An Evaluation of the Contribution of Credit Facilities Towards Small Scale Farmer’s Economic Empowerment in Uganda. a Case Study of Kyankwanzi District

Abstract

This study evaluated the contribution of credit facilities towards small scale farmers’ economic empowerment in Kyankwanzi District in Uganda. Specifically, the study sought to assess the effect of agriculture loans on small scale farmer’s economic empowerment in Kyankwanzi District; examine the effect of financial literacy on small scale farmer’s economic empowerment in Kyankwanzi Districtand establish the impact of value chain financing on small scale farmer’s economic empowerment in Kyankwanzi District. The study utilized a cross-sectional survey research design, taking on both quantitative and qualitative approaches. The researcher used a sample of 152 respondents. Simple random sampling and Purposive sampling techniques were used. The data collection methods were selfadministered questionnaires and interviews. Descriptive data was analyzed based on tables and graphs derived from SPSS. The findings of the study revealed weak positive correlation between agriculture loans and farmer’s economic empowerment in Kyankwanzi District. (r=.289* p < 0.05); a weak positive correlation between financial literacy and farmer’s economic empowerment in Kyankwanzi District. (r=.263* p < 0.05); and a weak positive correlation between value chain financing and farmer’s economic empowerment in Kyankwanzi District. (r=.149 p > 0.05). It was concluded that access to credit facilities, provision of financial training and access to markets lead to economic empowerment of small scale farmers in Kyankwanzi District. The study recommends that government through the ministry of agriculture should partner with microfinance institutions to provide more and cheaper loans to smallholder farmers; government of Uganda, through the ministry of education and that of agriculture should provide more financial trainings and literacy skills to small scale famers’ and concerted efforts should be made by the central and local government to provide infrastructural facilities such as roads, electricity and safe drinking water to the rural areas of Kyankwanzi so as to improve their economic well-being.

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