The flow of credit information to small-scale farmers in Zambia : capacity building

The agriculture industry is a vital sector in the development of the economies of nations in the South. This study advances a proposition that Zambia can markedly reduce its food self-sustainability and economic crisis through agriculture development. Agriculture development can be achieved through adequate rural credit facilities and information structures to small-scale farmers. The major findings of this study are that information dissemination on matters pertaining to credit and capacity-building of small-scale farmers has been inadequate. Even through credit facilities may be present, most small-scale farmers lack information on how to source funding. Farmers also lack adequate skills in
accounts and management in order for them to properly manage the funds obtained on
credit. This has resulted to loan repayment defaults and harassment by the credit
providers. Tentatively concluding, this report observed that information linkages between the small-scale farmers and the credit institutions are very weak hence the ineffectiveness in information dissemination. Therefore, the report makes some suggestions on how to improve the communication structures in order to facilitate the participation of the
grassroots in capacity-building of the credit recipients. The report suggests how the National Agricultural Information Services (NAIS) infrastructure and personnel can contribute towards closing the gap that currently exists between credit institutions and small-scale farmers. The report also suggests some communication strategies in order to make the information dissemination process effective.