The USAID Financing Ghanaian Agriculture Project (USAID FinGAP) is a five-year project which aims to improve financing and investment in agribusinesses operating in the maize, soy, and rice value chains in the north of Ghana.
A key constraint of developing commercial agriculture in Ghana has been limited access to finance, given the reluctance of financial institutions to operate meaningfully in this sector, due to inherent risks, both perceived and actual. Meanwhile, more than three million Ghanaians, mostly living in rural agricultural communities in Northern Ghana, remain—or are vulnerable to becoming—food insecure. USAID FinGAP supports USAID Ghana’s Feed the Future strategy of establishing commercially-driven agricultural development services critical to sustainably reducing food insecurity.
USAID FinGAP is also contributing to the joint efforts by USAID and the Government of Ghana to address the major constraints to the country’s economic growth, including development of the financial sector infrastructure and increasing access to finance for small, medium including large enterprises (SMiLEs). Since its inception in July 2013, USAID FinGAP has been offering technical assistance, either directly or indirectly through its network of business advisory service (BAS) providers who identify, prepare, and package financing proposals for viable agribusiness opportunities. It has also been using a combination of incentives and technical assistance to help financial institutions (FIs) better understand agribusiness and develop products tailored to financing the needs of these businesses. For both BAS providers and FIs, USAID FinGAP has been successful in its “pay-for-performance” incentives and grants programs as significant financing is now being disbursed by both bank and non-bank financial institutions.
This project is funded by the United States Agency for International Development and implemented by CARANA Corporation, a company which designs and implements economic development strategies for governments, businesses, and donor organizations. In October 2015, CARANA was acquired by the Palladium Group. CARANA and Palladium share a common vision of an impact economy marked by alignment of social and commercial interests to create sustainable positive impact for a broad range of constituents. Through this program, USAID FinGAP is supporting the previously under served agriculture sector in Northern Ghana.
Photo: Red Batik Cloth + Palm Frond Screen - Andrew Moore