An Assessment of factors influencing agricultural credit on small-scale tobacco farmers in Mashonaland Central
- Author
- Chapani, Trevor W.
- Title
- An Assessment of factors influencing agricultural credit on small-scale tobacco farmers in Mashonaland Central
- Abstract
-
The determinants affecting small-scale tobacco farmers' access to agricultural financing in Mashonaland Central, Zimbabwe, are evaluated in this study. The study emphasizes how important agricultural finance is to raising the sector's sustainability and production, especially in the wake of the Fast Track Land Reform Program's disruptions. Although finance is crucial, small farmers face a number of barriers, including high interest rates, lack of collateral, and low financial literacy. Data from the farmers sampled for the study were collected through mixed methods (quantitative survey and qualitative interview process). Lack of collateral remains a major hurdle for 50% of those surveyed, but dynamics suggest that younger farmers and those with higher levels of education are better able to access credit. The effect of credit on yield is evident wherein credit takers’ mean yield is 720 kgs per acre against 580 kgs per acre of the non-takers. The paper concludes with the recommendation to improve financial literacy, cooperative lending, and design client-friendly financial products to increase credit access to smallholders. These results highlight the importance of an enabling lending environment for the growth and sustainability of the agricultural sector in
Zimbabwe. - Date
- May 2025
- Publisher
- BUSE
- Keywords
- Small-scale tobacco farmers
- Agricultural financing
- Land reform program
- Supervisor
- Dr. Zivenge
- Media
-
Chapani - AEEE.pdf