SOUTHERN NEW HAMPSHIRE UNIVERSIT Y & THE OPEN UNIVERSITY O F TANZANIA MASTER OF SCIENCE IN COMMUNITY ECONOMIC DEVELOPMENT (2007) ENHANCING ACCESSIBILITY AND UTILIZATION OF MICRO CREDIT AMONG WOMEN AND YOUTHS I N VALESKA AND MALULA VILLAGES, ARUMERU DISTRICT, ARUSHA REGION. KIHULYA, ROSE JOSEPH SOUTHERN NEW HAMPSHIRE UNIVERSIT Y & THE OPEN UNIVERSITY O F TANZANIA ENHANCING ACCESSIBILITY AND UTILIZATION OF MICRO CREDIT AMONG WOMEN AND YOUTHS IN VALESKA AND MALULA VILLAGES, ARUMERU DISTRICT, ARUSHA REGION. A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN COMMUNITY ECONOMIC DEVELOPMENT I N SOUTHERN NEW HAMPSHIRE UNIVERSITY A T THE OPEN UNIVERSITY O F TANZANIA BY, KIHULYA, ROSE JOSEPH SEPTEMBER 2007 TABLE OF CONTENTS SUPERVISOR(S) CERTIFICATION i STATEMENT OF COPYRIGHT i i DECLARATION ii i DEDICATION i v ABSTRACT v ACKNOWLEDGEMENT. v i LIST OF TABLES vii i LIST OF FIGURES i x LIST OF APPENDICES x ACRONYMS AND ABBREVIATIONS x i EXECUTIVE SUMMARY xi i CHAPTER I. COMMUNITY NEEDS ASSESSMENT 1 1.1. Community profile 1 1.1.1. Profile of the host organization - Business Entrepreneur Support Unit 1 1.2. Community Needs Assessment 4 1.2.1. Community Profile - Arumer u District 4 1.2.2. Geographical location 4 1.2.3. Administrative unit 5 1.2.4. Climate and altitude 5 1.2.5. Population Dynamics 6 1.2.6. Ethnic and religious groups 6 1.2.7. Economic activities 7 1.2.8. Markets 7 1.2.9. Basic infrastructure an d communication 8 1.2.10. Social Services 9 1.2.10.1. Access to Education 9 1.2.10.2. Access to Health Services .. 10 1.2.10.3. Access to Water 1 0 1.2.10.4. Access to Food 1 1 1.3. Community profile of Valeska and Malula villages 1 1 1.3.1. Major Occupation ........... 1 3 1.3.2. Social Factors 1 3 1.4. Survey 1 4 1.4.1. Survey design and Sampling 1 4 1.4.2. Objectives 1 4 1.4.3. Survey design ............ 15 1.4.4. Reliable and valid instruments 1 5 1.4.5. The Questions tha t structure survey designs ........ 1 7 1.4.5.1. The Survey Aim 1 7 1.4.5.2. Eligible Participants in the Survey 1 8 1.4.6. The characteristics, benefit s and concerns of the design 1 8 1.4.6.1. Cross - sectiona l design (data collected at one point in time) ...... 18 1.4.6.2. Longitudinal design...... 1 9 1.4.7. The internal and external validity of the survey 1 9 1.4.7.1. External Validity 1 9 1.4.7.2. Internal Validity ......... 20 1.4.8. Survey Sampling 2 0 1.4.8.1. Probability Sampling.. 2 0 1.4.8.2. Non - Probabilit y sampling. 2 0 1.4.8.3. Purposive samples 2 1 1.4.9. Quota sampling 2 1 1.4.10. The Survey Response Rate. ..... 2 1 1.4.11. Research Questions. 2 2 1.5. Characteristics of the survey 2 2 1.5.1. Type of survey instruments 2 2 1.5.1.1. Primary data 2 3 1.5.1.2. Secondary Data Collection.... 2 6 1.6. Contents 2 7 1.6.1. Number of questions 2 7 1.6.2. Adequacy of Validity for survey's uses ... 28 1.6.3. Adequacy of description and method for establishing validity ..... 28 1.7. Administration. 2 9 1.7.1. Characteristics of survey administrators............. 2 9 1.7.2. Characteristics of quality assurance methods of the survey 3 0 1.8. Survey methods 3 0 1.8.1. Design.. 3 0 1.8.1.1. Experimental or descriptive .....3 0 1.9. Limits on Internal and External Validity ...3 1 1.9.1. Limit s on Internal Validity .... 31 1.9.2. Limit s on External Validity. 3 1 1.10. Sample 3 2 1.10.1. The Population ....3 2 1.10.2. The sample selection 3 2 1.10.3. How the Sample was chosen... 3 3 1.11. Data processing and analysis 3 3 1.12. Methods of data presentation 3 4 1.13. Survey results and discussions 3 5 1.13.1. Respondents profile 3 5 1.13.2. Age of respondent 3 6 1.13.3. Respondents education level 3 7 1.13.4. Respondents by marital status 3 8 1.13.5. Occupation of respondents 3 9 1.13.6. Number of acres owned by the households 4 0 1.13.7. Profit obtained out of agricultural activities. .. 41 1.13.8. Respondents average income per households 4 2 4.14. The main observations from the survey 4 3 1.14.1. Distribution of respondents 4 4 1.14.2. Low level of education.. ............... 4 4 1.14.3. Sources of Capital ...... 44 1.14.4. Micro credit institutions........ ....... 4 5 1.14.5. Training conducted by micro credit institution before provisions of loan................ 46 1.14.6. Amount of credit given of respondent 4 7 1.14.7. Adequacy of the amount of credit given for respondents' farming/business............ 48 1.14.8. Economic activities/business activities performe d by the villagers... .. 