IFC and Absa Bank Partner to Expand Agricultural Finance in Ghana
IFC and Absa Bank Ghana have partnered to expand financing for Licensed Buying Companies to purchase cocoa from over 139,000 smallholder farmers.
In Brief
- •IFC and Absa Bank Ghana have partnered to expand financing for Licensed Buying Companies to purchase cocoa from over 139,000 smallholder farmers.
- •The partnership aims to support sustainable farming practices aligned with the Paris Agreement on climate change.
- •IFC is also collaborating with Complete Farmer, an AgTech company, to connect more smallholder farmers with financial institutions.
- •The initiative is expected to support 240,000 farmers by 2030, facilitating access to finance and market opportunities.
Why It Matters
This partnership is crucial for Ghana's agricultural sector, which supports thousands of farming households and is a key part of the country's export economy. By providing reliable access to finance and technology, the initiative aims to enhance the productivity, sustainability, and resilience of the cocoa value chain. This can lead to increased job creation and improved rural livelihoods.
Key Details
- Number of Smallholder Farmers Supported
- 139,000
- Total Financing Facility
- $50 million
- Total Financing Extended
- $200 million
- Number of Farmers Expected to be Supported by 2030
- 240,000
- Convertible Loan for Complete Farmer
- $2.4 million
- Advisory and Grant Support for Complete Farmer
- $660,000
Context & Background
Ghana's cocoa sector is a significant part of the country's export economy, supporting thousands of farming households. The sector has faced challenges in accessing reliable finance and technology, which this partnership aims to address.
Original Reporting & Sources
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