ADB protests against diversification - Minister

Koforidua, Sept. 4, GNA- The Deputy Minister of Food and Agriculture (MOFA), Mr Clement Elede, last Monday said the protests by the staff of the Agriculture Development Bank (ADB) against the diversification of the 48 per cent Bank of Ghana (BOG) shares in the bank was an attempt to cover up non-performance of its management. He said the ADB had a poor loan recovery rate as a result; many of the programmes being run by MOFA through the bank to support farmers had been suspended.

Mr Elede said the issues were not being properly explained to farmers and many Ghanaians creating the impression that government's decision to diversify the bank to enable it to perform better was unpatriotic.

He was speaking at the closing ceremony of a five-day workshop for leaders of Farmer-Based Organizations (FBO) in Ghana in preparation towards the signing of the Economic Partnership Agreement (EPA) in December this year in Koforidua. The workshop was organized by the Farmers Organization Network in Ghana (FONG) in collaboration with the Network of Peasant Farmers of West Africa (ROPPA).

Mr Elede said ADB, which was expected to finance the local production of some agricultural products like rice and sugar, rather turned to finance their importation just like any other commercial bank to the disadvantage of the Ghanaian farmer. He called on farmers to be abreast with issues concerning their profession to enable them to take decisions from an informed position.

Mr Elede said information available to his Ministry indicated that the profit margin on agricultural investment was 12 per cent annually, adding that government was working hard to ensure that the interest on loans granted to farmers was reduced below the 12 per cent mark. The Deputy Minister observed that sometimes it was not all the clauses of the EPA that were inimical against the interest of African farmers as being presented.

He assured that government would not sign the EPA if it is convinced that it contained clauses that would not promote the interest of the Ghanaian farmer.

The Eastern Regional Director of MOFA, Mr Godwin Ocloo said it was the desire of the Ministry to work with FBO's and had always provided the needed support for their growth and development. He however expressed worry about the problem of loan recovery and urged leaders of FBOs to encourage their members to pay back loans advanced to them on time.

The President of ROPPA, Mr Mamadu Cissikoh called on governments in West Africa to put in place, policies that would enable the Region to be self sufficient in food production.

He called on West African countries to mobilize the resources of the sub-region in a way that it would help give them a place on the global village. 4 Sept. 07