Financial Inclusion and Poverty Alleviation Among Smallholder Farmers in Zimbabwe

Abstract

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

Industry 4.0 in Financial Services: Mobile Money Taxes, Revenue Mobilisation, Financial Inclusion, and the Realisation of Sustainable Development Goals (SDGs) in Africa

“…The 4IR is founded on the utilisation of technology, digitisation of processes, and the digital transformation of business processes and other aspects of the economy. In relation to the financial services sector, digital transformation entails the provision of digital financial services [11,12]. These services are obtained and delivered through digital platforms and mobile devices.…”

Factors Undermining the Use of Seasonal Climate Forecasts Among Farmers in South Africa and Zimbabwe: Implications for the 1st and 2nd Sustainable Development Goals

“…In Zimbabwe, there was no information regarding the progress of SDG 1. However, Mhlanga et al (2020) posit that access to borrowing and taking out insurance, among others, may be critical to eradicating extreme poverty, a district study show that challenges remain in eradicating extreme poverty despite organizational intervention and availability of saving and lending schemes (Kabonga et al, 2021). These indicative that the country may be lagging behind in achieving SDG 1 partly because most smallholder farmers do not have access to lending schemes, citing inadequate collateral, exorbitant interest rates and liquidity problem as major bottlenecks (e.g., Dube et al, 2015;Mutambara, 2016).…”

Impact of Digitalization on the Farmers in India: Evidence using Panel Data Analysis

“…It was suggested, including other things, that the government increase its efforts to satisfy the financial needs of the rural in order to promote digitalization [34]. The study revealed that digitalization had a significant influence on poverty reduction among small and marginal farmers using the basic regression method, conducting financial literacy campaigns among farmers since these characteristics are crucial in affecting farmers' involvement in financial inclusion or prohibiting them from doing so [42]. Regarding India's rising economic prominence and estimates that the Indian economy would be as big as the US economy by 2050, microfinance is an equalizer that allows all citizens to participate in and benefit from economic progress [35].…”