Kwesi Korboe, the Chief Executive Officer of The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) has indicated that Ghana, as a country, needs innovative solutions to unlock the vast agricultural potential at its disposal.
According to the CEO of GIRSAL, Ghana’s agribusiness sector still faces significant challenges, and that enough is not being done to resolve the lingering issues affecting the sector.
Mr Korboe noted that while progress has been made, there is still a long way to go to fully unlock the potential of agriculture in the country.
Mr Korboe stressed that the agriculture sector in Ghana is in need of innovative technologies coupled with increased investment to improve productivity, efficiency, and sustainability.
Major Challenges Facing the Agric Sector
According to the Chief Executive Officer of The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending, access to modern farming techniques, advanced machinery, and quality inputs such as fertilizers and seeds is crucial for the growth of agribusiness in Ghana.
Another major challenge Mr Korboe highlighted is access to land for farming by the private sector. He added that insufficient road networks and limited access to markets make it difficult for people to invest in the agricultural sector.
Furthermore, Mr Korboe added that access to finance remains a significant hurdle for many small-scale farmers and agribusiness entrepreneurs. Limited access to credit, high-interest rates restrict the ability of farmers to invest in their operations, expand their businesses, and adopt modern technologies.
Korboe also highlighted the need for effective policies and supportive government interventions to promote agribusiness development. This includes policies that prioritize agricultural research and development, provide incentives for private-sector investments, and create an enabling environment for innovation and entrepreneurship in the sector.
Despite these challenges, Mr Korboe acknowledged the immense potential of Ghana’s agricultural sector.
The country, he said, has favourable climatic conditions, fertile land, and a rich biodiversity that can support diverse agricultural activities. With the right investments, infrastructure development, and policy support, Ghana can harness its agricultural resources to drive economic growth, create employment opportunities, and ensure food security for its population.
The CEO noted that GIRSAL Ltd, a non-banking financial institution established to de-risk agricultural financing and stimulate increased lending to the agricultural sector, by financial institutions in Ghana, is helping to improve agribusiness in the country.
Meanwhile, GIRSAL provides credit risk guarantees to financial institutions to increase lending to the agricultural sector in Ghana. We also provide capacity building, information resources and expert technical support to improve their knowledge and understanding of the agricultural sector and to strengthen their capacity to assess, structure and manage agribusiness lending.
Agriculture plays a crucial role in Ghana’s economy, contributing significantly to the country’s Gross Domestic Product (GDP). Despite its enormous growth potential, only 4% of bank loans are directed towards the sector. To tackle this challenge, GIRSAL has set up a Technical Assistance Facility aimed at increasing financial institutions’ lending to the agriculture sector.
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