Financial inclusion and poverty alleviation among smallholder farmers: Evidence from Gokwe South in Zimbabwe
Keywords:
Financial Inclusion, financial access, financial usage, financial, strategiesAbstract
Financial inclusion is increasingly recognised as a critical pathway to poverty reduction and economic empowerment for marginalised populations. This study investigates barriers to financial inclusion among smallholder farmers in Gokwe South District, Midlands Province, Zimbabwe. Key focus areas include access to financial services, usage patterns, and strategies to enhance financial inclusion for rural farmers. A qualitative case study approach was adopted, with purposive sampling of five wards from a total of thirty-three. Data were gathered through eight key informant interviews and five focus group discussions involving 47 participants. Thematic analysis revealed significant barriers to financial access, including stringent account opening requirements, limited credit access, and geographic isolation from service providers. Use of financial services was constrained by the prevalence of seasonal banking, low confidence in the financial system, restrictive withdrawal limits, high transaction fees, and currency instability. The study recommends tailored, low-cost financial products, expansion of agency banking, promotion of digital financial services, and financial literacy training for smallholder farmers. Effective implementation requires coordinated efforts among financial institutions, regulators, and agricultural stakeholders. Interventions should focus on simplifying account registration, stabilising currency value, and offering inclusive credit facilities. The findings underscore the importance of contextualised financial strategies that address both structural and trust-related barriers to improve rural financial inclusion. Further research is recommended on agency banking models and context-specific financial innovations for smallholder farmers.
References
Abimbola, A., Olokoyo, F. O., Babalola, O., & Farouk, E. (2018). Financial Inclusion as a Catalyst for Poverty Reduction in Nigeria. International Journal of Scientific Research and Management, 6(06). https://doi.org/10.18535/ijsrm/v6i6.em06.
Adegbite, O. O., & Machethe, C. L. (2020). Bridging the financial inclusion gender gap in smallholder agriculture in Nigeria: An untapped potential for sustainable development. World Development. https://doi.org/10.1016/j.worlddev.2019.104755.
Adom, D., & Emad Kamil , Hussain, and Adu-Agyem, J. (2018). Theoretical and Conceptual Framework: Mandatory Ingredients. International Journal of Scientific Research, 7(1), 93–98.https://www.researchgate.net/publication/322204158%0atheoretical.
Agyemang-Badu, A. A., Agyei, K., & Kwaku, E. (2018). Financial inclusion, poverty and income inequality: evidence from Africa. Spiritan International Journal of Poverty Studies, 2(2), 1–38. https://ssrn.com/abstract=3167200.
Alonso, S. L. N., Jorge-Vazquez, J., Forradellas, R. F. R., & Dochado, E. A. (2022). Solutions to Financial Exclusion in Rural and Depopulated Areas: Evidence Based in Castilla y León (Spain). Land, 11(1). https://doi.org/10.3390/land11010074.
Anarfo, E. B., Abor, J. Y., Osei, K. A., & Gyeke-Dako, A. (2019). Financial inclusion and financial sector development in Sub-Saharan Africa: a panel VAR approach. International Journal of Managerial Finance, 15(4), 444–463. https://doi.org/10.1108/IJMF-07-2018-0205.
Arner, D. W., Buckley, R. P., Zetzsche, D. A., & Veidt, R. (2020). Sustainability, FinTech and Financial Inclusion. European Business Organization Law Review. https://doi.org/10.1007/s40804-020-00183-y.
Arora, A., & Kaur, R. (2020). Business process management:Intergration with Accounting information systems oerspectives in organisations. International Journal of Research in Commerce, IT & Managemnet, May.
Baker, L. (2021). Everyday experiences of digital financial inclusion in India’s ‘micro-entrepreneur’ paratransit services. Environment and Planning A, 53(7), 1810–1827. https://doi.org/10.1177/0308518X211026320.
Benoot, C., Hannes, K., & Bilsen, J. (2016). The use of purposeful sampling in a qualitative evidence synthesis: A worked example on sexual adjustment to a cancer trajectory. BMC Medical Research Methodology, 16(1), 1–12. https://doi.org/10.1186/s12874-016-0114-6.
