THE United States (US) government has partnered with two Ghanaian financial institutions, Absa Bank Ghana and Opportunity International Savings and Loans, to extend $25 million in new financing to micro, small, and medium-sized enterprises (MSMEs) in Ghana’s agricultural sector.
The partnerships, led by the U.S. International Development Finance Corporation (DFC) in coordination with the U.S. Agency for International Development (USAID), will support up to $20 million in lending from Absa Bank Ghana and up to $5 million in lending from Opportunity International Savings and Loans by lowering risk and helping expand credit to regions and borrowers that do not typically have access to bank loans, particularly in northern Ghana.
“Agriculture is a vital contributor to Ghana’s economy, providing employment, food security, and nutrition,” said USAID/Ghana Mission Director Kimberly Rosen. “The U.S. government is committed to helping Ghana fully maximize its agricultural potential by supporting the expansion of small businesses in the agriculture sector. These partnerships demonstrate our ongoing commitment to the success of Ghana’s private sector, and economic growth in the country.”
“Expanding access to financing for MSMEs in the agriculture sector is critical for strengthening Ghana’s economy and bolstering its food security,” said Jim Polan, Vice President of DFC’s Office of Development Credit. “DFC is committed to supporting agriculture projects that support small businesses, promote healthy populations, and improve the livelihoods of communities in Ghana.”
The focus of the financing program will be on the Northern, North East, Upper East, Upper West, and Savannah regions of Ghana, regions with strong agricultural traditions that have lacked access to financing, particularly for MSMEs in the agriculture sector. The goal of the initiative is to increase financial inclusion and support agribusinesses to increase the value of their products from production to consumption, which is critical to the success of Ghana’s economy.
Since 2020, USAID has supported 33,000 agribusinesses to access over $204 million in financing through partner financial institutions. This new partnership will further expand finance for diverse agricultural borrowers. Interested parties should contact their nearest Absa Bank Ghana or Opportunity International Savings and Loans branch for additional information.