Dr. Paul Schuetz, Programme Manager, Market Oriented Agriculture Programme (MOAP) of the German Technical Cooperation (GIZ), has said that farmers and banks lack the professional know-how to handle agric-financing.

He has therefore called for more education and training for farmers and banks as well as a more organised value chain system that will attract investment for the agric sector.

?When farmers are professional, then they should also be financially literate to fully honour the obligations from taking loans and banks need to understand the potential of the sector as well as the risks; it certainly will help if banks employ agriculturists to promote agricultural finance.?

?More investment in the sector by farmers especially and other actors will result in better yields, better financial returns, greater efficiency and competiveness of the sector. ?

Dr. Schuetz said this in goodwill message at the 4th National Food and Agriculture Show (FAGRO).
He emphasised that agric-financing is very necessary in addressing the issue of poverty among farmers as envisaged in the Ghana Poverty Reduction Strategy paper and currently the Ghana Shared Growth and Development Agenda, and called on farmers and banks to utilise the agric value chain process as a way of addressing agric-financing challenges.

?This allows us to jointly look at the bottlenecks of the specific value chain, and how to overcome these bottlenecks and make the value chain more competitive.?

He added that since its inception, MOAP of GIZ has been involved in developing value chains by promoting citrus, pineapple and mango as perennial high-value crops in the form of a value chain to increase their competitiveness to attract finance.

?When we jointly try to bridge some of the gaps in the value chain process, we will be able to create a professional agriculture that can substantially contribute to income and employment and thus create wealth for the people,? he said.

As a federally-owned enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development.

The governments of Ghana and Germany have mutually agreed on Agriculture, Decentralisation and Sustainable economic and financial development as priority areas of cooperation.

GIZ in Ghana is strongly involved in all these sectors and across the different levels of engagement — from the district to the policy levels.

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