The Minister of Food and Agriculture, Eric Opoku, has launched a $1 million revolving fund to enhance agricultural development and food security in northern Ghana.

As part of the project, the ministry has signed a memorandum of understanding (MoU) with the ARB Apex Bank to manage the fund to support vulnerable groups and strengthen the resilience of smallholder farmers.

The fund, supported by Global Agriculture and Food Security Programme (GAFSP), and the African Development Bank (AfDB), formed part of a $20 million grant aimed at building resilience for food and nutrition security in the Northern Savannah Ecological Zone project.

The project would offer timely and affordable credit support to smallholder farmers, especially women groups engaged in vegetable production, and the cultivation of women-led crops such as groundnut, cowpea and soybean.

It is also to support micro-enterprises and agribusinesses operating along the agricultural value chain to expand their operations and improve their resilience.

ARB Apex Bank was selected to manage the fund due to its extensive network of rural and community banks (RCBs) across the project regions.

It is expected to facilitate efficient disbursement and monitoring of funds, and also offers the potential for reaching target beneficiaries.

As part of the agreement, ARB Apex Bank will borrow at a nominal interest rate of 1 per cent and lend to local beneficiaries at 10 per cent.

Beneficiaries

The project is currently being implemented in 12 selected districts across six regions.

The beneficiary regions are the five regions of the north, and the Oti Region. 

The selected districts are the Tamale Metro, Mion, Nanton, Savelugu, East Mamprusi, West Gonja, Bole, Wa, Sissala, Nandom, Krachi East, East Mamprugu, Bawku West, Nandom and Mamprugu-Moagduri.

It would also include the provision of solar-powered micro-irrigation kits for off-season vegetable production, as well as enhancement of access to agricultural mechanisation services, including hand-held equipment and the promotion of household poultry production to increase nutritional availability.

Relevance

The Minister of Food and Agriculture, Eric Opoku, expressed gratitude to GAFSP for the $20 million grant to Ghana for the project.

"This project is not only about providing financial support but creating sustainable and resilient food systems that will improve livelihoods in our communities.

“By concentrating our efforts in a smaller number of districts, we aim to achieve maximum and measurable impact,” he said.

The minister said that the project was anchored on the successful experiences of the Savannah Investment Programme (SIP), and seeks to scale up proven interventions to reach more beneficiaries, especially women and youth who are often the most vulnerable in agricultural communities.

Mr Opoku further said that the project aligned with the government’s Agriculture for Economic Transformation Agenda (AETA), and a recently launched Feed Ghana Programme.

“The aim is clear - to dramatically improve the livelihoods of over 50,000 beneficiaries, with a particular focus on assisting 30,000 women,” he added.

The minister, however, said that the fund would depend on how effectively and responsibly it was managed and disbursed.

Appreciation

The Managing Director of the ARB Apex Bank, Alex Kwasi Awuah, thanked the government for the  opportunity to be part of the project, saying ‘’we have come a long way with the Savannah Investment Programme in the design and development of this initiative, and we are grateful to see it come to fruition,’’he said.

“The bank serves as a mini central bank for the 147 rural and community banks across the country.

With over 850 service locations nationwide, we are indeed close to the people. 

‘’We are confident in our ability to implement this project successfully, ensure timely loan recoveries and provide accurate reports that will allow more people to benefit in the future,” he said.

Mr Awuah added that the bank would work diligently to uphold the reputation it had built over the years in the implementation of government projects.