Analysis of the determinants of savings among cassava processors in Imo State

Abstract

This study analyzed the factors that determine savings of cassava processors in Imo State. 180 cassava processors were randomly  selected from the 6 Local Government Areas of Imo State to constitute the sample size. Data were collected through the administration of  structured questionnaire. Descriptive statistics and multiple linear regression analysis were used in the analysis of data. The results  showed that 75% of the cassava processors were females, a relatively large proportion (38.9%) of the processors were within the age  range of 41-50years with a mean age of 43years and a mean processing experience of 8years. 51.67% of the cassava processors saved  using thrift (akawo), 33.89% of these processors saved between N20,000 and N40,000 and this percentage saved on a weekly basis.  53.33% of the processors processed their tubers into garri, 37.5% of the garri processors earned between N100,000-N150,000 monthly. The garri processing enterprise was seen to have an average propensity to save of 33.4%. Multiple linear regression analysis showed that  total income from both processing and nonprocessing activity, marital status, household size, processing experience, interest, and membership of cooperative were significant in determining savings. It is therefore recommended that low interest loan should be given  to the processors of cassava products to enable them expand their enterprises and thus enhance their income and savings. Also, local  saving platforms should be developed so as to make it more responsive to modern day financial activities.