Contribution of savings and loan groups to financing agribusiness in the district of Magude, Mozambique

Abstract

Savings and loan groups were implemented with the support of international NGOs working in Mozambique from the 1990s onwards, however, despite the relative success in rural areas, little attention was paid to this type of savings. In order to analyze its role in the well-being of its members residing in the locality of Macuvulane in the district of Magude. A total of 102 agricultural producers representing an equal number of households (AF) were interviewed, 51 being members of the savings and loan groups (research group) and (51) non-members of the savings and loan groups (control group). The generated data were processed and analyzed using SPSS to compare the socioeconomic characteristics of households that are members of the savings and loan groups and those that are not. Significant differences were observed in terms of ownership of various goods and income, in terms of the quantity of agricultural and animal products, in terms of the ability to sell their products to preferential markets and greater possibility of profit among members. savings and loan groups relative to non-members. The study allowed us to conclude that belonging to savings and loan groups contributes to the well-being of its members as it facilitates access to credit. Ease of access to credit makes it possible to invest in improving its activities and the ability to sell its products to preferential markets.