ROLE OF ISLAMIC MICROFINANCE IN ACHIEVING SDGs THROUGH SMALLHOLDER FINANCING: CASE OF THE GAMBIA

Abstract

Rising food insecurity and poverty poses a threat to the development of The Gambia. The_x000D_ agriculture sector employs a large segment of the country's labor force. The growth of the sector_x000D_ forms part of the country's strategy for enhancing food security and poverty alleviation in line with_x000D_ the 2030 agenda for sustainable development. However, the sector's performance is undermined_x000D_ by numerous factors, among which are low investments due to limited fiscal space occasion by_x000D_ competition among critical sectors of the economy coupled with low private sector investment,_x000D_ which has left a huge funding gap in the sector. The purpose of this study is to investigate the_x000D_ constraints that hamper agriculture productivity with the view of proposing an Islamic financing_x000D_ mechanism to boost the productivity of the agriculture value chain actors, especially the_x000D_ smallholders. Using a mixed-method approach, the study employed convenience sampling to_x000D_ survey 207 smallholder farmers in four farming communities in the western region of The Gambia._x000D_ To ascertain the constraints they encounter in their farming activities, their sources of funding, and_x000D_ the impact of finance on the productivity of the farmers who were availed commercial credit,_x000D_ among others. The findings of the study revealed that smallholders' grapples with numerous_x000D_ challenges, prominent of which is the lack of access to low-cost funding. Furthermore, it has been_x000D_ ascertained that farmers who were availed commercial credit were able to intensify their_x000D_ production which results in high yields, income, access to market and improved consumption._x000D_ Recommendations were made to the effect that; the regulators and policymakers of The Gambia_x000D_ should devise Islamic microfinance regulatory framework to enhance financial inclusion and_x000D_ inclusive growth. The study also recommend for the collaboration between Islamic banks and_x000D_ Islamic institutions of compassion in devising solutions to cater to the financial and non-financial_x000D_ needs of the smallholders to address the issue of food insecurity and poverty

Date of Award	2020
Original language	American English
Awarding Institution	HBKU College of Islamic Studies