Determinants of Smallholder Women Farmers Access to Informal Credit in Tanzania – A Case of Singida and Chamwino Districts
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 creditaccessproductivitywomen farmers
References
Adebajo, O.O. (2010). Informal Financial Institutions and Poverty Reduction in an Informal Sector in Nigeria: Case of Rotating Savings and Credits Associations (ROSCA) in Ijebu Ode Nigeria. An M.sc Dissertation presented to the Institute of Social Science The Hague University, Netherlands. Adegboye, M.A. Eniolorunda, P.N. and Awe, O.A. (2008). Constraints to Effective Fertilizer Utilization on Maize farm in Ido LGA of Oyo State in Proceedings of 42nd Annual Conference of Agricultural Society of Nigeria (ASN). Page 871. Adegboye, M.A. Eniolorunda, P.N. and Awe, O.A. (2008). Constraints to Effective Fertilizer Utilization on Maize farm in Ido LGA of Oyo State in Proceedings of 42nd Annual Conference of Agricultural Society of Nigeria (ASN). Page 871. Agriculture Council of Tanzania (ACT) (2009) statistics Alarape, N. (1992). The Nigerian Woman: Dawn of a New Era: The Better Life Programme of Maryam Babangida. Ibadan: Jeeson International. Blackden, C.M., and Rwebangira, M. (2004). Strategic Country Gender Assessment. Office of the Sector Director Poverty Reduction and Economic Management Network. Africa Region, World Bank. Ekpo, E. N and Ekpo, I. N (2010). Micro-Credit Programme and Poverty Alleviation in Rural Nigeria: A Case Study of Akwa Ibom State, Nigeria. International Journal of Economic Development And Investment 1(2): 168-180. Eze, C. N. (2013). Rural Women Farmers? Access and Repayment Performance in Microfinance Banking in Abia State, Nigeria. A Ph.D Research Thesis Presented to the Department of Agricultural Economics and Extension Abia State University, Umuahia Campus. Gujarati, D. N. (2003): Basic Econometrics, 4th Edition, Tata Mc-Graw-Hill Publishing Company Limited, New Delhi, India. Henri-Ukoha, A. (2011), Determinants of Loan Acquisition from the Financial Institutions by Small Scale farmers in Ohafia Agricultural Zone of Abia State, South East Nigeria. Journal of Development and Agricultural Economics. 3 (2): 69 – 74. Ibekwe, U. C. Orebiyi, J. S. Henri-Ukoha, A. Okorji, E. C. Nwagbo, E. C. and Chidiebere- Mark, N. M. (2012) Resource Use Efficiency in Cassava Production in South East Nigeria. Asian Journal of Agricultural Extension,Economics & Sociology. 1(1): 16- 21. Ibru, C. (2009) “Growing Microfinance Through New Technologies” 2009 Foundation Day Lecture Delivered by Dr (Mrs.) Cecelia Ibru, Federal University of Technology, Akure, Nigeria ILO (2002a), „?Women and Men in the Informal Economy: A Statistical Picture”, International Labour. Iheduru, N. G. (2002). “Women Entrepreneurship and development. The Gendering of Microfinance in Nigeria”. 8th International Inter-disciplinary Congress on Women. Makerere University, Kampala, Uganda. ILO (2010) Women in labor markets. Measuring progress and identifying change Organization, Geneva. Iwena, O.A. (2008). Essential Agricultural science for Senior Secondary Schools. TONAD Publishers limited, Ibafo, Ogun State. PP: 269 and 332. Jeckonia, J., Nombo, C. and Mdoe, N. (2012). Women empowerment in agricultural value chains: Voices from Onion Growers in Northern Tanzania. Journal of Research on Humanities and Social Sciences 2(8): 2222 – 2863. Lakwo, A. (2007). Microfinance, Rural Livelihood and Women?s Empowerment in Uganda. African Studies Center Research Report 2007. Leavens MK, Anderson CL: Gender and agriculture in Tanzania. EPAR Brief. 