ACCRA — The International Finance Corporation (IFC) has announced two partnerships with Absa Bank Ghana Ltd and Ghanaian AgTech company Complete Farmer to expand access to finance, technology and markets across Ghana’s agricultural sector.
The partnerships are designed to support smallholder farmers, strengthen agricultural value chains and increase access to financing for businesses operating within the sector.
Under the partnership with Absa Bank Ghana, IFC will support financing for Licensed Buying Companies to purchase cocoa from farmers throughout the buying season. The initiative is expected to help sustain market access for more than 139,000 smallholder farmers.
Cocoa remains one of Ghana’s most important export sectors, with nearly 800,000 registered cocoa farmers and millions of people depending on the industry for their livelihoods.
Supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), the facility will finance purchases of traceable cocoa from farmers across Ghana while supporting more sustainable farming practices aligned with the Paris Agreement on climate change.
Edward Nartey Botchway, Managing Director of Absa Bank Ghana, said the partnership would help finance Licensed Buying Companies purchasing traceable cocoa throughout the buying season while supporting reliable market access for farmers.
“At Absa Bank Ghana, we believe our expertise and capital are at their best when they are working for the people who feed our economy, and for a cocoa value chain that is productive, sustainable and resilient,” he said.
Up to $200 Million in Cocoa Financing
Through the Absa Bank Ghana partnership, IFC and the Private Sector Window of GAFSP will provide up to $50 million through an unfunded risk participation facility. The arrangement will enable Absa Bank Ghana to extend up to $200 million in financing to Licensed Buying Companies.
The financing is expected to strengthen the flow of capital through Ghana’s cocoa value chain, helping Licensed Buying Companies purchase cocoa from farmers during the buying season.
The development adds to the growing focus on agricultural finance and economic development in Ghana. Readers can follow the latest Ghana News for updates on the country’s business and agricultural sectors.
IFC Partners Complete Farmer to Reach More Farmers
IFC is also partnering with Complete Farmer, a Ghanaian AgTech company whose digital platform connects farmers with buyers, financial institutions, input suppliers and agricultural service providers.
The partnership is expected to help Complete Farmer connect more smallholder farmers with financial institutions and expand access to financing, with support expected to reach 240,000 farmers by 2030.
Complete Farmer CEO Desmond Koney said the partnership would help the company scale its input financing model and provide more farmers with the resources and support needed to grow sustainably and participate more meaningfully in agricultural markets.
“Too many farmers with the capacity to grow commercially still struggle to access the financing they need to do so,” Koney said.
He said Complete Farmer had spent years building technology, data and market infrastructure to better understand farmers, support production and connect agricultural output with demand.
$2.4 Million Convertible Loan for Complete Farmer
IFC, in partnership with BIFT, is also providing Complete Farmer with a $2.4 million convertible loan to scale up and finance inputs and agronomy services for farmers.
The financing will be complemented by $660,000 in advisory and grant support aimed at strengthening the company’s systems and capacity to expand farmer financing.
Complete Farmer currently operates an agricultural network serving more than 72,000 farmers. The company has nine years of experience and operates across eight regions in Ghana, supported by eight fulfilment centres, with an active presence in Ghana and Togo.
The partnerships bring together finance, agricultural technology and market access in an effort to address some of the financing and production challenges facing farmers and agricultural businesses.
Supporting Ghana’s Agricultural Economy
Nathalie Kouassi Akon, IFC Division Director for West Africa Gulf of Guinea, said reliable access to finance, technology and markets could help Ghana’s agricultural sector create jobs and strengthen rural livelihoods.
According to IFC, the two partnerships address different gaps across agricultural value chains, from financing cocoa purchases to helping farmers access inputs, services, finance and buyers.
The initiatives support the World Bank Group’s broader agriculture agenda in Ghana and the priorities of AgriConnect by mobilising private investment, strengthening food security and supporting job creation.
For continuing coverage of Ghana’s agricultural economy, investment and business developments, follow Ghana News Live and GhanaMedia.net’s Top Stories.
The development also highlights the importance of financing, investment and policy to Ghana’s economic transformation. Related regulatory and economic developments can be followed through the Policy & Law Hub.
With the new arrangements, IFC, Absa Bank Ghana and Complete Farmer are combining financial instruments and agricultural technology to expand access to capital and strengthen participation in Ghana’s agricultural value chains.
