Why Are Banks Refusing To Lend To Agro-Industries ?

Farmer Anthony Morrison
Farmer Anthony Morrison


Farmer Anthony Morrison
Farmer Anthony Morrison

It’s interesting how constantly players within Ghana’s Agro-Industry have and continue to call on governments to either provide or undertake one form of project or make available financial assistance for Agro-Industry development and growth.

But let’s pause and think about the following issues……

There’s another policy MOFA is rushing to bring out. That’s the legislation to force banks to lend for agric purposes!


It’s bad and needless. A simple answer to why it won’t work is in the QUESTION.


Let’s remember that the  BANKS are in business to make money and if there’s money to be made lending to Agric, why would the BANKS hold back?

Why don’t we concentrate on fixing the risk factors and make agric attractive to BANKS?


We have been told how several development partners, donor organizations, and Multi-Nationals have put in millions and millions of dollars, pounds, euros, etc into several value chains and districts in Ghana.

We are also aware and know ourselves and several others who have benefited hugely from government and donor funding but have failed to either pay back the funds or deliberately run down the projects.

We have heard stories of many major stakeholders, and Snr Industry players who have obtained one form of credit from notable Banks and investments and have failed to fulfill the required financial agreements.

In some cases, many have gone to different shops and Agro outlets where they have obtained goods and other critical agriculture equipment either on credit or with the promise of paying back the next day, yet this payment has never materialized.

The current non-payment for credits be it cash, Inputs, or technical support is not limited to only other value chain players but also smallholder farmers.

It’s a known fact that most farmers in most cases default in such scenarios.

This situation of constant default is not only limited to just credits but also is a significant cause of the collapse of most of the country’s most viable past Agriculture Ventures and companies. Some were incorporated locally and internationally.

There are individuals who have deliberately or unconsciously run down such past viable enterprises.

The most interesting thing is that these are people who still continue to enjoy the sector.

The same situation could be said of workers and managers and several tasks undertaken on many farms whose action of pilfering, deliberate disruption, and damages continues to contribute to the many gargantuan problems the sector is already bereft with.

As we seek to streamline an industry and position it for investment and credit drives we must also take into consideration such acts of workers and many other tendencies that have the likelihood to collapse people’s critical investments.

The big question is

Should A CREDIT WEALTHY CHECK be undertaken in Ghana’s Agriculture Space, how many people will pass this test or credit score rating?

Many of the Country’s Banks have time in again complained bitterly about how most of their debts are those they have done on Agriculture and its value chain.

It’s time we start thinking of streaming the industry in such a way we can begin to call the right shorts and decisions to show leadership as required.

In conclusion, I will like to passionately plead with those who have defaulted on credits in whatever form and should begin to take steps to address the problem before calling on the government to make major changes or provide major financial aid.

As the good old book said – take the speck out of your eye,’ before you attempt to remove the plank in your brother’s


By:Farmer Anthony Morrison

CEO, Chamber of Agribusiness Ghana

Chairman Ghana Agriculture Sector Skills Body of TVET Commission

International Agriculture and Infrastructure Development Group




  1. Who said Agric is not attractive. I don’t think he can see and hear well. So is he telling us that the good things happening in agriculture as a result of The best Agric minister’s good performance, he has not heard it? They shouldn’t when they don’t know.

    Dr. Akoto is a great leader


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