Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia
To effectively address the pressing issue of insufficient food production and limited purchasing power among rural farm households in Ethiopia, it is of utmost importance to empower them through comprehensive developmental mechanisms and evaluate the effectiveness of these activities. By providing f...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-12-01
|
| Series: | Journal of Agriculture and Food Research |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666154323004106 |
| _version_ | 1797385004073877504 |
|---|---|
| author | Amanuel Boltana Alula Tafesse Abrham Belay John Walker Recha Philip M.Osano |
| author_facet | Amanuel Boltana Alula Tafesse Abrham Belay John Walker Recha Philip M.Osano |
| author_sort | Amanuel Boltana |
| collection | DOAJ |
| description | To effectively address the pressing issue of insufficient food production and limited purchasing power among rural farm households in Ethiopia, it is of utmost importance to empower them through comprehensive developmental mechanisms and evaluate the effectiveness of these activities. By providing financial services to small-scale farmers and entrepreneurs, Omo microfinance plays a vital role in empowering individuals and communities to improve their livelihoods and contribute to the overall food security of the nation. The study assessed the impact of credit utilization on household food security among rural borrowers in the Offa district of Southern Ethiopia. Through the implementation of a multi-stage sampling technique, a total of 352 credit users and non-user groups were selected for rigorous analysis. Data collection was conducted via a semi-structured interview schedule. The Propensity Score Matching (PSM) method was used for data analysis. The compelling results of this study reveal the significant and positive role of credit intervention in enhancing household food security. Credit utilization has led to a remarkable increase in the average calorie intake per capita per day, amounting to 248.53 kcal/day. The finding of this paper provides a case study for policymakers to give more attention to creating an enabling environment for microfinance institutions to develop appropriate products and services for rural farming households to address food insecurity in Ethiopia. |
| first_indexed | 2024-03-08T21:47:51Z |
| format | Article |
| id | doaj.art-26647725912d471eb5d0f6ca9beb8365 |
| institution | Directory Open Access Journal |
| issn | 2666-1543 |
| language | English |
| last_indexed | 2024-03-08T21:47:51Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Agriculture and Food Research |
| spelling | doaj.art-26647725912d471eb5d0f6ca9beb83652023-12-20T07:37:54ZengElsevierJournal of Agriculture and Food Research2666-15432023-12-0114100903Impact of credit on household food security: The case of Omo microfinance institution in southern EthiopiaAmanuel Boltana0Alula Tafesse1Abrham Belay2John Walker Recha3Philip M.Osano4Department of Agricultural Economics, Wolaita Sodo University, Wolaita, EthiopiaDepartment of Agricultural Economics, Wolaita Sodo University, Wolaita, Ethiopia; Corresponding author.European Forest Institute (EFI), Platz Der Vereinten Nationen 7, 53113, Bonn, Germany; Stockholm Environment Institute-Africa, World Agroforestry Centre, P.O. Box 30677, Nairobi, KenyaAccelerating Impacts of CGIAR Climate Research for Africa, International Livestock Research Institute, P. O. Box 30709, Nairobi, KenyaStockholm Environment Institute-Africa, World Agroforestry Centre, P.O. Box 30677, Nairobi, KenyaTo effectively address the pressing issue of insufficient food production and limited purchasing power among rural farm households in Ethiopia, it is of utmost importance to empower them through comprehensive developmental mechanisms and evaluate the effectiveness of these activities. By providing financial services to small-scale farmers and entrepreneurs, Omo microfinance plays a vital role in empowering individuals and communities to improve their livelihoods and contribute to the overall food security of the nation. The study assessed the impact of credit utilization on household food security among rural borrowers in the Offa district of Southern Ethiopia. Through the implementation of a multi-stage sampling technique, a total of 352 credit users and non-user groups were selected for rigorous analysis. Data collection was conducted via a semi-structured interview schedule. The Propensity Score Matching (PSM) method was used for data analysis. The compelling results of this study reveal the significant and positive role of credit intervention in enhancing household food security. Credit utilization has led to a remarkable increase in the average calorie intake per capita per day, amounting to 248.53 kcal/day. The finding of this paper provides a case study for policymakers to give more attention to creating an enabling environment for microfinance institutions to develop appropriate products and services for rural farming households to address food insecurity in Ethiopia.http://www.sciencedirect.com/science/article/pii/S2666154323004106FinanceFood securityEvaluationNon-parametric techniqueEthiopia |
| spellingShingle | Amanuel Boltana Alula Tafesse Abrham Belay John Walker Recha Philip M.Osano Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia Journal of Agriculture and Food Research Finance Food security Evaluation Non-parametric technique Ethiopia |
| title | Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia |
| title_full | Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia |
| title_fullStr | Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia |
| title_full_unstemmed | Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia |
| title_short | Impact of credit on household food security: The case of Omo microfinance institution in southern Ethiopia |
| title_sort | impact of credit on household food security the case of omo microfinance institution in southern ethiopia |
| topic | Finance Food security Evaluation Non-parametric technique Ethiopia |
| url | http://www.sciencedirect.com/science/article/pii/S2666154323004106 |
| work_keys_str_mv | AT amanuelboltana impactofcreditonhouseholdfoodsecuritythecaseofomomicrofinanceinstitutioninsouthernethiopia AT alulatafesse impactofcreditonhouseholdfoodsecuritythecaseofomomicrofinanceinstitutioninsouthernethiopia AT abrhambelay impactofcreditonhouseholdfoodsecuritythecaseofomomicrofinanceinstitutioninsouthernethiopia AT johnwalkerrecha impactofcreditonhouseholdfoodsecuritythecaseofomomicrofinanceinstitutioninsouthernethiopia AT philipmosano impactofcreditonhouseholdfoodsecuritythecaseofomomicrofinanceinstitutioninsouthernethiopia |