Bickman, L., & Rog, D. (2014). The SAGE Handbook of Applied Social Research Methods. The SAGE Handbook of Applied Social Research Methods, 214–253. https://doi.org/10.4135/9781483348858.
Bokkens, A. (2021). Financial inclusion and digitalisation: a qualitative research into organisational solutions for financial and digital literacy. 1–46.
Bolarinwa, S. T., & Simatele, M. (2023). Informality and poverty in Africa: Which comes first? Sustainable Development, 31(3), 1581–1592. https://doi.org/10.1002/sd.2468.
Camillus, O. N., N.J, N. C., Elugom, U. F., & Uche, A. S. (2019). Causality between Financial Inclusion and Agricultural Sector Output in Nigeria. International Journal of Asian Social Science, 9(4), 304–317. https://doi.org/10.18488/journal.1.2019.94.304.317.
Chukwuma, E. (2023). Innovations in the payment system and financial inclusion in Nigeria. June.
Clair, R., Gordon, M., Kroon, M., & Reilly, C. (2021). The effects of social isolation on well-being and life satisfaction during pandemic. Humanities and Social Sciences Communications, 8(1), 1–6. https://doi.org/10.1057/s41599-021-00710-3.
Creswell, J. W. (2014). Research Design Qualitative, Quantitative and Mixed Approaches (4th ed.). SAGE.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities to Expand Access to and Use of Financial Services. World Bank Economic Review, 34(2018), S2–S8. https://doi.org/10.1093/wber/lhz013.
Dolor, E., & Omehe, R. (2022). Effects of Agency Banking on Financial Inclusion in Nigeria. African Development Finance Journal, 4(4), 106–128. http://journals.uonbi.ac.ke/index.php/adfj
du Preez, M. (2018). Financial service usage : A conceptual model. In insight 2 impact Advancing Financial Inclusion. www.i2ifacility.org
Eckhoff, S., Kibombo, G. M., Natukunda, M. M., Pennotti, C., & Vandergaag, K. (2019). What works to increase financial inclusion and women’s financial autonomy? Intentional designs showing promise. Development in Practice, 29(8), 974–987. https://doi.org/10.1080/09614524.2019.1651824.
Elliott, K., Coopamootoo, K., Curran, E., Ezhilchelvan, P., Finnigan, S., Horsfall, D., Ma, Z., Ng, M., Spiliotopoulos, T., Wu, H., & van Moorsel, A. (2022). Know Your Customer: Balancing innovation and regulation for financial inclusion. Data & Policy, 4. https://doi.org/10.1017/dap.2022.23.
Funmilola, F. O. (2020). The Role of Financial Inclusion in Women Entrepreneurs in Small and Medium Enterprises: Evidence from South Western Nigeria. Asian Journal of Education and Social Studies, 8(4), 16–23. https://doi.org/10.9734/ajess/2020/v8i430233.
Golubski, C., Gilpin, R., & Ziegler, L. (2020). Foresight africa.
Ibor, B. I., Offiong, A. I., & Mendie, E. S. (2017). Financial Inclusion and Performance of Micro , Small. 5(3), 104–122.
Jayanthi, M., & Rau, S. S. (2017). Financial inclusion in India. International Journal of Applied Business and Economic Research, 15(22), 11–16. https://doi.org/10.2139/ssrn.1745483.
Kuada, J. (2019). Financial Inclusion and the Sustainable Development Goals. In Extending Financial Inclusion in Africa. https://doi.org/10.1016/B978-0-12-814164-9.00012-8.
Kuipa, P. J. T. (2019). The Agricultural Financing Gap in Zimbabwe: Rationing, Sustainable Credit Access and Participation in Rural Financial Markets. In University of Freestate (Issue July). https://doi.org/.1037//0033-2909.I26.1.78Lichtenstein, J. M. (2017). F i r : e. September.
