credit

Credit Constraints, Skills, and Smallholders' Agricultural Production

This blog originally appeared in the AGRODEP Bulletin

By Antoine Bouët, Senior Research Fellow, IFPRI

Financial Inclusion and Agricultural Growth

In Africa south of the Sahara, lack of access to financial services and products poses a serious challenge for agricultural growth and productivity. Many smallholder farmers are cash-poor; it is common for farmers in the region to sell their crops immediately after harvest in order to meet their immediate cash needs rather than waiting for prices to go up and thus increasing their profits. This lack of available capital, coupled with the difficulty smallholders often face in accessing credit, limits their ability to invest in their farms and in other incoming generating activities.

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