(IDYDC) Loans to Women Clients in the Iringa Munic
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THE OPEN UNIVERSITY O F TANZANIA & SOUTHERN NEW HAMPSHIRE UNIVERSIT Y MASTER O F SCIENCE IN COMMUNITY ECONOMI C DEVELOPMENT (2005) AN IMPACT ASSESSMENT O F THE IRINGA DEVELOPMENT OF YOUTH, WOMEN AND CHIL D CARE (IDYDC) LOANS TO WOMEN CLIENTS I N THE IRINGA MUNICIPAL AREA MARIAM P . NTOB I ii CERTIFICATION The undersigned certify that have read and hereby recommend for the acceptance by th e Souther n Ne w Hamsphir e University of US A and the Open University o f Tanzania a dissertatio n entitle d "Impac t Assessment O f Iring a Developmen t O f Youth, Wome n An d Chil d Car e (IDYDC ) Loan s T o Wome n Clients I n Iring a Municipality", for a partial fulfilment o f the requirements for the degree of Master of Science i n Internationa l Economic Developmen t o f the Souther n Ne w Hamsphir e University of USA and the Open University of Tanzania. Dr. Francis Chale (Supervisor) Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 iii DECLARATION OF COPYRIGHT I, Maria m P. Ntobi hereby declare that this dissertation is my own original work and that it has not yet been presented and will not be presented to any other University for similar or any other degree award. Signature Date Impact Assessment of IDYDC bans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 iv ABSTRACT This study enlightens the impact of Iringa Development of Youth, Women, Disabled and Childcare, (IDYDC) loans to female client s in the Iring a Municipality the scheme that was started i n 1994, wit h the aim of providing sustainable capital source for marginalized groups, which include women and disabled. The stud y was don e for the purpos e of examining ho w IDYD C credi t interventio n has impacte d o n the creatio n o f employmen t opportunities , busines s and income growth, business skills development, improve d life standards and the abilit y to pay tax amongs t th e femal e client s i t ha s bee n serving fo r te n years . B y usin g questionnaire, focus group discussion s and PRA tools namel y seasona l analysis of income , expenditure, saving s and credit ; Househol d generation; Receipt s and spending o f cas h analysis ; Financial analysis and Produc t attribut e ranking , 10 7 respondents were contacted. Research dat a reveal s tha t fo r te n year s o f intervention , IDYD C Saving s an d Credit schem e ha s playe d a vita l rol e i n sustainin g Micr o Enterprise s i n Iring a Municipality through provision of business capital. However i t ha s bee n learn t tha t thi s dono r dependen t schem e ha s a wea k Management Informatio n System . There ar e criticism s on lac k o f transparency , poor customer care, marke t irresponsiveness and questionabl e trustworth y whic h results to poor client retention an d weak organisational image i n the public. Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 It i s recommended that IDYD C shoul d properl y utiliz e the autonomy provide d by the government in product development, operating and pricing with a sustainability outlook. The establishment of strong capital base, clien t retention, marke t responsiveness, strong MI S an d control system, organizationa l capacit y and ongoing innovations are likel y t o enhance , improv e organizationa l image , operationa l practice s and increase efficiency. Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi-2004 vi ACKNOWLEDGEMENT I wish to express my appreciation to my Project Supervisor Dr Francis Chale of the Open University of Tanzania for his supervision; guidelines and advices that have made this study a success . The cooperation and strong words of encouragement that he gave me during this exercise through out are highly valuable. It i s m y pleasur e t o giv e thank s t o th e Communit y Economi c Developmen t Program in Dar-Es-Salaam for affording me with relevant guidelines, materials and technicalities related to the whole exercise. I am highly indebted to Promotion of Rural Initiatives and Development