Impact of visio fund credit program on smallholder agricultural production in Zambia's Lusaka Province
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The main objective of this study was to assess the impact of World Vision's Vision Fund Credit Programme on smallholder agricultural production. It is based on sample survey data from Kafue and Chongwe districts of Lusaka Province in Zambia. The collected data was analysed in Statistical Package for Social Sciences (SPSS) to generate descriptive statistics. A structured questionnaire was the primary instrument in data collection while frequency distribution tables were generated to calculate each response as a percentage of the total responses available for a particular question. The study considered the social-economic characteristics of the beneficiaries such as the level of education, marital status, sex, age and income. A Probit model was used and production was regressed against independent variables in which household participation in the credit scheme was found to be significant (p=0.01) at 5 percent level of significance and family labour at 0.1 percent level of significance (t ratio 1.715). The significance of household participation in the credit scheme (p=0.01) at 5 percent level of significance explains that farmers randomly selected to participate in the credit scheme attained higher production thus incomes than non-beneficiaries of the scheme. This can be attributed to the farmer's market linkage approach which enables them to access markets for their produce. Age did not have a significant relationship with farm production (p=0.34). Household size was found to be positive and significant at the 5 percent level of significance (t-ratio 5.87, p-value 0.051). This probably suggests that, the larger the farm household the more it uses family labour thus reducing costs of hired labour and increasing incomes. Education on the other hand was found to be insignificant at the 5 percent level of significance (p=0.310). Some of the recommendations in accordance with the results are the need for financial institutions such as Vision Fund to consider intensifying efforts in terms of monitoring and supervisory visits to farmers under their jurisdiction. This calls for an increase in financial officers to interact with the farmers especially in light of the low financial literacy levels that is found in some farmers. Small scale farmers should be encouraged and educated on the importance of diversifying their agricultural enterprises and activities. There is need for lending institutions to consider broadening loan repayment methods such as crop or product payment modes. Equally important is the need to establish efficient and stable product market linkages for easy access to market for their products.
University of Zambia
Student Project Report
- Agriculture