2011, 134: 1-14. May, N. (2007). Gender Responsive Entrepreneurial Economy of Nigeria: Enabling Women in a Disabling Environment. Pp30. Meena, R. 1992a. Gender in Southern Africa: Conceptual And Theoretical Issues. Harare: SAPES Books. Mkombe, A.D. (2005). Evaluation of village community bank groups in Matombo Ward- Morogoro Rural District. Open University of Tanzania & Southern New Hampshire. Mmasa J and Walter M, (2016). Social Protection Targeting the Most Vulnerable Children in Tanzania. Research report 15/1 http://www.repoa.or.tz/publications/category/research_reports. Mmasa (2013).Women Participation In Agriculture In Tanzania – Challenges and policy recommendations - Tanzania Country Level Knowledge Network - CLKnet Policy Brief No 8: 2013 CLKnet - Policy Brief No:8 [http://clknet.or.tz] Site Visited on 19/07/2016. NBS (2012).Tanzania population and housing census 2002. [http://www.nbs.go.tz/ tnada/index.php/catalog] site visited on 30/7/2016 . Nwankwo, F.N. (1999). Performance of Agricultural Industry in Nigeria. International Journal of Development and Management Review. 1(1): 23-35. Nyomora, A., Kanyeka, Z. and Nduguru, A. (2012). Supporting Tanzania’s Cocoa Farmers. Research Report No. 3. REPOA, Dar es Salaam, Tanzania. 43pp. Okojie, C.E. Monye-Emina, A. Eghafona, K. Osaghae, G. and Ehiakhamen, J.O. (2010), “Institutional Environment and Access to Microfinance by Self Employed Women in the Rural Areas of Edo State. International Food Policy Research Institute. Nigeria Stategy Support Program (NSSP) Background Paper, Brief No 14. Onumadu, F.N. (2009). Analysis of factors affecting Cocoyam Production in Umuahia North L.G.A of Abia State, Nigeria. Journal of Agriculture and Social Research (JASR). 9(1): 149-155. Onyeagocha, S. U. O. Chidebelu, S. A. N. D. Okorji, E. C., Ada-Henri U., Osuji M. N. and Korie O. C. (2012). Determinants of Loan Repayment of Microfinance Institutions In Southeast States Of Nigeria. International Journal of Social Science and Humanities. 1 (1): 4-9. Oriaku, B.N. (2010). Access to and Investigation of Formal Micro credit by small Holder Farmers in Abia State: A case Study of ABSU micro finance Bank, Uturu. A B.Agric project submitted to the department of Agricultural Economics and Extension, Abia State University, Uturu. Otoo, B.K. (2012). Micro-Credit for Micro-Enterprise: A Study of Women “Petty” Traders in Central Region, Ghana. International Journal of Scientific Research in Education, Vol 5(3), 247-259. Sharma, V. P., Jain, D., Sourovi, D. (2012): Managing agricultural commercialization for inclusive growth in South Asia, Agriculture Policy Series, Briefing Paper No. 6/2012, GDN, New Delhi, India. Smith, P. and Thurman, E. (2007). A billion Strarp: Microcredit, Barefoot banking, and The business Solution for Ending Poverty. New York: McGraw Hill. Udoh, A. J. (1995). Personal, Socio-Economic and infrastructural indices for Poverty Alleviation in Akwa Ibom State of Nigeria. South-South Journal of Culture and Development, 1 (2): 110-117. UN DESA (UN Department of Economic and Social Affairs). 2009. World Survey on the Role of Women in Development: Women?s Control over Economic Resources and Access to Financial Resources. New York: UN DESA UNDP (2008) Innovative approaches to promoting women?s economic empowerment New York: UNDP URT (2007). The National Costed Plan of Action for Most Vulnerable Children, 2007 – 2010.Department of Social Welfare, Ministry of Health and Social Welfare. Dar es Salaam. World Bank (2007): World Development Report 2008: Agriculture for development: Overview, Washington, DC, USA. Available at: http://siteresources.worldbank.org/ INTWDR2008/Resources/WDR_00_book.pdf
More Articles from IIARD INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT
E-Commerce Platform Utilization for Opportunity Recognition Among Business Education Postgraduate Students in Rivers State Universities
Author: Elechi, Ezinne, Wogboroma, Nyemaekile Ph.D, Godpower, Yiraodi Joel Ph.D
Developing Logistics Services for Cross-Border B2c E-Commerce in Vietnam
Author: Nguyen Thi Huyen Trang
Effect of Monetary and Fiscal Policy Measures on Economic Growth in Nigeria
Author: Jaja, Philomina Ejiroghene, Prof. C. G. Nwikina, Prof. C. R. Amadi, Prof. S. N. Amadi
The Role of Strategic Leadership in Mitigating Organizational Knowledge Loss During Digital Migration
Author: Ejalonibu Ojo Sakirulai
Effect of Socio-Economic Characteristics on the Poverty Status of Rural People in Plateau State, Nigeria
Author: Mankwat Gizo, Paul Dung Gadi, Ladi Mankwat Gizo