Enterprises (PRIDE) - Tanzania , my employer for allowing and providing me with full support in undertaking this MSc in CED. Thanks to al l entrepreneurs , IDYD C client s and No n Client s whom I interviewe d for thei r readines s t o expres s thei r concerns . Thei r friendly , jolly , hospitabl e receptions and the demonstrated degree of patience for the entire time of intervie w are highly appreciated and will always be remembered. Special thank s t o m y family member s for thei r mora l an d materia l support s they offered me for the entire period of undertaking this study. As i t is not possible to mentio n everyone, I would lik e t o thank everybod y who i n one way o r the othe r has made this study to be completed successfully. May The Almighty God, Bless them all. Impact Assessment of IDYDC bans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 vii DEDICATION This Project Work is dedicated to my late parents Peter and Naomi. Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 viii TABLE OF CONTENTS CERTIFICATION ii DECLARATION OF COPYRIGHT iii ABSTRACT iv ACKNOWLEDGEMENT vi DEDICATION vii INTRODUCTION 1 1.0 IRING A DEVELOPMENT OF YOUTH, DISABLED AND CHILD CAR E (IDYDC) BACKGROUND 4 1.1 IRING A MUNICIPALITY PROFIL E 4 1.2 OVERVIE W OF IDYDC 5 1.3 IDYD C MISSIO N STATEMENT 5 1.4 IDYD C ACTIVITIES 6 1.5 ASSIGNMEMEN T 8 1.5.1 Problem Statement 9 1.5.2 Objectives : 1 0 1.5.3 Hypothesi s 1 1 2.1 THEORETICA L LITERATURE REVIEW 1 3 2.1.1 Microfinanc e Client and their Needs 1 3 2.1.2 Ho w to Measure Impact s 2 2 2.2 EMPIRICA L REVIEW 2 9 2.3 POLIC Y REVIEW 4 0 2.3.1 Ministr y of Finance (May 2000) "NATIONAL MICRO- 4 1 FINANCE POLICY" 4 1 2.3.2 IDYD C SAVINGS AND CREDIT POLICY (REVOLVING FUND)....4 4 3.0 RESEARC H METHODOLOGY 5 1 3.1 RESEARC H DESIGN 5 1 3.1.3 Tool s and Methodologies 5 9 3.2 RESEARC H APPROACH AND STRATEGY 6 3 3.2.1 Initia l contacts 6 3 3.2.2 Dat a and Information Collection: 6 3 3.2.3 Researc h constraints: 6 4 3.3 DAT A COLLECTION 6 5 3.3.1 Primar y 6 5 3.3.2 Secondar y 6 6 3.4 DAT A ANALYSIS-QUANTITATIVE 6 6 3.4.1 Persona l Information of respondents:- 6 7 3.4.2 Literac y level and marital status , 69 3.4.3 Economi c Activities and duration in businesses 7 1 3.4.4 Source s of initial capitals 7 2 3.4.5 Motive s to start businesses 7 3 3.4.6 Seasonalit y of business 7 3 3.4.7 Averag e daily sales and profits 7 4 Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 ix 3.4.8 Expenditur e pattern of borrowed money 7 5 3.4.9 Loa n Repayment Capacity 7 6 3.4.10 Loa n impacts on businesses 7 7 3.4.11 Genera l viewed impacts on business 7 7 3.4.12 Impact s on family expenditure 7 8 3.4.14 Impact s on employment 7 9 3.4.16 Impac t on business skills 8 0 3.4.17 Busines s Training 8 0 3.4.18 Socia l Empowerment 8 1 3 4.19 Resourc e ownership and control pattern 8 1 3.5 DAT A ANALYSIS - QUALITATIVE 8 2 4 0 FINDING S AND CONCLUSIONS 10 6 4.1 IMPAC T ASSESMENT FINDINGS 10 6 4.1.1 Entrepreneuria l development 10 6 4.1.2 Employmen t opportunities 10 6 4.1.3 Wome n empowerment 10 6 4.1.5 IDYD C Operation Shortfalls 10 7 5.0 RECOMMENDATION S 11 3 6.0 IMPLEMENTATIO N PLAN 12 1 REFERENCES 14 5 APPENDICES 14 8 1. Questionnair e for female IDYDC clients 2. Focuse d Group Discussion Path 3. Participator y Rapid Appraisal Selected Tools. 4. Micro-enterpris e Classification Grid 5. Dat a Analysis Tables. Impact Assessment of IDYDC loans to Women Clients in Iringa Municipality. By Mariam P.Ntobi, 2004 1 INTRODUCTION This impact assessment is a research study that is used as a primar y too! to determine th e effectivenes s of micro finance as a developmen t intervention . In orde r t o measure ho w th e service s of a Micr o Financ e institutio n (MFI ) impact the live s of its clients in such areas as employment, income , nutrition, education, health , an d gende r equit y a n impac t assessmen t coul d prov e useful. How are Impact assessments used? MFIs use impact assessments to determine whether their services are having a positiv e impac t o n th e poo r clients they see k t o serve .