GIRSAL officially launched its 5th-anniversary celebration under the theme “Cultivating Growth: Five Years of Empowering Ghana’s Agriculture Through Innovative Finance and Technical Support.”
The anniversary was launched with a special event that combined a celebration of GIRSAL’s transformative role in Ghana’s agricultural finance sector since 2019 with a Rubber Value Chain Conference. This dual-purpose event provided an opportunity to reflect on GIRSAL’s journey and impact over the last five years while also highlighting opportunities and discussing solutions to challenges within the rubber sector to support its sustainable growth.
The Official Celebration Launch Event
The launch event, which took place on September 17th, 2024, at the Marriott Hotel in Accra, brought together a diverse range of stakeholders in Ghana’s agricultural ecosystem.
Distinguished guests delivered keynote speeches, including Hon. Dr. Mohammed Amin Adam, Minister for Finance; Dr. Ernest Addison, Governor of the Bank of Ghana; Hon. Dr. Bryan Acheampong, Minister for Food and Agriculture, represented by the Chief Director, Mr. Paul Siameh; Dr. Yaw Ansu, GIRSAL Board Chair; and Mr. Kwasi Duah, GIRSAL Chief Executive Officer.
The speeches highlighted GIRSAL’s remarkable journey, underscoring its pivotal role in de-risking agricultural lending and accelerating financial support for agribusinesses across Ghana. They also celebrated GIRSAL’s achievements through its key operational pillars, particularly the Credit Risk Guarantee and Technical & Advisory Services.
In his keynote address, the Minister for Finance, Hon. Dr. Mohammed Amin Adam, commended the GIRSAL Board and Management for their successful efforts and leadership over the past five years.
Distinguished speakers at the Celebration Launch event
“I commend the GIRSAL Board of Directors and Management for their dedication and stewardship over the past five years and for your leadership and vision, which has been crucial in guiding GIRSAL to this point. I encourage all financial institutions to continue working closely with GIRSAL, leveraging its risk-sharing mechanisms to drive more investments into our vibrant agricultural sector. I also call on other stakeholders to support GIRSAL in achieving its mandate of keeping our small and medium-scale agribusinesses well-resourced to promote their enterprises” Dr. Amin noted.
The Governor of the Bank of Ghana, Dr. Ernest Addison, reaffirmed that, as of December 2022, GIRSAL’s Credit Risk Guarantee is recognized as acceptable collateral for the computation of the Single Obligor Limit (SOL) under Section 62(9) of Act 930.
“This means that Partnering Financial Institutions can use GIRSAL’s Credit Risk Guarantee as eligible collateral to secure loans, making these financial exposures to the agricultural sector secure” Dr. Addison added.
In a speech delivered on his behalf, the Minister of Food and Agriculture called on stakeholders to acknowledge the climate-related challenges, such as the recent near-drought in parts of the country, and to collaborate on implementing sustainable measures to mitigate similar occurrences in the future.
The event’s first session featured a short video documentary about the GIRSAL story—our origins, our evolution over the past five years, and significant achievements and impact made in the agricultural sector. The documentary also included testimonials from key partner financial institutions and agribusinesses that have been positively impacted by our work, highlighting GIRSAL’s value to their operations.
Following the documentary, the session climaxed with a cake-cutting ceremony led by GIRSAL’s shareholder, the Ministry of Finance, alongside key partners, including the Governor and Second Deputy Governor of the Bank of Ghana, the Country Director of the AfDB, the Board Chair of GIRSAL, and past and present CEOs of GIRSAL.
Achievement and Impact Over the Years
As GIRSAL celebrates its 5th anniversary, we proudly reflect on the key milestones that have transformed Ghana’s agricultural finance sector. Through our Credit Risk Guarantee Scheme (CRG), we have partnered with 35 financial institutions to facilitate GHS 1.2 billion in agricultural loans for over 137 agribusinesses, creating and sustaining more than 2,990 jobs and positively impacting over 67,000 farmers and workers.
