MoFA Launches $1 Million Fund to Support Northern Ghana Farmers

The Ministry of Food and Agriculture (MoFA) has announced a $1 million revolving fund to support smallholder farmers across 12 districts in Ghana’s northern belt with affordable loans at single-digit interest rates.

Unveiled on April 18 in Accra, the initiative is part of a broader $20 million grant secured from the Global Agriculture and Food Security Programme (GAFSP) with backing from the African Development Bank (AfDB). It targets enhanced food production and resilience in the Northern Savannah Ecological Zone.

Agriculture Minister Eric Opoku emphasized that the fund comes at a crucial time as many farmers recover from last season’s drought. “By next week, eligible farmers can walk into rural banks in their districts and access loans at interest rates below 10%, compared to prevailing market rates of up to 30%,” he noted.

The fund will be disbursed through selected rural and community banks in collaboration with ARB Apex Bank. Women and youth farmers—who represent over 60% of the region’s agricultural labor force—will receive priority access.

According to MoFA’s Chief Director, Alhaji Mohammed Hardi Tufeiru, the first tranche has already been transferred to banks in Walewale, Bunkpurugu, Zabzugu, Gushegu, Karaga, and Chereponi. Disbursement is set to begin by April 25.

“Many farmers have long relied on loan sharks who charge up to 50% interest. This is a safer, sustainable alternative,” Tufeiru explained.

ARB Apex Bank Managing Director, Mr. Alex Kwasi Awuah, said the bank has removed traditional collateral barriers, opting for a group-guarantee system that allows cooperatives to vouch for their members.

In addition to credit, the program will supply drought-resistant seeds such as Obatanpa maize and Songotra cowpea, handheld farming tools, and solar-powered micro-irrigation kits. It also includes support for poultry and guinea fowl farming.

Alhaji Alhassan Issahaku, representing the Northern Regional Minister, said the program directly addresses issues raised by community leaders during the Minister’s recent tour. “This proves the government is listening,” he stated.

Participating farmers will also be covered under the Ghana Agricultural Insurance Pool (GAIP), protecting them against potential crop failures caused by erratic rainfall.

The initiative starts in six districts, with the remaining six joining by June 2025.