GIRSAL earmarks GH¢2bn lending capital in 5 years

The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) is pledging a capital injection of GH¢2billion from now until 2027 in assist of monetary establishments’ lending to gamers in the agricultural sector.

Speaking on the relaunch of the corporate’s operations and introduction of a Stakeholder Convening and Advocacy Platform in Accra yesterday, Board Chair Yaw Ansu mentioned GIRSAL has since 2019 assured loans to the tune of GH¢600million by way of some 13 monetary establishments.

The loans, in line with him, have benefitted some 87 agribusinesses in the nation.

(*5*) he mentioned.

With plans to inject extra capital to assist farmers, the corporate mentioned in the approaching months it is going to additionally give attention to and prioritise chosen agricultural worth chains to realize meals import substitution and increase exports.

Currently, 22 monetary establishments are in settlement with GIRSAL and are benefitting from the corporate’s credit score assure scheme. Nineteen of those establishments are industrial banks.

Food and Agriculture Minister Dr. Owusu Afriyie Akoto mentioned agriculture credit score stays key to making sure meals safety for the nation’s medium- and long-term targets.

He mentioned GIRSAL, in the context of agriculture finance, is necessary because it supplies monetary establishments with ensures on loans by masking as much as 70 p.c of the default threat on them.

He mentioned the credit score threat assure scheme is meant to mitigate dangers related to agriculture lending and incentivise monetary establishments to lend extra, including: “All priority agricultural commodity value chains of government qualify to access the scheme”.

Finance Minister Ken Ofori Atta, who launched the platform, mentioned present occurrences in the worldwide meals worth chain depart Ghana with no choice apart from to critically embark on funding into the agriculture sector.

He talked about how Ukraine has leapfrogged many challenges to changing into the world’s largest grain exporting nation – from 36 million tonnes of wheat produced in transshipment for 2010 to a present 70 million tonnes, in comparison with a mere six million tonnes in the early Nineties.

The stakeholder platform

The Stakeholder Convening and Advocacy Platform launch was initiated to have interaction authorities establishments and personal sector contributors towards figuring out and resolving key bottlenecks in agriculture finance and the agribusiness area.

GIRSAL, underneath this initiative, will present a sustainable and coordinated platform for dialogue amongst key stakeholders on technical points impacting the agriculture sector to have an effect on resolutions which profit the sector.

The core goal of GIRSAL, amongst different capabilities, is to de-risk agricultural financing by monetary establishments in order to stimulate funding in the sector.

Source: ghananewsupdate