By Albert Ansah
Accra, April 17, GNA – The Ministry of Food and Agriculture (MoFA) and ARB Apex Bank have signed a Memorandum of Understanding (MoU) to manage a US$1 million Revolving Fund for a food security project in Ghana.
The Food and Nutrition Security Resilience Project, funded by the Global Agriculture and Food Security Programme (GAFSP), aims to improve food and nutrition security, particularly in the Northern Savannah Ecological Zone.
Mr. Eric Opoku, Minister for Food and Agriculture, said the Fund will provide timely and affordable credit to smallholder farmers, focusing on women-led groups engaged in vegetable production and cultivation of crops like groundnut, cowpea, and soybean.
The facility will also support microenterprises and agribusinesses to scale operations and improve resilience.
“I am especially pleased that this Revolving Fund has been designed with an interest rate of just 10 percent and a flexible repayment schedule, making it truly accessible to those who need it most,” Mr. Opoku said.
He noted the initiative complements government efforts to de-risk agricultural lending through the Ghana Incentive-Based Risk Sharing for Agricultural Lending (GIRSAL) scheme.
“We believe this initiative will empower women farmers, boost household incomes, and address the root causes of rural poverty and hunger,” he added.
The Project operates in districts including Tamale Metro, Mion, Savelugu, and Nanton in the Northern Region; West Gonja and Bawku West in the Savannah and Upper East Regions; Wa Municipal, Sissala East, and Nandom in the Upper West Region; East Mamprusi and Mamprugu-Moagduri in the North East Region; and Krachi East in the Oti Region.
Mr. Opoku described the Project as a strategic investment to increase farmer incomes and improve household nutrition among women-headed households.
It includes interventions such as access to climate-smart agricultural inputs for staple crops and enhanced mechanisation with handheld equipment for smallholder needs.
“This holistic intervention aligns fully with Government’s Agriculture for Economic Transformation Agenda (AETA) and the recently launched Feed Ghana Programme,” he said.
The Minister thanked GAFSP for the US$20 million grant to enhance food and nutrition resilience and praised the African Development Bank (AfDB) for its technical support during the facility’s design and mobilisation phases.
He said ARB Apex Bank was selected for its extensive network of Rural and Community Banks (RCBs) positioned to reach grassroots beneficiaries.
Mr. Opoku urged stakeholders, including the Project Implementation Unit, ARB Apex Bank, and RCBs, to ensure the Fund’s efficient management and sustainability through urgency, transparency, and commitment.
Mr. Alex Kwasi Awuah, Managing Director of ARB Apex Bank, assured the Minister of the Bank’s strong credit management systems and confidence in its ability to successfully implement the project and ensure timely fund recovery.
GNA
KAS