Financial institutions urged to expand digital credit for oil palm farmers

Financial institutions have been urged by Dr Andy Osei Okrah, CEO of the Tree Crops Development Authority, to expand credit access for Ghana's oil palm farmers using digital payment records. This call comes as the government plans to support commercial oil palm development through a $500 million World Bank financing agreement, finalized in July.

At a stakeholder workshop held in Accra, the focus was on building a sustainable digital financial ecosystem for the oil palm sector, involving farmers, aggregators, processors, transporters, input suppliers, milling companies, and regulators. The workshop, organized by the Better Than Cash Alliance, TCDA, and OPDAG with UNDP support, aimed to promote an inclusive transition from cash to digital payments.

Dr Okrah emphasized that digital payments should go beyond replacing physical cash with mobile money or bank transfers, and instead serve as the entry point to a broader financial ecosystem. He pointed out that many farmers and other actors still rely on cash, and that funds received through mobile money are often immediately withdrawn, limiting opportunities to build savings and access credit and insurance.

By enabling farmers to pay for inputs, labor, and transportation electronically through digital transactions, a financial history can be built over time, strengthening their case when seeking credit and other services. Dr Okrah highlighted that reliable connectivity, accessible bank accounts, digital wallets, appropriate financial products, and training are essential for the success of digital finance.

He also stressed the need for stronger public-private collaboration to improve farmers' access to capital, technology, and information.

OPDAG Executive Secretary Irene Ofosu Ameyaw echoed Dr Okrah's sentiments, calling for digital finance to help members strengthen their businesses and improve livelihoods. Members desired timely payments, reduced travel costs, and easier access to transactions, certificates, and permits. Ameyaw urged practical digital solutions that users could understand and trust, and emphasized the importance of collaboration among financial institutions, financial technology companies, and regulators.