Financial Credit and Performance of Selected Coffee Producers in Southern Province of Rwanda

ABSTRACT 

The purpose of this study was to explore the influence of financial credit to the performance of selected coffee producers of southern province of Rwanda, The objectives were to determine the profile of the respondents; to determine extent of financial credit to selected Coffee producers in the area under study; to determine the level of performance of selected coffee producers in the area under study; to establish the relationship between financial credit and performance of selected coffee producers in Southern Province of Rwanda. This study used correlation design. The target population involved a total of 150 people of KOTEKAYA, ABAHUZAMUGAMBI, KARABA and MUGOMBWA cooperatives where we have selected a sample size of 108. Purposive sampling was used to select respondents able to provide relevant information to the research. To meet our objectives, we have collected data using questionnaires. The data were presented, analyzed and interpreted using Statistical Package for Social Science (SPSS). The findings showed that the majority of the respondents are males, married with age between 20 and 40 years. Because of lack of collateral to present bank, high interest rate, problems in loan application and other factors, the majority of the respondents do not borrow money from banks, Thus, these factors influence negatively the performance of coffee producers where the findings revealed that the majority of people get output below 100kg per season. This is a very low quantity of output. It is due also to low level of technology used and small area cultivated with small number of labors used, By conclusion, the Pearson’s correlation coefficient indicates that there is a significant and positive relationship between financial credit and performance of selected coffee producers. The null hypothesis was rejected, As recommendation, bankers should diversify geographically to reach rural areas with people of low income. With regard to low level of access to bank services and despite the high interest rates claimed by loan seekers, people and particularly entrepreneurs could formalize their business so that their increase access to bank services and enjoy finance opportunity included diversified products.

TABLE OF CONTENTS

Preliminaries

Declaration A

Declaration B ii

Approval sheet iii

Dedication iv

Acknowledgements v

List of Tables ix

List of Abbreviations and Acronyms x

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background to the Study 1

Statement of the Problem 2

Purpose of the Study 3

Research Objectives 3

Research Questions 4

Null Hypothesis 4

Scope of the Study 4

Significance of the Study 6

Operational Definitions of Key Terms 6

Two REVIEW OF RELATED LITERATURE 7

Concepts, Opinions, Ideas from Authors! Experts 7

Access to Financial Credit 10

Performance of Coffee Producers of Rwanda 11

Financial Credit and Performance of Coffee Producers in Rwanda 13

Related Studies 19

Research Gap 20

Three METHODOLOGY 21

Research Design 21

Research Population 21

Sample Size 21

Sampling Procedures 22

Research Instruments 22

Validity and Reliability of the Instruments 23

Data Gathering Procedures 24

Data Analysis 25

Ethical considerations 25

Limitations 26

Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 27

Five FINDINGS, CONCLUSIONS, RECOMMENDATIONS 39

References 43

Appendix I A Transmittal Letter From CHDR 47

Appendix lB Permission Letter to Conduct Research 48

Appendix IC Transmittal Letter for the Respondents 49

Appendix II A Face Sheet: Profile of the Respondents 50

Appendix II B Questionnaire to determine the Extent of Financial Credit 51

Appendix II C Questionnaire to determine the Level of Performance of Selected

Coffee Producers 54

Appendix III The Sloven’s formula to determine sample size 56