Improving access to agricultural finance for emerging farmers in South Africa's North-West Province

Abstract

The aim of the study was to determine factors hindering access to financial services by emerging farmers in North-West Province of South Africa. Inadequate access to finance may have a negative impact on the economic growth of the country, employment creation and food security. The literature review was conducted to include the concept of emerging farmers and how they can contribute to the economy of South Africa. The role of financial institutions in agriculture was also studied. Constraints facing emerging farmers, in relation to access to finance were discussed. Various approaches to be used in providing access to finance of emerging farmers were studied which ranges from those in the Public and Private Sectors and those that are neither related to the Public nor Private Sector. A quantitative research method and data gathering techniques were used. Data that was gathered through a Likert scale questionnaire from the emerging farmers within the NWP was analysed and interpreted. A Pearson Chi Square with its p value and degree of freedom were utilised to derive a relationship between variables. Constraints facing emerging farmers in relation to access to finance were discussed as well as various approaches to be used in providing access to finance. Recommendations were made and areas for future research were provided.