Ghana, Germany Sign Agreement

The Minister for Finance and Economic Planning, Hon. Dr. Kwabena Duffour, has signed an 11-million Euros loan financing agreement with Dr. Klaus Muller, First Vice President for West and East Africa of the German Development Bank to boost out grower schemes and improve the income of the target, especially small-scale farmers.

The Loan is an Outgrower and Value Chain (OVC) Fund with the focus on poverty alleviation through sector-led Agriculture Development.

Speaking at a press conference in Accra yesterday, Hon. Duffour indicated that the Fund will offer loans for out grower and value chains schemes, which include spot improvements in infrastructure as related to the scheme.

He noted that the overall project goal is to improve the income of the target group, particularly small-scale farmers, thereby contributing to reduce rural poverty.

The Scheme, according to him, will offer grants for studies, technical support and also manage to complement the Fund's investment.

The Finance Minister stated that the scheme will be implemented by the Ministry of Food and Agriculture while the Ministry of Finance co-ordinates the implementation with the Bank of Ghana.

This, he added, will ensure proper account for the use of the fund.

Hon. Duffour, therefore, expressed his profound gratitude to the German Government for their support towards the course of development in the country.

Dr. Klaus Muller said that agriculture is one of the prioritised sectors for the Germans and also a key sector recognised for reducing poverty.

“It is therefore, our hope that the Loan will help improve the income of the target group, especially small-scale farmers, thereby, contributing to reduce rural poverty,” he emphasised.

Dr. Muller said that the German Bank will scale up the funds to more than 20 million Euros in the future.

Source: ISD (Michelle F. Agbenorto & Adjoa Agyei)