Abstract:
This study determines the contribution of MFIs loans on the poverty reduction among food vendors in Tanzania. Data was collected through interview and questionnaires from randomly selected sample. Documentary sources and observation were also employed. A cross-sectional approach was the method used. Data was processed based on qualitative analysis technique, supported by quantitative analysis techniques and presented in the form of tables, bar graphs, clustered diagrams and percentage pie graphs.
Findings from this study revealed that street food vendors commence business depending on their personal savings as justified by 55% of cumulative percentage of the respondents. However, majority of respondents indicated that they have applied for loans (97.5%) but due to higher cost attributed with serving loans performances have been deceased. Additionally study findings show that bad performances was also due to little investment in this sector this was substantiated with 10% of the respondents who indicated that revenue generated from vending activities was used to purchase more food stuffs whilst other revenues were used to meet family costs of living. Finally survey statistics revealed that underperformance was also attributed by lack of designated market places or business premises and lack of strong street food vendors associations as justified by 80% of the street food respondents.
The study, therefore, concluded that food vending activities are vital weapon for fighting against poverty not only in study area but also other parts of the country. It was then recommended that both government and other stakeholders should promote sustainability of food vending activities through provision of adequate credit, business training, permanent premises/market establishment and formation of strong street food vending associations.
