The Bank of Ghana (BoG) is exploring plans to allocate a portion of commercial banks’ GH₵50 billion reserves held at the central bank to support agricultural financing, Governor Dr. Johnson Asiama announced during the National Economic Dialogue this week.
The proposal aims to channel funds through the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), a state-backed scheme designed to de-risk loans for farmers and agribusinesses.
Governor Asiama revealed the initiative in response to calls from private sector leaders for more targeted investment in critical economic sectors. “If I had my way, I would commit part of these reserves to augment GIRSAL’s guarantee fund,” he said, suggesting GH₵10–20 billion could be redirected to spur lending. GIRSAL currently mitigates risks for financial institutions offering agricultural loans, but limited funding has constrained its reach.
The move, however, requires approval from the International Monetary Fund (IMF), as Ghana remains under a $3 billion IMF extended credit facility. Dr. Asiama emphasized the need for collaboration: “We will engage the IMF and other authorities to tailor the best approach.” Economists largely back the plan, noting that the idle reserves—which earn no interest—could be strategically deployed to address food insecurity, curb inflation, and reduce Ghana’s reliance on imported food.
Analysts argue bolstering GIRSAL would incentivize banks to increase agricultural lending, a sector long perceived as high-risk. “This aligns with broader goals of enhancing food security and stabilizing prices,” said financial analyst Nana Ama Mensah. “Unlocking even 20% of these reserves could transform agribusiness financing.”
The proposal comes amid rising food inflation and pressure to revive local production. With over GH₵2.6 billion spent on importing animal byproducts alone in 2024, per recent data, officials hope redirected funds could strengthen domestic value chains.
While the IMF’s stance remains unclear, the BoG’s pivot underscores a growing urgency to repurpose underutilized resources. As consultations proceed, stakeholders await a decision that could redefine Ghana’s agricultural landscape—and its economic resilience.
