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