Financial institutions have been charged to support the agricultural value chain to grow the agriculture sector.
However, the experts want the financial institutions to be selective and support farmers with an all-inclusive product to minimize risks.
Head of Investment at RDF Ghana, a development finance organization, Angela Klufio speaking at the Ghana Commodity Exchange Webinar Series on the theme Innovative Financial Solutions for Agricultural Actors said the potential for giving loans to the agricultural sector is vast.
“There are various sectors of the economy demanding this but the strongest demand comes from the agricultural sector. The potential for giving large loans to this sector is so vast. Across the country we have agricultural companies across every region. They range from smallholder farmers all the whole to mostly medium scale enterprises to a few large enterprises.”
“I believe any financial institution should be interested in agriculture because of the potential for growing loan books and increasing sustainable lending,” she said.
Financing Agriculture in Ghana over the years and now is a major challenge for farmers especially smallholder farmers.
As a result of lack of access to finances from financial houses, banks and other sources, the smallholder farmers have been trapped with poverty due to lack of improvement in operations.
However, some banks have debunked claims of not supporting farmers. “
But General Manager of Agribusiness at Agricultural Development Bank, Kwame Asiedu Attrams, says ADB is a universal bank with agricultural focus, explaining “as of now, we have close to 600 million invested in agriculture in Ghana”.
Source: Ghana News