English

Abstract

Access to finance by farmers is recognized as a tool for poverty eradication in developing countries, where the majority depends on agriculture for survival. This study sought to establish strategies for enhancing farmer access to bank credit as prescribed by the lenders themselves. A structured interview guide collected primary data from a sample of 12 registered commercial banks in Zimbabwe, which were analysed by thematic analysis. Human capital formation activities that enhance agricultural production and business management knowledge were proffered as key strategies for stimulating bank credit access. On and off farm investments in physical assets were also suggested to equip farmers with productive assets for enhancing viability and loan repayment ability, and to fulfil stringent collateral requirements by banks. Social capital formation activities through building relationships that enhance farmer knowledge were also perceived as key for enhancing credit access. Therefore, policy should subsidize farm infrastructural development initiatives by farmers and intensify agricultural extension services for enhancing farmer knowledge. Farmers should pursue personal development programs in agricultural production and business management, and create farmer-based organizations for sharing risk and knowledge. Banks are encouraged to adopt locally adaptive lending models to meet the farmers halfway.   Key words: Bank credit, credit constraints, creditworthiness, CAMPARI, investments, human capital formation, physical capital formation, social capital formation.