Constraints to financing cassava value chain actors in Enugu State, Nigeria

Purpose: The research study examined the analysis of value chain financing in cassava farming in Enugu State, Nigeria. Design/Methodology/Approach: Information was collected from sixty cassava farmers, twenty processors and forty marketers to describe the socio-economic characteristics of Enugu cassava value chain actors, examine the strength of the cassava value chain actors, examine the costs and returns across the cassava value chain segments, examine financing needs and types along the cassava value chain and identify constraints in financing different cassava value chain segment the study area. Multi-stage random sampling was used to select the local government, communities and value chain actors. The primary data collected were analyzed using descriptive and inferential statistics like mean, frequency, percentage and gross margin. Findings: The study also revealed that the value chain actors (producers, processors and marketers) need above 400,000 annually for the business to function effectively. The major constraints identified by the actors were inadequate capital and high interest rates for loans as hindrances to the expansion of their cassava enterprise and cassava value financing respectively. Originality/Value: The study recommended subsidization of inputs and machineries to make them affordable to the rural actors and scale up access to credit and insurance to help smallholder farmers manage risk and foster the growth in farm productivity.