Determinants of Access to Credit for Cotton Producers: the case of the Koutiala and Fana CMDT zones in Mali

DÉTERMINANTS DE L'ACCÈS AU CRÉDIT DES PRODUCTEURS DE COTON: CAS DES ZONES CMDT DE KOUTIALA ET DE FANA AU MALI

Lassana Toure () and Diop Ibrahima Thione
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Lassana Toure: University of Segou

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Abstract: This research analyzed the determinants of access to credit for cotton producers in the areas of the Compagnie Malienne de Développement des Textiles (CMDT) in Mali. The values measuring the overall significance of the logit model are of the order of: Wald's test statistic chi2=68.98, area under the ROC curve=0.68 and model good prediction rate=71.03%. Research has shown that the variables significant at the 5% threshold affecting cotton producers' access to credit are: age, marital status and interest rate. The Odds Ratios are respectively equal to 0.93 times, 2 times and 1.08 times. Although its positive effect is small, household income is a significant explanatory variable at the 10% threshold for access to credit for cotton producers. It is therefore recommended that financial institutions, CMDT and the Producers' Cooperatives should be encouraged to work together for an interest rate set at levels that take into account the sustainability of the credit institution; and to encourage people to grow cotton because the increase in active members on the farm positively influences the chances of having access to credit.

Keywords: CMDT; Mali; Farm credit; cotton producers; financial inclusion; logit model (search for similar items in EconPapers)
Date: 2019-11-22
Note: View the original document on HAL open archive server: https://hal.science/hal-03511578v1
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Published in JOURNEE DE RECHERCHE EN INCLUSION FINANCIERE, Centre Africain d'Etudes Supérieures en Gestion, Nov 2019, DAKAR, Sénégal

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