Accra: The Ministry of Food and Agriculture (MoFA) and ARB Apex Bank have entered into a Memorandum of Understanding (MoU) to manage a US$1 million Revolving Fund aimed at enhancing food security in Ghana. The initiative, known as the Food and Nutrition Security Resilience Project, is financed by the Global Agriculture and Food Security Programme (GAFSP) and targets improvement in food and nutrition security, particularly within the Northern Savannah Ecological Zone.
According to Ghana News Agency, the Fund is designed to offer timely and affordable credit to smallholder farmers, particularly women-led groups involved in vegetable production and the cultivation of crops such as groundnut, cowpea, and soybean. The facility is also intended to support microenterprises and agribusinesses in scaling their operations and improving resilience.
Minister for Food and Agriculture, Mr. Eric Opoku, highlighted the Fund's accessibility due to its 10 percent interest rate and flexible repayment terms. He emphasized that the initiative complements government efforts to reduce risks in agricultural lending through the Ghana Incentive-Based Risk Sharing for Agricultural Lending (GIRSAL) scheme. Mr. Opoku expressed confidence that the initiative will empower women farmers, increase household incomes, and address rural poverty and hunger.
The Project will be implemented in several districts, including Tamale Metro, Mion, Savelugu, and Nanton in the Northern Region; West Gonja and Bawku West in the Savannah and Upper East Regions; Wa Municipal, Sissala East, and Nandom in the Upper West Region; East Mamprusi and Mamprugu-Moagduri in the North East Region; and Krachi East in the Oti Region.
Mr. Opoku described the Project as a strategic investment aiming to raise farmer incomes and improve household nutrition among women-headed households. The initiative includes interventions such as access to climate-smart agricultural inputs for staple crops and enhanced mechanization with handheld equipment tailored for smallholder needs. He stated that the intervention aligns with the Government's Agriculture for Economic Transformation Agenda (AETA) and the recently launched Feed Ghana Programme.
The Minister expressed gratitude to GAFSP for the US$20 million grant to enhance food and nutrition resilience and commended the African Development Bank (AfDB) for its technical support during the facility's design and mobilization phases. He noted that ARB Apex Bank was selected due to its extensive network of Rural and Community Banks (RCBs), which are well-positioned to reach grassroots beneficiaries.
Mr. Opoku called upon stakeholders, including the Project Implementation Unit, ARB Apex Bank, and RCBs, to ensure the Fund's efficient management and sustainability through urgency, transparency, and commitment. Mr. Alex Kwasi Awuah, Managing Director of ARB Apex Bank, assured the Minister of the Bank's robust credit management systems and its capability to successfully implement the project and ensure timely fund recovery.
