ADB loans to agric sector hit GH¢1 billion in 2022

The Agricultural Development Bank (ADB) Plc loan support to agricultural sector continues to record steady growth.

As of September 2020, ADB Plc loan to the agriculture sector had increased to GH¢993.50 million from GH¢453.20 million in December 2016.

A statement issued by the ADB Plc to congratulate farmers, fishers on the 38th Farmers’ Day celebration, said “We believe in agribusiness for wealth creation and the Agricultural Development Bank Plc remains committed to the agribusiness sector of the economy.”

The amount excluded the huge volumes of non-funded facilities such as letters of credits and guarantees granted for the purchase of agricultural inputs, machinery, equipment and raw materials.

“The over 119 per cent increase has come on the back of strategy to refocus the Bank onto its original mandate to provide financial intermediation to the agricultural sector with the aim of using the agriculture sector as a means of wealth and job creation for the ordinary Ghanaian,” the statement said.

The statement said the Bank had been an active partner for the implementation of the novel One District One Factory (1D1F) and so far about 20 companies had received financial support of over GH¢100 million.

They include Ekumfi Fruits and Juices Limited, Kumasi Jute Factory, Weedi Africa Tomato Processing Factory and Kaad Integrated Limited.

The statement said the bank had over the years imported outboard motors for sale to fishers at a cost either under lease financing or through direct sales.

The bank in supporting the Fisheries sector imported 1,300 outboard motors made up of 1200 (40HP) and 100 (15HP) Yamaha products at a cost of GH¢19.8million for the Ministry of Fisheries and Aquaculture Development and the Coastal Development Authority.

The bank absorbed all incidental and related costs amounting to about GH¢7.0 million which will have been a cost to our fishers.

To further contribute to government’s effort at reducing the importation of poultry into the country, the statement said the bank this year announced the implementation of the Broiler Revitalisation Programme with poultry farmers in the Bono Region being the first beneficiaries.

“Set up for the purpose of developing the agricultural sector, ADB with 87 network branches nationwide remains the only bank in the country with branch locations in mainly agricultural prone areas like Sefwi-Wiawso, Juaboso, Dormaa Ahenkro, Enchi, Savelugu, Nkoranza, Goaso, Denu, Juapong, Sefwi Essam, Sogakope, Bonsu Nkwanta, Apemenim,” it said.

The statement said the bank remained the ultimate sponsor of the overall prize to the National Best Farmer, which is a fully furnished three-bedroom house, constructed at the location of choice for the National Best Farmer.

Until the house prize was changed to cash, ADB had provided a total of over 15 houses for the overall winners.

The statement said the bank had also received several recognitions for supporting the development of the agricultural sector, notably the Best Cocoa Financing Institution, the One District One Factory Financing Institution, Industry Leadership Award in Agricultural Financing, Corporate Social Responsibility Award.