President John Dramani Mahama has vowed to make agricultural credit more accessible and affordable, especially for women farmers and those in the fishing industry. Speaking at the Farmers’ Day celebrations in Ho, he stressed that easy access to credit at the right interest rates is crucial for farmers to expand production and contribute meaningfully to national food security.
“I believe that there are very important issues to do with focusing on women, agriculturists, who are into farming and fishing, by giving them credit to be able to produce more, and giving them the credit at the right interest rates,” President Mahama said.
He pointed out that the current rates on agricultural loans are so high that farmers “virtually will be working for the bank, not for themselves.”
The reality, according to Bank of Ghana data as of March 2025, paints a stark picture for borrowers. Annualised percentage Rates (APRs) on loans to households, SMEs, and corporates remain high, with most banks charging between 20% and 50% depending on the bank and loan type.
Even institutions dedicated to agriculture, such as the Agricultural Development Bank, offer loans at rates approaching 35%. Such borrowing costs make it difficult for farmers to invest in quality seeds, equipment, and modern farming methods, limiting their ability to grow their businesses and contribute to the national food supply.
Against this backdrop, the President made it clear that his government intends to bring agricultural lending rates below 10%. “Credit for agriculture must be at a single-digit interest rate. And so this government is going to work to bring that interest rate below 10% so that farmers can have access, cheaper credit to be able to produce more for us to feed ourselves,” he said.
Farmers’ groups and experts have welcomed the pledge, noting that lower borrowing costs could transform agriculture from a subsistence activity into a thriving business sector. With affordable loans, farmers would be able to invest in better inputs, scale their operations, and contribute to the country’s food security in a meaningful way.
For many smallholder farmers in Ghana, especially women and rural producers, this promise offers hope of a more productive and sustainable future. The Ghana National Association of Farmers and Fishermen (GNAFF) welcomed the pledge, particularly as it came shortly after one of its members publicly called for more affordable credit for farmers. With cheaper loans, farmers would be able to invest in better inputs, scale their operations, and contribute meaningfully to the country’s food security.
