Financial Management Model for Profitable Returns in Small Holder Banana Farmers in Mutasa District of Zimbabwe

Terera Kumbirai Gift, Chitombo Ezekiel and Terera Tatenda Shongedzai
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Terera Kumbirai Gift: Women’s University in Africa, Harare, Zimbabwe
Chitombo Ezekiel: Women’s University in Africa, Harare, Zimbabwe
Terera Tatenda Shongedzai: Women’s University in Africa, Harare, Zimbabwe

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 674-682

Abstract: The study aimed to establish a financial management model to improve profitability for smallholder banana producers in Mutasa District, Zimbabwe. The banana farming activities of these smallholder farmers were unprofitable. The study sought to examine contemporary financial management methods, identify obstacles to obtaining financing, and evaluate the correlation between financial management and profitability within the context of the Time Value of Money (TVM) theory. A quantitative method was employed. The research comprised 134 smallholder banana farmers in the Mutasa District of Zimbabwe. The emphasis was on Ward 7 and Ward 29, the two leading banana-producing wards in the Mutasa district. The quantitative component entailed the distribution of structured questionnaires to a sample of 100, as calculated by Slovin’s Formula. The research employed a questionnaire to gather data. The research successfully obtained responses from 88 smallholder farmers. Data were analysed using statistical methods, including descriptive statistics, ANOVA, and regression analysis. The research indicated the use of community savings groups. Nonetheless, there was minimal adherence to optimal financial management methods, such as budgeting and record-keeping. Challenges such as interest rates and financial illiteracy significantly limit access to financing. Fifty-eight percent of farmers reported profits each entire season between 200. This study indicates that improving farmers’ financial management is essential through the enhancement of their financial literacy and management techniques. Relevant training programs must be established to develop key financial management skills. Finance institutions must provide tailored finance packages for smallholder banana farmers. Farmers must enhance their efforts in securing money and savings, improve cash flow management, and strengthen record keeping and budgeting for the upcoming season. Future study may examine the influence of contemporary technologies on financial management practices and the effectiveness of financial literacy programs in rural areas.

Date: 2025
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