Enhancing Rural Credit Accessibility: Key Determinants Affecting Farming Households in the North-West Region of Cameroon

초록

The agricultural sector is critical to production and employment in Cameroon’s national economy. However, small-scale farmers, who comprise most of the agricultural labor force, often face serious challenges accessing the credit essential to improving productivity and overall livelihood. These challenges arise from lengthy credit access procedures and the lack of collateral among farmers, such as obtaining credit, the required time lag, and the type of collateral securities required. In consideration of these issues, this research formulated policy recommendations for enhancing the availability of agricultural credit by identifying the major determinants affecting such access among small-scale farmers. Data were collected from 247 rural households in the North-West Region of Cameroon through face-to-face interviews. The survey revealed that 76.92% of the households had access to credit, whereas 23.08% did not. A probit regression model was employed to identify the core determinants of credit accessibility. The results indicated that the model was statistically significant and fit the dataset better than a model without predictors, as evidenced by a Wald chi-squared value of 32.22(p-val<0.000). Educational level, land ownership, marital status, occupation, household size, and income earners positively influenced credit access, but the number of children in school had a negative effect. This study uniquely contributes to the literature by encompassing diverse agricultural households rather than crop-specific cases, providing comprehensive insights that can guide policy interventions. Recommendations include reforming land ownership policies, subsidizing educational expenses, and simplifying credit application processes to bolster financial inclusion and rural development.

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