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US$40m needed to fill financing gap in Ghana agriculture sector – FAO

March 29, 2019
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About US$40 million is needed to fill the financial gap in Ghana’s agricultural sector, Dr Ade Freeman, African Regional Programme Leader of Food and Agricultural Organisation (FAO) of the United Nations, has said.

He said this during a stakeholder’s engagement on agriculture financing under the Ghana Agriculture Investment Plan (GhAIP) organised by the FAO in collaboration with the Ministry of Food and Agriculture (MOFA).

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The engagement is expected to come up with a policy document which will be used to guide the sector in ensuring favourable results.

The Programme Leader said there is the need for donors, the Agricultural Development Bank to invest in the area and figure out how to leverage financing resources to power the sector.

Dr Freeman called on the banks, insurance groups, partners, the World Bank to help invest in agriculture and focus on ways to address the financial gap.

Participants at the engagement were brought together to help come up with innovative ways of addressing the financial gap in the agricultural sector, he said.

The engagement was used to devise links to facilitate trade growth.

This, he said, would ensure that all stakeholders are part of the solution to create more employment, reduce poverty and address hunger among others.

There was also a panel discussion to find out how agriculture can be financed, expected enablers or reforms needed to harness the full inherent and opportunities in the sector.

Panel members included Mr Kwesi Korboe, who represented both MOFA and the Central Bank (BoG), Ms Barbara Ghansah of AgDevCo, Mr Tabi Karikari-AfDB, Mr George Kweku Asiamah-Fidelity Bank and Mr Andrew Ahianku of Barclays Bank.

They called on the authority to educate financial institutions on agriculture since they did not understand the sector and lent money to farmers like they do with commercial interests.

The panelists also appealed for a bank risk mitigation tool, adding that farmers did not have collateral for loans apart from the lands.

Infrastructure such as irrigation, good road networks and stable power would also be relevant if agriculture, the backbone of the country succeeds, they said.

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