessing loan are Presence of loan information, No interest rate, Influence from family or friends, No collaterals, Training programs and Support from local government. Since loans have negative correlation with net income to young people, this study recommends that government and other stakeholders in Kasulu Town Council should create a good and friendly environment to facilitate access to loans that will stimulate the achievement of the intended goals of boosting youth income levels and reduce poverty among them.