ADB’s agric-sector investment hits GH¢993 million

Overall investment into the agriculture sector by the Agricultural Development Bank (ADB) over the past six years has seen steady growth – with total agricultural loan stock increasing from GH¢453.20million in December 2016 to GH¢993.50million by end of third-quarter this year, newly appointed Managing Director of ADB, Ahaji Alhassan Yakubu-Tali, has said.

This amount, according to Alhaji Yakubu-Tali, excludes the huge volumes of non-funded facilities such as letters of credit and guarantees granted for the purchase of agricultural inputs, machinery, equipment and raw materials.

Alhaji Yakubu-Tali, who was addressing participants 13th National Farmer’s Forum in Koforidua on Thursday, December 1 said: “The over-119 percent increase in agric finance has come on the back of our strategy to refocus the bank onto its original mandate of providing financial intermediation to the sector and to do more in the coming years”.

Explaining the need for increased funding into the sector amid the current global challenges, Mr. Yakubu-Tali called for more investments into the sector to improve food security and engender a shift from the traditional production of raw materials to value addition for both local consumption and export to earn forex.

“As the new Managing Director of ADB, I wish to promise our farmers, fishers and all players within the agric value chain that the bank will continue to position itself well enough to provide the needed support for growth of the sector,” he assured.

Bank’s applaud government for GH¢500m agro-credit scheme

Following presentation of the 2023 budget, ADB indicated that it welcomes government’s pledge to establish a GH¢500million special credit programme through the Development Bank Ghana (DBG) to focus on poultry, rice and cereals, and some other sectors of the economy.

This initiative by government, according to Mr. Yakubu-Tali, will tremendously de-risk financing for agriculture with government’s pledge to introduce an agricultural insurance product through the Ghana Agricultural insurance pool with an additional estimated amount of US$400million.

The global economic challenges, he said, present a perfect opportunity for the agric sector to reposition itself for growth, adding: “There is also a need to improve on value addition to our farm produce in order to earn more as a country.

“I am glad to reiterate that ADB has been a key driver of the 1D1F policy initiative, as well as other government policies designed to facilitate value addition and overall growth of the sector,” Mr. Yakubu-Tali stated.

The new ADB boss commended government through the Ministry of Food and Agriculture led by sector minister Dr. Owusu Afriyie Akoto and the Minister of Fisheries and Aquaculture Development, Madam Mavis Hawa Koomson; Deputy Ministers and other Directors at both ministries for their hard work and contributions to the sector.