Effect of Youth Development Fund Access on Youths’ Income Levels in North-West Tanzania: Case of Kahama District

Abstract

Youth Development Fund (YDF) contributes to enhanced youth income and livelihoods, yet its impact on youth income levels remains paradoxical. This paper examines the effect of YDF access on North-West Tanzania youths’ income levels. A cross-sectional survey was used to collect data from 100 youth in the Kahama District in the Shinyanga region. The ordinal logistic regression model tested the null hypothesis that YDF has no significant impact on youth income levels. The results indicate that YDF access is associated with higher youth incomes, but the effect lacks statistical significance (p=0.940), raising questions about the YDF’s overall effectiveness in improving youth income and livelihood. Moreover, findings reveal that, although young women showed lower income levels, young males could get higher incomes, but this distinction is not statistically significant (p=0.088). Equally, higher-educated youth group membership, precisely in tailoring, food vending, and motorbike cycling groups, suggests higher income, but these effects lack statistical significance at p=0.05. Unexpectedly, youth without business planning skills may have higher incomes than those with such skills, yet this too lacks statistical significance at p=0.05. This suggests the limited impact of these variables on youths’ income. This study concludes that there is no significant impact of YDF access or other factors like gender, education, youth group membership, or business planning services on youths’ income. To enhance YDF effectiveness, it recommends adjusting YDF strategies through complementary initiatives, prioritising financial literacy, and exploring alternative policy approaches. Future research may investigate integrated strategies, financial literacy effects, policy analysis, youth participation, and livelihood outcomes in Tanzania and beyond