NGO grants loans to farmers

Accra, April 10, GNA - The Rural Empowerment and Development Agency (REDA), a local non-governmental organisation, on Monday disbursed micro-credit loans totalling 20 million cedis to five crop and livestock farmers from the Eastern Region.

The loans ranged between three million cedis and 10 million cedis and are payable within a maximum period of 12 months at an interest rate of 12 per cent.

Making the presentation in Accra, Mrs Comfort Emden, Executive Director, REDA, said the credit scheme was intended to improve the commercial viability of small-scale farming and make it attractive and also raise the economic status of rural women. She said the scheme had targeted 25 beneficiaries selected from among 400 small-scale rural farmers trained in modern agricultural practices under the Leventis Foundation Farmer's Training Programme. Mrs Emden said the credit facility was introduced based on studies that show that some trainees abandoned their farming activities in search of other jobs due to lack of capital and access to credit facilities.

She said the loans would help the farmers to build up a track record and acquire assets that could be used to obtain funds from larger financial institutions.

Mrs Emden said the scheme had the overall objective of reducing poverty and hunger in rural areas, adding that five farmers from the Volta Region had earlier been given micro-credit loans totalling 19 million cedis to help them to establish sustainable agricultural businesses. 10 April 06