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Home Agriculture

Ghana unveils plans for agribusiness financing to bridge agricultural investment gap

Agriwatch by Agriwatch
June 30, 2025
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Mr. Sampson Ahi, Deputy Minister of Trade, Agribusiness and Industry, says the government is set to roll out an innovative financing scheme to boost agribusiness and value-chain investment in the agriculture sector.  

He said government appreciated the need for targeted financial interventions to address the persistent challenges faced by smallholder farmers and agribusinesses, including limited access to credit, inadequate infrastructure, and fragmented value chains.

The Deputy Minister revealed the plan at the GBHub Africa Stakeholder engagement on Agriculture value chain financing held in Accra.

Stakeholders from Ghana’s agribusiness, investment, policy, and development sectors gathered  to engage in meaningful conversations on driving investment in agricultural value chains.

The stakeholders highlighted the financing gap in Ghana’s agriculture sector.

The Deputy Minister stated that agriculture remained the backbone of Ghana’s economy, contributing 21.1 per cent to Gross Domestic Product (GDP) and employing 34 per cent of the workforce.

However, the sector continues to face financing gaps that hinder its full potential.

He said to address this challenge, the Ministry was collaborating with financial institutions and development partners to design innovative financing mechanisms that would de-risk lending and ensure sustainable growth.

“The Ministry is working closely with the Ministry of Food and Agriculture, the Ministry of Fisheries, and other stakeholders to align production with market demands. A National Agribusiness Dialogue will soon be held to develop a comprehensive Agribusiness Policy,” he said.

“Additionally, the Ministry is engaging with banks and financial institutions to introduce risk-sharing mechanisms, such as the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), to encourage lending to agribusinesses,” he added.

The Minister said the government would also deepen collaborations with private investors to scale up financing models where input costs are repaid at harvest, reducing financial burdens on farmers.

Mr. Ahi highlighted the Accelerated Export Development Programme as a key initiative to support agro-processing firms by linking them to credit facilities and international markets.

He advocated for infrastructure investments, including cold chain solutions, which could generate an estimated $900 million annually for Ghana’s fruit and vegetable sector.

The Deputy Minister commended GBHub Africa for its commitment to agriculture development and partners for supporting the new financing framework.

Mr. Ahi expressed optimism that through collective efforts, Ghana’s agriculture sector can transition from subsistence farming to a thriving, market-driven industry that created jobs and ensured food security.

 

SOURCE: ACCESS AGRIC 

Tags: Agribusiness and IndustryGBHub AfricaMr. Sampson Ahi
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