Examining the Contribution of Microfinance Institutions on the Development of Commercial Agriculture in Ntungamo District. Case Study: Finance Trust Bank in Ntungamo Subcounty

Abstract

The general objective of the study was to examine the contribution of microfinance services on development of commercial agriculture in Ntungamo district using a case of Finance Trust Bank in Ntungamo Sub-county. The study was guided by the following objectives: to establish the contribution of Finance Trust group-based microfinance services on development of commercial agriculture in Ntungamo Sub-county; to find out the contribution of Finance Trust individualbased microfinance services on development of commercial agriculture in Ntungamo Sub-county and to determine the contribution of Finance Trust welfare-based microfinance services on development of commercial agriculture in Ntungamo Sub-county.

A case study research design was used. The study predominantly employed a quantitative approach but also use a qualitative approach. A sample size of 294 was selected. Findings revealed a significant and positive contribution of group-based microfinance services, individualbased microfinance services, welfare-based microfinance services on development of commercial agriculture in Ntungamo Sub-county.

It was concluded that welfare-based microcredit programs positively influenced the development of commercial agriculture in Ntungamo Sub-county. It is thus recommended that there is a need for credit lending institutions like Finance Trust Bank to further penetrate and reach out even to the poorest farmers who have not fully utilized microfinance services if the development of commercial agriculture in Ntungamo Sub-county is to be realised

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