Factors influencing credit access for rural small-scale farmers in Lesotho: Evidence from maize farmers in Masianokeng

Maize is a staple food and an important source of starch for many households in Lesotho. However, for many years, its domestic supply has failed to meet demand. As a result of this capital investment through adequate access to credit is needful to develop the agricultural sector in Lesotho. Therefore, the study analysed factors that influence small scale maize farmers’ access to credit facilities using logistic regression model. The study used the purposive sampling method to identify and gather a sample of 70 farmers. Data was collected utilizing a semi-structured questionnaire. The empirical results revealed that level of education, farm size, savings and employment status influence farmers' access to credit facilities. Furthermore, this study revealed that socio-economic factors play a key role in farmers' access to credit in the study area. The study concludes that adequate access to credit is needful to promote a sustainable agricultural development and to improve livelihoods of small-scale farmers in Lesotho. The study recommends financial literacy programmes for small-scale farmers to enhance their decision making and chances of accessing credit due to a good understanding of how the financial system works and how best it can meet their needs and requirements. There is a need for the local credit policy to address the issues and needs of farmers in the credit market through encouraging financial services to avail innovative products and services that meets the financial needs and requirements of small-scale farmers.