“One of the major constraints in agriculture is the lack of capital and funding for production so government can only partner with the private sector,” Edward Karewah, Deputy General Secretary of the General Agriculture Workers Union (GAWU) told CNBC Africa on Wednesday.
The Ghanaian Ministry of Food and Agriculture had initially delayed the release of the sector’s operational funds in the second quarter of 2013 due to the lack of funds.
The Ministry says that the Private sector partnership will help develop value chains and upscale credit support facilities for farmers in the country.
“The partnership will ensure that financial institutions, for instance, are taking part in funding agriculture,” said Karewah.
He said that the partnership process at the moment is on-going and that GAWU has proposed that 20 per cent of the loan portfolio should be allocated to the agriculture sector as a mandatory policy.
Karewah also believes that the Ghanaian government needs to focus on developing the country’s irrigation systems.
“We are currently consulting with financial institutions as well as other stakeholders such as farmers and government,” he noted.