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Accessibility of Local Government’s Mandatory Free Interest Loans on Women Socio-Economic Welfare: A Case Study of Temeke Municipalf Council, Tanzania

The goal of local governance is to empower local people and to ensure public engagement in the local government's governing structure. The Constitution of the United Republic of Tanzania defines the Local Government authorities as citizens' entities located at the grassroots level of the Government. Women represent 70% of the world’s poor due to unequal access to economic opportunities in both developed and developing countries. Thus, Tanzania’s municipal governments are required to set aside 10% of internal annual revenue to empower marginalized population including women. This study was guided by Efficient-service school of thought, Development School of Thought, Soufflé Theory (ST) and Micro Credit Theory. Purposive and random sampling procedures were used to select respondents. Both questionnaire and interview were used to collect data and analyzed through thematic analysis. It was found that women beneficiaries indeed benefited by accessing local government free interest loan which they used to open small businesses such as salon, food vendering, cloth selling, entrepreneurship (batik making and selling, soap making). This improves their standard of living to a greater extent and as a result improved their socio- economic welfare. However the rate at which their businesses were expanding was minimal due to limited knowledge on business such as accounting knowledge, book keeping and customer care knowledge and as a result led to limited access to market. Therefore the study recommended the need to improve on the training on business activities by the local government on women this will help them to improve on the performance of the overall business activities.

Accessibility, Local Government, Mandatory, Free Interest Loans, Women, Socio-Economic Welfare, Tanzania

Joyce David Mtunda. (2023). Accessibility of Local Government’s Mandatory Free Interest Loans on Women Socio-Economic Welfare: A Case Study of Temeke Municipalf Council, Tanzania. European Business & Management, 9(5), 85-93.

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