In a bid to mitigate the crippling effects of the severe drought ravaging the northern and middle belts of Ghana, the government has announced a massive loan write-off of GH¢3.24 billion for affected farmers.
The move comes as a welcome relief to the agricultural sector, which has been reeling under the impact of the prolonged dry spell.
The agricultural sector has been the backbone of the economy, employing millions and contributing significantly to the country’s GDP.
However, the sector has been facing numerous challenges, including climate change, inadequate irrigation systems, and limited access to credit facilities.
The current drought, which has been described as one of the worst in recent history, has brought these challenges to the fore.
Farmers, who had invested heavily in their crops, are now facing the prospect of total loss due to the severe dry spell.
In response to the crisis, the government has taken swift action to support affected farmers.
The loan write-off, which amounts to 90% of the total debt, is a significant gesture of goodwill.
Additionally, the government has announced plans to raise $500 million (GHS 8 billion) to support food security interventions.
This funding will be sourced from a combination of the Contingency Fund, Budget Realignment, and Development Partner Funding.
The move is aimed at cushioning the impact of the drought on the agricultural sector and ensuring food security for the nation.
The government’s intervention has been welcomed by farmers, who are struggling to come to terms with the devastating impact of the drought.
The loan write-off will provide much-needed relief, allowing farmers to restart their operations without the burden of debt.
However, concerns remain about the long-term sustainability of the agricultural sector.
The government’s measures are seen as a temporary solution, and there are calls for more permanent solutions to address the challenges facing the sector.
BY Daniel Bampoe