Farmers Demand 2% Interest Rate on Agricultural Loans to Strengthen Local Production
President of the Concerned Farmers Association of Ghana (CFAG), Nana Oboadie Boateng Bonsu, has renewed calls for sharply reduced lending rates for the agricultural sector, urging government to introduce a 2% interest rate on loans accessible to registered and recognised farmers.
Speaking in an interview on Friday, December 5, 2025, Nana Oboadie said the current credit environment—where interest rates range between 22% and 33%—continues to undermine farmers’ capacity to operate efficiently, expand production and contribute fully to national food security.
“We want a single-digit interest rate, which is 2%, to support farming activities. The interest rate is small to do our job very well. Interest rates are almost 33%, 22%, and 28%,” he said, warning that the high cost of borrowing is constraining output and eroding profitability across the value chain.
He maintained that a 2% credit regime would significantly enhance the implementation of the “Feed Ghana, Eat Ghana” initiative, strengthen rural livelihoods and improve the competitiveness of local produce.
Nana Oboadie underscored the superior quality of Ghana’s farm produce compared to imports, citing tomatoes as an example. “Our tomatoes are among the best,” he emphasised.
He, however, expressed concern over the sharp decline in locally grown onions and shallots, particularly from the Volta Region, noting that their scarcity in markets reflects the impact of sustained neglect and inadequate investment.
With what he described as a growing preference for imported Niger onions, Nana Oboadie urged consumers to prioritise locally grown produce, warning that continued dependence on foreign options threatens the sustainability of domestic agriculture.
