Youth Development Fund for Addressing Youths' Unemployment in Hai District Council-Tanzania: Deterring Challenges

The Youth Development Fund (YDF) in Tanzania was established in 1994 to address youth unemployment by providing empowerment loans to support youth development. These loans are financed by 4% of the revenue generated by local councils, which is specifically allocated for youth initiatives. However, the effectiveness of these loans has faced significant challenges, as youth unemployment has slightly risen to 12.6% among individuals aged 15 to 35. This trend raises concerns regarding the YDF's efficacy in combating youth unemployment. Consequently, this study aims to investigate the challenges that impede the YDF's capacity to alleviate youth unemployment within the Hai District Council. Employing the empowerment theory framework for analysis, the findings reveal several obstacles to YDF's effectiveness, including insufficient financial resources, complex application and approval processes, poorly executed programs, and inadequate monitoring and evaluation mechanisms. They collectively hinder the YDF's ability to enhance and facilitate economic conditions and job creation. Hence, there is an urgent need to streamline the application and disbursement processes by simplifying documentation requirements and establishing transparent guidelines. Furthermore, investing in staff training and allocating necessary resources can significantly reduce processing times and ensure the timely disbursement of funds. In mitigating political interference, the YDF management needs to strictly observe bureaucratic coordination and implement a robust monitoring and evaluation system that tracks the progress of youths' projects and identifies areas for improvement. This study offers a comprehensive examination of the limitations of the YDF's effectiveness. Also, it applies the empowerment theory framework to propose a strategic approach to enhance the fund's operational efficiency.