Deputy Finance Minister Abena Osei-Asare has indicated the government’s ambitious plan to propel Ghana’s agricultural sector to new heights.
Speaking at a breakfast meeting on Agriculture and Agribusiness financing held in Accra on Monday (16 October), Osei-Asare highlighted the country’s significant agricultural potential, especially within the framework of the African Continental Free Trade Area (AfCFTA).
The Deputy Finance Minister however expressed concern about the inadequate financial support for agriculture, given its strategic importance. She emphasized that the agricultural sector has the potential to address inflation pressures, reduce food imports, boost exports, and create jobs for the youth.
“Specifically, Agriculture, Forestry and Fishing received just about 3.4 per cent of total credit from the Banking Sector. This compares unfavourably to the 30 per cent that went to the Service Sector as well as the 21 per cent that went to the Commerce and Finance sector, according to the Bank of Ghana (June 2021)”.
“This level of financing to a critical growth engine of the economy is unhelpful. To note that the manufacturing sector also receives just about 11 per cent of credit from the financial sector reveals, in part, the vulnerabilities within our economy”, she said.
The Deuty Minister indicated that the government is working on a Growth Strategy aimed at improving access to long-term financing for capital investment in the private sector. This strategy, she said, leverages the strength of the country’s financial ecosystem, including the Development Bank Ghana, GIRSAL, Ghana EXIM Bank, Venture Capital Fund, and Ghana Commodity Exchange.
“We have worked with our international partners and the Bank of Ghana to set up the Development Bank Ghana, whose CEO is in our mist, to increase availability of wholesale long-term funding. This is to enable our banks offer long-term retail loans without creating maturity mismatches.
In addition, we are working with the Bank of Ghana and the Security and Exchange Commission to deepen the capital market to make it a viable alternative funding sources for enterprises”, the Atiwa East lawmaker noted.
The forum provided a valuable platform for practitioners to assess progress and share insights into promoting agri-business-led growth for the Ghanaian economy.
The Deputy Finance Minister urged stronger partnerships and collaboration among stakeholders for a more prosperous future.
SOURCE: DAILY MAIL GH
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