ADB, APEX BANK EXTEND CREDIT TO N. REGION FARMERS (PAGE 11, AUGUST 5, 2010)

The Agricultural Development Bank (ADB) and ARB Apex Bank Limited have extended GH¢4.5 million credit to 1,255 farming groups in the Northern Region under the Northern Rural Growth Programme (NRGP).
The funds were provided under the value chain financing mechanism of the NRGP programme to the beneficiaries, comprising 7,910 males and 3,262 females, who are into the cultivation of maize, sorghum and soya bean.
At a forum on the NRGP approach to agricultural commodities value chain financing in Tamale, the National Programme Co-ordinator, Mr Roy Ayariga, explained that the NRGP had already provided “matching grants to subsidise equipment and machinery”.
The forum was aimed at bringing together key implementing partners to discuss the potential and challenges of the approach to help promote profitable agri-business for all actors along each commodity value chain.
The chain is made up of farmers, marketing companies, processing firms, input dealers, service providers and transporters.
“It is worthy to note that these funds come from the banks’ own resources because they have confidence in the value chain approach,” Mr Ayariga stated.
According to him, the rationale behind the NRGP was to assist the northern farmer to do profitable agri-business to overcome poverty and create wealth.
“Agricultural credit delivery is often problematic due to the risks associated with it and as such farmers always complain that the banks release funds late or that the approved loans are inadequate,” he observed.
The co-ordinator said in recognition of these constraints, the NRGP Value Chain Approach was aimed at establishing sustainable business linkages along the value chain of a particular commodity in such a way that the banks, input dealers, service providers, marketing companies and farmer groups were comfortable in doing business with each other.
He announced that the NRGP had also introduced “the cashless credit system” where the farmer groups, the banks and the facilitating agencies agree and certify input dealers and mechanisation service providers and marketing companies in advance”.
The Rural Financial Services Specialist, Mr Emmanuel Antwi, stated that one of the guidelines of the NRGP’s financing arrangements for farmer groups through the banks was to ensure that every farmer under the programme was issued with a business book which would contain the records of his or her business accounts and other vital information on his or her agricultural business activities.