scholarly journals Technological Factors and Utilization of Formal Financial Services by Smallholder Farmers in Kenya

2019 ◽  
Vol 5 (3) ◽  
pp. 55
Author(s):  
Joseph Masinde Wabwire
Keyword(s):  
Financial Services ◽  
Smallholder Farmers ◽  
Technological Factors

scholarly journals Access to bank credit by smallholder farmers in Tanzania: a case study

Afrika Focus ◽  
2018 ◽  
Vol 31 (1) ◽  
Author(s):  
Nsubili Isaga
Keyword(s):  
Regression Model ◽  
Financial Services ◽  
Smallholder Farmers ◽  
Bank Credit ◽  
Survey Method ◽  
Cross Sectional ◽  
Study Objective ◽  
Factors Affecting ◽  
Logit Regression ◽  
And Gender

Tanzania like many other developing countries is highly dependent on agriculture for income generation and job creation for its citizens. Because the sector is mainly composed of smallholder farmers, lack of finance remains the leading obstacle to development. This study seeks to determine factors that affect access to bank credit by smallholder farmers in the Mvomero District of Morogoro, Tanzania. The study used a cross-sectional design, with data being collected via the survey method. Purposeful sampling was used to obtain the respondents who fitted into the study objective. The data were analyzed using descriptive statistics and a logistic regression model. The Logit regression model in particular was employed to determine factors that affect smallholder farmers’ access to bank services. The study reveals that the value of assets invested in farming activities, education and gender are significant factors affecting smallholder farmers’ access to bank credit. Policy recommendations include the establishment of a government bank that would exclusively provide financial services to agriculturalists by establishing a credit guarantee scheme, and the development of new financial products by the banks that would cater to the needs of smallholder farmers. Key words: access, bank credit, smallholder farmers, logit regression

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

Effects of village savings and loan association on agricultural value productivity in Northern Region of Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Dawuni ◽  
Franklin Nantui Mabe ◽  
Osman Damba Tahidu
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Rural Areas ◽  
Financial Services ◽  
Smallholder Farmers ◽  
Northern Region ◽  
Inclusive Development ◽  
Cross Sectional ◽  
Content Type ◽  
Savings And Loan

PurposeAgriculture in Ghana is dominated by smallholder farmers in rural areas. Majority of these farmers are resource-poor and faced with serious challenges in accessing formal financial services towards farming needs attributed to the stringent requirements. To bridge this gap, village savings and loan associations (VSLA) have been promoted in rural areas as an alternative to meeting the credit needs of smallholder farmers. Credit plays a vital role in input acquisition among farmers for improved agricultural value productivity. This study assesses the contribution of VSLA to agricultural value productivity in the Northern Region of Ghana.Design/methodology/approachThe methodology is a primary cross-sectional data collected with the help of a semi-structured questionnaire. This study, therefore, applied a propensity score matching (PSM) to assess the effects of VSLA on agricultural value productivity.FindingsResults from the PSM revealed that extension contact, contract farming, television set ownership, participating in “Planting for Food and Jobs” and nature of roads, including receiving VSLA information from members' increases participation decision of farmers in VSLA. Conversely, age of a farmer, household size, distance to output market and farmers in the Sagnarigu Municipality have negatively influenced VSLA participation. The propensity score matching estimates showed that members of VSLA obtained 38.2% higher agricultural value productivity than non-members.Originality/valueVillage savings and loans associations can be promoted among smallholder farmers as an effective alternative to formal financial service for inclusive development.

Awareness of Mobile Phone-Based Money Transfer Services in Agriculture by Smallholder Farmers in Kenya

2012 ◽  
Vol 3 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Oliver K. Kirui ◽  
Julius Juma Okello ◽  
Rose A. Nyikal
Keyword(s):  
Mobile Phone ◽  
Rural Areas ◽  
Financial Services ◽  
Market Failure ◽  
Smallholder Farmers ◽  
Descriptive Analysis ◽  
Policy And Practice ◽  
Agricultural Finance ◽  
Money Transfer ◽  
Transfer Services

Smallholder farmer access to agricultural finance has been a major constraint to agricultural commercialization in developing countries. The ICT revolution in Africa has however brought an opportunity to ease this constraint. The mobile phone-based money transfer services that started in Kenya urban centres have spread to rural areas and even other countries. Using these services farmers could receive funds to invest in agricultural financial transactions. This study examines the awareness of mobile phone-based money transfer services (MMT) among rural farmers in Kenya and examines the various uses of money transferred through such services. The study employs descriptive analysis and found a very high awareness of mobile phone-based money transfer services among the smallholder farmers and found predominant use of remitted funds for agricultural related purposes (purchase of seed, fertilizer for planting and topdressing, farm equipment/implements, leasing of land for farming, wages for labour). The study concludes that there is need to expand the coverage of MMT services in rural areas since it resolves an idiosyncratic market failure that farmers face namely access to financial services. It discusses the implications of these findings for policy and practice.