Linh, T. N., Long, H. T., Chi, L. Van, Tam, L. T., & Lebailly, P. (2019). Access to rural credit markets in developing countries, the case of Vietnam: A literature review. Sustainability (Switzerland), 11(5), 1–18. https://doi.org/10.3390/su11051468.
Loo, M. K. L. (2019). Enhancing Financial Inclusion in ASEAN: Identifying the Best Growth Markets for Fintech. Journal of Risk and Financial Management, 12(4), 181. https://doi.org/10.3390/jrfm12040181.
Malik, S. (2020). Assessing the Impact of Microfinance Services at Individual Level: A Comparative Study of Women Empowerment in Pakistan. Indian Journal of Science and Technology, 13(27), 2700–2710. https://doi.org/10.17485/ijst/v13i27.837.
Mavaza, T., Halimani, D., & Dzapasi, F. (2020). An Insight into Financial Inclusion of the Informal Sector in Masvingo ,. IX(Ii), 1–8.
Mdasha, Z., Irungu, D., & Wachira, M. (2018). Effect of financial inclusion strategy on performance of small and medium enterprises: A case of selected.
SMEs in Dar es Salam , Tanzania. Journal of Strategic Management, 2(1), 50–70.
Megersa, K. (2020). Improving SMEs’ access to finance through capital markets and innovative financing instruments: some evidence from developing countries.
Mhlanga, D. (2020). Financial inclusion and poverty reduction: evidence from small scale agricultural sector in Manicaland Province of Zimbabwe. May. http://repository.nwu.ac.za/handle/10394/34615.
Mhlanga, D., Dunga, S. H., & Moloi, T. (2020). Financial Inclusion and Poverty Alleviation Among Smallholder Farmers in Zimbabwe. Eurasian Journal of Economics and Finance, 8(3), 168–182. https://doi.org/10.15604/ejef.2020.08.03.004.
Ndlovu, G., & Toerien, F. (2020). The distributional impact of access to finance on poverty: evidence from selected countries in Sub-Saharan Africa. Research in International Business and Finance. https://doi.org/10.1016/j.ribaf.2020.101190.
Nizam, R., Karim, Z. A., Rahman, A. A., & Sarmidi, T. (2020). Financial inclusiveness and economic growth: new evidence using a threshold regression analysis. Economic Research-Ekonomska Istrazivanja , 33(1), 1465–1484. https://doi.org/10.1080/1331677X.2020.1748508.
Noor, H. (2017). Determining factors that influence financial inclusion among SMEs: the case of Harare Metropolitan.
https://open.uct.ac.za/handle/11427/25468?show=full.
Nshakira-Rukundo, E., Mussa, E. C., Nshakira, N., Gerber, N., & Von Braun, J. (2019). Determinants of enrolment and renewing of community-based health insurance in households with under-5 children in rural South-Western Uganda. International Journal of Health Policy and Management, 8(10), 593–606. https://doi.org/10.15171/ijhpm.2019.49.
Ntini, P., Ndlovu, M. J., Shava, G., Charumbira, J., & Sibabda, B. (2022). Consumer acceptance of online banking in Zimbabwe: An extension of the technology acceptance model. Indiana Journal of Humanities and Social Sciences, 3(3), 29–44. https://doi.org/10.1108/10662240410542652.
Nyanhete, A. (2017). The Role of International Mobile Remittances in Promoting Financial Inclusion and Development. European Journal of Sustainable Development, 6(2). https://doi.org/10.14207/ejsd.2017.v6n2p256.
Okello, T., & Mwesigwa, D. (2022). Analysing the significance of village savings and loan association (VSLA) to community development in Uganda. IJISETInternational Journal of Innovative Science, Engineering & Technology, 09(06), 6. www.ijiset.com.
Olaniyi, E. (2017). Back to the land: The impact of financial inclusion on agriculture in Nigeria. Iranian Economic Review, 21(4), 885–903. https://doi.org/10.22059/ier.2017.64086.
