IDEAS home Printed from https://ideas.repec.org/a/ibn/jasjnl/v6y2014i11p63.html

Determinants of Smallholder Farmers’ Access to Agricultural Finance in Zambia

Author

Listed:
  • Christopher Sebatta
  • Mukata Wamulume
  • Chibamba Mwansakilwa

Abstract

Smallholder farmers in Zambia face many challenges in accessing financial services including limited access to financial markets. Despite the numerous reforms undertaken by the Government and the donor community, including financial sector reforms, many rural farmers have remained in poverty with limited capacity to access safety nets like loans to militate against hunger and disease. This paper set out to find out factors that affect smallholders’ decision to access rural finance and the intensity of their participation in the financial markets. A household survey was conducted in five provinces from which thirteen districts were purposively selected. Employing both purposive and random sampling techniques, a pre-tested questionnaire was administered on 1,326 households. Data was analysed using a double huddle model. Results indicated that education level of household head, size of household and number of daily meals served significantly influenced decision to access finance while loan payback period, having a phone and personal savings influenced the intensity of participation in the rural financial market.

Suggested Citation

  • Christopher Sebatta & Mukata Wamulume & Chibamba Mwansakilwa, 2014. "Determinants of Smallholder Farmers’ Access to Agricultural Finance in Zambia," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 6(11), pages 1-63, October.
    • Handle: RePEc:ibn:jasjnl:v:6:y:2014:i:11:p:63
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/jas/article/download/37899/23160
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/jas/article/view/37899
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Okten, Cagla & Osili, Una Okonkwo, 2004. "Social Networks and Credit Access in Indonesia," World Development, Elsevier, vol. 32(7), pages 1225-1246, July.
    2. Besley, Timothy, 1994. "How Do Market Failures Justify Interventions in Rural Credit Markets?," The World Bank Research Observer, World Bank, vol. 9(1), pages 27-47, January.
    3. Richard L. Meyer, 2011. "Subsidies as an Instrument in Agriculture Finance : A Review," World Bank Publications - Reports 12696, The World Bank Group.
    4. Barham, Bradford L. & Boucher, Stephen & Carter, Michael R., 1996. "Credit constraints, credit unions, and small-scale producers in Guatemala," World Development, Elsevier, vol. 24(5), pages 793-806, May.
    5. Odulaja, Adedapo & Kiros, Fassil G., 1996. "Modelling agricultural production of small-scale farmers in sub-Saharan Africa: A case study in western Kenya," Agricultural Economics, Blackwell, vol. 14(2), pages 85-91, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gershom Endelani Mwalupaso & Shangao Wang & Xianhui Geng & Shadrack Kipkogei, 2025. "Bridging credit gaps for sustainable agriculture: The role of rural savings and credit cooperatives among smallholder farmers," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 71(5), pages 254-272.
    2. Tchékpo Fortuné OGOUVIDE & Ygué Patrice ADEGBOLA & Afio ZANNOU & Gauthier BIAOU, 2022. "Determinants of Farmer’s Participation in Formal Microcredit Markets in Benin," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 13(2), pages 77-95, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jared Hutchins, 2023. "The US farm credit system and agricultural development: Evidence from an early expansion, 1920–1940," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 3-26, January.
    2. Padmavathi Koride & Anjula Gurtoo, 2019. "A Comparison of Borrowing and Default Behaviour Between Men and Women," Studies in Microeconomics, , vol. 7(2), pages 189-209, December.
    3. Uduakobong Inyang, 2022. "Risks to credit access in a developing economy:Focus on household characteristics and the choice of credit in the Niger Delta Region of Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 228-240, March.
    4. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.
    5. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    6. LaFave, Daniel & Thomas, Duncan, 2017. "Extended families and child well-being," Journal of Development Economics, Elsevier, vol. 126(C), pages 52-65.
    7. Owusu, V., 2018. "Credit-Constraints and Preferences for Crop Insurance in Ghana: Implications of Attribute Non-Attendance in Discrete Choice Experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276967, International Association of Agricultural Economists.
    8. Allen Blackman, 2001. "Why don't Lenders Finance High-Return Technological Change in Developing-Country Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1024-1035.
    9. Fafchamps, Marcel & De Janvry, Alain & Sadoulet, Elisabeth, 1995. "Transaction Costs, Market Failures, Competitiveness and the State," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183396, International Association of Agricultural Economists.
    10. Berg, Erlend, 2013. "Are poor people credit-constrained or myopic? Evidence from a South African panel," Journal of Development Economics, Elsevier, vol. 101(C), pages 195-205.
    11. Carter, Michael R. & May, Julian, 1999. "Poverty, livelihood and class in rural South Africa," World Development, Elsevier, vol. 27(1), pages 1-20, January.
    12. Do Xuan Luan, 2015. "Microcredit and Poverty Reduction: A Case Study of Microfinance Fund for Community Development in Northern Vietnam," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 7(8), pages 1-44, July.
    13. Buiter, Willem H. & Sibert, Anne, 1999. "UDROP: A Small Contribution to the New International Financial Architecture," CEPR Discussion Papers 2138, Centre for Economic Policy Research.
    14. Thorsten Beck & Samuel Munzele Maimbo, 2013. "Financial Sector Development in Africa : Opportunities and Challenges," World Bank Publications - Books, The World Bank Group, number 11881, April.
    15. Stephen Boucher & MICHAEL R. CARTER, 2001. "Risk Rationing and Activity Choice in Moral Hazard Constrained Credit Markets," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 445, Wisconsin-Madison Agricultural and Applied Economics Department.
    16. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
    17. Dong, Jiayun & Liang, Wenyuan & Fu, Yimin & Liu, Weiping & Managi, Shunsuke, 2021. "Impact of devolved forest tenure reform on formal credit access for households: Evidence from Fujian, China," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 486-498.
    18. Joseph B. Ajefu & Ayse Demir & Padmali Rodrigo, 2023. "Covid-19-induced Shocks, Access to Basic Needs and Coping Strategies," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1347-1368, December.
    19. Olabimtan Adebowale & Dr Ralitza Dimova, 2016. "Does access to formal finance matter for welfare and inequality? Micro level evidence from Nigeria," Global Development Institute Working Paper Series 072016, GDI, The University of Manchester.
    20. Antonio Lemus & Cristian Rojas, 2019. "Credit Unions in Chile: What is their Role?," EconomiX Working Papers 2019-27, University of Paris Nanterre, EconomiX.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:jasjnl:v:6:y:2014:i:11:p:63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.