FARMERS’ PERCEPTIONS OF THE PURPOSES AND CHALLENGES OF MICROFINANCE CREDIT: A CASE STUDY OF THE PRIDE RFW CREDIT PROGRAM FOR RICE PRODUCTION IN MVOMERO DISTRICT, TANZANIA By Emmanuel Balthazar Msanya The aim of this study was to assess the contribution of PRIDE RFW microfinance credit in rice production in Mvomero district, Tanzania. The study covered four different villages in the district, namely Mkindo, Dakawa, Mbogo and Dihombo. Farmer groups who are engaged in smallholder rice production and who have taken loans from PRIDE RFW were interviewed. The specific objectives of the study were: (i) To identify the main purposes for which the loan is used by farmers in rice production, and (ii) To identify challenges faced by rice farmers in acquiring loans from microfinance institutions. Data for this study were collected from farmer focus groups using a checklist of interview questions. Data were organized, coded, processed and analysed using MS Excel. The analysis was in the form of descriptive tables, charts and graphs. Results indicated that farmers formed groups to obtain loans to improve living standards and to support both farm and nonfarm business activities. Loans provided to smallholder rice farmers in the study villages made a significant contribution to rice production activities as reported by farmers. Loans were used to support land preparation and planting, fertilizer purchase, harvesting and transportation of output to market. Challenges in acquiring credit from PRIDE RFW reported by farmers included the small size of loans available, delay in loan disbursement, short repayment period, high interest rates, fines for late payment, and lack of transparency by PRIDE RFW about loan availability and credit program procedures. The perspective of PRIDE RFW staff on these issues was also reported. iii TABLE OF CONTENTS LIST OF TABLES ......................................................................................................................... vi KEY TO SYMBOLS OR ABBREVIATIONS ............................................................................ vii CHAPTER 1: INTRODUCTION ................................................................................................... 1 1.

Farmers' perceptions of the purposes and challenges of microfinance credit: A case study of the PRIDE RFW credit program for rice production in Mvomero district, Tanzania

Deindustrialization in Bulawayo has led to the burgeoning of the informal sector evidenced by the emergence of many MSMEs.The research sought to assess the contribution of Microfinance loans to growth of MSMEs in Bulawayo (2009-2013). The research adopted a descriptive survey design. Primary data was collected through questionnaires and interviews from MSMEs. The research finds strong evidence that the contribution of microfinance loans to growth of MSMEs is not significant. Microfinance Institutions activities in the establishment of new MSMEs is nonexistent with most MSMEs source of funding coming from savings, friends and relatives. The study recommends that Microfinance Institutions engage in extensive marketing research and outreach programmes to MSMEs .This will help them to identify specific needs and design products that are suitable and tailored made for MSMEs.

https://www.longdom.org/articles/an-assessment-of-the-contribution-of-microfinance-loans-to-the-growth-of-micro-small-and-medium-enterprises-msmes-in-bul.pdf

Tshuma Nothando

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An assessment of the contribution of microfinance loans to the growth of micro, small and medium enterprises (msmes) in bulawayo (2009-2013)