The Influence Of Community Participation On The Performance Of Formal Women-based Credit Schemes In Tanzania: A Case Of Women Development Fund In Babati Town Council

ABSTRACT

This study seeks to investigate the influence of community participation on the performance of women-based credit schemes, a case of Women Development Fund in Babati Town Council. Specifically, the study focused on the nature of community participation during the implementation of WDF, the extent of women participation in decision making on WDF loan disbursement, approaches used by the local council to involve women to formulate strategies towards loan recovery and addressing WDF constraints and to identify factors influencing and limiting the performance of WDF. The study has relied on both qualitative and quantitative data. A sample size of 70 respondents was drawn using purposive and random sampling techniques. Questionnaires, interviews, review methods were used to collect primary data while the documentary review method was used to collect secondary data. Data collected were analyzed using the Statistical Package for Social Sciences (SPSS) and Excel software and presented in tables and texts for easy interpretation. Qualitative data was presented in prose and repetitive responses grouped in themes. Full community participation in WDF activities at the grassroots level has been a mirage owing to the nature and structure of participation. The respondents gave an indication that the WDF program poorly involved the community. Indeed the majority of the respondents admitted that the community does not participate in the implementation of the program. The findings also indicate that beneficiaries of WDF are not active participants in decision-making within WDF. The study also revealed that the approaches used by the council to involve women in the formulation of strategies towards addressing WDF constraints are through women councillors represented in the loan council‟s community services committees. Besides, the influencing and limiting factors to the performance of WDF were low repayment rates; about 150 (52%) groups of beneficiaries out of 286 groups failed to repay. The funds were insufficient; there was a low entrepreneurship skill. The study recommendations include: amendment of the WDF guidelines to include more women in the committees, increasing the allocation of funds for the WDF program, intensive entrepreneurship training, and prosecution of loan defaulters.