Last month, CalBank, entered into a strategic partnership with Ghana Incentive-Based Risk Sharing Agricultural Lending (GIRSAL), a non-bank financial institution specialising in Agric financing. This collaboration is aimed at enhancing the bank’s agribusiness portfolio and contributing to the growth of Ghana’s agricultural and agribusiness sectors.
GIRSAL’s primary objective is to de-risk Agric financing by issuing agricultural credit guarantee instruments, increasing the total amount of credit available to Ghana’s agricultural industry. Through a comprehensive four-pillar approach, GIRSAL effectively mitigates the unique risks associated with agricultural financing, addressing both supply-side and demand-side agricultural finance.
Recognizing the immense potential in the agriculture sector, CalBank has set a target of allocating approximately 15% of its total credit portfolio to agribusiness within the next two years. Under the agreement, GIRSAL will provide human resources to assist the CalBank team in building its capacity in agribusiness and its related value chain. This collaboration will enable CalBank to enhance its strategy for increased lending to the agriculture sector.
Mr Kwesi Korboe, CEO of GIRSAL, expressed his team’s delight regarding CalBank’s decision to join the partnership. He commended CalBank’s leadership and willingness to venture into the agricultural sector, highlighting the significance of their collaboration in de-risking Agric financing and promoting the growth of Ghana’s agricultural and agribusiness sectors.
Mr Carl Selasi Asem, Deputy Managing Director of CalBank, expressed his gratitude to GIRSAL for opening its doors to the bank. He emphasized the importance of this partnership in supporting the transformation of Ghana’s economy, which has become heavily reliant on the service sector. He highlighted the bank’s commitment to leveraging GIRSAL’s expertise and building the necessary capacity to drive the targeted sector.
For more information on CalBank visit www.calbank.net