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US Commits $25 Mn to Boost Agri Sector in Ghana through Increased Lending Support

USAID has already facilitated access to over USD 204 million in financing for 33,000 agribusinesses through partner financial institutions since 2020. The newly formed partnership will further expand financial opportunities for a diverse range of agricultural borrowers.

Shivam Dwivedi
US Commits $25 Mn to Boost Agri Sector in Ghana through Increased Lending Support (Photo Source: Pixabay)
US Commits $25 Mn to Boost Agri Sector in Ghana through Increased Lending Support (Photo Source: Pixabay)

The United States Government has joined forces with two prominent Ghanaian financial institutions, Absa Bank Ghana and Opportunity International Savings and Loans, in an effort to provide USD 25 million in new financing to micro, small, and medium-sized enterprises (MSMEs) operating within Ghana's agricultural sector.

This groundbreaking collaboration, spearheaded by the U.S. International Development Finance Corporation (DFC) in close coordination with the U.S. Agency for International Development (USAID), aims to mitigate risks and expand credit opportunities for regions and borrowers that have traditionally struggled to access bank loans, particularly in northern Ghana.

Kimberly Rosen, the Mission Director of USAID/Ghana, stated that agriculture plays a vital role in Ghana's economy. She mentioned that it offers employment opportunities, ensures food security, and addresses nutritional needs. According to her, the U.S. government is fully committed to supporting Ghana in maximizing its agricultural potential. They aim to facilitate the growth of small businesses operating within the agriculture sector. She further explained that these strategic partnerships demonstrate their ongoing dedication to fostering the success of Ghana's private sector and driving economic growth throughout the country.

Jim Polan, the Vice President of DFC's Office of Development Credit, highlighted the significance of expanding financial access for MSMEs in the agricultural sector. He emphasized that strengthening Ghana's economy and ensuring food security heavily rely on enhancing access to financing for MSMEs in the agriculture sector. Polan mentioned that DFC remains steadfast in its commitment to supporting agricultural projects that empower small businesses, promote healthier populations, and improve livelihoods within Ghanaian communities.

The financing program will primarily concentrate on the Northern, North East, Upper East, Upper West, and Savannah regions of Ghana. These regions possess strong agricultural traditions but have faced limited access to financial resources, particularly for MSMEs operating within the agriculture sector. The initiative aims to enhance financial inclusion and enable agribusinesses to increase the value of their products from production to consumption—an integral aspect of Ghana's economic prosperity.

Interested individuals and organizations are encouraged to reach out to their nearest Absa Bank Ghana or Opportunity International Savings and Loans branch for additional information on this transformative initiative.

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