Dube Et Al


Dube et al

Greener Journal of Agricultural Sciences Vol. 5 (1), pp. 034-042, February 2015.

 ISSN: 2276-7770  

Research Paper

Manuscript Number: 011515003

DOI: http://doi.org/10.15580/GJAS.2015.1.011515003

Determinants of Access to Formal Credit
by Smallholder Tobacco Farmers in Makoni District, Zimbabwe


Lighton Dube1*, Tatenda
Mariga2 and May Mrema2


1Faculty of Commerce and Law, Zimbabwe Open University,
National Office, P.O Box MP 111, Mt Pleasant, Harare, Zimbabwe

2Faculty of Agriculture and Natural Resources, Africa
University, P. O. Box 1320, Mutare, Zimbabwe


*Corresponding Author’s Email: dubelig@ gmail.com




study used data from 77 smallholder tobacco farmers from Makoni district in
Zimbabwe to investigate factors affecting smallholder tobacco farmers’ access
to formal credit. The results of the study showed that contact with extension
services, farmer’s attitude towards risk of borrowing and ownership of land
cultivated significantly and positively influenced the probability of farmers’
access to formal credit in the study area. These findings confirm that
improving access to extension services and secure land ownership remain the
important factors in the quest to improving access of smallholder farmers to
formal credit in Zimbabwe. Improved access to information on credit use through
extension services is also likely to positively influence farmers’ perceptions
on credit risk, which would in turn reduce fears associated with formal credit
sources. Encouraging farmers to insure both their crop and loans against the
event of crop failure can also be used to reduce the risk associated with
formal credit sources and help improve access to formal credit by a majority of
smallholder farmers.


Key Words: Smallholder
tobacco farmers, formal credit, Makoni district, logit model.



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Cite this Article: Lighton D,
Tatenda M, May M, 2015. Determinants of Access to Formal Credit by Smallholder
Tobacco Farmers in Makoni District, Zimbabwe. Greener Journal of Agricultural
Sciences, 5(1):033-042, http://doi.org/10.15580/GJAS.2015.1.011515003.

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