EXAMINING THE EFFECTS OF CAPITAL FINANCING ON THE GROWTH OF MAIZE AGRIBUSINESS COOPERATIVES IN KAWAMBWA DISTRICT, ZAMBIA

This study examined the effects of capital financing on the growth of maize agribusiness cooperatives in Kawambwa District, Zambia. It identified major financing sources, assessed access to capital, determined the relationship between financing and cooperative growth, and examined barriers to obtaining finance. The study was anchored in the Resource-Based View (RBV) theory and adopted a mixed-methods approach. Structured questionnaires were administered to 120 cooperative respondents, while interviews were conducted with 10 key informants from relevant government and financial institutions. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS), and qualitative data were analysed thematically. Cooperatives reported using commercial banks, microfinance institutions, government programmes, member contributions and cooperative savings. Access was constrained by high interest rates, collateral requirements, limited loan amounts, climate-related risks, bureaucratic procedures, governance weaknesses, poor financial records and limited financial literacy. Capital financing was perceived to support productivity, asset acquisition, revenue generation, profitability and market expansion. Pearson correlation showed a positive and statistically significant association between access to capital financing and cooperative growth (r = 0.341, p < 0.001). Regression analysis indicated that access to capital financing explained 11.6% of variation in cooperative growth (R² = 0.116). The study concludes that financing is an important but not exclusive contributor to cooperative growth. It recommends affordable agricultural finance, stronger financial management and governance, and lending products aligned with agricultural production and marketing cycles.