Ghana’s Agri-SMEs Benefit from New Loan Programme with Lower Interest Rates

Accra: The Mastercard Foundation, in partnership with CrossBoundary Advisory, has introduced the Bridge-in Agriculture Programme, a new initiative aimed at providing lower interest rate loans to Small and Medium-sized Enterprises (SMEs) within Ghana's agricultural sector. This programme offers loans at an interest rate of up to 7 per cent, a significant reduction from the current 35 per cent rate offered by commercial banks.According to Ghana News Agency, the initiative was launched in Accra and featured an exhibition alongside success stories from partners, including Tropical Snacks, Gustav Restaurant, and Wobil Technologies. Ms Fanta Code, Managing Director of CrossBoundary Advisory, addressed the challenges faced by SMEs in Ghana's agriculture sector, such as limited access to finance, market volatility, and insufficient credit histories. Despite agriculture contributing 20 per cent to Ghana's GDP and employing 40 per cent of the population, the sector only receives 10 per cent of the total financing, am ounting to approximately $2 billion.Ms Code emphasized the significant financing gap within the sector, which poses substantial financial hurdles for SMEs. She explained that the Bridge-in Agriculture Programme is designed to incentivize banks over a five-year period to extend loans to agriculture and related sectors. The goal is that, after five years, banks will continue these lending practices based on the experience and relationships developed through the programme.The programme, supported by zero per cent interest repayable loans from the Mastercard Foundation, aims to impact 400,000 young people, with 70 per cent being women. Mr. John Dumelo, Deputy Minister of Agriculture, noted that the programme aligns closely with the Ministry's agenda and the Feed Ghana Programme by promoting year-round production, enhancing productivity, and strengthening food systems resilience.Mr. Dumelo emphasized that the Bridge-in Agriculture Programme targets key structural bottlenecks in the sector, such as access to affordable capital and technical skills, representing not just an intervention but a strategic breakthrough. The programme allocates $87 million through partner banks to support agribusiness, though the Minister stressed the need for continued exploration of solutions to address the financing gap in the agriculture sector.