Determinants of demand and supply of agricultural credit to small farmers in the City of Kinshasa

Abstract

This study aims to determine the explanatory factors of agricultural credit demand and the key factors of agricultural credit supply. To achieve this objective, we respectively conducted a survey of 161 farmers in the city of Kinshasa and interviewed 3 microfinance institutions. After analysis, the results showed that 14% of farmers have already requested agricultural credit. The probability of requesting credit increases among individuals aged 30-39, married individuals, high school graduates or higher, experienced in agriculture, those with some knowledge of agricultural credit, those with an account at a microfinance institution, those with family and wage labor, and those belonging to an associative movement. On the other hand, the probability of requesting credit decreases based on gender (male), practicing agriculture for consumption and marketing reasons, cultivating vegetables and cereals, and housing status (tenant). Furthermore, as for agricultural credit supply, the results revealed that the socio-economic factors of farmers and the conditions imposed by institutions are the key factors of agricultural credit supply.