Effect of Financial Services on Economic Empowerment of Agriculture Cooperative: A Case of Iterambere Ry’ Abahinzi Borozi ba Makera Cooperative

Iyakaremye Francois
University of Kigali
https://orcid.org/0009-0003-4661-4147
Email: francoisiyakaremye@gmail.com

Abstract: The general objective of this research was to assess the effect of financial services on the economic empowerment of agricultural cooperatives. The study focused on a population of 263 individuals from Iterambere Ry’ Abahinzi Borozi ba Makera (IABM) Cooperative. The sample size for this study was 159 respondents, determined using Slovin’s formula. Data analysis conducted using SPSS, and descriptive statistics such as frequency distributions, percentages, means, and correlations were determined to summarize the data and draw conclusions regarding the effect of financial services on the economic empowerment of IABM Cooperative. The model summary shows an R of 0.779, indicating a strong correlation between predictors and economic empowerment. The R² of 0.606 reveals that 60.6% of the variance is explained. The Durbin-Watson statistic of 1.971 suggests no significant autocorrelation. The regression model’s unstandardized coefficient for the constant is 0.642, representing the baseline economic empowerment level when all predictors are zero. The study recommended that cooperative leaders enhance recognition programs and communication channels, while farmers engage in financial literacy programs and cooperative meetings. Financial committees should refine loan criteria and update policies, and operational staff must assess service satisfaction and develop educational materials. Future researchers are urged to explore financial literacy, leadership styles, savings and credit services, and agricultural innovations in relation to the economic empowerment of IABM Cooperative.