By Edward Adjei FRIMPONG
Dr. Victor Antwi, an expert in agribusiness, has emphasized the importance of collaboration between the government, key players in the sector, and financial institutions to create loan options without collaterals specifically designed for agribusinesses.
He stressed that these customized approaches are essential for boosting the expansion and progress of agribusinesses—especially within primary production, where numerous small-scale farmers work—with the aim of attaining better and more sustainable development outcomes.
He stated: “It is essential to support banks in developing financial products that do not require collateral but rather depend on cash flow. Downstream buyers, processors, and aggregators could undergo refinancing to facilitate further funding for smallholder farmers’ initiatives. Repayment should occur post-harvest through delivery of goods directly to these downstream enterprises.”
In an interview with them, he said
Business and Financial Times
, Dr. Antwi stressed the need for capacity building within financial institutions to help them better appreciate the unique dynamics of agribusiness and understand the intricacies of production systems.
“If you lack knowledge about the yield cycles of a specific crop, estimating accurate cash flows can become challenging. For instance, financial institutions need to recognize that growing grains and pulses usually demands a repayment timeframe of around six months. Moreover, funding should ideally be released at least one month prior to starting production,” he clarified.
Obtaining funding remains a major hurdle for individuals in the agriculture industry, especially for small-scale farmers, who make up the bulk of the nation’s farming labor force.
Banks frequently hesitate to offer loans to those at the base of the economic pyramid, mainly because their activities rely heavily on rainfall and they cannot furnish the usual collateral needed for loan approval.
The Agribusiness Specialist suggested implementing established funding approaches like the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) initiative to tackle the ongoing issue of restricted financial accessibility within the industry, typically due to perceived risks.
The MFA, a five-year program funded by USAID, was designed to enhance financial accessibility for farmers and agricultural businesses. As part of this effort, transaction advisors collaborated closely with agribusinesses to facilitate loan acquisition and draw in investments.
Simultaneously, MFA collaborated with numerous financial institutions to broaden loans aimed at purchasing agricultural inputs like enhanced seeds and fertilizers. Additionally, they supported financing for improvements in processing facilities, increasing production capabilities, and expanding operations.
The project successfully unlocked a total of US$330.62 million in financing, benefiting 142,272 agribusinesses operating across diverse agricultural value chains including maize, soy, cashew, shea, mango, cowpea and groundnut.
National agricultural programmes
Commenting on the failed implementation of national agricultural programmes such as the Ghana National Broiler Revitalization Project and Planting for Food and Jobs, Dr. Victor Antwi attributed the setbacks to a lack of honesty among key stakeholders and called for a shift in attitudes to change the narrative.
He criticised both politicians and farmers for failing to discharge their roles responsibly during the execution of these initiatives, which were designed to enhance food security and drive economic development.
“Technocrats often design excellent policies, but implementation frequently fails. We must hold both politicians and beneficiaries accountable. Politicians tend to mix partisan interests with national policy implementation—distributing funds and inputs to party loyalists rather than to deserving farmers.
“At the same time, some recipients smuggle inputs rather than utilizing them effectively, and numerous supported farmers do not manage to repay,” he pointed out.
He pointed out the newly initiated Feed Ghana Program, started by President John Dramani Mahama in Techiman, as an admirable step. Nevertheless, he showed guarded enthusiasm regarding its execution, remarking, “We’ll have to wait and see—it depends on whether the appropriate individuals get the funding and benefits.”
The Feed Ghana Program acts as the primary project within the wider Agriculture for Economic Transformation Agenda (AETA). Its objectives include modernizing farming practices, generating employment opportunities, lowering food price inflation, and boosting the growth of agri-food industries.
The program’s key elements encompass giving priority to essential crops like maize, rice, and cocoa, along with executing focused measures to encourage intelligent agricultural methods across the country.
Provided by Syndigate Media Inc. (
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