Professor Peter Quartey, Director of the Legon Centre for International Affairs and Diplomacy (LECIAD) and former head of ISSER, says Ghana’s agricultural sector continues to suffer from poor access to credit because banks perceive it as too risky despite government interventions.

Speaking on the JoyNews Business Economic Forum, Prof. Quartey said lending to agriculture remains far below expected levels, even among institutions specifically mandated to support the sector.

“I recall ADB, for instance, said they were to give up to about 50% of their portfolio to agriculture. That did not happen. At most, they were able to get to 23, 24%,” he noted. “Why is that the case? Agric is high risk.”

He explained that government programmes such as the Credit Risk Sharing (CRS) system were introduced to reduce the risk burden on banks, but the measure has not fully addressed the challenges that discourage lending to farmers and agribusinesses.

Prof. Quartey stressed that without strong and consistent credit flows, Ghana’s efforts to modernise agriculture and achieve food security will remain limited.

He argued that agriculture’s role in inflation, rural livelihoods and national growth makes the lack of financing a critical economic issue.

Prof. Quartey urged policymakers and financial institutions to confront the structural problems holding back lending to the sector.

“We need to see more support for agriculture,” he said, adding that both government and banks must rethink how to reduce risk and expand credit to farmers who contribute significantly to Ghana’s economy.