MWAMNYANGE, VENANCE ANGANILE2025-05-262025-05-262008https://www.suaire.sua.ac.tz/handle/123456789/6745This study analyzed the financing of agricultural marketing for rice and maize. Data for the study were collected by administering a questionnaire to retailers, wholesalers and village assemblers and supplemented by interviews with actors in credit markets. Both descriptive and econometric procedures were used for data analysis. The results show that most traders’ source of capital was own saving, very few used grants/gifts and credits. Credit for business start-up was mainly from informal sources as many formal sources don’t lend to start-up businesses. It was found that grain marketing in Tanzania is fragmented and unreliable due to poor information, mainly on prices. During the survey, this was evident with maize trade in Mbozi district. Various credit sources exist ranging from informal to formal financial institutions (FFI). Access to these credit facilities is limited by lack of collateral and bureaucratic/lengthy procedures for loan application. Further, loan demand by traders is hampered by demographic and socio-economic factors in varying ways. Regression results on formal loan demand showed that interest rate, trader location, marital status and stock holding duration were inversely related to loan demand, while traders’ experience in business, gender, education and age were positively related. For informal sources, results show that majority borrowed from friends and relatives, few from moneylenders, millers and small unregistered groups. Informal lenders charge higher interest rates than formal institutions due to lack of regulation from government and due to risk factors associated with their lending. However, informal lenders are few, unreliable and offer small amounts for very short durations due to lack of capital. To improve credit accessibility, it is suggested that:- formal-informal linkage be initiated and strengthened, engagement in group lending, avoidance ofenFINANCING AGRICULTURALMARKETINGThesis