Absa Bank provides $20m to support micro, small businesses in agric
The Absa Bank, in partnership with the United States Government, is supporting a $20 million financing programme aimed at bolstering agricultural micro, small and medium-sized enterprises (MSMEs) in Ghana.
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The financing programme will focus on the Northern, Northeast, Upper East, Upper West and Savannah regions of Ghana, known to have strong agricultural traditions that have lacked access to financing, particularly for MSMEs in the agriculture sector.
The goal of the initiative is to increase financial inclusion and support agribusinesses to increase the value of their products from production to consumption, which is critical to the success of Ghana’s economy.
The programme is expected to generate employment opportunities, improve food security and contribute to the overall economic development of the country.
Partnership
A release issued in Accra and copied to the Daily Graphic, said “The partnership underscores Absa Bank's dedication to fostering financial inclusion in the agricultural sector of Ghana. It aligns with the bank's broader commitment of supporting the growth of MSMEs and empowering local farmers and agribusinesses.
The partnership, led by the US International Development Finance Corporation (DFC) in coordination with the USAID, will have Absa Bank Ghana supporting up to $20 million in lending by lowering risk and helping expand credit to regions and borrowers that do not typically have access to bank loans, particularly in northern Ghana.”
Collaboration
Speaking at the partnership signing ceremony,the Business Banking Director at Absa Bank,Grace Anim-Yeboah, said "We are delighted to collaborate with USAID and other partners on this important initiative. Agriculture is a cornerstone of the Ghanaian economy and supporting MSMEs in this sector is crucial for driving economic growth and prosperity. We believe that this partnership will have a meaningful impact on local farmers and agribusinesses, helping them reach new heights of success."
"We are confident that this initiative will not only improve the livelihoods of small-scale farmers but also contribute to the sustainability and resilience of Ghana's agricultural sector," Ms Anim-Yeboah added.
The CEO of US International DFC, Scott Nathan in the release said, “The US government is committed to supporting Ghana to fully maximise its agricultural potential through the expansion of small businesses in the agriculture sector.
These partnerships demonstrate our ongoing commitment to the success of Ghana’s private sector and economic growth in the country.”
The US Ambassador to Ghana, Virginia Palmer, who was present at the ceremony, expressed delight that the two have been able to pull the partnership off to support the growth of agribusinesses.
She indicated that the DFC was committed to supporting agriculture projects that advance small businesses, promote healthy populations and improve the livelihoods of communities in Ghana. “Expanding access to financing for MSMEs in the agriculture sector is critical for strengthening Ghana’s economy and bolstering its food security,”she added.