49 1.14.9. Uses of credit obtained form micro credit institutions................................................ 5 0 1.14.10. Priority of micro credit funds 5 1 1.14.11. Credit interest rate of respondent 5 2 1.14.12. Micro credit problems of respondent ( n = 89) 5 4 1.14.13. The main causes of inadequate micro credit in Malula and Valeska ...................... 55 1.14.14. The main problems facing women and youths in the process of accessing............. 56 1.15. Conclusions 5 7 1.15.1. Summary of important points 5 7 1.15.2. Comparative analysis ... 5 7 CHAPTER II. PROBLEM IDENTIFICATION...... ................................................ 59 2.1. Problem Statement..... 5 9 2.2. Target community 6 3 2.3. Stakeholders ............ 64 2.4. Project goal 6 5 2.5. Project overall objective an d specific objectives. ...... 65 2.5.1. Project overall objective.... .6 5 2.5.2. Project specific objective s 6 5 2.6. Host Organization 6 6 2.7. Person involved in the Project. ................... 67 2.8. Job description of CED student in the organization......... 6 7 CHAPTER III. LITERATURE REVIEW 6 8 3.1. Introduction...... .... 68 3.2. Theoretical framework.................... 6 8 3.3. Empirical review. .. 75 3.3.1. The Tanzanian Experience............................................................................................ 76 3.3.2. Worldwide experience... 8 8 3.3. Policy review............ ............................... 9 2 CHAPTER IV. IMPLEMENTATION 9 9 4.1. Introductio n 9 9 4.2. Product s and Outputs within the three years of project implementatio n 10 1 4.3. Project planning 10 6 4.4. The project evaluatio n frame of the operational year ... 108 4.5. Training programme for capacity building conducted for women and youths in Valeska and Malula villages .... 11 4 4.5.1. Introduction..... 11 4 4.5.2. Justification.......... .... 114 4.5.3. Objectives of the capacity building trainings. .... 115 4.5.4. Target group............. ....... 11 5 4.5.5. Duration of the training. 11 5 4.5.6. Methods of facilitation 11 6 4.5.7. Training contents ...................... 116 4.5.8. Facilitators 11 8 4.6. Training follow up/monitoring and evaluation. 11 8 CHAPTER V. MONITORING, EVALUATION AND SUSTAINABILITY .... .119 5.1. Monitoring ....... 119 5.1.1. Research methodology use d in monitoring............. 12 0 5.1.2. Findings and discussions............................................................................................... 120 5.2. Information for monitoring project progress................................................................. 123 5.3. Evaluation 12 5 5.3.1. Formative vs. Summative Evaluation 12 5 5.3.2. Research Methodology ....... 12 6 5.3.3. Performance indicators .. ....127 5.3.4. The discussions and findings 13 0 5.4. Sustainability of the project 13 4 5.4.1 Financial sustainability 13 4 5.4.2. Institutional/Programmatic sustainability.... 13 5 5.4.3. Political sustainability 13 6 CHAPTER VI.CONCLUSIONS AN D RECOMMENDATIONS 13 7 6.1. Conclusions 13 7 6.2. Recommendations 13 8 BIBLIOGRAPHY 13 9 APPENDICIES 14 2 i SUPERVISOR (S) CERTIFICATIO N I, Joseph Kiangi Mwerinde, hereby certify that I have read the project titled "Enhancing accessibility an d utilizatio n of micro credi t amon g wome n an d youth s in Valeska an d Malula villages, Arumeru district, Arush a region" an d foun d t o b e in a form acceptabl e for submission . ii STATEMENT OF COPYRIGHT "No part of this project ma y be reproduced, store d in any retrieval system, or transmitte d in an y form by any means, electronic, mechanical, photocopying, recording or otherwis e without prio r writte n permissio n o f th e autho r o r th e Ope n Universit y of Tanzania / Southern New Hampshire University in that behalf". © 200 7 iii DECLARATION I Kihulya , Rose Joseph, declar e tha t this projec t i s my original wor k and that it ha s never bee n submitte d fo r th e dam e o r similar degre e i n any othe r Universit y o r Higher Learning Institution. iv DEDICATION This project pape r i s dedicated to my beloved husband, Mr. Helmut Walter Nyoni, My son Helmu t Kevin an d m y daughte r Leocadi a for thei r moral , material, an d financial support in my academic progress . Als o t o my late fathe r Mr . Josep h Mwinula Mathew Kihulya, my beloved mother Mrs. Kihulya and the late Professor Andrew Zuakuu Kiondo for their long time encouragement.