Constraints in Accessing Credit Facilities for Rural Areas: The Case of Fish Farmers in Rural Morogoro, Tanzania

Abstract

This study examined constraints in accessing credit facilities for fish farmers in rural Morogoro, Tanzania. Data was collected using techniques of participatory rural appraisal and secondary information sources. A descriptive statistics method was used to report findings, and data were validated by mean percentages and group consensus. This result revealed that farmers earned an average income per capita of Tshs. 56,666 (US$38) per year. Due to low profitability and high risk, most farmers were reluctant to invest their meager income in fish farming. Only 8% of respondent's accessed credit facilities. Constraints to credit access included lack of information, unfavorable terms, lack of support services, and illiteracy. Research should focus on how to improve the profitability and reduce the risk of fish farming to attract bank lending in the industry.

Keywords:

• Poor farmers
• immovable assets
• supportive services
• Tanzania

Acknowledgments

Mrs. Lilian Wetengere is gratefully acknowledged for her assistance in collecting data for this paper. The authors are sincerely grateful to the anonymous reviewers for their helpful comments regarding the drafts of this study. The final content of this article, however, is the sole responsibility of the authors.