Smallholder farmers across Ghana’s northern belt are set to benefit from affordable loans at single-digit interest rates following the launch of a US$1 million revolving fund by the Ministry of Food and Agriculture (MoFA).
The fund, introduced on 18 April in Accra, is part of a broader US$20 million grant secured from the Global Agriculture and Food Security Programme (GAFSP) with support from the African Development Bank (AfDB).
It aims to improve food production and resilience in the Northern Savannah Ecological Zone.
Speaking at the signing ceremony, Minister for Food and Agriculture, Mr Eric Opoku, said the fund is being rolled out at a time when many farmers in the north are still recovering from the impact of a prolonged drought last season.
“This is not just another government promise. By next week, eligible farmers in the 12 selected districts can go to their local rural banks and access these loans at interest rates below 10 per cent, compared to current market rates of 25 to 30 per cent,” Mr Opoku said.
The fund is being implemented in partnership with ARB Apex Bank and will be disbursed through selected rural and community banks. It is expected to prioritise women and youth farmers, who make up more than 60 per cent of the agricultural workforce in northern Ghana but often face barriers to accessing credit.
Chief Director of MoFA, Alhaji Mohammed Hardi Tufeiru, said the first tranche of funds has been transferred to rural banks in Walewale, Bunkpurugu, Zabzugu, Gushegu, Karaga and Chereponi. Disbursements are expected to begin by 25 April.
“Farmers in these areas have long been at the mercy of loan sharks charging up to 50 percent interest. This intervention gives them a better alternative and keeps more earnings in their own hands,” Alhaji Tufeiru said.
Managing Director of ARB Apex Bank, Mr Kojo Mattah, explained that the bank has simplified loan application procedures to eliminate the collateral requirements that usually exclude smallholder farmers.
“We understand that many farmers don’t have land titles or large assets. So, we’re using a group guarantee system that allows cooperatives to vouch for their members,” Mr Mattah said.
Beyond credit, the programme will supply farmers with drought-resistant seed varieties such as Obatanpa maize, Jasmine rice, Jenguma soybean and Songotra cowpea. Handheld equipment, including power tillers suited to rocky soils in the Upper East, and solar-powered micro-irrigation kits for dry-season gardening along the White Volta will also be provided. Support for guinea fowl and poultry farming is included to help address protein deficiencies in the region.
Representing the Northern Regional Minister at the launch, Northern Regional Coordinating Director, Alhaji Alhassan Issahaku, said the initiative responds directly to feedback from community leaders and farmers during recent visits by the Minister.
“This addresses concerns our chiefs and queen mothers raised during the Minister’s tour. It shows government is paying attention to the real needs of the north,” Alhaji Issahaku said.
Insurance coverage for participating farmers will be provided by the Ghana Agricultural Insurance Pool (GAIP) to protect against crop failure due to erratic rainfall, a growing concern in the savannah zone.
The scheme will begin in six districts, with the remaining six expected to join by June 2025.
