$19 million USAID-supported project improves agribusiness financing, activities
A $19million United States Agency for International Development (USAID) supported project which seeks to improve access to finance for agribusinesses in the country is making inroads.
Implemented under the name, Feed the Future Ghana Mobilising Finance in Agriculture (MFA) Activity, some smallholder farmers in the Northern, North East, Upper East and Upper West regions who are beneficiaries have commended the project for helping to obtain timely farming inputs at the start of the crop season.
Advertisement
Citing one major intervention, they said the delay in government subsidised inputs and lack of funds to access tractor services was averted through the support of the MFA project.
Apart from the funds, the finance modules under the activity help banks to provide better services to agribusinesses. It also provides jobs and income for smallholder farmers.
Over the next five years, it will also release $261 million in finance and create long-lasting changes in Ghana’s financial system.
Experience
A smallholder farmer in the Garu District in the Upper East Region, Mr Wanche Labil, said through local supplier, Faranaya Agribusiness Services that secured financing under MFA, he received inputs on time.
“When the subsidised inputs did not arrive on time, we were worried that we would not be able to plant this season. But the timely supply of inputs by Faranaya helped us to plant on time and even cultivate additional land,” he said.
Another farmer in the Upper West Region, Ms Rukaya Habere, said she used a tractor rather than a bullock plow to prepare her farm for planting maize.
Indeed, she is one of the 206 smallholder farmers in the community of Du East who now have access to tractor services.
“The arrival of tractor is gratifying. I was able to prepare eight acres instead of my usual five acres of land to plant more maize. I did not have to join the long queue for bullock plow which could delay planting and result in lower yields,” she said.
Target crops
The MFA helps enterprises obtain quality support from local business advisory providers (BASP) to secure loans and investment, and also supports financial institutions to expand lending to agribusinesses.
“The finance received will enable farmers to purchase agricultural inputs, boost production, invest in processing or undertake other activities to expand their businesses,” a policy brief by the MFA stated.
It said the goal was to increase the amount of commercial financing available for agric to enable capital investment and trade.
The MFA supports agribusinesses working in maize, cowpea, groundnut and soy in the Northern, North East, Upper East and Upper West regions of Ghana.
On a national level, the activity supports businesses working with mango, cashew, shea and other crops that have the potential to accelerate exports.
Enterprises buying from or selling to producers of these crops are also eligible for assistance to access finance.
Support
The MFA provides training, technical support and incentives to tackle challenges that limit access to appropriate finance for agribusinesses to access finance.
Specifically, the activity helps agribusinesses to obtain financing by improving the delivery of businesses advisory services, including one-to-one support to agricultural clients to identify the right source of funding and complete loan applications or investment negotiations.
In relation to expanding the supply of agricultural finance, the MFA provides training and incentive grants to financial institutions to help them lend to agribusinesses at lower risk.
“In terms of building partnerships that expand access to finance for the smallest actors, the MFA connects agricultural actors such as agric investors, corporations and private sector associations, technology firms to create new business models that increase smallholder farmer and microenterprise access to affordable financing.”
The MFA helps enterprises obtain quality support from local business advisory providers (BASP) to secure loans and investment, and also supports financial institutions to expand lending to agribusinesses.
“The finance received will enable farmers to purchase agricultural inputs, boost production, invest in processing or undertake other activities to expand their businesses,” a policy brief by the MFA stated.
It said the goal was to increase the amount of commercial financing available for agric to enable capital investment and trade.
Keynote
- In Ghana, Feed the Future focuses efforts in Northern Ghana, where farming is dominated by smallholder farmers who produce food and cash crops
- It also supports agricultural trade and investment activities across Ghana to diversify its export base and increase employment, including fishing.