Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 356

Full Length Research Paper

Stimulating farmer access to bank credit in Zimbabwe: The bankers’ perspective

Chigunhah Blessing Ropafadzo
  • Chigunhah Blessing Ropafadzo
  • Graduate Business School, Chinhoyi University of Technology, Zimbabwe.
  • Google Scholar
Svotwa E.
  • Svotwa E.
  • Department of Crop Science and Post-Harvest Technology, Chinhoyi University of Technology, Zimbabwe.
  • Google Scholar
Govere I.
  • Govere I.
  • Faculty of Agriculture and Environmental Sciences, Bindura University of Science Education, Zimbabwe.
  • Google Scholar
Chikazhe L.
  • Chikazhe L.
  • Department of Marketing, Chinhoyi University of Technology, Zimbabwe.
  • Google Scholar

  •  Received: 11 April 2020
  •  Accepted: 02 July 2020
  •  Published: 31 July 2020


Access to finance by farmers is recognized as a tool for poverty eradication in developing countries, where the majority depends on agriculture for survival. This study sought to establish strategies for enhancing farmer access to bank credit as prescribed by the lenders themselves. A structured interview guide collected primary data from a sample of 12 registered commercial banks in Zimbabwe, which were analysed by thematic analysis. Human capital formation activities that enhance agricultural production and business management knowledge were proffered as key strategies for stimulating bank credit access. On and off farm investments in physical assets were also suggested to equip farmers with productive assets for enhancing viability and loan repayment ability, and to fulfil stringent collateral requirements by banks. Social capital formation activities through building relationships that enhance farmer knowledge were also perceived as key for enhancing credit access. Therefore, policy should subsidize farm infrastructural development initiatives by farmers and intensify agricultural extension services for enhancing farmer knowledge. Farmers should pursue personal development programs in agricultural production and business management, and create farmer-based organizations for sharing risk and knowledge. Banks are encouraged to adopt locally adaptive lending models to meet the farmers halfway.
Key words: Bank credit, credit constraints, creditworthiness, CAMPARI, investments, human capital formation, physical capital formation, social capital formation.