In collaboration with the United States Government, Absa Bank is backing a $20 million funding initiative designed to strengthen Ghana’s agricultural micro, small, and medium-sized enterprises (MSMEs).
The partnership underscores Absa Bank’s dedication to fostering financial inclusion in the agricultural sector of Ghana. It aligns with the bank’s broader commitment of supporting the growth of MSMEs and empowering local farmers and agribusinesses.
The partnership, led by the U.S. International Development Finance Corporation (DFC) in coordination with the USAID, will have Absa Bank Ghana supporting up to $20 million in lending by lowering risk and helping expand credit to regions and borrowers that do not typically have access to bank loans, particularly in northern Ghana.
The program is expected to generate employment opportunities, improve food security, and contribute to the overall economic development of the country.
Speaking at the partnership signing ceremony, Grace Anim-Yeboah, Business Banking Director at Absa Bank, said, “We are delighted to collaborate with USAID and other partners on this important initiative”.
“Agriculture is a cornerstone of the Ghanaian economy, and supporting MSMEs in this sector is crucial for driving economic growth and prosperity. We believe that this partnership will have a meaningful impact on local farmers and agribusinesses, helping them reach new heights of success. We are confident that this initiative will not only improve the livelihoods of small-scale farmers but also contribute to the sustainability and resilience of Ghana’s agricultural sector.”
Grace Anim-Yeboah
The CEO of U.S. International DFC, Scott Nathan, on his part stated that “The U.S. government is committed to supporting Ghana fully maximize its agricultural potential through 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.”
Present at the signing ceremony was the US Ambassador to Ghana, Virginia Palmer, who was excited that the bank could pull such partnership off to support the growth of agribusinesses. Ambassador Palmer indicated that the DFC is committed to supporting agriculture projects that advance small businesses, promote healthy populations, and improve the livelihoods of communities in Ghana. “Expanding access to financing for MSMEs in the agriculture sector is critical for strengthening Ghana’s economy and bolstering its food security,” Virginia said.
The Financing Program to Focus On the Northern Regions
The financing program will focus on the Northern, Northeast, Upper East, Upper West, and Savannah regions of Ghana, known to have 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.
Micro, Small, and Medium Enterprises (MSMEs) in the Agriculture Sector in Ghana play a pivotal role in the country’s economic landscape. These businesses are essential in driving economic growth, reducing poverty, and creating employment opportunities.
At the moment, Ghana’s agricultural sector is the backbone of the economy, providing livelihoods for a significant portion of the population. MSMEs within this sector include smallholder farmers, agro-processors, agribusinesses, and other enterprises involved in various aspects of agriculture, from crop cultivation to livestock farming and value-added processing.
Access to finance is a significant challenge for many agricultural MSMEs in Ghana. Initiatives like the one supported by Absa Bank and the United States Government are crucial in providing financial support to these businesses.
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