ADB boost lending to agric

By Bernard Yaw Ashiadey

The Agricultural Development Bank (ADB) raised its lending to agriculture to Ghc63.29 million in the first half of the year, almost double the size of the portfolio in the same period of last year.

In the second quarter of 2010, a total of GHc28.48 million was approved for the agricultural sector; this increased to GHc42.92 million in the same quarter in 2011. Cumulatively, approvals for agricultural credit in January to June in 2010 came to GHc37.34 million, but shot up to Ghc63.29 million in the first half of 2011.

“ADB is well on the way to double its financing of the agricultural sector to support the government’s economic development agenda based on modernised and mechanised agriculture,” said Stephen Kpordzih, the bank’s Managing Director, in Accra.

He made this known at the launch of the third Food and Agricultural Show (FAGRO, 2011) in Accra, of which ADB is a major financier, and believes in the objectives and potential of the event to impact positively on the agricultural sector.

“I have no doubt that you do agree with me that one cannot talk of successful modern agriculture in Ghana without reference to ADB, which has been the mainstay of agricultural financing in the country since its establishment.

“In the last two years, we have adopted various measures to sharpen the focus of ADB on the financing of the agricultural sector and to ensure that ADB is highly efficient in agricultural policy lending for the development of agriculture and agro-based businesses.”

He said apart from direct credit, the bank also offers asset finance facilities to facilitate the growth and expansion of agro-businesses.

“Another significant policy measure is that ADB has positioned itself to lead in the design and implementation of collaboration and cooperation among key stakeholders in agriculture and development finance and will identify potential synergies and sharing of information to improve business delivery and strategic policy implementation.

“The essence is to improve on the entire value-chain process -- production, processing and marketing of agriculture produce,” he said.

He presented a sponsorship package of GHc25,000 to FAGRO, and said he expected the show will facilitate the exhibition of innovative production techniques to the participants and visitors, and enable the discussion of issues pertinent to agricultural operations.