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2020 Vol.32, Issue 3S Preview Page

Research Article

Impact of Saving and Credit Cooperatives (SACCOs) on the Income of Smallholder Farmers in Rwanda: A Case Study of Busasamana Sector
M. Berna1*
,
J. Y. Lee2
,
S. H. Lee2
1Government Officer, Department of Planning and cooperative promotion, Rwanda Cooperative Agency
2Assistant Professor, Department of Agricultural & Resource Economics, Kangwon National University
* Corresponding Author
30 October 2020. pp. 239-254
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Abstract

Income generation is a constraint of smallholder farming; the best way to increase income generation in Rwandan agriculture is farmers’ accessibility to financial institutions. Saving and credit cooperatives (SACCOs) are the main providers of microcredit to smallholder farmers, and this study assesses the impact of SACCOs on income smallholder farmers in Rwanda. To achieve the objective, primary data were employed, and both descriptive and econometric models were adopted to achieve the research objective. The findings revealed that members of SACCOs earn more income than non-members, and a bi-directional relationship between income and participation in SACCOs was discovered. However, 62% of smallholder farmers participated in SACCOs and a small percentage of members requested loans. The government and SACCOs initiate insurance schemes for the members to smallholder farmers to join SACCOs as more use of financial services/products.

Keywords
Income
Rwanda
SACCO
Smallholder farmers
SUR
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Information
  • Publisher :Agriculture and Life Sciences Research Institute, Kangwon National University
  • Publisher(Ko) :None
  • Journal Title :Journal of Agricultural, Life and Environmental Sciences
  • Volume : 32
  • No :3
  • Pages :239-254
  • Received Date : 2020-09-10
  • Revised Date : 2020-10-17
  • Accepted Date : 2020-10-20
  • DOI :https://doi.org/10.22698/jales.20200020
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