Accra, Ghana – The Member of Parliament for Kpando, Hon. Sebastian Deh, has called for stronger financial inclusion policies to support smallholder farmers in Ghana, emphasizing that improved access to credit, training, and market opportunities is essential to transforming the country’s agricultural sector.
Delivering a statement on the floor of Parliament, the lawmaker noted that smallholder farmers form the backbone of Ghana’s agricultural economy, yet many remain financially excluded and economically vulnerable.
According to him, agriculture employs over half of Ghana’s population and contributes significantly to the nation’s Gross Domestic Product (GDP), making it imperative for policymakers to develop strategies that empower farmers to improve productivity and livelihoods.
“Smallholder farmers constitute about 70 percent of Ghana’s farming population, producing the majority of staple foods such as maize, cassava, yams, and vegetables,” Hon. Deh said.
Financial Exclusion Hindering Productivity
The Kpando MP stressed that limited access to affordable financial services remains one of the biggest barriers preventing farmers from expanding their operations.
He explained that many farmers in rural areas are unable to secure loans, insurance, or savings products that would allow them to invest in improved seeds, fertilizers, mechanization, and storage infrastructure.
Citing findings from the 2021 Global Findex Report, he indicated that rural populations in Ghana continue to be underserved by financial institutions, a situation he said contributes to low agricultural productivity and deepens poverty in farming communities.
Opportunity International Highlighted as Model
Hon. Deh highlighted Opportunity International Savings and Loans (OISL) as an example of a financial institution helping bridge the financial inclusion gap for smallholder farmers.
According to him, the institution has operated in Ghana for more than two decades, offering tailored financial products and services for farmers, agribusinesses, and micro-entrepreneurs.
He explained that Opportunity International’s agricultural finance programmes focus on value chain financing, including seasonal loans for farm inputs, financial literacy training, and linking farmers with buyers and input suppliers.
The institution also provides mobile banking services, enabling rural farmers to conduct financial transactions without travelling long distances.
“This combination of credit, training, and market linkages has helped thousands of smallholder farmers improve their productivity and incomes,” he stated.
Farmer Success Stories
Hon. Deh shared the success story of Ama Mensah, a maize farmer from the Bono Region who received her first agricultural loan through Opportunity International in 2020.
With the loan, she purchased improved seeds, fertilizers, and hired mechanized services for land preparation. After adopting modern farming techniques and receiving training, her maize yield increased by 70 percent, he said.
The MP also referenced similar success stories including Akua Agbledela from Kudzra in the Kpando area of the Volta Region and Kofi Osei from Aboatoase in the Oti Region, who have benefited from access to agricultural financing.
Policy Proposals
To expand support for farmers nationwide, Hon. Deh proposed several policy measures including the establishment of an Agricultural Finance Support Fund to provide credit guarantees for financial institutions lending to farmers.
He said such a fund would help reduce lending risks and encourage more banks to introduce low-interest agricultural loan products.
The lawmaker also urged government to strengthen public-private partnerships between financial institutions, agribusinesses, and extension services to deliver integrated support for farmers.
Other recommendations included:
Expanding digital financial services through mobile banking and mobile money platforms.
Creating a national database of smallholder farmers to improve credit scoring and product design.
Promoting climate-smart financing for irrigation systems, resilient seeds, and solar-powered farm equipment.
He also acknowledged the role of the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) and called for its expansion to further support agricultural financing.
Women and Youth Inclusion
The MP further emphasized the need to support women and youth participation in agriculture, noting that women make up a large proportion of smallholder farmers but often face greater barriers in accessing financial services.
He called for gender-sensitive financial products and youth-focused agricultural financing models that combine capital, technology, and entrepreneurship support.
Feed Ghana Programme Commended
Hon. Deh also commended government’s Feed Ghana Programme, describing it as a coordinated policy framework aimed at strengthening smallholder agriculture.
The programme includes initiatives such as:
Grains and legumes development
Vegetable development projects
Livestock development programmes
Poultry revitalization efforts
Controlled environment farming
Urban and peri-urban agriculture
Call for Impact Monitoring
To ensure effective implementation of agricultural financing initiatives, the MP proposed that the Ministry of Finance and the Ministry of Food and Agriculture develop measurable indicators to track progress.
These indicators, he suggested, should include the number of farmers accessing financial services, agricultural loan volumes, and repayment rates, with annual reports submitted to Parliament.
Strengthening Food Security
Hon. Deh concluded that supporting smallholder farmers is critical to Ghana’s economic future.
“Supporting smallholder farmers is not just an agricultural policy matter — it is a national development imperative,” he stated.
He added that strengthening financial inclusion for farmers would help improve food security, reduce rural poverty, and stimulate economic growth across the country.
Source: Clement Akoloh/ parliamentnews360.com
