Ecobank says it is increasing investment in the agriculture sector, although many financial companies sideline the sector. Despite employing majority of the country’s workforce, many banks and financial institutions hold that lending to the sector is risky.
Ecobank’s Head of Small and Medium Enterprises Department Abdulai Abdul Rahman said the bank’s engagement with farmers in the sector shows that the sector is not dangerous at all. Over the past year, Ecobank has given over US $5 million in credit to farmers within the maize, rice and soya value chain, Abdul Rahman revealed.
He said losses incurred in lending to the farmers are much lower than other sectors.
“This money [$5 million] has demonstrated to us that farming is not necessarily the risky business that people think it is”, he said.
He adds that sometimes the risks involved in lending to farmers is lower than to other sectors like commerce and construction.
Source Credit: www.Myjoyonline.com