BoG Launches Risk-Sharing Scheme, Showcases Economic Resilience in Cocoa Sector
The Bank of Ghana (BoG) is taking pro-active measures to strengthen the country’s economy through innovative financial strategies. At a recent signing ceremony, the Second Deputy Governor, Matilda Asante-Asiedu, unveiled a new initiative aimed at bolstering the agricultural sector.
Risk-Sharing Guarantee Scheme Launch
The newly introduced Risk Sharing Guarantee Scheme has been established in collaboration with Access Bank Ghana and the International Finance Corporation (IFC). The goal is to unleash growth potential within Ghana’s agriculture sector, specifically targeting the cocoa value chain.
Strengthening Economic Resilience
Mrs. Asante-Asiedu emphasized that the Ghanaian economy is currently at a pivotal juncture. Key achievements include:
- An increase in investor confidence.
- Positive GDP growth trends.
- Inflation rates returning to single-digit levels.
These improvements reflect the impact of effective monetary policies and disciplined fiscal management, which have collectively enhanced macroeconomic stability.
Targeting Agricultural Growth
The Risk Sharing Guarantee Scheme is designed to facilitate financial inclusion and bolster private sector participation. It aims to provide essential working capital to Licensed Buying Companies (LBCs), which are crucial for connecting smallholder farmers with global markets. By doing so, the program seeks to:
- Ensure liquidity and stability for LBCs.
- Safeguard rural livelihoods.
- Support export earnings and enhance exchange rate resilience.
As outlined by Mrs. Asante-Asiedu, enabling these companies plays a vital role in ensuring more sustainable economic growth, particularly in the agriculture sector.
Conclusion
The BoG’s initiative, through its Risk Sharing Guarantee Scheme, demonstrates a commitment to strengthening the cocoa sector and fostering broader economic resilience in Ghana. With a focus on financial inclusion and economic diversification, this strategic approach aims to propel the nation toward sustainable development.
