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Publication Details

Zandamela, Horacio  (2006) Labour Market Discrimination and Its Impact on Credit Absorption Capacity in Mozambique Rural Settings: A Conceptual Note. Centre for Civil Society  Colloquium on the Economy, Society and Nature: 1-36.

Credit has been viewed as an instrument to improve household income and address poverty in Mozambique as well as in other developing countries within the context of rural development. Nevertheless, the low-income communities of Mozambique experience limited access to credit. Whether this situation can be changed, and whether it will lead to development, is the problem addressed in this paper. To address this problem two questions are posed: one related to the capacity and possibility of expansion of credit, i.e. an investigation into the credit absorption capacity of financial institutions and farmers; and the other related to the impact of credit expansion, including both benefits and constraints of credit expansion.

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