Jaff Gillian Vernyuy and Negou Ernest

Department of Management Sciences

HTTTC Kumba, University of Buea

Corresponding Author: negou.ernest@ubuea.cm

To cite: Jaff and Negou (2026, June 30), The contributions of microfinance institutions in the promotion of agribusinesses. Case of NTACCUL in Kumba Municipality. The Journal of Tertiary and Industrial Sciences (JTIS), HTTTC Kumba. https://doi.org/10.5281/zenodo.20598040

Submission Date: 20/03/2026                                                                                        Acceptance Date: 02/06/2026

Abstract

The study examined the contribution of microfinance institutions to the promotion of agribusinesses in Kumba. The study adopted a mixed research approach involving both quantitative and qualitative methods. Primary quantitative and qualitative data were collected through questionnaires and interview guide respectively. Quantitative data were analysed using the Statistical Package for Social Sciences (SPSS), where descriptive statistics such as frequencies and percentages as well as regression analysis were employed. Qualitative data were analysed using thematic analysis. The findings of the study revealed that microfinance loans have a positive and statistically significant effect on the promotion of agribusinesses in Kumba Municipality with a coefficient value of 0.650 and a significance level of 0.000, which is less than 0.05. The findings also revealed that microfinance training has a positive and statistically significant effect on agribusiness promotion with a coefficient value of 0.421 and a significance level of 0.003, which is equally less than 0.05. Furthermore, the regression model was statistically significant with an F-statistic value of 48.215 and a significance value of 0.000. The model summary revealed an R Square value of 0.709, indicating that 70.9% of the variation in agribusiness promotion was explained by microfinance loans and training, while 29.1% was explained by other factors not included in the study. The qualitative findings further identified loan default, lack of collateral, high interest rates, limited financial resources, agricultural risks and poor monitoring of borrowers as the major challenges faced by microfinance institutions in promoting agribusinesses in Kumba Municipality. The study concluded that microfinance institutions play a significant role in promoting agribusinesses in Kumba Municipality through the provision of loans and training services. However, their effectiveness is constrained by several operational and financial challenges. The study therefore recommended that microfinance institutions should strengthen monitoring and supervision mechanism to ensure that loans granted to borrowers are probably utilize for agricultural purposes in Kumba Municipality.

Keywords: Microfinance institutions, Agribusinesses, Loans, Training, Savings, Agribusiness Promotion