Financial institutions are urged to use digital payment records to improve credit access for farmers in Ghana‘s oil palm sector. This push aligns with the government’s $500 million World Bank financing agreement for commercial oil palm development, finalized in July.
During a stakeholder workshop in Accra, Dr. Andy Osei Okrah, CEO of the Tree Crops Development Authority (TCDA), stressed the need for flexible financial products. These products would help farmers and others in the value chain establish credit histories based on their transactions.
The workshop, titled “Building a Sustainable Digital Financial Ecosystem for Ghana’s Oil Palm Sector”, gathered farmers, aggregators, processors, transporters, input suppliers, milling companies, and regulators. It was organized by the Better Than Cash Alliance, in partnership with the TCDA and the Oil Palm Development Association of Ghana (OPDAG), with support from the United Nations Development Programme.
Dr. Okrah noted that digital payments should go beyond replacing cash with mobile money or bank transfers. They should act as a gateway to a wider financial ecosystem. He pointed out that many farmers still use cash, and funds received digitally are often withdrawn immediately, limiting opportunities to build savings and access credit and insurance.
Digital transactions, he argued, could allow farmers to pay for inputs, labor, and transportation electronically while creating financial records to support loan applications. Over time, these records could demonstrate economic activity, strengthening farmers’ positions when seeking credit and other services.
Dr. Okrah emphasized that digital finance requires reliable connectivity, accessible bank accounts, digital wallets, suitable financial products, and user training to build trust. He acknowledged the government’s commitment through the $500 million financing facility but stressed that funding alone won’t transform the industry without private sector involvement.
He advocated for stronger public-private collaboration to enhance farmers’ access to capital, technology, and information. Ms. Irene Ofosu Ameyaw, Executive Secretary of OPDAG, shared this view, stating that digital finance should help members strengthen their businesses and improve their livelihoods.
She highlighted members’ needs for timely payments, reduced travel costs, and easier access to transactions, certificates, and permits. Ms. Ameyaw urged financial institutions, fintech companies, and regulators to work together to develop practical digital solutions that users can understand and trust.
