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Home Business Agribusiness

Ghana Launches $1 Million Agricultural Fund to Bolster Food Security in Northern Regions

4 months ago
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Ghana Launches $1 Million Agricultural Fund to Bolster Food Security in Northern Regions

Ghana has launched a $1 million revolving fund targeted at smallholder farmers in the country’s northern regions, in a move aimed at boosting agricultural productivity and mitigating food insecurity.

The fund, which forms part of a $20 million grant from the Global Agriculture and Food Security Programme (GAFSP), was unveiled in Accra by Food and Agriculture Minister Eric Opoku. The initiative is supported by the African Development Bank and implemented in collaboration with ARB Apex Bank, a rural and community banking institution.

The scheme will extend low-cost capital to small-scale farmers and agribusinesses across 12 districts in six regions of northern Ghana. Officials say the financing mechanism is intended to address structural weaknesses in Ghana’s food production system, which is vulnerable to climate shocks, limited irrigation infrastructure, and inadequate access to inputs.

“This initiative is not merely about financial assistance; it is about building sustainable and resilient food systems that will uplift the livelihoods of our communities,” Opoku said at the launch event.

The fund is part of a broader intervention targeting women and youth, two groups disproportionately affected by food insecurity. In addition to financing, the programme includes the provision of climate-resilient inputs for staple crops such as maize, rice and soybean; solar-powered micro-irrigation kits to facilitate year-round farming; handheld mechanisation equipment; and household poultry support to improve nutritional outcomes.

Ghana’s agricultural sector, which accounts for roughly 19% of GDP and employs more than a third of the workforce, has faced persistent underinvestment despite its central role in economic development. Recent climate variability and inflationary pressures have further exposed the fragility of the country’s food systems.

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The fund is expected to help de-risk agricultural lending and incentivise broader financial sector participation in rural economies, while also aligning with the government’s long-term objective of achieving self-sufficiency in food production.

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