Allocation of Credit to Ujamaa Villages in Tanzania and Small Farms in Zambia

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Periodical article

Title:	Allocation of Credit to Ujamaa Villages in Tanzania and Small Farms in Zambia
Author:	Due, Jean M.
Year:	1980
Periodical:	African Studies Review
Volume:	23
Issue:	3
Period:	December
Pages:	33-48
Language:	English
Geographic terms:	Tanzania Zambia
Subjects:	agricultural credit Development and Technology Economics and Trade Agriculture, Natural Resources and the Environment
External link:	https://www.jstor.org/stable/523670
Abstract:	As agricultural production shifts from traditional to more commercial methods small farmers' savings may be inadequate to purchase the new inputs and credit may be necessary. Many governments of Third World countries have established agricultural development banks to increase the credit available to the agricultural sector. Since repayment rates have been disappointing in many instances, both Tanzania and Zambia experimented with lending through the development banks to cooperatives or politically organised groups of farmers in the hope of increasing repayment rates and social responsibility. In Tanzania the Tanzanian Rural Development Bank made loans to ujamaa village officials for communal operations. In Zambia the Agricultural Finance Company made loans directly to private farmers, but the Ward Development Committee - a political organisation - screened potential borrowers and, in theory, was to exert pressure to repay. The present study assesses these two experiences. Data refer to the 1973-1976 period. Notes, ref., tab.