A study of the factors that affect agribusiness financing in Zambia: a case study of smallholder farmers in Chibombo district.
| dc.contributor.author | Chanda, Richard | |
| dc.date.accessioned | 2024-09-04T07:14:46Z | |
| dc.date.available | 2024-09-04T07:14:46Z | |
| dc.date.issued | 2024 | |
| dc.description | Thesis of Master of Business Administration in Finance | |
| dc.description.abstract | Limited access to agricultural financing is a constraint to the development of the Smallholder Farmers (SHFs) of the agriculture sector. The formal financial institutions face a challenge to provide agricultural credit that meets the unique demands of SHFs in the agricultural. Although SHFs face several challenges, lack of capital for investment contribute significantly to reduced production, increased food insecurity, and persistent poverty, especially in rural areas of the country. The research aimed to address three fundamental inquiries: the extent of financial inclusivity, the factors influencing access to finance, and the exploration of alternative financing models. Through a comprehensive study involving data collection, analysis, and interpretation, this research sheds light on the financial landscape for these farmers. A descriptive research design was employed which led to the adoption of a mixed-methods approach. The target population for investigation was drawn from 48,000 SHFs in Chibombo district. The sample size was 100 to whom semi structured questionnaires was administered for data collection based on a two-stage sampling procedure (purposive and saturation). The reliability of instrument was accessed using a half- split technique. The data was analyzed using both qualitative and quantitative methods. A multiple logistic regression was conducted to determine the relationship between dependent and independent variable variables. The findings reveal a stark reality of exclusion, with only 19% of SHFs surveyed reported having accessed credit and only 8% of rural SHFs were utilizing formal banking services. These statistics reveals a considerable hurdle in their efforts to secure financial resources for enhancing agricultural activities and livelihoods. The study delved into credit access challenges, both on the demand and supply sides, and identified variables such as gender, age, and income that impacted credit availability. Logistic regression analysis further explored the influence of these variables on credit access. In response to these challenges, the research proposed innovative financing models tailored to the unique needs of SHFs. These models include mobile money lending, peer-to-peer lending, guarantee schemes, collateral substitutes, and group lending. Each model offers an avenue to empower farmers economically and overcome barriers to financial access. The study recommended that the Government initiatives should focus on improving rural infrastructure, including road networks and transportation systems. Further, incentivize institutions or partnerships that actively participate in community-based financing initiatives by offering tax breaks or grants to them. Lastly, regulatory bodies should collaborate with financial institutions to develop a regulatory framework that supports and governs mobile money lending to ensure consumer protection and fair competition. In conclusion, this research contributes to the discourse on agriculture financing by providing insights into the financial realities of rural SHFs in Zambia. The proposed models present actionable pathways to uplift these farmers, foster sustainable development, and promote financial literacy. As Zambia seeks to enhance its economic landscape and empower its agricultural sector, the findings of this study offer valuable guidance for shaping policies and interventions that can drive lasting positive change. | |
| dc.identifier.uri | https://dspace.unza.zm/handle/123456789/8849 | |
| dc.language.iso | en | |
| dc.publisher | The University of Zambia | |
| dc.title | A study of the factors that affect agribusiness financing in Zambia: a case study of smallholder farmers in Chibombo district. | |
| dc.type | Thesis |