Banking, Accounting and Finance

Plural contracting and adoption drivers for avocado contract farming in Njombe District, Tanzania

2025-01-01T00:00:00Z

Plural contracting and adoption drivers for avocado contract farming in Njombe District, Tanzania Sambuo, D.B.; Safari, J. Spreading risks among farmers from production to market access is vital, and the opportunity to console is plural contracting. This study assessed plural contracting adoption among avocado farmers in Tanzania. Specifically, multiple contracts incurred for avocado farmers were examined, and access to credit finance and infrastructure were adoption drivers examined to influence adoption of avocado contract farming in Njombe District, Tanzania. Guided by agency theory, cross-sectional data were collected from a sample size of 385 respondents using questionnaires. Descriptive statistics and inferential analysis were employed to analyse both qualitative and quantitative data, respectively. The study identified four categories of contract farming among avocado cultivators: input, production, marketing, and full-service contracts.Variables such as age, gender, education, and geographic region significantly influenced participation rates.The predominant demographic of farmers consisted of middle-aged individuals who operated on a small scale and lived in rural areas.The findings indicate that various contract forms incentivise farmers to adopt practices, with these four types being the most significant.Moreover, pivotal elements that significantly facilitate the adoption of avocado contract farming include access to credit (OR=0.579, p=0.002), infrastructure (OR=2.564, p<0.001), advisory help (OR=0.623, p=0.023), and contract enforcement methods (OR=0.470, p<0.001). Moreover, access to credit finance and infrastructure, in addition to advisory support and clear contracts that include efficient enforcement procedures, significantly influences farmers' willingness to adopt contract farming.The results demonstrate the significance of socio-demographic characteristics, institutional support, and well-structured contracts in facilitating the adoption of avocado contract farming. It is recommended that plural contracts, access to credit finance and infrastructure need policies and regulatory frameworks for guiding farmers to have appropriate contractual arrangements. Further, a replicate study should focus on the relationship of avocado quantities sold, price, and income of the farmers. Research Article

Digital Financial Literacy and Financial Inclusion among Rural Tanzanian Women:

2025-01-01T00:00:00Z

Digital Financial Literacy and Financial Inclusion among Rural Tanzanian Women: Malombe, Hamza. This study investigates how digital financial literacy (DFL) affects financial inclusion (FI) among rural Tanzanian women. It addresses a critical gap in understanding how behavioral enablers such as confidence and attitude and also infrastructural factors like mobile network quality interact with digital literacy to influence financial inclusion. The study tests the direct relationship between DFL and FI, with financial confidence and financial attitude as mediators, and mobile network quality as a moderator. A cross-sectional survey design was used to collect data from 301 rural women across Mbeya, Dodoma, and Kigoma regions in Tanzania. Participants were selected through purposive sampling based on their access to mobile phones. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. The model assessed the measurement properties of constructs and evaluated structural relationships including mediation and moderation effects. The results show that digital financial literacy has a direct positive impact on financial inclusion. Financial confidence and financial attitude serve as mediators, explaining how knowledge translates into financial behavior. Mobile network quality moderates the DFL–FI relationship, indicating that better infrastructural conditions enhance the efficacy of digital financial literacy interventions. This study is among the first to simultaneously examine cognitive mediators and infrastructural moderators in the context of rural women’s financial inclusion. By integrating behavioral and contextual variables, the research offers a novel explanatory framework that moves beyond conventional linear models of financial literacy. The findings underscore the importance of a multidimensional strategy for enhancing financial inclusion that incorporates digital literacy training, psychological empowerment, and infrastructural improvement. These insights are valuable for policymakers, NGOs, and financial service providers designing inclusive financial ecosystems for underserved populations Research Article

Climate-smart agriculture practices adoption among smallholder coffee farmers

2025-01-01T00:00:00Z

Climate-smart agriculture practices adoption among smallholder coffee farmers Kiwelu, Leonard K.; Njau, Luka S. Climate change remains one of the most urgent en vironmental challenges globally, with agriculture among the sectors most adversely affected. In Tanzania, the coffee in dustry is particularly vulnerable, with climate-related stresses significantly undermining productivity and profitability. In response, the Government of Tanzania and key coffee-sector stakeholders have intensified efforts to promote the adop tion of climate-smart agriculture (CSA) practices. This study assessed the level of adoption of climate-smart agriculture (CSA) practices promoted by government and coffee-sector stakeholders across 17 agricultural cooperatives in Mbinga, Nyasa, Rungwe, Mbeya, Ileje, and Mbozi districts. A mixed methods approach was employed, incorporating household surveys, semi-structured questionnaires, focus group dis cussions, and observations, to collect primary data. Second ary data were obtained through a review of reports from the Tanzania Coffee Research Institute (TaCRI) and the Tanza nia Coffee Board (TCB). The findings show that 70.42% of respondents have implemented at least three CSA practices. Predictor variables such as coffee varieties, pest and soil man agement practices, agroforestry, and conservation techniques play a crucial role in shaping CSA outcomes. Together, these variables explain a substantial portion of the observed vari ation, underscoring their importance in promoting sustain able farming practices. The findings further reveal that most smallholder farmers affiliated with agricultural cooperatives have adopted at least two climate-smart agriculture (CSA) practices. This reflects the positive influence of government initiatives and the efforts of other key stakeholders, includ ing cooperatives, in supporting CSA adoption. The study concludes that interventions by the Government of Tanzania and coffee sector stakeholders have significantly contributed to the uptake of climate-smart agriculture practices among cooperative members. These efforts have enhanced coffee productivity and strengthened farmers’ capacity to adapt to climate challenges. It is recommended that coffee stakehold ers bolster agricultural cooperatives to attract more farmers and accelerate the dissemination of good agricultural practic es (GAPs), thereby improving CSA adoption. Key stakehold ers – particularly TCB, TaCRI, Moshi Co-operative Univer sity (MoCU), agricultural cooperatives, NGOs, and private sector actors – should continue to support farmers in adopting CSA practices. Additionally, smallholder farmers are encour aged to actively participate in CSA-related extension services and training to enhance their knowledge, increase productiv ity, and expand their influence within cooperatives and policy platforms.

Financial technology and credit risk management

2025-01-01T00:00:00Z

Financial technology and credit risk management Ally, Omary.J; Kulindwa, Yusuph.J; Mataba, Lucas he evolution of financial technology (FinTech) globally is reshaping the banking sys tem, including Tanzania’s financial sector. This study examines the influence of FinTech on Tanzania’s banking sector, particularly its impact on non-performing loans. Using a financial technology index alongside bank-specific and macroeconomic varia bles, the analysis covers data from 30 Tanzanian commercial banks spanning 2010 to 2021. Employing a two-step system, a Generalized Method of Moments, the study tests the hypotheses and provides robust findings. The results reveal that FinTech sig nificantly reduces non-performing loans across all bank categories, with the strongest effects observed in small banks, followed by medium and large banks. This indicates that advancements in FinTech improve credit risk management and reduce loan default rates. Conversely, a cost-to-income ratio and a high loan-to-deposit ratio increase non-performing loans, particularly in medium-sized banks. These findings have critical implications for policymakers and practitioners. Policymakers should pri oritize fostering a supportive regulatory environment to encourage FinTech integra tion, particularly among small and medium banks. Bank managers are encouraged to leverage FinTech innovations to enhance credit risk management and operational effi ciency. The study highlights the transformative potential of FinTech in managing credit risk and driving sustainable growth in Tanzania’s banking sector Research Article