How financial institutions can drive sustainable food systems in Ghana

Sustainable agriculture is fundamentally about ensuring that future generations can meet their needs while addressing the pressing food and nutritional demands of today.

In Ghana, where the population is projected to rise from 33 million to over 50 million in the next two decades, the need for action is urgent. 

Stakeholders must move beyond rhetoric and take bold, decisive steps to secure the nation's food future – without sacrificing the health of our soils, water resources and biodiversity.

At its heart, sustainability means using resources – whether fertile fields or flowing rivers – in ways that leave them better than we found them, or at the very least, intact. In agriculture, this translates into practices that restore soil health, conserve water and minimise environmental harm. 

Sustainable agriculture is, therefore, not merely an environmental aspiration; it is an economic and social imperative, deeply entwined with the future prosperity and resilience of our nation.

Sustainable food systems

The role of financial institutions in Ghana’s agricultural transformation cannot be overstated. Banks and financial services occupy a crucial spot in enabling businesses to grow, innovate and survive. In the context of agriculture, particularly food production, this role is even more significant because food is a primary human need.

If Ghana cannot meet its growing food and nutrition demands sustainably, we face not just economic setbacks but threats to national security and public health. Thus, financial institutions have a duty beyond profit-making. 

Therefore, at Stanbic Bank, we believe in touching lives and leaving society better than we found it. Investing in sustainable agriculture is not only commercially viable but a meaningful contribution to ensuring food security for generations to come.

Global bodies such as the Food and Agriculture Organisation (FAO) predict that food production needs to grow by at least 70 per cent over the next decade to meet global needs. Locally, with our rapidly expanding population, we must intensify agricultural production – but in ways that do not deplete our finite natural resources. 

By prioritising funding for sustainable food initiatives, banks are anchoring themselves firmly within the broader conversation of national and global sustainability, not only addressing ESG expectations but also building long-term resilience into their own portfolios.

Investment

One of the greatest challenges in agricultural financing remains the perceived high risk of the sector. Traditionally, agriculture has been seen as a game of chance, highly dependent on erratic weather patterns. 

In recent years, prolonged dry spells have devastated harvests, especially for staple crops like maize, rice and soya. To address this, financial institutions must champion investments in more reliable systems such as irrigation schemes.

Ghana currently irrigates only about 1.7 per cent of its arable land, significantly trailing its regional counterparts. Increasing irrigation – even through simple interventions like boreholes – can make a transformative difference. 

However, building sustainable irrigation requires patient capital and private sector-led models to ensure ownership, maintenance and long-term viability. 

Beyond irrigation, de-risking must involve developing robust crop and livestock insurance schemes and innovative financial products, such as inventory financing, that allow farmers to pledge stored harvests as collateral. Through these innovations, we can shift agriculture from a high-risk venture to an investable, predictable business – paving the way for expanded financing.

Financial innovation

At Stanbic Bank Ghana, we recognise that traditional financial solutions do not fit the nuanced needs of the agriculture sector.

That is why we have built sector expertise within the bank, hiring agricultural specialists who understand the dynamics and cycles of agribusiness.

Our approach goes beyond offering plain vanilla products; instead, we provide tailored financial solutions that respond directly to the realities on the ground.

Through initiatives like our Africa-China banking proposition, we connect agricultural businesses with partners and suppliers in China, facilitating access to essential technologies such as farm machinery and processing equipment.

We have also forged partnerships with development finance institutions like the World Bank, IFC, AfDB and the Mastercard Foundation, enabling us to offer concessional lending and de-risk the agricultural sector. 

Moreover, recognising the shift towards digitalisation, Stanbic Bank has invested heavily in digital platforms, ensuring that farmers and agribusinesses can access financial services conveniently without wasting productive time in banking halls.

These interventions signal a deliberate, comprehensive strategy to support and grow Ghana’s sustainable food systems.

Empowerment

Achieving sustainable food systems will not happen overnight. Some gaps must be addressed. Financial institutions must deepen their understanding of agriculture, which calls for a rethink of how we train and develop human capital in agricultural finance. More specialised education and skills development are needed to close knowledge gaps that stifle innovation in agricultural financing.

On the policy front, we must invest in the development of sector-specific financial products. Robust crop insurance, structured trade finance for inventory and more tailored credit schemes for agribusinesses are not luxuries but necessities.

Farmers themselves must also be empowered with the tools for adaptation and mitigation. They need access to improved seed varieties that mature faster and withstand climate extremes, as well as knowledge about regenerative practices like cover cropping, multi-cropping and reduced chemical use.

By embracing these innovations, farmers can both improve yields and protect the ecosystems they depend on.

Promoting sustainable food systems in Ghana is a shared responsibility. Financial institutions have a critical role to play, not just as funders, but as true partners in building a resilient, inclusive and sustainable agricultural economy.

By doing so, we are not only ensuring our business success but safeguarding the future prosperity of our nation. 

The writer is the Head of AgriBusiness, Business & Commercial Banking at Stanbic Bank Ghana