Microfinance and small holder farmers productivity

Microfinance and small holder farmers productivity

Joy

Kiiru

DFG/NSTC Conference Lusaka 19

th

-20

th

Oct. 2016

The current jargon in development discourses today is “Inclusion” Inclusion as a research issue took prominence in the past decade of the “Africa Rising” story. High growth rates in the context of persistent poverty /marginalization and unemploymentRural areas especially those dominated by subsistence agricultural activity (more women) remained marginalisedHow can economic growth benefit all segments of society (inclusive growth)

The issue of Inclusion

Agriculture Supports about 75% of livelihoods and employs over 60% of the population in sub-Saharan Africa. Smallholder farmers are the majority in the African agriculture sector that is faced with low productivity. Women are the majority of players in subsistence agriculture in sub saharan AfricaYet the sector and the key players remain economically marginalised

Agriculture sector marginalised

Volatility of agricultural produce: High food prices in some countries and international trade reforms in many African countries-Farmers could earn decent incomes Growing middle class

Yet there are Opportunities

Microfinance can ensure sustainability of access to financial services by poor farmersAccess to credit by small holder farmers will not only help with consumption smoothing but would also ensure access to farming inputsMicro insurance, for both health and crops can cushion farmers against shocks

Financial services as catalyst for farmers

My research has specifically dwelled on issues of inclusion: More specifically inclusive finance and issues of gender Inclusive finance is about availing a range of banking products and financial services to the poor mainly to improve the productivity of their labourIn terms of Gender both women and men should benefit from growth

The research

Inclusive finance/Microfinance

Does it really work??

Panel data would be good for such analysis: but it may cost a bit of timeThe other way is to use propensity score matching, coupled with sample randomization: Huge sample (primary data set) will be requiredFor students who may neither have the time nor much money we recommend the two stage least squares or the Instrumental method estimation.

Data types

Sustainability of access to financial services at “favourable” terms is important: It takes time to see the impactMicrofinance does not reach the poorestFinancial services are necessary, though not sufficient conditions for welfare improvementAccess to financial services need to be complemented by other services like social protection for the poorestCoupled with access to markets microfinance can improve the welfare of smallholder farers.

Major findings

The current research: Funded by IDRCCollaboration with Urban Institute of Washington DC and Egerton UniversityMy role: Principal investigator and project manager for KenyaWe study irrigation and women empowerment within the context of Public, community and privately managed irrigation schemes

Irrigation and women empowerment

Important role of women: 43 per cent of the agricultural labour force in developing countries.They contribute up to 50 per cent in Eastern Asia and sub-Saharan Africa. This could also vary depending on specific crop and agricultural activity (FAO 2011).

Motivation:

Irrigation is a strategy for enhancing agricultural productivity and food security Especially in the context of climate change and rainfall variability Gender issues in irrigated agriculture must be considered to ensure that both men and women have the opportunities to adopt irrigation technologies

The important role of irrigation

Women are majority of players in subsistence agriculture within sub Saharan AfricaIrrigation brings opportunities of increased incomes through agribusiness The risks of gender tilt when subsistence agriculture sheds the image of toil sum non productive sectorThere is need for policies to ensure that women benefit and continue to benefit from irrigated agriculture

Why concern with gender

Effects of irrigation on women empowerment and household food security is under researched Further, even when women are involved in irrigated agriculture: What is their exact role Control and access to resources has implications on real empowerment: Are women voices heard in irrigation management committees?

Research Problem

This study is expected to generate empirical evidence on irrigation and women empowerment. The central research question for this study is: What is the role of irrigated agriculture on women empowerment in Kenya, and do women have significant control of irrigation resources through participation in irrigation committees?

Central Research Question

Data collection begins mid next monthWe have already selected the study sites (public community and private irrigation schemes) We aim to complete a total of 1600 questionnaires Focus group discussions and key informant interviews shall complement our quantitative data.

Current status of research

Thank you