Effect of the youth development fund on livelihood asset ownership among youth in Chalinze District and Dar es Salaam city councils, Tanzania

Abstract

Asset ownership plays a crucial role in improving livelihoods and reducing poverty among beneficiaries of the Youth Development Fund (YDF). However, ownership of productive assets has remained a significant challenge among these beneficiaries. Guided by the Sustainable Livelihood Framework, this study examines the effect of the YDF on asset ownership among its beneficiaries. A cross-sectional research design involving multistage sampling targeted 10 wards in two Local Government Authorities. Data were collected from 200 YDF beneficiaries through semi-structured questionnaires and key informant interviews. Descriptive statistics and an asset ownership index were used to analyse the quantitative data, while the qualitative data was analysed through content analysis. The findings revealed that 50% of YDF beneficiaries are at a high level of asset ownership, 49% are at a low level, and 1% are at a moderate level. The results further show a more remarkable change in the ownership of non-productive assets than productive assets, which does not guarantee sustainable livelihoods. For example, ownership of economic assets like motorcycles increased from 3.5% to 33.5% after accessing the YDF. The findings also indicate ownership of new productive assets acquired after accessing the YDF, such as photocopiers, welding machines, sewing machines, tricycles, and milling machines. Despite these changes, 49% of the beneficiaries are still in low asset ownership, with limited ability to sustain their livelihoods. The study recommends that Local Government Authorities (LGAs) should increase funding for youth loans to enable beneficiaries to engage in income-generating activities (IGAs) for the acquisition of livelihood assets. Additionally, LGAs should collaborate with like-minded stakeholders in all youth empowerment interventions to provide mentorship and coaching. This would enable youth to gain the skills required for effectively using resources by investing in productive assets instead of non-productive household assets.