Honorable Fifi Kwetey, Minister of Food and Agriculture, and other distinguished guests gathered at the second annual Ghana Agribusiness Investment Summit. The event highlighted progress made since the previous summit in facilitating investments into Ghana's agribusiness sector.
USAID, through its Financing Ghanaian Agriculture Project (FinGAP), has played a significant role in channeling over $15 million into agribusinesses focusing on rice, maize, and soy value chains. However, access to finance remains a major hurdle for developing commercial agriculture in Ghana due to financial institutions' reluctance caused by perceived risks.
The summit's theme was "Overcoming Obstacles to Unlocking Agricultural Investments in Ghana." It aimed to address credit constraints faced by more than 3 million Ghanaians living with food insecurity, primarily in rural areas of northern Ghana.
The dialogue underscored President Obama's Feed the Future Initiative which targets transforming the agriculture sector. Additionally, under the Partnership for Growth initiative, the U.S. Government has committed to improving access to credit.
USAID’s FinGAP offers technical assistance and incentives for financing agribusiness through partnerships and a Business Advisory Service providers’ network. Access to credit is especially challenging for Small and Medium Enterprises within the agricultural sector where only about 4% of lending occurs.
The importance of private sector investment in agriculture value chains was emphasized as vital for reducing poverty and fostering economic growth. Addressing high credit costs is crucial for attracting more investments into this sector.
Efforts like FinGAP align with USAID’s objective of promoting broad-based economic growth in Ghana. Since last year's summit, notable progress has been observed with anticipation of further achievements ahead. The U.S. Government remains dedicated to assisting Ghana improve its financial infrastructure and access to finance towards overcoming investment obstacles.