ROLE OF AGRICULTURAL CREDITS IN ECONOMIC DEVELOPMENT AND FOOD SECURITY IN AFRICA: The Impact of Inventory Credit on Food Security and Rural Livelihoods in Rwanda - Softcover

Inhaltsangabe

Access to rural finance is considered a key tool to reduce poverty among farmers, yet
existing microcredit models have shown limited capacity to increase profitability for
these farmers. Improved approaches may address the behavioral constraints that
farmers face, such as the temptation to sell when cash is needed but prices for crops
are low. This study with farming communities in Rwanda found that inventory
credit, or warrantage communautaire, significantly increased consumption and savings
as well as and investment in agricultural inputs and education, though impacts on food
security were only short-lived. The results suggest that inventory credit is an effective
way of boosting agricultural and non-agricultural investment for farmers in places with
weak financial markets.

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