SMALLHOLDER FUNDING SCHEMES AND FARM PRODUCTIVITY IN RURAL MAKONDE
DISTRICT, MASHONALAND WEST, ZIMBABWE

SMALLHOLDER FUNDING SCHEMES AND FARM PRODUCTIVITY IN RURAL MAKONDE
DISTRICT, MASHONALAND WEST, ZIMBABWE

RANGARIRAI, MBIZI

The paper investigated the impact of small holder financing model on farm productivity in the
context of the ever-increasing funding gap in agriculture. The research was anchored on social
capital theory and the Keynesian economics. The study adopted a post positivism philosophical
orientation in addressing the seemingly increasing funding gap. Data was collected from 150
small holder farmers dotted around Makonde district of Mashonaland west using stratified
sampling technique. The sample size was 200 as guided by the Yamane formula. The paper
utilised structural equation modelling using SPSS extension module AMOS (analysis of
moment structures). The structured questionnaire used to collect data comprised of close ended
items and was validated using discriminant validity as well as convergent validity. The results
showed that the mostly used funding model was bank credit in the form of micro credit loans,
rotating savings credit association among others, while contract farming and multilateral donor
schemes were rarely used. Smart joint venture schemes were least used. Results show that joint
venture schemes were positive related to farm productive and goes beyond funding to impart
key skills to farmers. Bank credit scheme was found to be negatively related with farm
performance. This was attributed to high transaction costs in lending institutions. Government
funding was found to be inefficient. It was recommended that to address the small holder
funding gap, resources should be channelled through the agriculture value chain, through
agribusiness as these were better placed understand the needs of farmers. Government should
only provide conduce operating environment for strategic partnership and joint venture
schemes to flourish

2024