Analysing the Role of Structured Finance on Productivity and Livelihoods of Small Scale Farmers in Zimbabwe

Abstract

Developing countries’ economies are at a critical development phase and Zimbabwe is not an exception. Focus is on uplifting the small scale farmers who face a myriad of challenges in obtaining working capital. Working capital availability is considered critical for affecting farm productivity and livelihoods. Conservative financial institutions have not been coming to the rescue of small scale farmers owing to lack of collateral and sound balance sheets. The study sought to establish whether structured finance affected productivity and livelihoods of small scale farmers. The findings of the study were that capital availability affected productivity. It was however established that for structured finance to be a success it was not to be applied in exclusivity. There were ancillary issues such as infrastructure, training and information provision which had to be taken into account.

Keywords: Structured finance, Productivity, Livelihoods, small scale farmer