Ghanaian horticulture exporters are demanding single-digit interest rates to boost the sector's growth and international competitiveness. This urgent call comes from Davis Korboe, President of the Federation of Association of Ghanaian Exporters. He emphasizes that affordable financing is critical for agribusinesses to expand and thrive.
The horticulture industry currently generates GHS 5 billion in revenue for Ghana. Mr. Korboe believes this figure can significantly increase with proper support. However, high lending rates make it difficult for businesses to invest in new technology and meet global market demands. This financial constraint limits the sector's ability to reach its full potential.
This demand for lower interest rates fits into Ghana's broader economic strategy to diversify exports and boost non-traditional export earnings. The Bank of Ghana's Monetary Policy Committee has maintained a high policy rate, currently at 29%, to combat inflation. This high policy rate translates into elevated commercial bank lending rates, often exceeding 30% for businesses. Such rates make long-term investment challenging for many sectors, including agriculture.
Davis Korboe stated, "Financing is a cross cutting issue, the key reforms we are looking at is creating a single digit interest rate for the sector to help enhance value addition and Cape Coast." His remarks were made at a press soirée launching the 2026 Ghana Horticulture Expo. This event aims to showcase opportunities and promote investment across the sector's value chain.
The push for single-digit rates has significant implications for Ghana's agricultural policy and financial markets. Policymakers will need to consider how to support specific sectors without undermining broader inflation control efforts. The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) has already committed to de-risking lending to the horticulture sector. This commitment, alongside calls for lower rates, signals a concerted effort to channel more funds into agriculture. Success in this area could lead to increased export earnings, job creation, and improved food security. The upcoming 2026 Ghana Horticulture Expo will be a key platform for stakeholders to discuss these challenges and potential solutions.
The horticulture sector's growth is vital for Ghana's economic resilience. It provides employment for many Ghanaians, from farmers to exporters. Expanding this sector also contributes to Ghana's foreign exchange reserves through increased exports. Addressing financing challenges is therefore not just about horticulture, but about strengthening the entire national economy. The government's 'Planting for Food and Jobs' initiative, for instance, aims to boost agricultural productivity. Affordable credit aligns directly with such national development goals. Without competitive interest rates, Ghanaian businesses struggle against international competitors who often access cheaper capital. This disparity affects their ability to innovate and expand market share. Therefore, the call for single-digit rates is a strategic move to ensure Ghana's horticulture sector remains competitive globally. It also highlights the ongoing tension between macroeconomic stability and targeted sector-specific growth. The outcome of these discussions will shape the future trajectory of Ghana's agricultural export landscape.