Ghana's horticulture sector seeks cheaper credit as exporters push for single-digit lending rates

Ghana's horticulture exporters are intensifying pressure on policymakers to introduce single-digit interest rates for agribusinesses, arguing that current lending costs are stifling the sector's growth and international competitiveness. The push comes as the industry prepares to showcase its potential at the upcoming 2026 Ghana Horticulture Expo, a landmark event designed to attract investment and innovation across the value chain.

Davis Korboe, President of the Federation of Association of Ghanaian Exporters, has made affordable long-term financing a central priority for sector development. Speaking at a press event launching the expo, Korboe highlighted that whilst Ghana's horticulture industry currently generates GH¢5 billion in revenue, it remains constrained by prohibitively high borrowing costs that prevent businesses from scaling operations, acquiring modern technology and meeting stringent international market standards. He specifically called for reforms that would introduce single-digit interest rates, describing financing as a cross-cutting issue critical to expanding value addition across the sector.

The financing crisis holding back growth

High lending rates have become a significant barrier to horticulture businesses seeking to modernise and expand. Farmers, processors and exporters struggle to access the capital needed for production expansion, technology upgrades and compliance with export market requirements—all essential for competing globally. These constraints disproportionately affect smallholder farmers and medium-sized enterprises that lack collateral or established banking relationships.

The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) has emerged as a potential solution. Samuel Yeboah, the system's Chief Operating Officer, reaffirmed the institution's commitment to de-risking lending to horticulture businesses by sharing the burden of default risk between lenders and borrowers. However, industry stakeholders argue that such measures alone are insufficient without broader policy reform to bring base lending rates down.

Why this matters for Ghana

Horticulture represents a significant opportunity for Ghana's economic diversification and export growth. Beyond current revenue, the sector has substantial untapped potential to create jobs, particularly in rural areas, whilst generating foreign exchange earnings critical to Ghana's balance of payments position. Countries across West Africa and beyond have demonstrated that well-financed horticulture industries can become major economic drivers; Ghana has similar conditions but lacks the financing infrastructure to compete effectively.

The 2026 Ghana Horticulture Expo will convene farmers, exporters, processors, investors and policymakers to address longstanding challenges including access to finance, infrastructure gaps, technology deficits and market access constraints. Addressing these issues is crucial for positioning horticulture as a stronger contributor to economic growth and employment creation. Single-digit interest rates would lower the cost of capital, enabling businesses to invest in higher-value crops, processing facilities and export-ready standards. This, in turn, would enhance Ghana's position in regional and global agricultural markets where demand for fresh and processed horticultural products continues to grow.

Policymakers and financial regulators will face pressure to balance the exporters' demands with broader monetary policy considerations, but the case for targeted agricultural financing support remains compelling given the sector's development potential and job creation capacity.