Accra: Mr. Sampson Ahi, Deputy Minister of Trade, Agribusiness and Industry, has announced that the government is preparing to introduce an innovative financing scheme aimed at enhancing agribusiness and value-chain investment in the agriculture sector. The government recognizes the necessity for targeted financial interventions to tackle ongoing challenges faced by smallholder farmers and agribusinesses, such as limited access to credit, inadequate infrastructure, and fragmented value chains.
According to Ghana News Agency, the Deputy Minister unveiled this initiative during the GBHub Africa Stakeholder engagement on Agriculture value chain financing held in Accra. The event gathered stakeholders from Ghana's agribusiness, investment, policy, and development sectors to discuss strategies for driving investment in agricultural value chains. The discussions highlighted the significant financing gap that exists in Ghana's agriculture sector.
The Deputy Minister emphasized that agriculture is a crucial component of Ghana's economy, contributing 21.1 percent to the Gross Domestic Product (GDP) and employing 34 percent of the workforce. Despite its importance, the sector continues to face financing challenges that impede its full potential. To address these issues, the Ministry is working with financial institutions and development partners to create innovative financing mechanisms that will de-risk lending and promote sustainable growth.
Mr. Ahi mentioned that the Ministry is collaborating with the Ministry of Food and Agriculture, the Ministry of Fisheries, and other stakeholders to align production with market demands. He also announced plans for a National Agribusiness Dialogue to develop a comprehensive Agribusiness Policy. Moreover, the Ministry is engaging with banks and financial institutions to implement risk-sharing mechanisms like the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) to encourage lending to agribusinesses.
The government also intends to strengthen collaborations with private investors to expand financing models, where input costs are repaid at harvest, thus reducing financial burdens on farmers. Mr. Ahi highlighted the Accelerated Export Development Programme, which aims to support agro-processing firms by linking them to credit facilities and international markets. He advocated for infrastructure investments, including cold chain solutions, which could potentially generate an estimated $900 million annually for Ghana's fruit and vegetable sector.
The Deputy Minister praised GBHub Africa for its dedication to agriculture development and commended partners for their support of the new financing framework. Mr. Ahi expressed optimism that through collective efforts, Ghana's agriculture sector can transition from subsistence farming to a thriving, market-driven industry that creates jobs and ensures food security.