The European Union and EDFI Management Company launch new AgriFi Country Window in Ghana

27 August 2024, Wa – Upper West Ghana – Today, the Delegation of the European Union (EU) in Ghana and representatives from the EDFI Management Company (EDFI MC) officially launched the AgriFI – Ghana Country Window in Wa in the Upper West Region of Ghana. The initiative, with a country window of EUR 10 million for Ghana, is a financing mechanism aimed at supporting the development of sustainable and inclusive agricultural value chains, with a focus on improving the livelihoods of smallholder farmers in the cashew, groundnut, mango, rice, sorghum, soybean and vegetables value chain, and will span the five Northern regions: Upper West, Upper East, North East, Northern and Savannah.

“The AgriFI Ghana Country Window is yet another key EU support to strengthen the agriculture sector which focuses mainly on financing for smallholder farmers under the European Union – Ghana Agriculture Programme (EUGAP).” stated Jonas Claes, Deputy Ambassador at the European Union in Ghana.

The Agricultural Financing Initiative (AgriFI) is funded by the European Union and managed by EDFI Management Company. On the launch event, the first signed loan under the AgriFI – Ghana Country Window, Sinapi Aba Savings and Loans was presented. Sinapi Aba is a microfinance institution in Ghana, and the investment has a goal to increase opportunities for enterprise development and income generation for the economically disadvantaged.

Chief Director of the Upper West Regional Coordinating Council, Peter Maala, added, “The Northern Belt, including Upper West, is one of Ghana’s major food baskets. EU and EDFI Management Company’s financial support for its smallholder farmers ensures not only improved livelihoods for farmers by decreased production cost, resulting in food security, which is a priority for government.”

“We are excited to launch the AgriFI Ghana Country Window and work with our partners to support smallholder farmers in Northern Ghana,” said Lionel Dieu, AgriFI Fund Manager. “This event is an important step in bringing together key stakeholders to discuss the challenges and opportunities in the region.”

The launch of AgriFI Ghana Country Window marks the first investment of the EU to Ghanaian smallholder farmers and agribusinesses with the event bringing together key intermediaries to discuss the opportunities and challenges in reaching smallholder farmers in Northern Ghana. At the end of the event the EU Deputy Ambassador will visit some of the first beneficiaries of Sinapi Aba loans to see concrete impacts of the project.

The Chief Executive Officer of Sinapi Aba Savings and Loans, Tony Fosu, applauded the collaboration with the EU, “With over 40 branches across Ghana, Sinapi Aba has garnered experience across the country, and we are equipped to facilitate access to financing for smallholder farmers.”

The beginning of the implementation of the AgriFI Ghana Country Window started in 2022 with its first support to Sinapi Aba Savings and Loans (SASL). In 2023, SASL provided 8,166 new loans, of which 2,501 to clients in the agriculture sector (i.e. 31%), the microcredit size loan usually provided below GHC 17 000 (EUR 1,000). Agriculture loans are provided directly to individuals or agri SMEs (5% of clients) but are mostly given to groups of small holder farmers (95%).

Thanks to the EU support, SASL was able to increase the number of smallholders And Small and Medium-Sized Enterprises benefiting from agricultural loans by 13%, bringing it to a total of 24,912 in December 2023. Among these, over 55% are based in the Northern Regions. EDFI Management Company, under the AgriFI Ghana Country Window is also currently investigating new complementary investments to support more farmers.

–Ends–

For further media enquiries, please reach out to:

Deborah Smallie LOMOTEY Press and Information Assistant European Union in Ghana Deborah-Smallie.LOMOTEY@eeas.europa.eu

Natasa Lakovic Senior Communications Specialist EDFI Management Company n.lakovic@edfimc.eu

Note to Editors

The Agriculture Financing Initiative(AgriFI), is an impact investment facility funded by the EU with a mandate to provide medium to long-term financing to private sector enterprises active in the agri-food value chain with a focus on smallholder farmers. AgriFI is managed by the EDFI Management Company and offers investment capital and technical assistance to agri-business Micro, Small and Medium-sized Enterprises (MSMEs).

AgriFI Ghana Country Window is funded by the European Union – Ghana Agriculture Programme (EUGAP) implemented together with the Ministry of Food and Agriculture which contributes to higher annual incomes for smallholder farmers’ households by increasing agricultural productivity, protecting natural resources, and improving access to markets for smallholder farmers. Implemented in the Upper West, Savannah and North East regions with some specific activities covering the five northern regions, supported value chains include cashew, groundnut, mango, rice, sorghum, soybean and vegetables. EUGAP has three components: i) value chain development (including access to finances to farmers and agri Micro, small and medium enterprises), ii) environmental sustainable practices and iii) infrastructure (feeder roads and irrigation).

About Sinapi Aba Savings & Loans (SASL)

Sinapi Aba Savings and Loans is the microfinance arm of Sinapi Aba Trust (SAT), a Non-Governmental Organisation (NGO) founded in 1994 to provide financial and value-added services to individuals, businesses and communities. Created in 2013 with 44 branches across Ghana, SASL is committed to providing innovative financial solutions and training to individuals and entrepreneurs in micro, small and medium enterprises in Ghana to improve their standard of living, and positively transform their lives.