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Determinants of smallholder farmers’ access to microfinance credits: A case study in Sassandra-Marahoué District, Côte d’Ivoire

N’Banan Ouattara (College of Economics and Management, Huazhong Agricultural University, Wuhan, China) (Centre Suisse de Recherches Scientifiques en Côte d’Ivoire, Abidjan, Côte d’Ivoire)
Xiong Xueping (College of Economics and Management, Huazhong Agricultural University, Wuhan, China)
Trazié Bertrand Athanase Youan BI (Department of Economics and Development Sciences, Université Alassane Ouattara, Bouake, Côte d’Ivoire) (Centre Suisse de Recherches Scientifiques en Côte d’Ivoire, Abidjan, Côte d’Ivoire)
Lacina Traoré (Department of Agricultural Economics, Huazhong Agricultural University, Wuhan, China)
J.K. Ahiakpa (Department of Vegetable Science, Huazhong Agricultural University, Wuhan, China) (Research Desk Consulting Ltd, Accra, Ghana)
Odountan Ambaliou Olounlade (College of Economics and Management, Huazhong Agricultural University, Wuhan, China)

Agricultural Finance Review

ISSN: 0002-1466

Article publication date: 20 January 2020

Issue publication date: 21 May 2020

468

Abstract

Purpose

Several years after the regularization of microfinance activity in Côte d’Ivoire, smallholder farmers’ access to microfinance credits still remains marginal. The purpose of this paper is to identify and analyze key determinants of access to microfinance credit in Sassandra-Marahoué District.

Design/methodology/approach

A total of 150 smallholder farmers were randomly sampled using an interview guide and semi-structured questionnaires. Univariate statistics and Probit binary modeling were employed for data analyses.

Findings

Results revealed that socio-economic/demographic characteristics of smallholder farmers and credit requirements imposed by microfinance institutions (MFIs) are key determinants of smallholder farmers’ access to microfinance credits in the district.

Research limitations/implications

Although, the authors shed light on the determinants of microfinance credit access for smallholder farmers in this district, the study focused on a single source of financial credit. Future research will need to explore the determinants of credit demand and the choice between different sources of rural credits in Côte d’Ivoire.

Practical implications

The findings suggest that MFIs seldom take into account smallholder farmers who are not engaged in off-farm income-generating activities and savings account; and those with low level of education. Sensitization programs on the importance of savings mobilization and credit policy by MFIs will potentially increase smallholder’s knowledge on credit access requirements and thereby increased access.

Originality/value

To the authors’ knowledge, this is the first study investigating determinants of smallholder farmers’ access to microfinance credits in Côte d’Ivoire specifically in the Sassandra-Marahoué District. The results of this study will serve as a guide for MFIs for improving smallholder farmers’ access to credit.

Keywords

Acknowledgements

The authors gratefully acknowledge the financial support toward this study by Strategic Support Program for Scientific Research in Côte d’Ivoire (PASRES), and the technical support of the Swiss Center of Scientific Research in Côte d’Ivoire (CSRS). The authors would also like to thank Ali Mohamed El Yamine, Xie Liangyi and Jalal Chol for their support and technical advice.

Citation

Ouattara, N., Xueping, X., BI, T.B.A.Y., Traoré, L., Ahiakpa, J.K. and Olounlade, O.A. (2020), "Determinants of smallholder farmers’ access to microfinance credits: A case study in Sassandra-Marahoué District, Côte d’Ivoire", Agricultural Finance Review, Vol. 80 No. 3, pp. 401-419. https://doi.org/10.1108/AFR-07-2019-0075

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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