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Access and Use of Credit in Uganda: Unlocking the Dilemma of Financing Small Holder Farmers

Author

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  • Ezra, Munyambonera
  • Annet, Adong
  • Musa Mayanja, Lwanga

Abstract

The paper examines the extent of access and use of credit by small holder farmers in Uganda. Despite several interventions in agricultural financing by government, access to credit by smallholder farmers has remained very low and stagnating over the years. The paper reviews information from the various agricultural financing initiatives government has implemented over the years including Prosperity for All (PSA) of 2008, the National Agricultural Advisory Services (2001), Entandikwa Scheme (1996), the recent Agricultural Credit Facility (ACF) and Microfinance Support Centre (MSCL), among others. It uses the Uganda Census of Agriculture dataset collected in 2008/09 to provide some insights on access to credit by agricultural households and examines two successful models of Centenary Rural Financing Scheme and Uganda Cooperative Alliance-Area Cooperative Enterprise (ACE) in promoting access to financial services to the rural poor. The findings of the review suggest that if government is to succeed in promoting access to financial services by small holder farmers, it needs to establish strong institutional frameworks for agricultural financing as well as explore the possibility of setting up a rural or agricultural development bank

Suggested Citation

  • Ezra, Munyambonera & Annet, Adong & Musa Mayanja, Lwanga, 2013. "Access and Use of Credit in Uganda: Unlocking the Dilemma of Financing Small Holder Farmers," Research Series 184167, Economic Policy Research Centre (EPRC).
    • Handle: RePEc:ags:eprcrs:184167
    DOI: 10.22004/ag.econ.184167
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    File URL: https://ageconsearch.umn.edu/record/184167/files/109%20Access%20and%20Use%20of%20Credit%20in%20Uganda%20-%20Unlocking%20the%20Dilemma%20of%20Financing%20-%20series109.pdf
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    References listed on IDEAS

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    1. Asli Demirguc-Kunt & Ross Levine (ed.), 2004. "Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262541793, December.
    2. Stijn Claessens, 2006. "Access to financial services: a review of the issues and public policy objectives," Journal of Financial Transformation, Capco Institute, vol. 17, pages 16-19.
    3. Thorsten Beck & Asli Demirgüç-Kunt, 2008. "Access to Finance: An Unfinished Agenda," The World Bank Economic Review, World Bank, vol. 22(3), pages 383-396, November.
    4. Beck, Thorsten & Demirguc-Kunt, Asli & Martinez Peria, Maria Soledad, 2007. "Reaching out: Access to and use of banking services across countries," Journal of Financial Economics, Elsevier, vol. 85(1), pages 234-266, July.
    5. F.N. Okurut & A. Schoombee & S. Van Der Berg, 2005. "Credit Demand And Credit Rationing In The Informal Financial Sector In Uganda1," South African Journal of Economics, Economic Society of South Africa, vol. 73(3), pages 482-497, September.
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    Cited by:

    1. Lakuma, Corti Paul & Sserunjogi, Brian, "undated". "The Value Added Tax (VAT) analysis for Uganda," Research Series 280622, Economic Policy Research Centre (EPRC).

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