Determinants of Access to Credit among Youth Tomato Farmers in Mvomero District, Tanzania

Abstract

Access to agricultural credit remains a key constraint to youth participation in high-value crop production in Tanzania. In rural areas, formal financial services are often limited, and youth face unique challenges including lack of collateral, minimal financial history, and limited knowledge of formal financial lending requirements. This study analyzes the determinants of access to agricultural credit among youth tomato farmers in Mvomero District, Tanzania. Data were collected from a cross-sectional sample of 562 youth aged 18 to 35 years using a structured questionnaire. A binary logistic regression model was applied to estimate the effects of socio-economic, institutional, and farm-level variables on credit access. The results show that level of education, farming experience, farm size, group membership, and proximity to lending institutions significantly and positively influenced access to credit. In contrast, longer distance to credit institutions and higher annual income were associated with reduced likelihood of borrowing. Gender also emerged as a significant factor, with female youth farmers more likely to access informal credit, possibly due to their stronger participation in organized social groups. These findings suggest that both structural barriers and social capital influence financial inclusion among youth in agriculture. The study recommends policies that support group-based lending models, enhanced financial literacy, and promotion of mobile banking solutions to expand credit access. Strengthening institutional support for youth in agribusiness can contribute to improved productivity, income, and long-term sector engagement.

Keywords: agribusiness, youth, credit, tomato, income, binary logit, Tanzania

DOI: 10.7176/JESD/16-5-01

Publication date: July 30th 2025