Smallholder Farmers Access to Agricultural Finance in Southern Africa
External
November 30, 2020
Smallholder agriculture is the backbone to most countries in Southern Africa - this sector holds the potential for addressing the poverty trap among the rural population. Access to finance is a major limitation in commercialisation of the agriculture sector in most countries. Smallholder farmers in these countries have been excluded from participating in the mainstream economy, firstly as result of colonial regimes that discriminated against natives who are largely smallholder farmers. Discrimination was largely with respect to native’s access to productive land, infrastructure and financial resources. Post-independence, Governments reversed such exclusion by supporting the marginalized farmers through inputs supply schemes, subsidies and controlled markets (parastatals).
