In a groundbreaking move to enhance agricultural productivity and tackle food insecurity, Ghana's Minister of Food and Agriculture, Hon. Eric Opoku, has officially launched a $1 million revolving fund in partnership with ARB Apex Bank. The announcement was made during a signing ceremony held at the Minister’s Conference Room, supported by the Global Agriculture and Food Security Programme (GAFSP) and the African Development Bank (AfDB).
Expressing gratitude to GAFSP for its generous $20 million grant to Ghana, Minister Opoku emphasised the significance of the fund in building resilience and improving food security, particularly in the Northern Savannah Ecological Zone. "This project is not merely about financial aid; it’s about fostering sustainable and resilient food systems that enhance the livelihoods of our communities," he stated.
The initiative targets 12 districts across six regions—Northern, Upper East, Upper West, Savannah, North East, and Oti—reaching out to 50,000 farmers, with a particular focus on women and youth who are disproportionately affected by food insecurity.
Key interventions of the project include:
1. Improved access for smallholder farmers to climate-smart agricultural inputs for key staple crops such as maize, rice, soybean, cowpea, and groundnut.
2. Enhanced access to agricultural mechanization services, including handheld equipment.
3. Provision of solar-powered micro-irrigation kits to promote off-season vegetable production.
4. The encouragement of household poultry production to boost nutrition at the family level.
5. Establishment of a $1 million revolving fund to offer financial services to value chain actors at competitive interest rates.
Highlighting the fund's timely introduction, Minister Opoku pointed out its role in empowering women farmers involved in the cultivation of vegetables, legumes, and grains. With concessional interest rates and flexible repayment terms, the revolving fund is designed to improve access to financial resources for small and medium enterprises and agribusinesses, vital for enhancing production capabilities.
This strategic initiative aligns with the government’s Agriculture for Economic Transformation Agenda (AETA) and the newly launched Feed Ghana Programme, aiming to significantly uplift the living standards of over 50,000 beneficiaries, with a strong emphasis on supporting 30,000 women farmers.
ARB Apex Bank has been appointed to manage the revolving fund due to its extensive network of Rural and Community Banks (RCBs) operating in the targeted project areas. This choice is expected to streamline fund distribution and ensure effective financial support for agricultural endeavors.
Under the terms of the agreement, Rural and Community Banks will be able to borrow from ARB Apex Bank and lend to beneficiaries at concessional interest rates, thus ensuring the sustainability and positive impact of the revolving fund.
Concluding the ceremony, Hon. Eric Opoku urged all stakeholders to work collaboratively towards effective fund management, stating, "I implore everyone involved in this project to strive diligently to guarantee that these benefits translate into improved livelihoods for our communities."
With this initiative, Ghana is set to make significant advancements in agricultural development, addressing critical food security challenges and empowering the next generation of farmers in the nation’s northern regions.