Otekunrin, A. O., Chinoda, T., & Matowanyika, K. (2021). The nexus between economic growth, financial development, financial inclusion and financial innovation in Africa. Asian Economic and Financial Review, 11(8), 672–681. https://doi.org/10.18488/JOURNAL.AEFR.2021.118.672.681.
Ozili, P. K. (2020). Financial inclusion research around the world: A review. Forum for Social Economics, July. https://doi.org/10.1080/07360932.2020.1715238.
Patwardhan, A. (2018). Financial Inclusion in the Digital Age. In Handbook of Blockchain, Digital Finance, and Inclusion, Volume 1: Cryptocurrency, FinTech, InsurTech, and Regulation (pp. 57–89). Elsevier Inc. https://doi.org/10.1016/B978-0-12-810441-5.00004-X.
Pazarbasioglu, C., Mora, A. G., Uttamchandani, M., Natarajan, H., Feyen, E., & Saal, M. (2020). Digital Financial Services April 2020. April.
Peter, F. O., Adegbuyi, O., Olokundun, M. A., Peter, A. O., Amaihian, A. B., & Ibidunni, S. A. (2018). Government financial support and financial performance of SMEs. Academy of Strategic Management Journal, 17(3), 1–10.
Polzin, F., & Sanders, M. (2020). How to finance the transition to lowcarbon energy in Europe? Energy Policy, 147(October), 111863. https://doi.org/10.1016/j.enpol.2020.111863.
Potreous, D. (2018). National Financial Inclusion Framework 2018-2020 A Public-Private Stakeholder Initiative. National Financial Inclusion Council, 1–40. https://www.afi-global.org/sites/default/files/publications/2017-12/NFIF 2018-2022.pdf.
Prekazi, Y., Bajrami, R., & Hoxha, A. (2023). The impact of capital structure on financial performance. International Journal of Applied Economics, Finance and Accounting, 17(1), 1–6. https://doi.org/10.33094/ijaefa.v17i1.1002.
Rahi, S. (2017). Research Design and Methods: A Systematic Review of Research Paradigms, Sampling Issues and Instruments Development. International Journal of Economics & Management Sciences, 06(02). https://doi.org/10.4172/2162-6359.1000403.
Rutberg, S., & Bouikidis, C. D. (2018). Focusing on the Fundamentals: A Simplistic Differentiation Between Qualitative and Quantitative Research. Nephrology Nursing Journal : Journal of the American Nephrology Nurses’ Association, 45(2), 209–212.
Sajuyigbe, D. A. S., Odetayo, T. A., & Adeyemi, A. Z. (2020). Financial Literacy and Financial Inclusion as Tools to Enhance Small Scale Businesses’ Performance in Southwest, Nigeria. Finance & Economics Review, 2(3), 1–13. https://doi.org/10.38157/finance-economics-review.v2i3.164.
Saunders, M. N. K., Lewis, P., & Thornhill, A. (2019). “Research Methods for Business Students” Chapter 4: Understanding research philosophy and approaches to theory development. In Researchgate.Net (Issue January). www.pearson.com/uk.
Sekantsi, L. P. (2019). Digital financial services uptake in Africa and its role in financial inclusion of women. Journal of Digital Banking.
Silinskas, G., Ahonen, A. K., & Wilska, T. A. (2023). School and family environments promote adolescents’ financial confidence: Indirect paths to financial literacy skills in Finnish PISA 2018. Journal of Consumer Affairs, January, 593–618. https://doi.org/10.1111/joca.12513.
Simatele, M. C., Ssonko, G. W., Kawooya, D. R., Bwalya, M., Khumalo, S., Kabange, M. M., Mishi, S., Mushonga, F. B., Tshabalala, N., Mutyavaviri, T., Dlamini, P. G., Dlova, M., Dube, Z., & Kichini, G. (2021). Financial inclusion: Basic theories and empirical evidence from African countries. In Financial inclusion: Basic theories and empirical evidence from African countries. https://doi.org/10.4102/aosis.2021.bk255.
Simatele, M., & Kabange, M. (2022). Financial Inclusion and Intersectionality: A Case of Business Funding in the South African Informal Sector. Journal of Risk and Financial Management, 15(9). https://doi.org/10.3390/jrfm15090380.
