Ghana Cares Subsidy Initiative for Agribusinesses in Ghana

Image Credit: Agriculture in Africa Media| USAID

The Government of Ghana is implementing the Ghana COVID-19 Alleviation and Revitalization of Enterprises Support (Ghana CARES) programme as its response to mitigate the impact of the COVID-19 pandemic on the lives and livelihoods of Ghanaians.

The programme identifies agriculture as one of the critical sectors that has the capacity to revitalize and transform the Ghanaian economy.

One of the key interventions to facilitate access to affordable financing is to provide interest rate subsidy (IRS) to private actors in the rice, tomato, poultry and soyabean value chains in support of Government’s import substitution agenda. The Government, through the Ministry of Food and Agriculture (MOFA) in collaboration with Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) is partnering financial institutions to implement this intervention.

Scope Of Interest Rate Subsidy Introduction

The Government IRS intervention seeks to grant 50% subsidy on Financial Institutions’ (FIs) interest charges for loans advanced to qualified agribusinesses. Four value chains have been selected for 2021. The value chain’ segments or operations to be supported are as follows:

1. Selected Value Chain: Tomatoes

   Eligibility Operations/VC Segments: Primary primary and processing

2. Selected Value Chain: Poultry

   Eligibility Operations/VC Segments: Primary Production and Processing

3. Selected Value Chain: Rice & Soya bean

   Eligibility Operations/VC Segments: Primary production, aggregation, and processing

Eligibility

1. Agribusiness must be operating within the four selected value chains

2. Loan applications must be through selected Financial Investment (list indicated in section 4) that have signed master agreement with GIRSAL.

3. Only loans approved by participating Financial Institution with/ without Credit Risk Guarantee will qualify for Interest Rate Subsidy.

4. Loans will be granted for both Operational and Capital Expenditure (OPEX and CAPEX)

5. Capital Expenditure component will only be for replacement of parts, retooling of existing equipment and facility to improve operational efficiency.

Application Process

Interested Agribusiness must apply for the loan facility through the following participating financial Institution for subsequent assessment and approval. The selected Financial Institutions for IRS implementation are:

                        I.         ABSA Bank

                       II.         Agricultural Development Bank (ADB)

                      III.         Consolidated Bank of Ghana (CBG)

                     IV.         Injaro Investment

                       V.         National Investment Bank (NIB)

                     VI.         Ecobank Ghana Limited

                    VII.         Universal Merchant Bank (UMB)

                   VIII.         Fidelity Bank Ghana limited

                      IX.         Stanbic Bank Ghana limited

For further information please contact any of the participating financial institutions or send enquiries through: ghanacares.agric@mofa.gov.gh

Chamber of Agribusiness Ghana: info[at]agribusinesschamber.org