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African central banks urged to promote agricultural finance

22.07.2014

"Central banks need to promote agriculture and increase institutional development", said deputy governor of the Bank of Ghana Millison Narh at the end of the conference on revolutionising finance for agriculture value chains recently held in Nairobi.

"Central banks need to promote agriculture and increase institutional development", said deputy governor of the Bank of Ghana Millison Narh at the end of the conference on revolutionising finance for agriculture value chains recently held in Nairobi.

He added that experts also suggested during the conference that central banks and governments work to establish collateral registries, credit bureaus and commodity exchanges, Tanzania Daily News reports.

"Agriculture and finance can work together and this cooperation will revolutionise the industry," said Michael Hailu, director of the Technical Centre for Agricultural and Rural Cooperation ACP-EU.

He believes one thing that had come out very clearly from the meeting was that small holder farmers are business persons who need skills to understand how the financial sector works.

Kenya's cabinet secretary for agriculture Felix Koskei, added: "At country level, we are in the process of transforming the agriculture and finance corporation and streamline our cooperatives such that they play a greater role of ensuring access to finance opportunities are broadened." 

While the majority of Africa's population lives in rural areas and depends on agricultural production, the supply of financial services to the sector is inadequate, with, on average, five per cent of domestic resources being allocated to the agricultural sector.ADNFCR-2976-ID-801736741-ADNFCR