Agricultural Loans and Food Security: Evidence from Rural Households in Ngozi, Burundi

Abstract

In Burundi, agriculture is the pillar of food security, but smallholders face financing constraints. This study aims to assess the impact of agricultural loans on the food security of rural households in the commune of Ngozi. A cross-sectional survey conducted in May 2025 collected data from 384 households (192 credit beneficiaries and 192 non-beneficiaries) using a structured questionnaire on KoBoCollect. Data were analyzed using IBM SPSS Statistics 25. Descriptive analysis (frequencies, means) was supplemented by statistical tests: Chi-square test for associations, ANOVA for comparisons of means, and regressions (multiple linear and logistic) to identify the determinants of food security. The results show that beneficiaries have a significantly higher Food Consumption Score (FCS) (51.6% "acceptable" versus 32.3%; p < 0.001) and a higher frequency of meals. This impact is mediated by increased access to modern inputs (78.4% vs. 21.6%) and increased production (66.5% vs. 33.5%). Logistic regression confirmed that improved meal frequency (p < 0.001) and production increases (p = 0.006) were key predictors of food security status. However, 85.9% of beneficiaries consider the amounts to be insufficient and 49.5% of farmers cite lack of information as a major obstacle, followed by complex administrative procedures with 16.1%. In addition, the unpredictability of crop prices is cited by 25.0% of borrowers as a constraint on repayment, followed by high labor and transport costs (23.4%) and high interest rates (18.2%). Agricultural risks (climate and disease) and the lack of other sources of income come in at 13% and 9.9% respectively. The study concludes that agricultural credit positively influences food security, particularly when paired with improved access to inputs and market stability; however, maximizing its social impact requires reforms addressing information asymmetry, gender-inclusive product design, and risk-mitigation mechanisms.