Ghana’s private sector has proposed a new Value Chain Industries Bank (VCIB) to support the nation’s 24-Hour Economy initiative. This bank would provide long-term financing across entire production chains, from raw materials to final markets. The proposal aims to address critical funding gaps in agriculture and manufacturing sectors.
The proposed private-sector-led development finance institution would target agriculture, manufacturing, fast-moving consumer goods (FMCGs), and export value chains. Industry stakeholders identify a persistent mismatch between short-term financing and the longer investment periods needed for competitive industries. This new bank seeks to align financing tenure with the gestation period of industrial projects.
Ghana’s economic expansion, including import substitution and increased exports, requires comprehensive financing beyond just factories. The current system often leaves farms, suppliers, and distributors underfunded, hindering overall industrial growth. President John Dramani Mahama’s 24-Hour Economy agenda needs more raw materials, working capital, and logistics to succeed. This proposal fits into Ghana's broader strategy to boost local production and reduce reliance on imports.
Industry figures argue that financing must follow the entire production chain. An agro-processing company, for example, needs funding for factory construction, raw material development, and distribution networks. These investments can take up to ten years to mature, but current financing often has shorter repayment periods. This creates pressure before agricultural and commercial ecosystems reach sufficient scale.
The VCIB would address this mismatch by offering financing terms that match the long-term nature of these investments. Unlike a wholly state-owned development bank, VCIB would be substantially private-sector driven. Manufacturers, agribusinesses, FMCGs, and institutional investors would participate, with government as a strategic partner and potential minority investor. This model leverages existing productive assets like factories, farms, and distribution networks.
One key innovation is greater recognition of biological assets in agricultural financing. Commercial plantations like cocoa, oil palm, and citrus have future production potential. However, they often do not receive sufficient recognition under conventional collateral structures. Subject to proper valuation and legal requirements, VCIB would assess agricultural investments using land, biological assets, expected yields, and confirmed sales. This moves beyond relying predominantly on fixed collateral.
The proposed bank would also emphasize market demand. Financing decisions would consider who will buy the output, not just what collateral a producer owns. Credible sales agreements with FMCGs, processors, and exporters would become part of project assessment. This shifts industrial financing from “finance, produce, and search for a market” to “identify demand, secure sales, produce, and finance.”
This approach could significantly support Ghana’s import-substitution strategy. Products currently imported but producible competitively in Ghana could receive targeted financing. This would cover the entire chain from raw materials to processing and distribution. Successful industries could then expand into the African Continental Free Trade Area (AfCFTA) and international markets. This converts import substitution into export earnings and generates foreign exchange.
Digital payments could further strengthen the VCIB model. Verified transactions across farmers, suppliers, and distributors would provide lenders with greater visibility into actual turnover. This supports increased use of cash-flow-based financing, making lending more efficient and secure. The proposal directly supports the 24-Hour Economy by ensuring factories have the necessary raw materials, working capital, and markets for continuous operation. A 24-hour factory requires a 24-hour value chain, and that value chain needs appropriately structured finance.