ALLIANCE for a Green Revolution in Africa (AGRA) and the Standard Bank have initiated a public-private partnership programme to unleash the potential of smallholder farmers in four countries on the continent.
The two organisations hope that their bold initiative will promote growth by making available affordable loans for agriculture value chains in Ghana, Mozambique, Uganda and Tanzania.
In that regard, AGRA and Standard Bank, Africa’s largest bank, have come together to create a $100 million fund for Africa’s smallholder farmers.
The expectations of the two organisations from the project include the provision of loan opportunities for smallholder farmers, as well as small and medium-size agricultural businesses, previously considered very risky.
A memorandum of understanding (MOU) governing the partnership was signed in Accra yesterday by top officials of the bank and AGRA, as well as agriculture ministers of the four participating countries.
It is hoped that this credit package will help to stimulate agricultural production in the four countries, with the possibility of creating ripple effects in other countries on the continent.
In the words of Mr Kofi Annan, the Chairman of AGRA, the present global financial crisis and inflation, food shortages and trade imbalances pose huge social, economic and political risks.
It is an undeniable fact that lack of access to finance has become a major obstacle that prevents farmers from purchasing basic inputs such as good seeds, fertiliser and small irrigation equipment needed to raise farm productivity and generate profit.
Many people on the continent have been worried about the inability of governments to unlock the agricultural potential in order to put abundant food on the tables of the people, most of whom can hardly afford a meal a day.
It is also difficult to understand why our governments have not been able to provide adequate credit for players in the agricultural sector to create jobs and generate individual and national incomes.
The DAILY GRAPHIC believes that the vicious circle of low agricultural productivity on the continent can be a thing of the past if our governments provide the needed support for farmers.
We call on the governments of the participating countries to take bold steps by devoting more resources to the agricultural sector. Presently, we spend quite a big percentage of national resources to import rice, although Ghana abounds in arable land that can be exploited for food security and the generation of incomes and employment.
If we continue to pay lip service to agricultural productivity, we shall be compelled to go round the world begging for food to feed our people.
The DAILY GRAPHIC encourages the participating countries to take advantage of the initiative by AGRA and Standard Bank to reduce our reliance on food imports.
To achieve this, therefore, we call on the government to provide incentive packages and other loan schemes for those who want to venture into farming, especially those who would want to participate in the Youth in Agriculture programme.
We commend AGRA and Standard Bank for their efforts to buffer the risk associated with lending to the agricultural sector so that our farmers can access credit to expand their operations.
1 comment:
We know that there is a shortage of money available to help farmers with fertilizer loans, and we have written to many governments departments in Africa to offer an interest-free fertilizer Credit Fund of US$20 million or more with an L/C of 12 months.
We are offering all of this with a 12-month interest-free Credit Fund of US$20 million. If this is not enough, we can offer US$50 million.
However, there has been extremely little interest in it. We can't understand why.
It is very frustrating as the whole of Africa could eradicate chemical fertilizers this year while increasing crop yield and lowering costs significantly, and fertilizing the soil with an abundance of micro-organisms and minerals. We created the technology for these bio-fertilizers. But there are few officials listening.
On the one hand the governments profess that they want to get away from chemical farming, but at the same time they continue to support the 100% chemical fertilizer companies so much when there is a well-tried and tested 100% organic alternative that will enable them to transform their food production levels and soil fertility at much lower costs.
Chemical Urea, DAP, NPK, etc., are obsolete technology that are doing a disservice to mankind, and they can be replaced totally or not with two 100% organic liquid microbial bio-fertilizers giving higher yields and lower costs, significantly.
We have a urge to point out to all concern parties of Agriculture that there is a bio-chemical farming and that will halve the use of chemical fertilizers and still increase the yield.
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