Gov’t signs agreement with ARB Apex Bank to manage US$1 Million revolving fund for Northern Ghana farmers

The Government of Ghana has signed an agreement with ARB Apex Bank for the management of a US$1 million revolving fund, aimed at boosting access to financial services for smallholder farmers, especially women, in the Northern Savannah Ecological Zone.

Speaking at a brief signing ceremony at the Ministry of Food and Agriculture, Minister for Food and Agriculture, Hon. Eric Opoku, expressed appreciation to the Global Agriculture and Food Security Programme (GAFSP) for providing a US$20 million grant to support food and nutrition security in the region.

He also commended the African Development Bank (AfDB) for its technical and financial support, which has been instrumental in securing and implementing the grant.

“This project is a focused investment targeting 12 districts in six regions—five in the north and the Oti Region. It is designed to scale up successful interventions from the Savannah Investment Programme and to reach more beneficiaries, especially women and the youth,” Hon. Opoku stated.

The project seeks to increase farmer incomes and improve household nutrition through interventions such as access to climate-smart inputs, mechanization services, solar-powered irrigation kits for dry season vegetable production, and the promotion of household poultry farming.

A central component of the initiative is the establishment of the US$1 million revolving fund, which will be managed by ARB Apex Bank in partnership with its network of Rural and Community Banks (RCBs) within the project areas.

The fund is expected to provide low-interest loans at 10 percent interest with flexible repayment terms.

Hon. Opoku emphasized that the fund will prioritize women farmers engaged in vegetable cultivation and the production of groundnut, cowpea, and soybean.

Micro enterprises and agribusinesses will also have access to the fund to expand their operations, in line with government efforts to support agricultural lending under the Ghana Incentive-based Risk Sharing Agricultural Lending (GIRSAL) scheme.

“The revolving fund has come at an opportune time to empower our smallholder farmers, particularly women, to increase their productivity, raise household incomes, and address the root causes of poverty and hunger,” the Minister added.

He concluded by calling on ARB Apex Bank, its affiliated RCBs, and all project stakeholders to ensure efficient and sustainable management of the fund to guarantee tangible improvements in the livelihoods of the targeted beneficiaries.

The signing ceremony was attended by officials from the Ministry of Food and Agriculture, the Ministry of Finance, the AfDB Unit, project staff, and members of the media.

Story by: Joshua Kwabena Smith