Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes

Based on analysis of credit supply in Ethiopia, Kenya, Uganda and Nigeria, it is shown that public credit institutions do not have sufficient funds to meet the demand for livestock credit and cannot mobilize savings from their clients or other commercial sources for one reason or another. In additio...

Descripción completa

Detalles Bibliográficos
Autores principales: Jabbar, M.A., Ehui, Simeon K., Kaufmann, Ralph R. von
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2002
Materias:
Acceso en línea:https://hdl.handle.net/10568/33267
_version_ 1855520919327342592
author Jabbar, M.A.
Ehui, Simeon K.
Kaufmann, Ralph R. von
author_browse Ehui, Simeon K.
Jabbar, M.A.
Kaufmann, Ralph R. von
author_facet Jabbar, M.A.
Ehui, Simeon K.
Kaufmann, Ralph R. von
author_sort Jabbar, M.A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Based on analysis of credit supply in Ethiopia, Kenya, Uganda and Nigeria, it is shown that public credit institutions do not have sufficient funds to meet the demand for livestock credit and cannot mobilize savings from their clients or other commercial sources for one reason or another. In addition, available credit does not reach those who need it the most and with whom it could have the greatest impact due to the application of inappropriate screening procedures and criteria to determine creditworthiness. The analysis of demand based on borrowing and nonborrowing sample households using improved dairy technology, it is shown that not all borrowers borrowed due to liquidity constraint while some borrowers and some nonborrowers had liquidity constraint but did not have access to adequate credit. Logistic regression analysis show that sex and education of the household head, training in dairy, prevalence of outstanding loan and the number of improved cattle on the farm had significant influence on both borrowing and liquidity status of a household, though the degree and direction of influence were not always the same in each study country. Based on the findings it is suggested that combining public and commercial finance could solve the problem of inadequate credit supply while inventory finance to community level input suppliers and service providers might help in getting credit to worthy and needy smallholders at lower cost than providing credit to smallholders directly.
format Journal Article
id CGSpace33267
institution CGIAR Consortium
language Inglés
publishDate 2002
publishDateRange 2002
publishDateSort 2002
publisher Elsevier
publisherStr Elsevier
record_format dspace
spelling CGSpace332672024-04-25T06:00:40Z Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes Jabbar, M.A. Ehui, Simeon K. Kaufmann, Ralph R. von livestock credit supply balance dairy industry technology Based on analysis of credit supply in Ethiopia, Kenya, Uganda and Nigeria, it is shown that public credit institutions do not have sufficient funds to meet the demand for livestock credit and cannot mobilize savings from their clients or other commercial sources for one reason or another. In addition, available credit does not reach those who need it the most and with whom it could have the greatest impact due to the application of inappropriate screening procedures and criteria to determine creditworthiness. The analysis of demand based on borrowing and nonborrowing sample households using improved dairy technology, it is shown that not all borrowers borrowed due to liquidity constraint while some borrowers and some nonborrowers had liquidity constraint but did not have access to adequate credit. Logistic regression analysis show that sex and education of the household head, training in dairy, prevalence of outstanding loan and the number of improved cattle on the farm had significant influence on both borrowing and liquidity status of a household, though the degree and direction of influence were not always the same in each study country. Based on the findings it is suggested that combining public and commercial finance could solve the problem of inadequate credit supply while inventory finance to community level input suppliers and service providers might help in getting credit to worthy and needy smallholders at lower cost than providing credit to smallholders directly. 2002-06 2013-07-03T05:26:19Z 2013-07-03T05:26:19Z Journal Article https://hdl.handle.net/10568/33267 en Limited Access Elsevier World Development;30(6): 1029-1042
spellingShingle livestock
credit
supply balance
dairy industry
technology
Jabbar, M.A.
Ehui, Simeon K.
Kaufmann, Ralph R. von
Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title_full Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title_fullStr Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title_full_unstemmed Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title_short Supply and demand for livestock credit in sub-Saharan Africa: Lessons for designing new credit schemes
title_sort supply and demand for livestock credit in sub saharan africa lessons for designing new credit schemes
topic livestock
credit
supply balance
dairy industry
technology
url https://hdl.handle.net/10568/33267
work_keys_str_mv AT jabbarma supplyanddemandforlivestockcreditinsubsaharanafricalessonsfordesigningnewcreditschemes
AT ehuisimeonk supplyanddemandforlivestockcreditinsubsaharanafricalessonsfordesigningnewcreditschemes
AT kaufmannralphrvon supplyanddemandforlivestockcreditinsubsaharanafricalessonsfordesigningnewcreditschemes