Assessment of the Impact of Zimbabwe’s Financial Sector Reforms on the Growth of the Agriculture Credit Market

This study examines the impact of Zimbabwe’s financial sector reforms on the growth of the agricultural credit market, with a focus on smallholder farmers’ access to credit, loan sizes, and the choice of credit sources. Using data from 445 farmers in Mashonaland East, the study employs Propensity Score Matching, Multinomial Logit, and Ordered Logit models to estimate the causal effects of post-2009 reforms. Results show that exposure to reforms significantly increased access to credit and loan amounts, with training and financial literacy emerging as key enablers of formal credit use. Reform awareness and income levels were also positively associated with improved perceptions of financial access. The findings highlight that while financial reforms have expanded rural credit pathways, disparities persist across gender, education, and geography. The study recommends scaling up inclusive financial products, strengthening digital and financial literacy programs, and enhancing outreach through mobile and microfinance platforms. It concludes that financial sector reforms have positively influenced the agricultural credit market, though deeper institutional support and targeted delivery mechanisms are essential to ensure equitable and sustainable access. This research contributes to policy discourse on rural financial inclusion and offers actionable insights for enhancing agricultural finance in Zimbabwe’s evolving economic landscape.