A major financial boost is on the horizon for smallholder farmers and agribusinesses in northern Ghana following the launch of a $1 million revolving fund by the Ministry of Food and Agriculture. This initiative, aimed at improving agricultural development and food security, is expected to breathe new life into farming communities, particularly women-led groups engaged in the cultivation of crops such as groundnut, soybean, and cowpea.
The announcement was made during a significant event that brought together key stakeholders in the agricultural and financial sectors. The Minister of Food and Agriculture, Eric Opoku, led the charge, formally launching the fund and overseeing the signing of a memorandum of understanding with ARB Apex Bank. This bank, known for its extensive network of rural and community banks, has been entrusted with managing the fund to ensure it reaches the intended beneficiaries efficiently.
With funding support from the Global Agriculture and Food Security Programme (GAFSP) and the African Development Bank (AfDB), the initiative is part of a broader $20 million grant under the Northern Savannah Ecological Zone project. The objective is clear: to empower vulnerable farmers, especially women, with affordable credit, modern farming tools, and increased access to mechanisation. The fund will also back micro-enterprises operating along the agricultural value chain, helping them expand operations and enhance their resilience against climate and market shocks.
As part of its operations, ARB Apex Bank will access the fund at a nominal interest rate of 1 percent and lend to local farmers and agribusinesses at a reasonable rate of 10 percent. This approach is intended to ensure sustainability while keeping support accessible to the grassroots.
Twelve districts across six regions, including the five regions of the north and the Oti Region, have been selected for the rollout. Communities like Tamale Metro, Mion, Nanton, Savelugu, Bole, Wa, and Bawku West are among the beneficiaries. These areas will also receive solar-powered micro-irrigation kits for year-round vegetable farming and enhanced poultry production to improve local nutrition.
Minister Eric Opoku acknowledged the importance of this initiative in transforming Ghana’s agricultural sector, noting its alignment with the government’s Agriculture for Economic Transformation Agenda and the recently introduced Feed Ghana Programme. He emphasised that success would largely depend on how transparently and responsibly the fund is managed.
He also highlighted the project’s roots in the successful Savannah Investment Programme and expressed optimism that the new fund would scale up proven interventions to reach over 50,000 beneficiaries, with a particular focus on 30,000 women. The aim, he reiterated, is to build resilient food systems and sustainable livelihoods that uplift entire communities.
ARB Apex Bank’s Managing Director, Alex Kwasi Awuah, expressed appreciation to the government for its trust in the bank. With over 850 service points nationwide, he assured stakeholders of the bank’s readiness to deliver on its mandate. He affirmed that the bank would uphold its track record in managing government-backed programmes and ensure timely loan recoveries and accurate reporting.
This development marks a major step in supporting rural livelihoods and building a more food-secure future for Ghana, especially in the country’s most agriculturally vulnerable regions.
blogpay
Total Comments: 0