A COMPARATIVE STUDY OF THE NORTHERN RURAL GROWTH PROGRAMME AND MASARA N’ARZIKI AGRICULTURAL CREDIT SCHEMES IN THE WA WEST DISTRICT OF THE UPPER WEST REGION

Abstract

In developing countries, various agricultural credit schemes have been implemented by both government and civil society organizations as a way of overcoming the challenges of access to credit by the actors in agricultural value chains, particularly farmers. This study used the cross sectional research design to examine how effective and efficient the Masara N‟Arziki and the NRGP Agricultural Credit schemes are in meeting the credit needs of farmers in the Wa West District of the Upper West Region of Ghana. The study employed mainly qualitative methods in the collection and analysis of the data. It was found that Masara N‟Arziki was more effective as compared to NRGP in providing farmers‟ credit in the required volumes, at the right time, delivered at the right place and providing access to timely and acceptable market prices. It was however found out that NRGP is more efficient than Masara N‟Arziki in respect of the cost of the credit to farmers. The study discovered that the two lending organizations disburse their credit to groups and not individuals. Although this approach enabled the organizations to easily recover their credit, it did not recognize the peculiar needs of farmers. Farmers under the NRGP complained of late receipt of credit, often in May or June, by which time farmers would have already started their farming activities. The study concludes that although the NRGP and Masara N‟Arziki credit schemes have generally facilitated farmer access to credit, they have not effectively addressed the needs of farmers, in ways that can enhance the former‟s capacities for sustainable production. The study thus submits that organizations which provide credit to farmers should design their schemes mindful of the needs of farmers for timely delivery of credit as well as the volume of credit needed. The study further recommends that further research should be conducted on the nature of wins or losses associated with agricultural credit actors.