IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 3 NO. 2 2017

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Determinants of Smallholder Women Farmers Access to Informal Credit in Tanzania – A Case of Singida and Chamwino Districts

Joel. Johnson Mmasa

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Abstract

The study analyzed level and determinants of women farmers’ access to informal credit in Singida and Chamwino Districts, Tanzania. The study described socio-economic characteristics of the women farmers who accessed microcredit from informal sources; determined level of access to informal micro-finance; and determined socio-economic factors that influenced access to informal micro-finance. Primary data were collected from one hundred (100) women farmer informal credit participants using multi-stage random sampling technique. The data were analysed using three techniques namely; likert scoring and descriptive statistics, and probit regression estimation. The finding reveals that women farmers had farm size of between 2.3 and 2.4 acres. Majority 94.4% of the respondents had no contact with extension agents and 72% of interviewed respondents had formal education with 72% of them married. There were relatively higher levels of access to loans from Village Community Banks (VICOBA) compared to other informal credit sources. Probit regression estimate showed that farming experience and gross monthly income exerted positive significant influences at varied critical levels. It was found that interest rate charged exerted negative significant influences at varied critical levels. Policies should be made to forge strong linkages between informal and formal financial institutions to ensure that agricultural credit are channeled from formal financial institutions to women farmers through recognized informal credit arrangements. The synergy from such linkage will increase women farmers’ productivity

keywords:

Informal credit, access, productivity, women farmers

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