Beyond Knowledge Deficits: Exploring Structural and Institutional Barriers to Financial Capability among Smallholder Farmers in Peri- Urban and Rural Kabwe, Zambia
DOI:
https://doi.org/10.61308/ILWD8757Keywords:
Financial literacy, Smallholder farmers, financial inclusion, Behavioural constraints, Institutional barrierAbstract
Financial literacy is a major limiting factor to financial inclusion and financial resilience among smallholder farmers in rural Africa, but the factors that influence it remain a poorly comprehended issue. This paper examines the structural, behavioural, and institutional determinants of financial literacy in smallholder farmers in Kabwe District, Zambia. The primary goal was to explore the extent to which these related limitations affect the financial knowledge, attitudes and practices of farmers. The qualitative research design was used with a sample of 26 participants that were purposefully selected. The generation of data was done using semi-structured interviews and focus group discussions, which were analysed using thematic analysis.
The findings reveal that financial literacy is constrained by limited access to financial education, inadequate understanding of financial products, mistrust of financial institutions, and reliance on informal financial systems. Financial capability is further impeded by structural barriers like distance to the financial services as well as behavioural factors like low confidence and short-term financial planning. Lens, in terms of the Financial Literacy Theory and the Theory of Planned Behaviour, the findings indicate that knowledge gaps and behavioural intentions are both impactful in financial decision-making and are shaped by attitudes and perceived constraints.
The study suggests targeted financial education programs, trust-building programs, and better access to rural financial services. The results add to the theory by showing that financial literacy is internalized in behavioural and institutional frames. Future studies need to utilize mixed methodology and a wider geographical scope. In general, the research contributes to knowledge by emphasizing the multidimensionality of rural farming system financial literacy.
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