{"id":602858,"date":"2019-03-28T02:26:48","date_gmt":"2019-03-28T02:26:48","guid":{"rendered":"
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African Regional Programme Leader of Food and Agricultural Organisation (FAO), Dr Ade Freeman, has said about $40 million is needed to fill the financial gap in the agricultural sector.<\/span><\/p>\n

He said there was a deficit in the sector and until that amount was amassed the sector would continue to lag behind.<\/span><\/p>\n

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Dr Freeman said this at a stakeholders\u2019 engagement on agriculture financing under the Ghana Agriculture Investment Plan (<\/span>GhAIP<\/span><\/span>).<\/span><\/p>\n

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The stakeholders’ engagement was organised by the FAO, a UN agency, in collaboration with the Ministry of Food and Agriculture (MOFA) and it is expected to come up with a policy document to guide the sector.<\/span><\/p>\n

He said government <\/span>as well as development partners<\/span><\/span> were not in the position to provide the stated an amount.<\/span><\/p>\n

The Programme Leader said there is <\/span>the need<\/span><\/span> for donors, the Agricultural Development Bank to invest in the area and figure out how to leverage financing resources to power the sector.<\/span><\/p>\n

Dr Freeman called on the banks, insurance groups, partners, the World Bank to help invest in agriculture and focus on ways to address the financial gap.<\/span><\/p>\n

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Participants at the engagement were brought together to help come up with innovative ways of addressing the financial gap in the agricultural sector, he said.<\/span><\/p>\n

The engagement is also expected to find out how links would be facilitated to drive the sector, trade and growth, Dr Freeman said. <\/span><\/p>\n

This, he said, would ensure that all stakeholders are part of the solution to create more employment, reduce poverty and address hunger among others.<\/span><\/p>\n

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There was also a panel discussion to find out how agriculture can be financed, expected enablers or reforms needed to harness the full inherent and opportunities in the sector.<\/span><\/p>\n

Panel members included Mr Kwesi Korboe, who represented both MOFA and the Central Bank (BoG), Ms Barbara Ghansah of AgDevCo, Mr Tabi Karikari-AfDB, Mr George Kweku Asiamah-Fidelity Bank and Mr Andrew Ahianku of Barclays Bank.<\/span><\/p>\n

They called on the authority to educate financial institutions on agriculture since they did not understand the sector and lent money to farmers like they do with commercial interests.<\/span><\/p>\n

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The <\/span>panellists<\/span><\/span> also appealed for a bank risk mitigation tool, adding that farmers did not have collateral for loans apart from the lands.<\/span><\/p>\n

Farmers should be structured so as to reduce transaction costs in accessing agricultural credit, the panel said.<\/span><\/p>\n

There is also the need to support banks to set up agriculture desks and practicalize the implementation of financing to the agriculture sector though <\/span>GhAIP<\/span><\/span>.<\/span><\/p>\n

Infrastructure such as irrigation, good road networks and stable power would also be relevant if agriculture<\/span>, the<\/span><\/span> backbone of the country succeeds, they said.<\/span><\/p>\n<\/div>\n