The U.S. Government, through the U.S. Agency for International Development, and the Ghana Ministry of Food and Agriculture are working together to help more Ghanaian farmers access needed financing. Earlier today, the U.S. Government and Ghana convened more than 400 stakeholders at the Ghana Agribusiness Investment Summit to discuss current challenges and support new financing partnerships. Increased financing opportunities like those discussed today will help Ghanaian farmers purchase new inputs and equipment to increase crop yields, improve food security, and stimulate economic growth.
“With better access to financing, Ghanaian farmers could be the breadbasket of West Africa,” said U.S. Ambassador Virginia Palmer at the event.
The Summit connects agribusinesses in the maize, soy, groundnut, cowpea, mango, cashew, shea, and other high-value export crop sectors with international and local investors, financial institutions, and transaction advisors. This will enable agribusinesses to purchase agricultural inputs and machinery to increase production and support broad-based economic growth.
U.S. Ambassador to Ghana, Virginia Palmer, and the representative of the Honorable Minister of Food and Agriculture, Forster Boateng the Deputy Chief Executive Officer, Tree Crops Development Authority (TCDA) opened the Summit, which is part of the USAID-supported Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity. Honorable Deputy Minister of Finance, Dr. John Kumah also spoke at the event.
The U.S Government, USAID and the Feed the Future Initiative are working to address credit constraints in Ghana’s agriculture sector using a value chain approach that leverages strategic partnerships. This activity will unlock over a quarter of a billion dollars in financing for more than 81,000 enterprises in the maize, soy, groundnut, cowpea, mango, cashew, and shea value chains by 2024.
The U.S. Government has also released $2.77 million under the COVID-19 Relief and Resilience Challenge Fund to support farmers and agribusinesses to mitigate the negative impacts of the pandemic and become more resilient against possible future shocks.
Forster Boateng, in his keynote address noted, “It is crucial to transform and modernize Ghana’s agriculture sector and position the industry to better contribute to food security, economic growth and the Ghana Beyond Aid strategy. Achieving this requires strong partnerships with the private sector, and collaboration with the United States Government – a long-time development partner.”
The event extends the United States’ short and long-term commitments to Ghana’s agricultural sector and small-scale farmers. In September, the United States announced a$2.5 million initiative through the United States Agency for International Development (USAID) to ensure 100,000 smallholder farmers in Ghana receive affordable fertilizer for this planting season.
Since 2010, USAID’s Feed the Future program has provided more than $425 million to support Ghanaian farmers – especially in the north – to adopt new techniques, take advantage of new efficiencies, and access global markets.
USAID is the lead U.S. government agency that works to end extreme global poverty and enable resilient, democratic societies to realize their potential. USAID’s activities and strategic partnerships support Ghana’s journey to self-reliance and advance an integrated approach to development. USAID promotes accountability, sustainable systems, and inclusive development.
About Feed the Future
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. About Feed the Future Ghana MFA Activity The Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity is a USAIDsupported activity that will improve access to finance for farmers and agribusinesses in Ghana. The Activity enables transaction advisors to support agribusinesses to secure loans and investment.
MFA also assists diverse financial institutions to expand financing of farmers and agribusinesses, so that enterprises can purchase agricultural inputs (such as seeds and fertilizers), invest in processing, expand production, and scale operations. From 2020 to 2024, MFA is to help 81,493 enterprises access $261 million in finance, leading to $500 million in new sales. MFA is also supporting Ghana’s agricultural financing system to mitigate the negative impacts of the ongoing COVID-19 pandemic on farmers and agribusinesses. As of September 2022, MFA has facilitated over $152 million to approximately 12,600 agribusinesses including 62% female-led enterprises in the MFA target value chains of maize, soy, groundnut, cowpea, cashew, mango, and shea as well as other high value export crops.