Engage Rural Banks In Executing Agricultural Revitalisation Agenda

The government has been advised to engage rural and community banks to ensure the successful implementation of its two main industrialisation initiatives.

The One-District One-Factor and Planting for Food and Jobs are the two initiatives expected to revitalise the agricultural sector and to create jobs.

But some players in the rural banking sector believe it is prudent to engage the services of rural and community banks in the implementation process.

One of them is the former CEO of Minerals Commission who is Board Chairman of Amenfiman Rural Bank, Dr. Tony Aubynn.

“In fact, we were set up to support agriculture, the farmers. We think that even with the Planting for Food and Jobs, the best friend would have been rural and community banks.

"If you do anything with agriculture, the rural banks should be the primary focused. Effectively if you want institutions that deal directly with farmers, traders, it is the rural banks,” Dr Aubynn said.

Dr. Aubynn suggests that if the government is unsure, it could start a pilot with the stronger rural banks like the Amenfiman Rural Bank.

He spoke to LUV BUSINESS at the opening of the Abrepo Junction Branch of the bank in Kumasi.

Amenfiman Rural Bank is the only rural bank that has branches in three different regions; central, western and Ashanti.

It becomes the second in Kumasi, making a total of 14 branches across the country.

Chief Executive of the Bank, Dr. Alex Asmah, says there should be a deliberate collaboration between the rural and community banks and government to assist with implementations of its agriculture projects.

Meanwhile, Bank of Ghana has directed rural and community banks to raise their minimum capital requirement to one million Ghana cedis by December.

Dr. Asmah says though the bank has met the requirement, it is raking in adequate capital to enhance its risk management initiatives.

“As we desire to grow and to reach more people and as customers yearn for our reach to open branches near them, we have to expand our capital and raise new funds from our shareholders, that is something we are seriously working on it to ensure our capitalisation keep improving”, he explains.

Amenfiman Rural Bank is among about 40 banks that have met the requirement out of the about 141 rural and community banks registered in Ghana.

Dr. Asmah continues that, “already we have met the capital requirement that and aware that there is still a number of banks that are yet to meet but we have crossed that stage, we are looking at adequate capital to be able to take on the business and the risk, as we expand to new areas”.