The recently launched $87 million BRIDGE in Agriculture Program by the Mastercard Foundation, working alongside CrossBoundary Advisory and several major commercial banks, represents a practical approach to tackling one of agriculture’s longest-standing issues: access to affordable financing.
Given that agriculture employs 40 percent of the country’s workforce and sustains roughly three-quarters of the rural populace, this program offers a critical chance to unleash hidden productive potential and alleviate rural impoverishment.
Through offering non-repayable grants with no interest to commercial banks—which subsequently loan money to small and medium-sized enterprises in agriculture at a maximum interest rate of 7%—it tackles a key issue in the marketplace: elevated borrowing costs in a sector that is both risky yet crucial for society.
Integrated assurances and clauses addressing substantial loan oversight expenses underscore a nuanced comprehension of the financial impediments within agriculture.
This hybrid financing approach—which merges charitable funds with business-like rigor—offers a refreshing substitute for the conventional dependence on financially untenable subsidies or grants managed by donors.
Highlighting support for women and young people, who have traditionally been overlooked by conventional financial systems, is another praiseworthy aspect that supports comprehensive growth objectives.
Even though the program’s structure is solid, its execution needs thorough examination. Inexpensive loans by themselves won’t ensure better farming results.
To avoid elite capture or misuse of resources, capacity development, clear distribution processes, and strong oversight systems should be implemented.
Furthermore, the participation of six prominent commercial banks, along with business development service providers and a technological ally, is highly appreciated. Should this cooperative approach prove successful, it may establish a standard for subsequent initiatives addressing financial limitations in various industries.
The government shouldn’t just stay on the sidelines clapping. Instead, it needs to foster an encouraging atmosphere—by enhancing rural infrastructure, promoting digital access, and providing regulatory supervision—to guarantee the program remains sustainable and expandable.
Agriculture needs to shift from mere sustenance farming to becoming an established business. Through appropriate collaborations, Ghana has the potential to transform its advantageous arable land into a formidable asset. The introduction of the BRIDGE in Agriculture Program is indeed a highly favorable development.
Provided by Syndigate Media Inc. ( Syndigate.info ).
Post a Comment