Status and determinants of saving behavior and intensity in pastoral and agro-pastoral communities of Afar regional state, Ethiopia

Abstract

Saving is a crucial tool for enhancing the livelihoods of pastoral and agro-pastoral communities, but due to a number of factors, its status and intensity are still in their infancy. Because of this, the current state of saving practices, their causes, and the size of pastoral and agro-pastoral communities are all examined in this study. A multi-stage sampling process was used to determine the 600 typical selected households. In order to assess the data, a double hurdle model was used. From the descriptive analysis result, only 35% of pastoral and agro-pastoral groups were savers. In comparison to their counterparts, households who have access to credit, are financially literate, engage in non-farm activities, cultivate crops in addition to livestock husbandry, use informal financial institutions, are educated, and wealthier are more likely to be savers and eager to save a larger amount of property. Households with more livestock and who live far away from formal financial institutions, on the other hand, are less likely to be savers and save only a small fraction of their income. Male-headed families are more likely to participate in saving decisions, whereas female-headed households must save more than their male counterparts once they have opted to save. Instead of relying on ineffective monetary policy (changing interest rates), any concerned bodies should emphasize mixed farming practices, establish financial institutions nearby to improve saving habits, provide non-farm training, and empower women in order to close the gap between savers and non-savers and mobilize resources to save and invest. Furthermore, raise awareness of financial institutions’ products and services, as well as provide credit.

Assessing the determinants of saving behaviour: evidence from rural farming households in Central Uganda

“…Notably, males are mostly family decision makers who are tasked with ensuring that the family saves enough money for continuous production. The findings of this study agree with the results reported by [23], who reported a 17% higher chance of saving among male farmers than among female farmers. However [24], reported no significant difference in saving between males and females, implying that gender does not affect saving behavior.…”

“…Notably, males are mostly family decision makers who are tasked with ensuring that the family saves enough money for continuous production. Tesfamariam [23] report a 17% higher chance of saving among male farmers than among female farmers. However [24], present conflicting results on how gender influences saving behavior.…”