The Bank of Ghana has underscored the need for commercial banks to develop incentives and innovative products that will focus on developing the agricultural sector.
Following the consistent appreciation of the cedi in 2014 against major trading currencies, the Bank of Ghana in collaboration with other stakeholders resolved to transform and diversify the country’s export base. This was considered a key to shore up foreign exchange earning to support the stability of the cedi.
To actualize the plan, the Bank of Ghana has launched a new system to help increase agricultural productivity and production for export.
Speaking at the launch of the Ghana Incentive Based Risk Sharing for Agricultural Lending in Accra, the governor of the central bank Dr Abdul Nashiru Isahaku said there is the need for Ghana to diversify its economy in order to reduce the overconcentration on the oil and gas sector.
‘’We are an oil producing and exporting country we should not be too excited that to forget about what has carried us to this point, I think we need to diversify the economy so we can stand shocks.’’
The agricultural sector of Ghana accounts for about 22% of GDP but only get 4% lending from commercial banks
Also, chairman of the National Development Planning Commission Dr. Kwesi Botchwey urged Banks to re-strategize their approach to help revive the agricultural sector.
‘’I think it is important for the banks themselves to deepen their understanding as well as the capacity to access risk in the agricultural sector because things are changing’’
Bank of Ghana said it is ready to commit 100 million Ghana Cedis as seed money for the implementation of the Ghana Incentive Based Risk Sharing System for agricultural sector.
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