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Business - November 15, 2020

ADB earmarks 50 percent of loans to agribusiness growth

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Dr. John Kofi Mensah, Managing Director of the Agricultural Development Bank (ADB), reiterated that the World Bank is committed to increasing the share of agricultural loans in total World Bank loans to at least 50% within the next three years.

According to Dr. Kofi Mensah (Kofi Mensah), the bank’s current loan portfolio is about 28%. Although it is still the highest in the industry, as part of the new strategic direction, the bank is determined to increase its loan portfolio by 2022. The loan ratio was increased to 50% in order to make the industry more attractive.

He said: “We believe that the agricultural sector is an important part of our economy, and the recent pandemic has further exposed that we must have enough food as a country.”

The managing director of ADB said here that Mr. Solomon Kwadovo Kusi, who was the best farmer in the country in 2020 and a client of the bank, paid a courtesy visit to the World Bank management in Accra.

Dr. Kofi Mensah revealed that the World Bank is cooperating with Outgrower and Value Chain Fund (OVCF), Ghana’s Agricultural Credit-based Incentive Mechanism Risk Sharing (GIRSAL), Ministry of Finance, Ministry of Food and Agriculture to make this The sector is more attractive, especially the upper-middle class of Ghanaian society.

He said: “We are entering a new agricultural financing system called value chain financing, which aims to reduce agricultural risks to ensure that funds invested in any project will not become bad debts.”

He said that the World Bank has launched the Ghana Thédis poultry value chain plan with a special fund of 500 million guilders. Other value chain plans that the World Bank will introduce from next year will include the fish value chain, the corn value chain, and the cassava value chain. Chain, potato value chain, rice value chain, oil palm value chain, etc.

Dr. Kofi Mensah congratulated this new national best farmer, who has been a loyal customer of the World Bank since 2010 and has worked hard to be the best farmer in the country.

Mr. George Kwabena Abankwah-Yeboah suggested to the best farmers in the country to use the GH¢557,000 bonus to further develop their business in his speech at the board of directors.

Mr. Abankwah-Yeboah urged the “best farmer in the country” to consider the entire agricultural value chain so that he can hire more people and thereby help reduce unemployment.

Mr. Solomon Kwadwo Kusi, National Best Farmer in 2020, thanked the World Bank for its support over the years and promised to become a brand ambassador of the World Bank.

He said: “I have been working in ADB for the past ten years and they have helped me in many fields. Therefore, it is my hard work and the help of their well-trained officials to win this year’s National Farmer Award. Proof of good advice received.”

According to him, considering the World Bank’s new strategic direction to focus on agribusiness, he will ensure that more farmers save in the World Bank so that they can also get professional advice to improve financial operations.

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