Rain-fed Agriculture less attractive for investment in Builsa District

Sandema (UE), Oct 6, GNA - Rain-fed agriculture in the Builsa District of the Upper East Region has become a high-risk sector for investment, Mr Cletus Achaab, Board Chairman of the Builsa Community Bank (BUCOBANK) has said.

He said the Bank's credit to the sector has declined from about 142 million cedis in 2001 to a little above 44.7 million cedis in 2002, mainly because the unreliable rainfall pattern increasingly leads to poor crop yields and, thus farmers inability to pay back loans.

The Board Chairman, who was speaking at the 5th Annual General Meeting (AGM) of BUCOBANK at Sandema on Saturday, therefore, appealed to government and its development partners to provide the people with more dugouts and small-scale irrigation dams to boost dry season farming. Mr Achaab, an Agriculturalist, said as the main occupation of the people, the over dependence on rain-fed subsistence farming will greatly increase the incomes of the people as well as stem to tide of the youth migration from the area to the urban centres.

He said the Bank in its own small way is actively collaborating with some government agencies, such as the Vllage Infrastructure Project (VIP), Social Investment Fund (SIF), and UNICEF to implement various micro credit schemes in its catchment areas.

Mr Achaab said as part of the Bank's social responsibility to the development of the area, it has disbursed more than six million cedis to various community initiatives, despite a 30 percent fall in its profit for 2002.

The Upper East Regional Minister, Mr Mahami Salifu, who was the guest of honour urged BUCOBANK to assist in the development of the abundant tourist attractions in the Builsa District.

He said it is common knowledge that tourism has a great potential of generating the needed revenue for socio-economic development, emphasizing that businesses should be assisted with funds to invest in the provision of guest houses and decent, but modest restaurants. The Regional Minister also urged the Bank to expand its scholarship scheme to cover more needy but brilliant students. "By so doing, you would be contributing to developing the human capital of the Builsa District and the nation at large," he said.

The Managing Director of the ARB Apex Bank, Mr Emmanuel K. Kwapong appealed to shareholders of the Bank to increase their shareholding to enable it to expand its activities.

He said the Apex Bank was purposely established to provide banking and non-banking services to Rural Banks to enhance their operations in the communities.

Mr Kwapong said, among other services, the Apex Bank is in the process of linking all Rural and Community Banks through a wide area network to facilitate sharing of information and improved customer services. 06 OCT. 03