Effect of agricultural financial credit on investment and productivity in Namibia

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dc.contributor.authorAmaambo, Paulus Mekondjo
dc.date.accessioned2025-12-11T10:43:52Z
dc.date.available2025-12-11T10:43:52Z
dc.date.issued2025-04
dc.description.abstractAdequate access to farming resources such as credit enhance agricultural productivity and investment. However, the lack of it characterises the agricultural landscape of most developing nations. The study investigates the effect of credit on investment and productivity. Factors that enhance access to credit and determinants of loan default were assessed. Further, the study investigates the credit-investment-agricultural productivity nexus and their causal relationship in the study area. A sample of 242 farmers across the country was used for the study. A semi-structured questionnaire was designed and administered to the farmers. In addition, an online link was created and shared with the farmers' unions, at livestock auctions, and with individual farmers throughout the country. The logistic regression model, multinomial regression, and simultaneous equation model were used to analyse the data. The descriptive statistics indicate a gender imbalance in access to credit. Farmers with tertiary education have a higher rate of credit access compared to farmers without tertiary education. The regions of Zambezi and Omusati have the most farmers without access to credit. Those with credit access have more land and livestock and make more investments. The repayment rate for long-term loans is higher than that for short- and medium-term loans. However, there has been an increase in loan defaults among farmers with short- and medium-term loans. The logit model shows that farm size, farm income, farm yield, herd size, number of investments, and tertiary education enhance credit access. In terms of default, the multinomial model shows that income from farming, farm size, and the number of acquired loans increased the probability of farmers defaulting. The simultaneous equation model results show that there is a bidirectional causality between investment and credit while investment and productivity reveal inconclusive results. The study recommends that farmers should be provided with credit to enable them to purchase land for maximum farm income. Farm investment must be promoted as it enhances productivity, which in turn increases farm inputs. To minimise default, lenders should consider the magnitude of loans issued to farmers based on farm income and farm size. One of the limitations of the study is that most farmers do not keep farm records. Therefore, some vital financial information was not provided.
dc.identifier.citationAmaambo, P.M. (2025). Effect of agricultural financial credit on investment and productivity in Namibia [Unpublished doctoral dissertation]. Namibia university of science and technology.
dc.identifier.urihttp://hdl.handle.net/10628/1099
dc.language.isoen
dc.publisherNamibia University of Science and Technology
dc.subjectCredit
dc.subjectInvestment
dc.subjectProductivity
dc.subjectMultinomial Regression
dc.subjectSimultaneous Equation
dc.titleEffect of agricultural financial credit on investment and productivity in Namibia
dc.typeThesis

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