Social Dimension Factors Influencing Access to Bank-Credit for Small-Holder Livestock Farmers in Rural South Africa

Abstract

This paper investigates the association between the social dimensions of rural small-holder livestock farmers and their access to bank credit facilities in a South African rural setup, taking gender into consideration. In many emerging economies, small-holder livestock farmers frequently face difficulties in accessing bank credit facilities due to the weak status of their standing in society (social dimensions) and limited access to banking services. This is a treat to their sustainability and growth. A quantitative approach was used on a sampled small-holder livestock farmers in the Limpopo Province of South Africa. Regression analysis was conducted to determine the relationships between the factors of social capital and their association with access to financial capital. The study revealed that social capital has influence in securing bank finance among the small holder livestock farmers but not gender. These findings should guide policymakers, banking institutions, and the government in addressing the challenges faced by small holder farmers in accessing capital and help to understand the gender inequality relating to the access of bank credit facilities.