Simatele, M., & Mbedzi, E. (2021). Consumer payment choices, costs, and risks: Evidence from Zimbabwe. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1875564.
Smidt, H. J. (2021). Factors affecting digital technology adoption by smallscale farmers in agriculture value chains (AVCs) in South Africa. Information Technology for Development. https://doi.org/10.1080/02681102.2021.1975256.
Sönmez, A. (2013). Research methodology and design. Contributions to Management Science, 63–112. https://doi.org/10.1007/978-3-319-02033-4_3.
Soriano, M. A. (2017). Factors driving financial inclusion and financial performance in Fintech new ventures: An empirical study [Singapore Management University]. https://ink.library.smu.edu.sg/etd_coll/145.
Storchi, S. (2018). Impact Evaluation of Savings Groups and Stokvels in South Africa (Issue October). https://www.samra.co.za/wp-content/uploads/2017/02/SAMRA-Journal-2016-EVersion.pdf.
Tharmini, T., & Lakshan, A. M. I. (2021). Impact of Financial Management Practices on Performance of Small and Medium Enterprises – Legitimacy Theory Perspectives. Kelaniya Journal of Management, 10(1), 43. https://doi.org/10.4038/kjm.v10i1.7666.
Van Hove, L., & Dubus, A. (2019). M-PESA and financial inclusion in Kenya: Of paying comes saving? Sustainability (Switzerland), 11(3), 1–26. https://doi.org/10.3390/su11030568.
Wang, X., & He, G. (2020). Digital financial inclusion and farmers’ vulnerability to poverty: Evidence from rural China. Sustainability (Switzerland), 12(4). https://doi.org/10.3390/su12041668.
Williams, H. T., Adegoke, A. J., & Dare, A. (2017). Role of Financial Inclusion in Economic Growth and Poverty Reduction in a Developing Economy. Internal Journal of Research in Economics and Social Sciences (IJRESS), 22(1), 19–56.
Wokabi, V. W., & Fatoki, O. I. (2019). Determinants of Financial Inclusion in East Africa. International Journal of Business and Management, VII(1), 125–143. https://doi.org/10.20472/bm.2019.7.1.009
Woods, M., & Dowd, K. (2008). Financial Risk Management for Management Accountants. The Society of Management Accountants of Canada, the American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants., 1–30.
Yakubi, Y. A. Y., Basuki, B., Purwono, R., & Usman, I. (2022). The Impact of Digital Technology and Business Regulations on Financial Inclusion and SocioEconomic Development in Low-Income Countries. SAGE Open, 12(3). https://doi.org/10.1177/21582440221116112.
Yue, X.-G., Cao, Y., Duarte, N., Shao, X.-F., & Manta, O. (2019). Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania. Journal of Risk and Financial Management, 12(4), 166. https://doi.org/10.3390/jrfm12040166.
Zimbabwe National Statistics Agency. (2019). Zimbabwe smallholder agricultural productivity: survey report 2017. September, 1–100. http://www.zimstat.co.zw/sites/default/files/img/publications/Agriculture/APM_ Report.pdf.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Upon acceptance and publication, authors grant The Dyke a non-exclusive licence to publish and distribute their article in all formats and media. This means: Authors may freely share, deposit, and republish their work (e.g., in institutional repositories, websites, or future publications), provided proper citation and acknowledgment of The Dyke as the original publisher.
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles in The Dyke are published under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
Under this licence:
- Others may copy, redistribute, remix, transform, and build upon the work for any purpose, even commercially.
- Appropriate credit must be given to the original author(s) and source (The Dyke), along with a link to the license.
- Any changes made must be indicated.
Full licence details: https://creativecommons.org/licenses/by/4.0/
Archiving and Preservation
The Dyke supports long-term preservation of scholarly work through partnerships with digital repositories and indexing services, including Sabinet African Journals. Authors are also encouraged to deposit a copy of their published article in institutional or subject-specific repositories.
