Social And Economic Benefits Of Community-Based Microfinance Participation Among Youth In Kivukoni Ward, Ilala Municipality, Dar Es Salaam, Tanzania

Youth in urban Tanzania continue to experience difficulties related to limited access to productive capital, unstable livelihoods and restricted opportunities for sustainable income generation. Community-based microfinance initiatives such as Village Community Banks (VICOBA) and Savings and Credit Cooperative Societies (SACCOS) have increasingly provided collective mechanisms through which young people can mobilise financial resources while developing social relationships. However, the benefits experienced through participation may extend beyond access to loans and savings. This study explored the social and economic benefits experienced by youth through participation in community-based microfinance initiatives in Kivukoni Ward, Ilala Municipality, Dar es Salaam, Tanzania. The study employed a qualitative approach and case study design. Data were collected from 21 purposively selected participants through in-depth interviews, a focus group discussion and key informant interviews, and were analysed thematically. The findings indicated that participation was associated with business development, income-generating opportunities, acquisition of productive assets, household support, social networks, peer learning, mutual assistance and access to external institutions. Social Capital Theory was used to interpret how relationships, trust, reciprocity and networks facilitated access to resources and opportunities. The study concludes that community-based microfinance provides benefits through an interaction between financial resources and social relationships. However, the benefits were experienced differently depending on participants’ circumstances, group relationships and access to complementary support.