Reinventing Agropolitan and Agri-Finance as a ploy for tackling Loan Defaults in Zimbabwe: Critical Considerations
DOI:
https://doi.org/10.64169/djb.224Keywords:
Agricultural Finance, Agri-economy, Acropolitan, Credit Default, Financial Inclusion, Smallholder FarmersAbstract
Zimbabwean’s agriculture financing is facing a number of challenges, perpetuating farmer loan default among farmers. Adopting a mixed method research philosophy, this study attempts to determine the complex causes and effects of credit rejection and propose appropriate and creative solutions thereof. Quantitative data and qualitative farm interviews reveal stressful issues encompassing but not limited to economic insecurity, insufficient finance instruments, as well as limiting collateral conditions. The study also identifies severe socio-economic ramifications of defaults involving reducing agricultural output and increase in food insecurity. By bringing together qualitative and quantitative analysis, the study presents significant underlying arguments for policy intervention with immediate impact. The research findings point towards the requirement for using tailor-made financial instruments, greater access to finance, and economic stabilisation for long-term agricultural growth. There is need for an overarching agropolitan approach, calling on government and its institutions, financial intermediaries, and agriculturalists on board to put in place a strong agricultural finance framework. This joint arrangement will lead to loan default minimisation and boosts Zimbabwe's agri-economy.
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