Farmers in northern Ghana’s five regions will soon “access credit through a newly launched €10 million agricultural financing mechanism aimed at boosting their productivity and livelihoods.”
The European Union (EU) delegation in Ghana, in collaboration with the European Development Financial Institution (EDFI) Management Company, introduced the “Agriculture Financing Initiative (AgriFI) Ghana Country Window.” This initiative is designed to alleviate the financial challenges faced by farmers in accessing credit, with a focus on developing sustainable and inclusive agricultural value chains in the cashew, groundnut, mango, rice, sorghum, soybean, and vegetable sectors.
Speaking at the launch event in Wa, Mr. Jonas Claes, the EU Deputy Ambassador to Ghana, emphasized the initiative’s focus on the northern regions, explaining, “The needs are the greatest here.” He noted that the AgriFI Ghana Country Window is a key component of the EU’s broader strategy to strengthen Ghana’s agricultural sector, particularly by providing financing options for smallholder farmers under the European Union – Ghana Agriculture Programme (EUGAP).
Funded by the EU and managed by EDFI Management Company, the AgriFI initiative will enable farmers to access loans through select institutions, including Sinapi Aba Savings and Loans. Mr. Claes highlighted that access to finance has been a significant challenge for farmers, particularly in northern Ghana, which has hindered their ability to adopt modern farming techniques.
Since 2021, the EU has invested €144 million (GH¢2.5 billion) in Ghana’s agricultural sector, covering financing, capacity building, infrastructure development, and matching grants. “Grants play a vital role in addressing financing challenges, but they are not always sufficient or sustainable. This is where the AgriFI Ghana Country Window comes in,” said Mr. Claes. He explained that the initiative combines grants with loans to create a more holistic and sustainable approach to agricultural development and financing.
Mr. Lionel Dieu, the AgriFI Fund Manager, announced that the €10 million loan product would be distributed over twelve years to companies and entrepreneurs who meet the eligibility criteria. The initiative aims to benefit approximately 12,000 smallholder farmers in Ghana, particularly in the northern regions. Mr. Dieu noted that eligible enterprises must have been operational for at least three years and demonstrate strong financial, social, and environmental performance.
Mr. Peter Maala, Chief Director at the Upper West Regional Coordinating Council, expressed gratitude to the EU and EDFI Management Company for their support, noting that access to credit facilities has been a significant hurdle for farmers in the region. He urged the EU and its partners to consider lowering the interest rates on the loans to make them more accessible to farmers, warning that high rates could defeat the initiative’s purpose.
Sinapi Aba Savings and Loans (SASL), one of the institutions selected to disburse the loans, has already received €2.5 million from the project and has disbursed €1.5 million to farmers. According to Madam Joyce Nyamekye, SASL’s Corporate Planning Manager, their target is smallholder farmers, with some receiving up to GH¢10,000 to support their farming activities.
The launch event was attended by representatives from the Regional Department of Agriculture, commercial and smallholder farmers, and other stakeholders such as Sommalife and Demeter.
