The high interest rates in Ghana are a major hindrance to private sector investment in agriculture, stated CEO of the Ghana Chamber of Agribusiness, Mr Anthony Morrison. According to him, the current interest rate, which ranges from 30 to 42 percent, is the highest in the region. He described the situation as a disincentive to agricultural financing.
Morrison, who was speaking at a national dialogue in Accra last Thursday to discuss ways to promote investments in food and agriculture in the country, advocated a reduction in the interest rate on borrowing for agriculture-related businesses, to a single digit to enhance investment in the sector.
The dialogue, organised by the Food and Agriculture Organisation in collaboration with the Ministry of Food and Agriculture (MoFA), and the Alliance for a Green Revolution in Africa (AGRA), was on the theme: “Promoting investments in food and agriculture; recognising the gains and future perspectives by government and the private sector.”
“We should regard agriculture as a competitive business and put in measures that will attract investment. Key among them is to reduce the interest rate to a single digit as it pertains in other African countries,” he emphasised. According to Morrison, existing policies focused so much on production, compared to marketing, thus contributing to the increasing rate of post-harvest losses suffered.