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
James Atta Peprah ◽  
Isaac Koomson ◽  
Joshua Sebu ◽  
Bukari Chei
Keyword(s):  
Financial Services ◽  
Smallholder Farmers ◽  
Agricultural Productivity ◽  
Financial Inclusion ◽  
Living Standard ◽  
Content Type ◽  
Access To Credit ◽  
Pooled Data ◽  
Financial Products ◽  
Practical Implications

PurposeDoes financial inclusion matter for productivity among smallholder farmers? The authors answer this question by using the sixth and seventh rounds of the Ghana Living Standard Survey to examine the extent to which financial inclusion affects productivity among smallholder farmers in Ghana.Design/methodology/approachThe study uses a pooled data of the 6th and 7th rounds of the Ghana Living Standard Survey which are national representative data. The authors model an Instrumental Variable (IV) to correct for endogeneity in financial inclusion and a dominance analysis to examine the effects of access to credit, ownership of savings account and insurance product on farmers' productivity.FindingsResults from the study indicate that financial inclusion significantly enhances productivity. Moreover, credit, savings and insurance products influence productivity at various degrees. Thus, expanding the scope of financial services (access to credit, savings and insurance) among smallholder farmers is crucial for inclusive finance and sustainable agricultural production.Practical implicationsThe findings of the study have implications for financial institutions in the design of financial products that the meet the needs of smallholder farmers.Originality/valueSeveral studies have looked at how access to credit influences agricultural productivity in Africa. However, in recent times financial inclusion has been advocated for because it goes beyond mere access to credit. This paper to the best of our knowledge is the first of its kind to examine how financial inclusion could affect agricultural productivity in Ghana.

Socio-Economic Factors and Utilization of Formal Financial Services among smallholder Farmers in Kenya.

2021 ◽  
Vol 3 (1) ◽  
pp. 177-188
Author(s):  
Joseph Masinde Wabwire
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Smallholder Farmers ◽  
Economic Factors ◽  
Regression Equations ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Small Holder Farmers ◽  
Small Holder ◽  
Socio Economic Factors

The main aim of this research was to establish the effect of socio-economic factors on utilization of formal financial services among smallholder farmers in Kenya. Farmers in low-income counties encounter a number of challenges among them limited access to finance. Financing agriculture, therefore, becomes a critical service to enable the full realization of the sector’s potential. In Kenya, the advent of  innovative banking models through commercial banks such as Equity bank have seen a higher proportion of the rural population who were previously unreached being reached by financial services. That said, the subscription to formal financial services by small holder farmers is still low and many of them either shy away from formal financial institutions or are simply ineligible for the services due to lack of a banking profile with the institutions. Cross-sectional survey research design was adopted. The target population for this study were smallholder farmers from Nakuru, Busia and Kirinyaga Counties in Kenya. The study sample was determined using simple random sampling. The sample size was 560 smallholder farmers. The questionnaire and secondary information were the key instruments for data collection. Quantitative data was analysed using multiple linear regression equations with the aid of SPSS software. The study established that the socio-economic factors significantly affected utilization of formal financial services by the smallholder farmers in the country. Policy Makers should therefore, encourage small holder farmers by way of incentives to disclose their annual income so as to improve their chances of accessing formal financial services that can expand their enterprises.

Demographic Factors Influencing the Adoption of Mobile Phones in the Utilization of Formal Financial Services by Smallholder Farmers in Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 81-92
Author(s):  
Joseph Masinde Wabwire
Keyword(s):  
Mobile Phone ◽  
Mobile Phones ◽  
Financial Services ◽  
Service Providers ◽  
Smallholder Farmers ◽  
Linear Regression Analysis ◽  
Demographic Factors ◽  
Simple Random Sampling ◽  
Mobile Service ◽  
Factors Influencing

