Enhancing Credit Facilitation Processes for Agricultural Cooperatives in Uganda: Decisions That Matter.

Abstract

This paper argues that improving the significant role of financing played by agricultural cooperatives to increase agricultural productivity can be strengthened. The paper is advancing that this can be done through enhancing decisions that matter for the credit facilitation processes in agricultural cooperatives as they advance credit to their members. Generically credit facilitation processes include credit capital sourcing, credit preparation, application and approval, and credit reporting. However not every activity under these processes comprises of a decision that matter. This paper proposes an approach for enhancing credit facilitation for the agricultural cooperatives by attempting to determine decisions around cost of equity, external borrowing, credit limit, credit duration, lending rate, financial position and credit reporting. To achieve the proposed purpose, the study utilised a review of literature on the key decisions. A total 15 dissertations and 24 academic articles accessed from the internet and physically in the library were critically reviewed and results are presented in the paper.