A Comparative Analysis of the Influence of Socioeconomic Variables on the Financial Performance of Smallholder Irrigation Systems in Zimbabwe

Abstract

This paper evaluates the influence of socioeconomic variables on participating in marketing cooperatives on the financial performance of small holder irrigation systems in Zimbabwe: use of credit, participation in labor groups, master farmer training, literacy, keeping of farm records, participation in savings clubs, and the gender of the plot holder. Three smallholder irrigation management systems namely the government managed Agritex, the farmer managed community, and the informal bani (dambo) are compared. In the Agritex schemes, participating in labor groups is the only variable influencing financial performance. None of the variables studied are important on the community schemes, perhaps because unlike on Agritex schemes, where the government makes production decisions, community scheme farmers make their own decisions. In the bani schemes, marketing cooperatives, credit use, literacy, record keeping, and the gender of the plot holder are significant. The government should consider extending credit, developing sustainable production recommendations, and developing training programs directly applicable to the bani environment. The bani system achieves the most equitable income distribution and is more efficient than both the community and Agritex systems. The government policy of ignoring this system in development efforts directly contradicts the concepts of equity and efficiency.