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Assessing Factors Affecting Formal Finance to Farmers in Ghana: Empirical Evidence of Sunyani West District


  • Zhongming Tan
  • Krobea Asante Emmanuel


  • Guoping Ding


Farmers in Ghana plays a key role in increasing food supplies and a sector that contributes major to the country¡¯s gross domestic, yet they tend to have little or no access to formal credit finance. The study seeks to examine financial barriers that limit farmer¡¯s access to formal finance. The study utilized multiple regression model to validate the relationship between formal finance and financial barriers. The empirical results shows that statistically barrier factors positively affect farmer's access to formal finance (FF). It effects on formal finance is significant. Therefore, Ministry of Food and Agricultural and Ghana Cocoa board, stakeholders and other nonprofit organizations in Ghana, should discover and liaise with formal financial institutions to mount good packages to support famers in rural communities in Ghana irrespective of these barriers.

Suggested Citation

  • Zhongming Tan & Krobea Asante Emmanuel & Guoping Ding, 2019. "Assessing Factors Affecting Formal Finance to Farmers in Ghana: Empirical Evidence of Sunyani West District," Business and Economic Research, Macrothink Institute, vol. 9(2), pages 169-181, June.
  • Handle: RePEc:mth:ber888:v:9:y:2019:i:2:p:169-181

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    References listed on IDEAS

    1. Flory, Jeffrey A., 2018. "Formal finance and informal safety nets of the poor: Evidence from a savings field experiment," Journal of Development Economics, Elsevier, vol. 135(C), pages 517-533.
    2. Zhang, Guibin, 2008. "The choice of formal or informal finance: Evidence from Chengdu, China," China Economic Review, Elsevier, vol. 19(4), pages 659-678, December.
    3. Priya Basu, 2006. "Improving Access to Finance for India's Rural Poor," World Bank Publications, The World Bank, number 6927.
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    More about this item


    Formal finance; Farmers; Rural communities; Banks; Ghana;

    JEL classification:

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


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