The Minister for Trade and Agribusiness, Elizabeth Ofosu-Adjare, has called on financial institutions to offer affordable and long-term financing options to support the growth of agribusiness in Ghana.
Speaking on The Point of View on Channel One TV with Bernard Avle on Wednesday, July 30, the Minister noted that the high cost of financing in Ghana remains a major challenge for agribusinesses, compared to more favourable conditions in other countries.
She praised the efforts of President John Dramani Mahama in creating a more favourable business environment, particularly with regard to interest rates, but insisted that banks must do more to support the sector.
“To enable you to do agribusiness, financing is very key. In other jurisdictions, the cost of financing is good. In Ghana, the cost of financing is very high. And so, we continue to engage the financial institutions to let them know that if you’re financing agribusiness, the rate of interest has to be looked at.
She stressed, “Fortunately, now, H.E John Dramani Mahama has created the enabling environment for businesses to thrive relative to interest rates, so we think that is a step in the right direction.
“The banks can also do better by giving long-term loans to agribusinesses. Because it takes time for you to introduce a product for the product to get attention, before you can get the required sales.”
Ofosu-Adjare stressed the importance of long-term loans for agribusinesses, which often take time to become profitable.
“If you take a short-term loan, you’re not likely to succeed and cannot be competitive. And so, we brought the financial institutions to understand what agribusiness brings to the table and the need for them to finance agribusiness,” she stated.
Her remarks come in the wake of the National Agribusiness Dialogue, launched on Monday, July 28. The event brought together stakeholders in agriculture, trade, and industry to develop strategies for advancing Ghana’s agribusiness sector.
The dialogue forms part of the Mahama administration’s broader efforts to modernise agriculture, boost industrial productivity, and improve rural livelihoods.
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