Gender analysis of access to formal credit by small-scale farmers in Greater Letaba Municipality, South Africa
Abstract
This study investigated the gender analysis of access to formal credit by both male and female small-scale farmers in the Greater Letaba Municipality. The study precisely identified and described the socio-economic characteristics of female and male small-scale farmers, analysed and compared factors influencing access to formal credit by both female and male small-scale farmers and determined the perceptions of female small-scale farmers towards the credit system. In collecting the primary data, structured questionnaires were administered on 140 respondents (70 females and 70 males) using stratified random technique. The study employed descriptive statistics, principal component analysis and probit model to analyse collected data. The probit regression model discovered that farm size, land ownership, gender, age, collateral and extension services had a significant positive influence on small-scale farmers` formal credit access. Based on the study findings, a set of recommendations for achieving equitable formal credit access by female and male small-scale farmers was put forward.
Keywords
formal credit; gender analysis; small-scale farmers; access to credit
References
Agarwal, B. (2003). Gender and land rights revisited: exploring new prospects via the state, family and market. J. Agrar. Change, 3(1–2), 184–224.
Andy, F. (2000). Discovering Statistics Using SPSS for Windows: Advanced Techniques for the Beginner (1st ed.). Thousand Oaks, USA: Sage Publication, Inc.
Aterido, R., Beck, T., Iacovone, L. (2013). Access to finance in Sub-Saharan Africa: is there a gender gap? World Dev., 47, 102–120.
Baiyegunhi, L.J., Fraser, G.C. (2014). Smallholder farmers’ access to credit in the Amathole District Municipality, Eastern Cape Province, South Africa. J. Agric. Rural Dev. Tropic. Subtropic., 115(2), 79–89.
Basu, P. (2006). Improving Access to Finance for India's Rural Poor. World Bank Publications.
Dube, L., Mariga, A., Mrema, M. (2015). Determinants of access to formal credit by smallholder tobacco farmers in Makoni district, Zimbabwe. Green. J. Agric. Sci., 5(1), 34–42.
Falkingham, J. (2000). Women and gender relations in Tajikistan. Country Briefing Paper.
Fletschner, D., Kenney, L. (2014). Rural Women’s Access to Financial Services: Credit, Savings, and Insurance. ESA Working Paper No. 11-07.
FAO (Food and Agriculture Organization) (2010). The State of Food Insecurity in the World 2010, Addressing food insecurity in protracted crises. WFP, FAO.
Ghate, P.B. (1992). Interaction between the formal and informal financial sectors: The Asian experience. World Dev., 20(6), 859–872.
Grogan, L. (2007). Patrilocality and human capital accumulation. Econ. Trans., 15, 685–705.
Hatcher, L., O’Rourke, N. (2013). A Step-by-Step Approach to Using SAS for Factor Analysis and Structural Equation Modeling. SAS Institute.
Jeiyol, E.N., Akpan, S.B., Terver, N.T. (2013). Gender analysis of access to credit by rural small scale farmers in Benue state, Nigeria. Am. Int. J. SocSci, 2(6), 70–78.
Kaiser, H.F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31–36.
Kebede, K. (1995). Agricultural credit analysis. National Agricultural Policy Workshop.
Kedir, A. (2003). Determinants of access to credit and loan amount: Household-level evidence from urban Ethiopia. International Conference on African Development Archives.
Lusardi, A., Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. J. Pens. Econ. Fin., 14(4), 332–368.
Mohieldin, M.S., Wright, P.W. (2000). Formal and informal credit markets in Egypt. Econ. Dev. Cultur. Change, 48(3), 657–670.
Morris, G.A., Meyer, R.L. (1993). Women and financial services in developing countries: a review of the literature. Economics and Sociology Occasional Paper No. 2056. Ohio State University.
Muravyev, A., Talavera, O., Schäfer, D. (2009). Entrepreneurs’ gender and financial constraints: Evidence from international data. J. Compar. Econ., 37(2), 270–286.
Nagler, J. (1994). Interpreting probit analysis. New York University. Retrieved May 22nd 2018 from: http://www3.nccu.edu.tw/~tsaich/Pollins686/probit1.pdf
Nagler, J. (2002). Interpreting probit analysis. New York University. Retrieved May 22nd 2018 from: https://www.semanticscholar.org/paper/Interpreting-Probit-Analysis-Nagler/b386d059ad80875d84087ea57bdbb673c8f9f3d9
Norusis, M. J. (1988). SPSS-X advanced statistics guide (2nd Ed.). Chicago, IL: SPSS, Inc.
Owuor, G. (2009). Can Group Based Credit Uphold Smallholder Farmers Productivity and Reduce Poverty in Africa? Empirical Evidence from Kenya (No. 696-2016-47703). European Association of Agricultural Economists (EAAE) 111th Seminar, 26th-27th June 2009, University of Kent, Canterbury, UK.
Rangan, H., Gilmartin, M. (2002). Gender, traditional authority, and the politics of rural reform in South Africa. Dev. Change, 33(4), 633–658.
Rosenzweig, M.R., Binswanger, H.P. (1993). Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments. Econ. J., 103(416), 56–78.
Saito, K.A., Mekonnen, H., Spurling, D. (1994). Raising the productivity of women farmers in Sub-Saharan Africa. The World Bank.
Team, S.O.F.A., Doss, C. (2011). The role of women in agriculture. Economic Development Analysis Division (ESA) Working Paper, 11.
Worldwide, W.T. (2010). Women and agriculture: Growing more than just food.
University of Limpopo, South Africa South Africa
https://orcid.org/0000-0001-9818-1927
University of Limpopo South Africa
https://orcid.org/0000-0002-2896-2709
Senior Lecturer in University of Limpopo, Department of Agricultural Economics and Animal Production
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.
Most read articles by the same author(s)
- Motsipiri Calvin Mojapelo, Johannes Jan Hlongwane, Abenet Belete, ESTIMATION OF SORGHUM SUPPLY ELASTICITY IN SOUTH AFRICA , Journal of Agribusiness and Rural Development: Vol 52 No 2 (2019)
- Tshephi Kingsley Thaba, Abenet Belete, Johannes Jan Hlongwane, Lesetja Jacob Ledwaba, Econometric estimation of the relationship between the unemployment rate and economic growth in Limpopo Province, South Africa , Journal of Agribusiness and Rural Development: Vol 58 No 4 (2020)