Banks take a huge risk when investing in Agriculture – John Awuah
The Chief Executive Officer of the Ghana Association of Bankers, Mr. John Awuah, has said banks risk the chance of losing huge money when investing in Agriculture.
This according to Mr. Awuah is because the country lacks the effective mechanisms that can assist banks and farmers to manage post-harvest losses.
Speaking to JoyNews’ George Wiafe, on the topic; Financing Agri-business Today, Mr. Awuah said while bankers invest with the aim of profiting during a good harvest, a price drop renders such a goal fruitless.
“When there is a bumper harvest we experience this significant drop in price, in our part of the World, it is that stage that you experience post-harvest losses because there are no mechanisms to store post-harvest goods making banks and farmers lose money,” he said.
According to him, recovering from such loses take time, making financing of Agri-businesses difficult.
The Chief Executive Officer said it was important for a national plan to be instituted by all stakeholders.
This plan he said must “institutionalise a working Commodity’s Exchange Programme, with a proper warehousing facility in all the strategic locations,
“Banks have been doing quite a lot in the area of Agriculture, it is not at the level that we all expect but we are treading cautiously,” he said.