By Francis Ntow
Accra, Oct. 8, GNA – Financial institutions have been urged to use digital payment records to expand farmers’ access to credit, savings and insurance in Ghana’s oil palm sector.
The call comes as the government advances plans to support commercial oil palm development through a US$500 million World Bank financing agreement finalised in July.
Dr Andy Osei Okrah, Chief Executive Officer of the Tree Crops Development Authority (TCDA), made the call at a stakeholder workshop in Accra.
it was held on the theme: “Building a Sustainable Digital Financial Ecosystem for Ghana’s Oil Palm Sector.”
The workshop brought together farmers, aggregators, processors, transporters, input suppliers, milling companies and regulators to discuss an inclusive transition from cash to digital payments.
It was convened by the Better Than Cash Alliance, in collaboration with the TCDA and OPDAG, with support from the United Nations Development Programme.
Dr Okrah urged financial institutions and digital service providers to develop flexible products that would enable farmers and other value chain actors to build credit histories from their transactions.
“Digital payment should not simply mean replacing physical cash flow with mobile money or bank transfer, it should be the entry point into a broader financial ecosystem,” he said.
Dr Okrah said many farmers and other actors continued to rely on cash, while funds received through mobile money were often withdrawn almost immediately, limiting opportunities to build savings and access credit and insurance.
He said digital transactions could enable farmers to pay for inputs, labour and transportation electronically while building financial records to support loan applications.
“Over time, this transaction would build a financial history. That record could serve as evidence of economic activity and strengthen the farmer’s case when seeking credit and other services,” he said.
Dr Okrah said digital finance required reliable connectivity, accessible bank accounts and digital wallets, appropriate financial products and training to build users’ trust.
He said the government’s US$500 million oil palm development financing facility demonstrated its commitment to the sector, but funding alone would not transform the industry without private sector participation.
Dr Okrah called for stronger public-private collaboration to improve farmers’ access to capital, technology and information.
Ms Irene Ofosu Ameyaw, Executive Secretary of the Oil Palm Development Association of Ghana (OPDAG), said digital finance should help members strengthen their businesses and improve their livelihoods.
She said members wanted timely payments, reduced travel costs and easier access to transactions, certificates and permits.
Ms Ameyaw called for practical digital solutions that users could understand and trust, and urged collaboration among financial institutions, financial technology companies and regulators.
GNA
Edited by Kenneth Sackey
Reporter: Francis Ntow
Email: [email protected]