The impact of financial regulations on market stability of coffee and tea in Uganda, a case study of greater Bushenyi.

Abstract

This study investigated the impact of financial regulations on the market stability of coffee and tea in Uganda, focusing on Greater Bushenyi. The research examined the influence of these regulations on pricing mechanisms, accessibility to credit, and infrastructural challenges while proposing actionable solutions for market stabilization. Data collected from 100 respondents comprising farmers, financial institutions, and government stakeholders revealed that financial regulations moderately influence market stability, with challenges in credit access and infrastructural deficits persisting. Price volatility persists, with 55% of respondents describing prices as unstable. A chi-square analysis indicated no significant relationship between price stability and the perceived impact of regulations. Recommendations include simplifying regulatory frameworks, enhancing infrastructure, tailoring credit facilities, and fostering financial literacy to improve market resilience and empower smallholder farmers.