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Abstract
Despite many decades of experimentation with supplier-led approaches to credit in many
developing countries, limited success has been achieved in terms of improving access to
credit for smallholder farmers. In the case of Mozambique, previous attempts by government
to improve access to credit for farmers were not successful and the government is looking for
more effective strategies. The purpose of this study is to examine experiences in other
developing countries in Africa and Asia. The study is a multiple case studies selected from
Zimbabwe, Thailand and Indonesia.
The data collection method comprised a combination of primary collected through in-depth
interviews with key informants and secondary sources. The data analysis techniques
consisted of searching for themes regarding successful strategies in terms of dealing with
costs and risks of lending to agriculture.
Lessons from these cases were drawn to shed light on what the most effective intervention
strategy for the Government of Mozambique could entail if it is to succeed to improve access
to credit for smallholder farmers. The study concludes that an alternative strategy by the
government to improve access to credit for smallholder farmers includes the re-establishment
of a public rural bank. The study recommends that rural financial institutions should adopt a
demand-driven approach, and the fundos do fomento (special development funds) need to be
reformed.