About 50, 000 cocoa and oil palm farmers are to benefit from five-year loan facilities from the Pan-African Savings and Loan, Solidaridad Ghana and Kookoo Pa.
The initiative, which started in 2018, has already covered 3,000 farmers who benefitted from GH₵7 million disbursed to them at a 30 per cent per year interest rate, as it is expected to open up to more farmers.
The Business Incubation Officer of Solidaridad Ghana, Kwadwo Boadi Mensah, disclosed this in an interview with the media at a workshop for loan facilitators from Pan-African Savings and Loan.
He indicated that, the initiative was expected to improve the livelihood of farmers by moving them from the state of poverty to a living income status where they could live comfortably with their family and take care of them.
According to Mr Mensah, the cocoa and oil palm industry needed a boost and financial investment as its growth potential was enormous, hence the initiative.
He explained that, the workshop was to introduce the participants to the cocoa and oil palm industry considering the little knowledge some financial institutions had in the agricultural sector especially, the cocoa sector.
Mr Mensah added that, participants through the workshop were to understand when to lend to the farmers, and what to do to ensure that farmers applied the money effectively and increased their productivity so that, they could pay back and probably apply for more loans.
He added that, the initiative was working to bring on board additional six financial institutions to deliver credit to farmers, thereby reaching out to a lot of farmers.
The Head of Credit of Pan-African Savings and Loans, Mr Isaac Nuako said his financial institution was happy with the collaboration considering how good the repayment rate of the loan facilities has been.
He said his institution was ready to learn more about the cocoa sector and deliver credit to 10,000 farmers within two years.
FROM FAUSTINA KWABEA OSEI, KUMASI