Impact of Financial Cooperatives on the Livelihood of smallholder Farmers in Rulindo district. Case of UMITE SACCO, Period 2019-2023

Emmanuel Ndoruhirwe, Dr. Patrice Mugenzi, Prof. Antoine Karangwa

Abstract


This study investigates the impact of UMITE SACCO on smallholder farmers in Rulindo from 2019 to 2023. UMITE SACCO (UMUSINGI MW’ ITERAMBERE KISARO) aims to provide loans, savings products, and financial education to improve farmers' livelihoods and economic contributions. Utilizing a mixed-methods strategy that incorporates both quantitative surveys and qualitative interviews, the study explored the impact of the cooperative. The sample size is determined through random sampling techniques. By using slovin’s formulae with error tolerance of 0.5 the data were from 222 participants while the analysis utilized a multiple regression model in SPSS, focusing on access to credit, financial literacy, and loan utilization.  The findings revealed that access to credit, financial literacy, marital status, and market access significantly motivate farmers' education, health, asset acquisition, and income generation. However, variables like family size and education level exhibit less significant effects. Additionally, the study underscores the significance of financial inclusion, literacy programs, and sustainable agriculture practices in motivating farmers' livelihoods. It recommends policy interventions to boost financial inclusion, invest in financial literacy, enhance market access, and promote sustainable agriculture. Furthermore, future research areas include investigating gender dynamics, exploring the effects of technological innovations, and evaluating existing policies to better serve smallholder farmers.

Keywords


Accessibility, Credit, financial cooperatives, financial literacy, Kisaro, smallholder farmers, UMITE Sacco

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DOI: http://dx.doi.org/10.52155/ijpsat.v47.2.6595

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