Ghana’s ability to attract greater agribusiness financing is being hampered by low agricultural production, fragmented farming systems and challenges in meeting international export standards, according to Absa Bank.
Speaking at the Citi Business Festival, Head of Agribusiness at Absa Bank, William Nettey, said increasing agricultural output is critical to unlocking investment, expanding agro-processing and improving Ghana’s competitiveness in global markets.
He explained that the dominance of smallholder farming continues to create supply challenges for industries that require large and consistent volumes of raw materials. As a result, significant resources are often spent on aggregating produce before it can be processed or supplied to markets.
Mr. Nettey stressed that boosting production will require coordinated support, including access to quality inputs, financing, technical expertise and modern farming practices. He noted that stronger production capacity would make the sector more attractive to investors and financial institutions.
According to him, expanding agro-processing offers one of the most effective pathways for economic transformation, as value addition creates substantially more jobs than the production of raw commodities alone.
Despite the opportunities, he noted that financing the agricultural sector remains complex because risks vary across different segments of the value chain, from input supply and farming to processing and export.
He further highlighted the importance of meeting international quality and safety standards for export markets. Failure to comply with requirements such as HACCP and GlobalG.A.P., he warned, can result in rejected shipments, financial losses and reduced confidence among buyers.
Mr. Nettey also pointed to risks including pest infestations, contamination and supply chain disruptions, which lenders must carefully evaluate before extending credit to agribusinesses.
He maintained, however, that the sector possesses significant growth potential if stakeholders focus on increasing production volumes, strengthening processing capacity and improving compliance with global standards.
The comments were made during the Citi Business Festival, a leading platform for discussions on business growth, entrepreneurship and economic development in Ghana.
