Credit assists adoption

 Intermediate means of transport increase profitable farm production, trade and provide hire income, but the high cost is a constraint for many. There is much evidence that credit can assist the adoption of local transport solutions. Manufacturers and stockists may also need credit. 

Credit was important for the spread of carts in SenegalPhotograph by Paul Starkey ©
Prior to 1960, animal-drawn carts were not very common in rural Senegal. In 1960 SISCOMA established a factory at Pout in Senegal to manufacture a range of agricultural implements and animal-drawn carts. Sales in the 1960s and 1970s were high, boosted by agricultural credit schemes. The sudden termination of credit in 1980 caused sales to plummet and made SISCOMA bankrupt. A new company, SISMAR, was formed to take over the factory, and has been selling many carts, although annual sale have not returned to the levels when credit was readily available to farmers.
 Photo: Ox carts in northern Senegal

Photograph by Paul Starkey ©Credit for carts in Tanga, Tanzania
The Tanga Animal Draft Power Project found that men and women wanted to buy donkey carts but they could not afford the purchase cost. Rural incomes and employment opportunities were low. Credit repayments were difficult for such expensive items. This was partly solved by combining credit with a labour-intensive, rural road maintenance programme. Farmers were contracted to bring gravel to resurface roads, and the income from this programme made it possible for farmers to repay loans. The carts were used for many other purposes besides gravel haulage. Women and men both benefited from the spread of donkey carts.
 Photo: Women with a donkey cart bought with credit in Tanga, Tanzania