By Edward Adjei FRIMPONG
An agribusiness expert, Dr. Victor Antwi, has underscored the need for the government and relevant stakeholders to collaborate with financial institutions to develop collateral-free, agribusiness-focused financial products.
He emphasized that such tailored solutions are critical to accelerating the growth and development of agribusinesses—particularly in primary production, where many smallholder farmers operate—toward achieving improved and sustainable development.
He noted: “Banks need to be supported to develop financial products that are not collateral-based, but instead rely on cash flow. Processors, downstream buyers and aggregators could be refinanced to enable onward financing of smallholder farmer activities, where repayment would be made in produce after harvest to the downstream companies.”
Speaking in an interview with the 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 are unfamiliar with the yield patterns of a particular crop, it becomes difficult to estimate cash flow accurately. Financial institutions must understand, for example, that cultivating cereals and legumes typically requires a repayment period of about six months. Additionally, funds should be disbursed at least a month before the commencement of production,” he explained.
Access to financing continues to pose a significant challenge for players in the agricultural sector, particularly smallholder farmers, who represent the majority of the country’s agricultural workforce.
Financial institutions are often reluctant to extend credit to these bottom-of-the-pyramid actors, largely due to the rain-fed nature of their operations and their inability to provide the collateral typically required to secure loans.
The Agribusiness Expert recommended the adoption of proven financing models such as the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) project to address the persistent challenge of limited access to finance in the sector, often driven by perceived risk.
The MFA, a five-year initiative supported by USAID, aimed to improve access to finance for farmers and agribusinesses. Through the project, transaction advisors worked directly with agribusinesses to secure loans and attract investment.
In parallel, MFA partnered with a variety of financial institutions to expand lending for agricultural input purchases—such as improved seeds and fertilizers—as well as investments in processing, production expansion, and operational scaling.
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 beneficiaries smuggle inputs instead of using them productively, and many farmers who receive support fail to repay,” he noted.
He cited the recently launched Feed Ghana Programme, by President John Dramani Mahama in Techiman, as a commendable initiative. However, he expressed cautious optimism about its implementation, stating, “Let’s see how it goes—whether the right people receive the funds and incentives.”
The Feed Ghana Programme serves as the flagship initiative under the broader Agriculture for Economic Transformation Agenda (AETA). It aims to modernize agriculture, create jobs, reduce food inflation, and accelerate agro-industrial development.
Key components of the programme include prioritizing strategic commodities such as maize, rice, and cocoa, and implementing targeted interventions to promote smart farming practices nationwide.
