Mr. John Kofi Mensah, MD of ADB

The Agricultural Development Bank (ADB) has debunked claims that the bank is shifting its core business to real estate development.

This comes after some farmers alleged that banks are not granting them loans.

In response to the claims, General Manager for Agribusiness at ADB, Kwame Asiedu Attrams emphatically stated that the allegations are false.

“It is most pathetic to hear that a farmer would claim that the Agricultural Development Bank will deny him credit and indicate that, if he were into real estate, he will stand a better chance of financing. That, I dare say, is a palpable falsity.”

According to him, the bank has invested about GH600 million in the agricultural sector.

“ADB is a universal bank, therefore we finance all players within all sectors. However, it is a universal bank with agricultural focus. As of now, we have close to GH600 million invested in agriculture in Ghana,” he stated.

Meanwhile, Ghana Incentive-based Risk-sharing System for Agricultural Lending (GIRSAL), an institution responsible for guaranteeing financial institutions against agricultural loans, has advised farmers to get basic knowledge about the loans they apply for and the banks they go to for such financial services.

According to Senior Agribusiness Specialist at GIRSAL, Takyi Sraha, the farmers approach the banks with unrealistic proposals, hence making it difficult for the banks to support them.

“Some of the challenges relating to why farmers are not having access to credit readily, is due to the fact that the farmers who are on the demand side do not understand the requirements of these financial institutions. As a result, they send proposals that are not able to meet the requirements of these financial institutions.”

“It important to note that if you’re sending any agric business proposal, one of the key things a financial institution and even as a guarantee scheme, we look at, is the market. Is there a guaranteed market or an off-taker for the produce?” he said.

“Most proposals presented by farmers do not clearly state the facility that they are requesting for, what is the purpose and how is it going to be applied and how will it be repaid”, he highlighted