Ghana and Germany sign 11-million Euro agreement

Accra, March 29, GNA - Ghana and Germany on Monday signed a 11 million -Euro loan and financing agreement to boost out grower schemes and improve the income of the target, especially small-scale farmers. Dr Kwabena Duffuor, Minister of Finance and Economic Planning and Dr Klaus Muller, First Vice President for West and East Africa of the German Development Bank signed the agreement.

Known as the Outgrower and Value Chain Fund, the agreement is expected to upgrade the competitiveness of small commercial farmers and their agro-business partners within their respective markets. Under the scheme, medium to-long-term loans for productive investments will be granted to small-scale farmers and enterprises operating under the contract.

Large-scale agri-business, will act as intermediaries, but are excluded from the funding.

Dr Duffuor said the implementation of the project would go a long way to improve the income of the target group, especially small-scale farmers, thereby contributing to reduce rural poverty. "The overall project goal is to improve the income of the target group, especially small-scale farmers, thereby contributing to reduce rural poverty," he said.

The Minister said the Fund would be offered as loans for outgrower and value chains schemes and to offer grants for studies, technical support and overall project management to complement the Fund's investments. Dr Muller said the German Bank would scale up the funds to more than 20 million Euros in the future. 29 March 10