Our efforts have also contributed to interest rate reductions of 1 to 6 per cent, saving agribusinesses over GHS 1.34 million in interest payments. Additionally, our Technical & Advisory Services (TAS) initiative has trained over 700 mid-level staff from various financial institutions, equipping them to assess better and manage agricultural lending risks.
Get more detailed insights on GIRSAL’s impact and achievements
Rubber Value Chain Conference
Speakers on the panel discussing key topics in the rubber industry
The second half of the event focused on the rubber value chain, a critical sector in Ghana’s agriculture with significant potential for foreign revenue generation. Mr. Takyi Sraha, Chief Technical Advisor, opened the session with an insightful presentation on Ghana’s rubber sector and the impact of GIRSAL’s initiatives within it. This was followed by a panel discussion on the theme “Navigating Challenges and Seizing Opportunities in Ghana’s Rubber Industry: Strategies for Sustainable Growth and Development through GIRSAL’s Financing Initiatives”
Moderated by Bernard Avle, the panel brought together key experts from various segments of the rubber value chain, including Mr. Emmanuel Kwasi Owusu, Managing Director of Narubiz Limited; Mr. Perry Acheampong, Corporate Affairs Manager of Ghana Rubber Estates Limited (GREL); Mr. Yaw Oteng, Deputy CEO (F&A) of the Tree Crop Development Authority (TCDA); Mr. Nicholas Nikoi, Unit Head of Agro Marketing & Sales at ADB; and Mr. Isaac Castro Bosomtwi, Chairman of the Rubber Out-grower Agents Association.
Former CEO, Mr. Kwesi Korboe and board member Mr. Tutu Agyare making contributions to the panel discussion
The discussion highlighted opportunities within the rubber industry while exploring solutions to the sector’s challenges. Key issues addressed included the smuggling of raw materials in the form of cup lumps, lower premium prices for Ghana’s processed TSR on the international market, and side selling of cup lumps by supported out-growers. Stakeholders proposed strengthening the capacity of the TCDA to enhance its regulatory functions and establishing standards for Ghana’s TSR to meet international requirements, positioning the sector for sustainable growth.
The discussion also underscored the significant raw material deficit of over 30,000 metric tonnes in the rubber industry, presenting a clear opportunity for investment in rubber plantations. This gap highlights the potential for expansion in the sector, which could attract further investment to meet local and international demand.
Corporate Social Responsibility (CSR) Initiative
GIRSAL donates 100 pieces of student furniture to Ohawu Agricultural College
As part of its 5th-anniversary celebrations, GIRSAL has donated 100 pieces of student furniture to Ohawu Agricultural College near Abor in the Volta Region through its Corporate Social Responsibility (CSR) initiative.
This donation aims to enhance students’ learning environment and address some of the college’s training challenges. It also underscores GIRSAL’s ongoing commitment to supporting agricultural education and developing the agricultural workforce.
Established in 1964, Ohawu Agricultural College has been instrumental in training mid-level professionals for Ghana’s agricultural sector.
Looking Ahead: GIRSAL’s Future Vision
As GIRSAL celebrates this milestone, Chief Executive Officer Mr. Kwasi Duah has outlined the organization’s vision for the next five years. He emphasized the importance of continued collaboration with financial institutions and providing enhanced support through targeted and specialized services.
GIRSAL aims to focus its Guarantee Scheme on high-risk projects and large-scale initiatives within key value chains, positioning itself as the primary agricultural loan portfolio manager for financial institutions. This will include actively monitoring and managing projects funded by partner institutions to ensure optimal outcomes.
Additionally, GIRSAL plans to strengthen the demand side of agricultural finance by supporting agribusinesses in developing bankable projects and enhancing their attractiveness to banks for financing.
To further support the sector, GIRSAL intends to collaborate with agriculture-related stakeholders to shape policy and engage in advocacy efforts, ensuring that key players in the industry have a strong voice in the development of regulations that foster growth and sustainability.