The study aimed at assessing the demographic factors influencing adoption of mobile phones in the utilization of formal financial services by smallholder farmers in Kenya. Financial access household survey showed that 80 percent of Kenyan adults own a formal bank account. Whilst significant advances have been made in financial technology products, their penetration and usage among smallholder farmers in utilizing financial services and particularly the demographic factors influencing them remains unestablished. Research into more innovative, intermediated solutions, effective participation and inclusion of appropriate community-based groups in mobile financial services is, therefore, necessary. The target population for this study were smallholder farmers from Nakuru, Busia and Kirinyaga Counties in Kenya.  Simple random sampling and Convenience sampling techniques were used to select 496 smallholder farmers as respondents for the study. Data was collected using copies of a researcher developed questionnaire and data collection sheet. Quantitative data was analysed using multiple linear regression analysis with the aid of SPSS software. The findings revealed that demographic factors were important in predicting mobile phone utilization for formal financial services among smallholder farmers in Kenya. Therefore, the study recommends that mobile phone mobile service providers should collaborate with financial service providers to enable the farmers upgrade their phones to access more financial services platforms.

What Informs Farmers’ Choice of Output Markets? The Case of Maize, Cowpea and Livestock Production in Northern Ghana

2021 ◽  
pp. 097300522199442
Author(s):  
Abdulai Adams ◽  
Livingstone Divine Caesar ◽  
Nana Yamoah Asafu-Adjaye
Keyword(s):  
Financial Services ◽  
Smallholder Farmers ◽  
Multinomial Logistic Regression ◽  
Policy Implications ◽  
Northern Ghana ◽  
New Production ◽  
Extension Services ◽  
Output Market ◽  
Main Determinants ◽  
Marketing Methods

This study analyses the main determinants of output market choices by rural farmers in northern Ghana amidst growing concerns of lack of lucrative markets for smallholder farmers. Using recent survey data collected from 448 households, the study applied the multinomial logistic regression (MLR) model with village markets as the base outcome. The findings revealed that association membership, access to storage facilities, openness to new production and marketing methods, access to financial services, knowledge of sustainable intensification (SI) practices, access to guaranteed market, availability of quality market services and distance to output market would likely influence the choice of a farmer to sell at a farm gate over village markets. Access to extension services was found significant in influencing farmers’ decisions to sell by the roadside. Also, gender, association membership, access to processing facilities, availability of quality market services and distance to output market would likely influence the choice of a farmer to do private sales. Furthermore, association membership, access to processing facilities, access to extension services and market information significantly influences the decision of farmers to use other market outlets (e.g., regional/district markets). The study concludes that the choice of market outlet used by farmers depends much on institutional and channel-specific characteristics. These findings have policy implications for the development of market policies, providing rural market infrastructure services, promoting SI practices and strengthening extension service delivery.

scholarly journals The Revolution of Mobile Phone-Enabled Services for Agricultural Development (m-Agri Services) in Africa: The Challenges for Sustainability

2020 ◽  
Vol 12 (2) ◽  
pp. 485 ◽  
Author(s):  
Ezinne M. Emeana ◽  
Liz Trenchard ◽  
Katharina Dehnen-Schmutz
Keyword(s):  
Mobile Phone ◽  
Financial Services ◽  
Agricultural Development ◽  
Smallholder Farmers ◽  
Literacy Skills ◽  
Privacy And Security ◽  
Market Prices ◽  
Input Use ◽  
Target Environment

The provision of information through mobile phone-enabled agricultural information services (m-Agri services) has the potential to revolutionise agriculture and significantly improve smallholder farmers’ livelihoods in Africa. Globally, the benefits of m-Agri services include facilitating farmers’ access to financial services and sourcing agricultural information about input use, practices, and market prices. There are very few published literature sources that focus on the potential benefits of m-Agri services in Africa and none of which explore their sustainability. This study, therefore, explores the evolution, provision, and sustainability of these m-Agri services in Africa. An overview of the current landscape of m-Agri services in Africa is provided and this illustrates how varied these services are in design, content, and quality. Key findings from the exploratory literature review reveal that services are highly likely to fail to achieve their intended purpose or be abandoned when implementers ignore the literacy, skills, culture, and demands of the target users. This study recommends that, to enhance the sustainability of m-Agri services, the implementers need to design the services with the users involved, carefully analyse, and understand the target environment, and design for scale and a long-term purpose. While privacy and security of users need to be ensured, the reuse or improvement of existing initiatives should be explored, and projects need to be data-driven and maintained as open source. Thus, the study concludes that policymakers can support the long-term benefit of m-Agri services by ensuring favourable policies for both users and implementers.

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