Eden Tree launches Revolving Loan Funds (RLF) for farmers
Eden Tree Limited, an agro-processing company, with specialisation in the packaging and supply of fresh vegetables has launched a GH¢50,000 Revolving Loan Fund (RLF) for out-grower farmers.
The beneficiary farmers were selected from deprived and under-privileged communities in Accra and Tema metropolis.
The fund, which was established in collaboration with the United States Africa Development Foundation (USADF) and Development Solutions Centre (DSC), would make available to the farmers quick access to loans to boost productivity.
Under the scheme, Eden Tree Limited will serve as ready market for the farmers by buying their products, whilst some of their produce would be exchanged for the repayment of their loans.
The RLFF will provide the farmers with regular incomes, which is intended to have rippling effect on sustained livelihood for their households and communities.
Mrs Catherine Krobo-Edusei Benson, Chief Executive Officer of the Eden Tree Limited said 72 farmers are expected to benefit from the fund although the scheme would be expanded in future.
She indicated that an adequate credit management system would be rolled out by her company to ensure credit delivery in an efficient manner.
Mrs Krobo-Edusei Benson noted that the initiative will also provide long term economic benefits to the farmers and help them set up a broad framework to attract other local funding for sustainable expansion operations.
Launching the fund, Mr Yaw Effah-Baafi, Deputy Minister of Food and Agriculture, in charge of crops, said the agricultural sector needs to be given serious attention if the nation is to make progress in all spheres of life.
He said any initiative to boost agriculture would stimulate the economy and commended the USADF, DSC, Eden Tree Limited for their efforts to provide funds for farmers.
The Minister said the initiative would help government realise its core business of developing and promoting agriculture to ensure food security, increased employment and income by using access to credit and training.
He urged DSC and Eden Tree Limited to move away from the system, which offers loan facilities that are below the expectation of farmers, while the disbursement of the credit is also delayed.
Mr Effah-Baafi also advised the beneficiary farmers to be prompt in the repayment of the loans to ensure the sustenance of the fund.
The minister said his outfit would collaborate with DSC and Eden Tree Limited to harness their full potential in the development and use of value chain approach to guide farmers and other players in the agricultural industry.