Financial inclusion and post-harvest losses in West African economic and Monetary Union

Armand Fréjuis Akpa, Romanus Osabohien, Junaid Ashraf and Mamdouh Abdulaziz Sa Al-Faryan

Agricultural Finance Review, 2022, vol. 83, issue 2, 320-332

Abstract: Purpose - Post-harvest losses are major problems faced by farmers and this is due to their poor access to credit considered as a low rate of financial inclusion. This paper aims at analysing the relationship between financial inclusion and post-harvest losses in the West African Economic and Monetary Union (WAEMU). Design/methodology/approach - The study engaged data from the Food and Agriculture Organisation [FAO] for post-harvest losses. Also, it engaged data from Banque Centrale des Etats de l’Afrique de l’Ouest [BCEAO] for financial inclusion over the period 2000 to 2020. The study applied the Instrumental Variable Two-Stage Least Squares (IV-2SLS) and Generalised Method of Moments (GMM) to test the robustness of the results. Findings - The results show that financial inclusion reduces post-harvest losses by 1.2%. Therefore, given this result, policies to improve farmers’ access to credit by increasing the rate of financial inclusion, is a necessary condition for the reduction of post-harvest losses. Social implications - Social implication of this study is that it contributes to the policy debate on the enhancement of food security by reducing post-harvest losses. The reduction in post-harvest losses and food security, will improve the welfare and livelihood of the society. This aims for the actualization of sustainable development goal of food and nutrition security (SDG-2). Originality/value - The findings imply that efforts by governments and policymakers to improve farmers’ access to credit by increasing the rate of financial inclusion would reduce post-harvest losses in West African countries that are members of the WAEMU. Also, investment in education, ICT and building warehouse for farmers will help in reducing post-harvest losses. It implies that educated farmers have more opportunities to be financially inclusive than those who are not educated.

Keywords: Access to credit; Agriculture; Farming households; Financial inclusion; Food security; Post-harvest losses; E44; P32; Q13 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:afrpps:afr-06-2022-0076

DOI: 10.1108/AFR-06-2022-0076

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