Youth unemployment and microfinance in Tanzania: a case of youth development fund in Muheza district in Tanga region

The study examined one of one of the government strategies for addressing poverty and employment problems among youths in Tanzania. In this study youth and unemployment and micro-finance was descriptively analyzed to establish whether youths initiate self employment project in order to address both unemployment and poverty related problems in Tanzania. As sample of 156 youths in five divisions in muheza district-Tanga region were randomly selected and interviewed in the study. The youths in this study were between 18-35 years old. Few Female youths participated in the study. Youth development of any country rely solely on the government strategies. The government weaknesses and failures to formulate strategies for youth development results in tremendous migration of youths to urban centers where they become jobless. As a result of this most youth engage in crime related activities. These deviant behaviors are common among most jobless youths. The government of Tanzania (GoT) established youth development fund (YDF) that helped youths in one way or another to initiate and formulate self-employment activities among the youth in the country. Between 1991/1992 and 1993/ 94 youths were getting loans directly from then, ministry of labour and youth development (MLYD). However this approach did not last long because most youths were not repaying the loans in time. Thus the government reviewed its implementation strategy and introduces a more decentralized system of operating through the electrical constituencies.