Microfinance Services and Their Effects on Small Farmers in Rwanda

ISBN-13: 9783659164064 / Angielski / Miękka / 2016 / 124 str.

Mutamuliza Eularie; Rose Nyikal; Stephen G. Mbogoh

Opis

Micro-finance industry in Rwanda is considered as the most effective mechanisms to reduce poverty.Many smallholder farmers lack self-financing for their activities.Despite the important roles assigned to micro-finance services, little is known about their contribution to the income and livelihood of smallholder farmers in Rwanda. This study examines the contribution of micro-finance services to the income of smallholder farmers.Primary data were collected from 240 respondents randomly selected in the 3 sectors of Nyamagabe District. Descriptive Analysis, Logit Model and Propensity Score Matching were used to analyze the data. The results from Logit Model indicated that Age of a household head, Education, Total Annual Assets, Home Savings, and Off-farm Income significantly influenced the smallholder farmers' decision to participate in micro-finance services. Results from Propensity Score Matching Model showed that the households who had participated in micro-finance services had increased their total annual income more than non-participants.Therefore,the use of SACCOs and Micro-finance services need to be promoted by the Government for mobilizing savings and extending credit.

O autorze

Mutamuliza Eularie is PhD Research Scholar in the Department of Economics at Mangalore University, in India. She has experienced in academic activities such as in teaching and doing research at both Public and Private Universities in Rwanda. She has published numerous articles at international Journals and attended conferences and workshops.