SEC believes the initiative will address the long-standing challenges the industry players face in securing credit from financial institutions. Sustainable financing of agriculture investments is said to be a critical factor in enhancing operations of Ghanaian farmers.
Smallholder farmers and other actors in the sector are constrained throughout the production, marketing and distribution stages of their operations.
Over the years there have been calls on government to incorporate farmers’ access to financial service into national policies or set up financial instruments which can help the sector grow. Though there have been targeted financing, especially with the reformed Export Development and Agricultural Investment Fund (EDAIF) which is a step to propel the growth of Ghana’s agriculture and food processing industry such interventions have yet to rake in the desired impact. And what is sad is that financial institutions over the years have been reluctant in extending credit to the agric sector over high risks associated with the sector.
Director General of the Securities and Exchange Commission Adu Anane Antwi says the agric sector needs to have an investment fund.
“We have neglected the sector; if you have a sector that lacks resources what do you think would happen to it. People were just relying on their strength to do the farming so if their strength fails them what happens. I think the time has come for us to come out with agric fund which would seek to support the sector as we have done for the oil and gas sector. That would help us not to kill the sector which has sustained us all these years.”