By Jibril Abdul Mumuni
Accra, May 31, GNA- The Mastercard Foundation, in collaboration with CrossBoundary Advisory, has launched the Bridge-in Agriculture Programme, an initiative designed to provide loans at lower interest rates for Small and Medium-sized Enterprises (SMEs) in agriculture.
The programme aims to offer loans to agricultural SMEs at a maximum interest rate of 7 per cent, significantly lower than the prevailing rate of 35 per cent offered by commercial banks.
The agricultural-focused programme was launched in Accra and included an exhibition and success stories from partners such as Tropical Snacks, Gustav Restaurant, and Wobil Technologies.
Ms Fanta Code, Managing Director of CrossBoundary Advisory, stated that SMEs in Ghana’s agriculture sector faced major obstacles, including a lack of finance, volatility, and insufficient credit history.
She highlighted that although agriculture contributed 20 per cent of Ghana’s Gross Domestic Product and employed 40 per cent of the population, the sector received only 10 per cent of the total financing, approximately $2 billion.
Ms Code noted that the situation underscored the significant financing gap within the agriculture sector, leaving SMEs with substantial financial challenges.
According to Miss Code the Bridge-in Agriculture programme was designed to incentivise banks for a five-year period to lend to agriculture and adjacent sectors.
“While specifically targeting underserved populations, with the hope that after five years, banks will continue lending to these sectors based on the experience, learnings, and relationships gathered through the programme,” she said.
She said through Bridge, several banks were receiving zero per cent interest repayable loans from the Mastercard Foundation.
Ms Code added that Bridge-in Agriculture Programme aimed to achieve a bold and ambitious target of impacting 400,000 young people, 70 per cent of whom would be women.
Mr. John Dumelo, Deputy Minister of Agriculture, said the programme aligned deeply with the Ministry’s agenda and the Feed Ghana Programme.
The Programme sought to ensure year-round production, improve productivity, and scale food systems resilience.
He said the Bridge-in Agriculture Programme complemented these efforts by directly targeting the structural bottlenecks that limited agricultural productivity, particularly access to affordable capital and technical skills.
The Minister, however, emphasised that despite these prospects and initiatives, players in the agriculture sector must explore how to address the financing gap.
He said the Programme represented not just an intervention but a strategic breakthrough, allocating $87 million through partner banks to support agribusiness.
GNA
Christian Akorlie