In the Upper West Region of Ghana, a new generation of young entrepreneurs is revolutionizing the agricultural sector.
Thanks to the ABSA Young Africa Works Project, a partnership between ABSA Bank and Mastercard Foundation, these young agro-business owners are accessing the funds and support they need to grow their businesses and create jobs.
The project, which provides 10% interest loans to young entrepreneurs, has already made a significant impact in the region. Beneficiaries have increased their employee numbers and expanded their farm sizes, leading to increased productivity and economic growth.
Access to credit facilities for most agribusinesses has always been a challenge. Even for banks that offer credit facilities to agribusinesses, the interest alone makes it difficult for these businesses to access the facility.
One individual who has benefited is Mr. Emmanuel Ahaa, the Chief Executive Officer of A E Farms Limited, situated in Jirapa in the Upper West Region. The company was founded in 2018 and specializes in the sale of agricultural inputs and outgrower business.
The company’s outgrower business primarily serves women and young people, with a focus on cultivating sorghum as the major crop.
“Absa Young Africa Works Project coming in the sorghum value chain was very timely. Today as we speak now, the volumes of Guinness demand has increased and the demand for sorghum production has gone up,” Mr Kahaa said.
“Before we [A E Farms Limited] joined the project, it was challenging when it comes to marketing sorghum. Timely payment of farmers was a challenge.”
The Absa Young Africa Works project granted A E Farms Limited GH₵4.5 million between March 2023 and December 2023.
Mr. Kahaa said he has been able to employ eight (8) additional staff and also increase his lead farmers from fifteen (15) to about twenty-five (25) through the Absa Young Africa Works project.
He added, “The impact of the project has been so great; the stress we used to go through in paying farmers timely has gone down. Now farmers get their pay very early and the zeal for formers to go into sorghum cultivation has also increased.”
According to Mr Kahaa, A E Farms Limited has supported many women in accessing timely tractor services and has also helped many young people get into sorghum production as part of the Absa Young Africa Works project. Dery Mwinibong Fidelis, a Field Officer with A E Farms Limited, mentioned that working with the company has changed his life.
“I am able to take care of my family and for now I can also boast of putting something aside for future development and for my children.”
Another beneficiary, Mr Issifu Amadong Niyariyor, the Chief Executive Officer (CEO) of Amadong Wonderful Limited in Lambussie in the Lambussie District, has also seen significant growth in his business.
With the support of the project, Mr Niyariyor was able to expand his farm, leading to an increase in production. According to him, he has been able to support over 1,200 farmers with the majority of them being women.
“I heard about Absa Young Africa Works Project and I applied and through that, the company has been able to support about 1,210 clients [farmers]. Out of the 1,210, 90 per cent are women.
“This support has helped; most of my women used to produce one acre at the beginning but after the funds have been received most of them now produce three to five acres,” he stated.
Mr Niyariyor mentioned that he has been able to buy some assets, and access to market through the project. He noted that at first if you can buy more produce you will not get a good market but through the project, he can buy more produce.
“We were only two 2 as a sole proprietor, the staff capacity has increased to six 6 and then we have three women and three ladies,” he added.
Mr Niyariyor said, “I will say Absa Young Africa Works Project has helped myself and my clients and I will advise all young entrepreneurs who are actually willing to take farming as a good business.”
Awo Fields Limited, a Wa-based agri-company, also received a significant boost from the Absa Young Africa Works Project, enabling it to expand its operations and increase its workforce.
Established in 2019, Awo Fields Limited focuses on primary production, input supply, and the sale of farming equipment. However, access to finance posed a significant challenge to the company's growth until the Absa Young Africa Works Project intervened with a loan in January 2024 at a 10% interest rate.
According to Joy Okrah, CEO of Awo Fields Limited, the support from Absa Bank has been instrumental in scaling up the company's operations.
“With the support from Absa and Young Africa Works, we’ve now been able to increase the number of women and the out-growers as well as the in-growers that we are working with. Before, we had 1,505 and then with the support of the Absa Young Africa Works project, we have been able to add 300 farmers with about 65 per cent being women and youth.”
Madam Joy mentioned that the company was on the verge of losing two of its three fields due to limited inputs, but timely intervention from Absa Young Africa Works Project has turned its fortunes around.
She revealed that the loan from Absa Bank has enabled them to cultivate all three fields this year, a significant boost to their production capacity.
The support from Absa Bank has also had a ripple effect on the community, with Awo Fields Limited creating employment opportunities for young people like Mr Abubakari Suleman, a university graduate who was previously unemployed. With a stable monthly income, Mr Suleman is now able to support his family and is even saving to further his education.
Moreover, Mr Suleman has been inspired to start his own farming project on a parcel of land, demonstrating the empowering impact of the support from Absa.
Mr William Brandford Nettey, Head of AgriBusiness at Absa Bank, spoke to the media after a two-day tour of farms in the Upper West Region.
He explained that the Absa Young Africa Works Project was created to support agribusinesses, women-led businesses, and young entrepreneurs, including Fintechs. He highlighted the challenges faced by businesses in these areas, such as high interest rates and the lack of collateral for accessing financing.
To address these issues, Absa Bank partnered with the Mastercard Foundation to co-create a product tailored for women and agribusinesses. The goal of the project is to provide loans to about 5000 businesses over five years and create 50,000 jobs. Additionally, the project includes training to enhance the capabilities of these small businesses.
Mr Nettey noted that although initially, the loan uptake was low due to high interest rates, the partnership with the Mastercard Foundation, which reduced the interest rate to 10 percent, has significantly increased access to the loan for many businesses.
He expressed his satisfaction with the project's impact in the Upper West Region and encouraged all partners to show interest in similar projects.
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