Exploring Drivers of Microfinance Access for Women Vegetable Marketers in Mwanza City

Abstract

This study examined the drivers influencing microfinance
access among women vegetable marketers in Mwanza
City. A cross-sectional research design was employed to
collect data from 150 randomly selected respondents
across three farmers’ markets: Buhongwa, Dampo, and
Mkuyuni. Data were analyzed using descriptive statistics
and a probit regression model. The results revealed that
higher income levels, greater educational attainment,
financial literacy, and possession of collateral
significantly enhanced access to microfinance.
Conversely, older age, high interest rates, membership in
financial solidarity groups, and stringent lending terms
were found to impede access. Additionally, women faced
several challenges in accessing and utilizing microfinance
services, notably the lack of collateral security, high
borrowing costs, diversion of loans for household
expenses, limited financial management skills, and fear of
credit risks. Based on these findings, it is recommended
that microfinance institutions adopt innovative lending
models such as group guarantees, lower collateral
requirements, and flexible repayment structures. Further,
integrating tailored financial literacy and business
development training programs is essential to empower
women entrepreneurs and improve loan utilization. These
measures are critical for enhancing women's economic
participation, strengthening vegetable market businesses,
and promoting sustainable economic growth in Mwanza
City.