RESEARCH NEEDS FOR SUSTAINABLE COCOA PRODUCTION IN GHANA
Access to Credit
Research needs:
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How to increase access to credit?
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How do farmers currently access credit?
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To what extent is access to credit important for improved livelihoods (increased productivity, additional livelihoods)?
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Is there a need to increase financial literacy, how should this be done?
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How can farmer’s organisations contribute to access to credit?
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What is the difference between men and women to access to credit (within household and within community)?
It is generally very difficult for farmers to access credit since they do not always have access to banks and the high interest rates often make it unrealistic for farmers to pay off loans. Also, it is often impossible for farmers to provide collateral for loans. This is probably particularly the case for women and caretakers, who do not own any land. On top of this, there are often barriers for women to access money within the household.
Farmer organisations could help to create more financial opportunities. A certain level of financial literacy is also important, which might require additional training. Care International has successfully applied the concept of village savings and loans associations (VSLAs), which are small funding mobalisation groups. Moreover, Kuapa Kokoo has a programme where credit is provided to farmers which can be paid back after harvest.