Biosys Journal Biotechnology & Bioengineering
Assessing the Challenges Faced by Cocoa Farmers in Accessing Credit from Community Banks in Kailahun District, Sierra Leone
Abstract
Peter Makieu, Momodu Sahid Kanu, Isatu Koroma and Abdulai Sheriff
Purpose This study examines the challenges cocoa farmers in Kailahun District, Sierra Leone, face in accessing credit from local financial institutions, a key input for agricultural productivity and rural livelihoods. It explores socio-economic determinants, institutional barriers, and the role of credit in improving farm output and income.
Design/Methodology/Approach A mixed-methods approach was adopted, combining survey data from 200 cocoa farmers with qualitative interviews from farmers and stakeholders. Regression and ANOVA identified determinants and constraints, while thematic analysis provided contextual insights.
Findings Education, household size, age, and farm size were significant positive determinants of credit access, while high interest rates, collateral requirements, and complex loan procedures were major constraints. Community banks served only a minority of farmers, with most relying on cooperatives and informal sources. Access to credit significantly improved cocoa productivity and income, highlighting the importance of financial inclusion for rural development. The study recommends simplifying lending procedures, reducing collateral requirements, and strengthening cooperatives and financial literacy to improve credit access.
Research Limitations/Implications Findings are specific to Kailahun District and may not be generalizable to all cocoa-producing regions. Further research should include comparative studies across districts or countries.
Originality/Value This research provides empirical evidence on rural finance in Sierra Leone, offering actionable recommendations for policymakers to enhance financial inclusion and agricultural productivity in similar developing country contexts.