The European Union (EU) Delegation in Ghana, in collaboration with the European Development Financial Institution (EDFI) Management Company, has launched a new initiative called the Agriculture Financing Initiative, or “AgriFI.” This program is designed specifically to support farmers by providing medium to long-term financing to private sector enterprises involved in the agri-food value chain, with a special focus on smallholder farmers.
AgriFI is an impact investment facility funded by the EU and managed by the EDFI Management Company. It offers both investment capital and technical assistance to agribusiness Micro, Small, and Medium-sized Enterprises (MSMEs). The initiative, launched in Wa in the Upper West Region, includes a EUR 10 million financing mechanism dedicated to Ghana. It aims to develop sustainable and inclusive agricultural value chains, improving the livelihoods of smallholder farmers in the cashew, groundnut, mango, rice, sorghum, soybean, and vegetable sectors across the five Northern regions: Upper West, Upper East, North East, Northern, and Savannah.
At the launch, Jonas Claes, Deputy Ambassador of the European Union delegation to Ghana, highlighted the difficulties Ghanaian farmers face, particularly in accessing finance, which often prevents them from investing in modern farming techniques. He emphasized, “The EU is committed to supporting a more sustainable approach to agricultural financing. These are not just hollow words.”
Claes also noted that while grants are crucial in addressing financing challenges, they are not always enough or sustainable on their own. “This is where the AgriFI Ghana Country Window enters the picture. AgriFI is a unique loan system for farmers. These loans help to develop the activities of key agriculture stakeholders, such as microfinance institutions or aggregators. By complementing grants with loans, we create a more holistic and sustainable approach to agricultural development and financing,” he explained.
Peter Maala, Chief Director of the Upper West Regional Coordinating Council, praised the initiative, stating, “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 improved livelihoods for farmers by decreased production cost, resulting in food security, which is a priority for government.”
Lionel Dieu, the Fund Manager of AgriFI, expressed optimism about the program’s impact on smallholder farmers in Northern Ghana, stating, “This event is an important step in bringing together key stakeholders to discuss the challenges and opportunities in the region.”
The launch of the AgriFI Ghana Country Window represents the EU’s first investment in Ghanaian smallholder farmers and agribusinesses. The event gathered key intermediaries to explore the opportunities and challenges in supporting smallholder farmers in Northern Ghana.
Funded by the European Union–Ghana Agriculture Programme (EUGAP) and implemented alongside the Ministry of Food and Agriculture, AgriFI Ghana Country Window aims to increase agricultural productivity, protect natural resources, and improve market access for smallholder farmers, ultimately contributing to higher annual incomes for their households.
Tony Fosu, Chief Executive Officer of Sinapi Aba Savings and Loans, applauded the partnership with the EU, stating, “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.”
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