Factors underlying repayment of Youth livelihood programme funds in Bushenyi District

Abstract

The Youth Livelihood Programme (YLP) is a Government of Uganda initiative aimed at reducing youth unemployment through three main components; Skills Development, Livelihood Support, and Institutional Support. Youth access YLP funds through organized groups, supporting enterprises such as agriculture, trade, and services. Each group can access loans of up to UGX 18 million, which are refundable within a maximum period of three years. Repayments are interest-free if made within the first year; thereafter, a 5% annual surcharge applies. This study explored factors underlying youth repayment of YLP funds in Kyabugimbi Town Council, Bushenyi District. Specifically, the study aimed at exploring individual, group, and institutional factors underlying YLP funds repayment. The study adopted an exploratory comparative case study design using qualitative data collection methods. Further, data was collected using focus group discussions (three in total), key informants (eight participants), and in-depth interviews (eight participants). The study identified factors underlying the repayment of YLP funds at individual, group, and institutional levels. Facilitating factors included effective group leadership with team-building skills, adequate repayment periods, and high personal commitment among group members. Inhibiting factors included limited training and monitoring by programme officials, overly large or unevenly participating groups that reduced accountability, and lack of personal financial management skills among some youth. The study concluded that it is important for the youth to have thorough training and be monitored to achieve better performance in their enterprises, which enables timely repayment of borrowed funds. It recommends that the bottom-up approach be adopted while designing further implementation strategies. Similarly, the number of members per group should be reduced to enable active participation of members and optimum benefit from the programme.