The Impact of digital banking on financial inclusion for smallholder tobacco farmers: a case study of Mvurwi area
- Author
- Nyoni, Tinomuda P.
- Title
- The Impact of digital banking on financial inclusion for smallholder tobacco farmers: a case study of Mvurwi area
- Abstract
- The study starts by creating an extensive background on the agricultural environment and socio-economic situation in Mvurwi. It determines the meaningful position of smallholder farmers in food production and rural livelihoods, yet notes the persistent challenges they face, including geographical restrictions, no collateral, and rigid lending terms. This necessitates the provision of access to financial services that address the distinct needs of the smallholder farmers. The primary goal of the study is to assess digital banking programs' competence to promote financial inclusion between smallholder tobacco farmers. The study has a mixed-methods design, employing quantitative surveys and qualitative interviews to gather data on farmers' experiences with digital banking. The primary aim is to determine the proportion of farmers using digital banking platforms, to analyze the effects of digital banking on access to credit and payment systems, and to evaluate the barriers to adoption. Documentation indicates that, in spite of the high prospects of digital banking, its adoption by smallholder farmers remains uneven. Most of them are faced with difficulties of inadequate network connectivity, low digital literacy, and security and transaction cost issues. The outcomes indicate that an overwhelming majority of the farmers incur moderate costs of digital banking per month, which can be burdensome to their already low levels of financial resources. Furthermore, the study highlights the importance of user education and transparent pricing structures to establish trust and facilitate broader acceptance of digital banking services. The study concludes with practical recommendations for financial institutions and policymakers, demanding improved connectivity, targeted training programs, and the development of user-friendly financial instruments. By transcending these obstacles, stakeholders can enhance financial inclusion and empowerment of small-scale tobacco farmers, and thus facilitate sustainable agricultural development in Zimbabwe. The study not only adds to the existing body of knowledge on digital banking but also serves as a guideline for future interventions towards enhancing inclusive financial solutions in rural communities. In summary, this study underscores the disruptive possibilities of digital banking in bridging the financial inclusion gap for smallholder farmers, while also acknowledging the multifaceted challenges that must be surmounted to realize this potential.
- Date
- June 2025
- Publisher
- BUSE
- Keywords
- Digital banking
- Financial inclusion
- Smallholder tobacco farmers
- Supervisor
- Mr. I. Govere
- Media
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Nyoni - AEEE.pdf