Abstract:
The Women Development Fund, like other microcredit models, aims to uplift women who lack
adequate access to financial services for the enhancement of their well-being. Its objective is
to break the vicious cycle of poverty by facilitating income-generating activities, thereby
increasing household income and expenditure. However, the actual effectiveness of WDF
microcredits on enhancing well-being remains inadequately analysed. This study aimed at
evaluating the effectiveness of the Women Development Fund microcredits on household wellbeing in Tanga City. The analysis was guided by the null operational hypothesis that the
microcredits provided by WDF have no significant positive effect on household well-being in
the City. A cross-sectional design was employed, and 100 female beneficiaries were selected
as the sample size. Questionnaires, interviews, and focus group discussions were utilised as
data collection tools. Results indicate that the percentage of Women Development Fund
microcredits explains 56% of the variation in income and 61% in expenditure. It is concluded
that Women Development Fund microcredits have a significant positive impact on household
well-being, particularly with respect to settlement and children's education. However, the
impact on medication and health was found to be insignificant (Wald Chi2 (09) = 11.0 for
medication/health, Wald Chi2 (09) = 10.03 for settlement, and Wald Chi2 (09) = 10.03 for
children's education). Therefore, it is recommended that the government and other
stakeholders strengthen the WDF, increasing access to microcredits and implementing singledigit interest rates.
