en Inter-réseaux Développement rural en Inter-réseaux Développement rural

Home

Challenging conventional wisdom about farm input credit in Sub-saharian Africa

Challenging conventional wisdom about farm input credit in Sub-saharian Africa
  • Partagez :
MSU 10 December 2015

Thèmes :

According to common wisdom, access to formal credit is limited, and farm inputs are financed largely through informal credit. The findings of this study are :
- The use of traditional credit (formal, informal, tied and untied) for financing modern inputs is extremely low. This applies in all countries, and for all crops and farm sizes.
- Farmers primarily finance modern input purchases with cash from nonfarm activities and crop sales.
- Tied output-factor market arrangements play a very minor role in financing external inputs, but appear to be relatively widely used for labor credit.
- “Traditional” cash crop farmers selling to processors rarely receive credit from processors, except in a few enclaves such as larger tobacco farmers in Tanzania

Based on these findings, the policy message of this note is that rural development policies and programs that spur broad development of the rural nonfarm sector
would benefit farm input purchases and thus productivity and food security. These would certainly be important complements to credit policies and programs.


Respond to this Article

Stay Informed! !

You can subscribe to our publications and newsletters and get them directly in your email. You can also create personalised news alerts to receive the newest information published on topics of your choice. Sign me up!

  •  

    Site produced with the support of the Organisation Internationale de la Francophonie and the Agence Française de Développement.

  • AFD OIF
  • How to participate?

    There are many possible ways you can join in the life of the network. You can subscribe to our publications and create custom news alerts. Subscribe to our publications. You can also subscribe to our RSS feeds and follow us on social networks. Send us your contributions and suggestions by contacting us! Contact us!

    Abonnez-vous à nos publications

  • You can also subscribe to our RSS feeds and follow us on social networks.

  • Send us your contributions and suggestions by contacting us!

  • Contact us