Ghana’s Economy Stronger and More Resilient as BoG Backs Strategic Financing for Agriculture

Ghana’s economy has reached a crucial turning point, emerging stronger and more resilient than it has been in recent years, according to the Second Deputy Governor of the Bank of Ghana (BoG), Mrs. Matilda Asante-Asiedu.

She made this assertion while speaking at the signing ceremony of a Risk Sharing Guarantee Scheme between Access Bank Ghana and the International Finance Corporation (IFC), a partnership aimed at boosting financing for Ghana’s agricultural sector, particularly cocoa.

Mrs. Matilda Asante-Asiedu noted that sustained efforts by economic managers, anchored in prudent monetary policy and disciplined fiscal management, have begun to yield positive results. These measures, she explained, have helped restore macroeconomic stability, rebuild confidence in the economy, support Gross Domestic Product (GDP) growth, and significantly reduce inflation to single-digit levels.

Ghana’s Economy Stronger and More Resilient: Mrs. Matilda Asante-Asiedu

According to her, the current macroeconomic environment is not only improved but also more predictable, providing a solid foundation for financial institutions to rethink and recalibrate their business models. This stability, she stressed, creates opportunities for banks to expand credit and financing to the real and productive sectors of the economy, with agriculture standing out as a top priority.

“Agriculture remains central to Ghana’s development agenda,” Mrs. Matilda Asante-Asiedu said. “It is a key driver of job creation, improved livelihoods, export growth, and overall national development. Strengthening financing to this sector is therefore critical to sustaining inclusive economic growth.”

Matilda Asante-Asiedu described the Risk Sharing Guarantee Scheme between Access Bank Ghana and the IFC as a strategic and timely intervention designed to unlock growth and opportunity within Ghana’s agricultural value chains. In her view, the scheme goes beyond a conventional financial arrangement and reflects a broader commitment to national development priorities.

“As I see it, this scheme is not only about harnessing opportunities along the cocoa value chain,” she explained. “It also aligns closely with our national objectives of expanding financial inclusion, strengthening private sector participation, and accelerating economic diversification.”

Cocoa remains one of Ghana’s most important export commodities and a major source of income for millions of rural households. At the heart of the cocoa industry are Licensed Buying Companies (LBCs), which play a critical role in purchasing cocoa from smallholder farmers and linking them to both domestic processors and global markets. However, access to affordable and reliable financing has often been a challenge for these companies, affecting their ability to operate efficiently.

Mrs. Matilda Asante-Asiedu highlighted that the Risk Sharing Guarantee Scheme is strategically designed to address this challenge by providing essential working capital to LBCs. She described these companies as the backbone of Ghana’s domestic cocoa purchasing system, emphasizing that their stability is vital not only for the private sector but for the national economy as a whole.

“Ensuring the liquidity of Licensed Buying Companies is not merely a commercial objective,” she said. “It is a national economic priority. Their stability safeguards rural livelihoods, strengthens export earnings, and supports exchange rate resilience.”

By sharing risk between the bank and the IFC, the scheme is expected to encourage increased lending to the cocoa sector while reducing the exposure of financial institutions. This, in turn, should lead to improved access to credit for LBCs, smoother cocoa purchasing operations, and more timely payments to farmers.

The Second Deputy Governor also pointed out that initiatives like this are essential for deepening financial inclusion, particularly in rural and agrarian communities where access to formal finance remains limited. With better access to financing, stakeholders along the agricultural value chain—from farmers to aggregators and exporters—can invest in productivity, adopt improved technologies, and enhance value addition.

She reaffirmed the Bank of Ghana’s commitment to supporting policies and partnerships that promote financial sector stability while ensuring that credit flows to productive sectors of the economy. According to her, a resilient banking sector that actively supports agriculture and other real sectors is key to sustaining Ghana’s economic recovery and building long-term resilience.

Mrs. Matilda Asante-Asiedu expressed optimism about Ghana’s economic prospects, noting that the combination of macroeconomic stability, strategic partnerships, and targeted financing initiatives positions the country well for inclusive and sustainable growth.

As Ghana continues on its recovery path, she stressed that collaboration between regulators, financial institutions, and development partners will remain crucial in translating stability into tangible benefits for businesses, farmers, and households across the country.

Source: 3news.com

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