The United States Government has partnered with two Ghanaian financial institutions, Absa Bank Ghana and Opportunity International Savings and Loans, to support $25 million in new financing for micro, small, and medium-sized enterprises (MSMEs) in Ghana’s agricultural sector.
The partnerships, led by the U.S. International Development Finance Corporation (DFC) in coordination with the U.S. Agency for International Development (USAID), will support up to $20 million in lending from Absa Bank Ghana. It will also support up to $5 million in lending from Opportunity International Savings and Loans by lowering risk and helping expand credit to regions and borrowers that do not typically have access to bank loans, particularly in northern Ghana.
USAID/Ghana Mission Director, Kimberly Rosen, noted that Agriculture is a vital contributor to Ghana’s economy, providing employment, food security, and nutrition.
“The U.S. government is committed to helping Ghana fully maximize its agricultural potential by supporting the expansion of small businesses in the agriculture sector. These partnerships demonstrate our ongoing commitment to the success of Ghana’s private sector, and economic growth in the country.”
Kimberly Rosen
Jim Polan, Vice President of DFC’s Office of Development Credit also intimated that expanding access to financing for MSMEs in the agriculture sector is critical for strengthening Ghana’s economy and bolstering its food security.
“DFC is committed to supporting agriculture projects that support small businesses, promote healthy populations, and improve the livelihoods of communities in Ghana.”
Jim Polan
The Focus of the Financing Program
In the intervening time, the focus of the financing program will be on the Northern, North East, Upper East, Upper West, and Savannah regions of Ghana, regions with strong agricultural traditions that have lacked access to financing, particularly for MSMEs in the agriculture sector.
The goal of the Initiative is to increase financial inclusion and support agribusinesses to increase the value of their products from production to consumption, which is critical to the success of Ghana’s economy.
Since 2020, USAID has supported 33,000 agribusinesses to access over $204 million in financing through partner financial institutions. This new partnership will further expand finance for diverse agricultural borrowers.
The latest support Is one of the many supports the U.S government has given to the country to boost agriculture.
Last month, the U.S. Government hosted its first-ever “Women in Agribusiness” Summit. The event showcased investment opportunities in Ghanaian agribusinesses led by women and connected women entrepreneurs to investors for financing.
The U.S. Government has supported Ghanaian agribusinesses through USAID and Feed the Future with over $192.9 million in financing for more than 25,000 agribusinesses, over half of which are women-led and women-owned. This increases agricultural productivity and improves food security in Ghana.
Agriculture is a major contributor to the development and growth of Ghana’s economy, contributing to gross domestic product, employment, food security and nutrition.
Although farmers play a vital role in Ghana’s agricultural sector by providing critical value chain services in production, agro-processing and marketing, their access to business advisory services and commercial finance is limited. That is the reason the U.S is stepping in with variety of programs – feed the future is one of the programs.
Feed the Future is the U.S. Government’s initiative to end global hunger. Led by USAID and driven by collaborative partnerships across public and private sectors, including 11 U.S. Government agencies, Feed the Future addresses the root causes of poverty and hunger. This is done by boosting inclusive agriculture-led economic growth, resilience, and nutrition in countries with great need and opportunity for improvement.
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