The Effectiveness of Commercial Banks in Agricultural growth and development in Zimbabwe: a case study of Commercial Banks Financing Agriculture · Electronic Theses and Dissertations

Author

Mandaza, Tatenda.

Title

The Effectiveness of Commercial Banks in Agricultural growth and development in Zimbabwe: a case study of Commercial Banks Financing Agriculture

Abstract

Agriculture is a cornerstone of Africa's economy, significantly contributing to employment, food security, and economic growth. Despite its importance, the sector faces numerous challenges, including limited access to finance and inadequate investment. Commercial banks hold the potential to address these challenges by providing essential financial support and expertise. This study aims to explore the role of commercial banks in promoting agricultural growth and development in Africa, with a focus on Zimbabwe, where agriculture is pivotal to the national economy. Utilizing a mixed-methods approach, this research combines surveys and in-depth interviews to gather data from key stakeholders, including farmers, agribusiness owners, bank officials, and policymakers. The surveys will quantify the extent of bank engagement in the agricultural sector, while the interviews will provide qualitative insights into the experiences and perspectives of these stakeholders.
Preliminary findings indicate that commercial banks' involvement in agriculture is hindered by factors such as weather-related risks, insecure land tenure, market volatility, and political interference. Despite these challenges, banks that actively support agriculture do so through various mechanisms, including tailored financing options, risk management strategies, capacity-building initiatives, and technological support. The study highlights the need for enhanced collaboration between commercial banks, governments, and agricultural stakeholders to create a conducive environment for agricultural finance. Recommendations include the development of innovative financial products, improved risk mitigation techniques, and policies that secure land tenure and stabilize markets. By identifying both the contributions and challenges of commercial banks in agricultural finance, this research provides valuable insights for policymakers and financial institutions. The findings aim to inform strategies that can enhance the role of commercial banks in driving agricultural growth and development, ultimately contributing to the economic and social well-being of rural populations in Africa

Date

September 2024

Publisher

BUSE

Keywords

Commercial Banks in Agricultural

Growth and development in Zimbabwe

Supervisor

N/A