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Sinapi Aba Savings & Loans (SASL) secures EUR 2.5 million loan from EDFI AgriFI to boost smallholder farmers’ financial inclusion in the north of Ghana

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The long-term financing provided by EDFI AgriFI – the EU-funded Agriculture Financing Initiative – to SASL aims to tackle the challenge of access to financial services for rural citizens, smallholder farmers and small agri-enterprises in the north of Ghana in particular.

EDFI AgriFI committed to support Sinapi Aba Savings & Loans (SASL) with a EUR 2.5 million loan in local currency to reach some 25 000 agri-customers by 2025. This support comes as part of a broader EU project in support to agriculture in the north of the country called “the EU GAP”. This “access to finance component” will play an important role in synergy with the actions funded by the European Union in capacity building, matching grants, investment supports already provided by the project EU GAP.

SASL is a microfinance institution providing loans and savings products to individuals and MSMEs excluded from the traditional financing system. The company is serving more than 150,000 borrowers through a network of 44 branches. Three quarters of its clients – mostly women – live in rural areas and a fifth of its portfolio is dedicated to agricultural activities. In addition, SASL provides non-financial support to its borrowers through its various training programmes.

The former NGO turned into a recognised microfinance institution and counts more than 2 decades of experience in the field. Over the years, SASL has gained a solid reputation among the agricultural sector, particularly in Northern Ghana where access to finance is scarcer and there is a high demand.

The EUR 2.5 million loan from EDFI AgriFi for smallholder farmers in Northern Ghana is timely. In this time of financial stress in the Ghanaian economy, the fund will help these peasant farmers to have continued access to financial and technical services that are vital for the survival of their families. This partnership between EDFI AgriFi and Sinapi Aba is exactly what is needed in times like these, not only to create a line of hope for peasant farmers in one of the remotest parts of Africa but also to unleash the enormous potential of these rural folks to create wealth for themselves. We are excited for our clients in Rural and Northern Ghana for this access, which will ensure growth, and sustainability in their Agribusinesses and put smiles on their entire families,” said Tony Fosu, CEO of Sinapi Aba.

With this first investment under the AgriFI Country Window in Ghana, we are delighted to join forces with the European Union and local governments to improve access to finance in Ghanaian rural areas. Sinapi Aba plays a key role in reaching out to smallholder farmers and agri MSMEs to finance agricultural inputs or equipment, via financial products adapted to their needs and with the appropriate technical assistance. This is paving the way to improve their livelihood and lift these actors out of poverty,” explained Robin Boereboom, AgriFI investment officer at EDFI Management Company.

The EDFI AgriFI investment falls under its dedicated window for Ghana, a strategy funded by the European Union and designed specifically for the country, in close collaboration with government, local authorities and the EU Delegation to Ghana.

“Agriculture financing is an essential part of the EU-GAP programme. Thanks to this support, we expect Sinapi Aba Savings & Loans, to increase the number of smallholder farmers and agri micro, small and medium enterprises benefitting from their loans and financial products to more than 25,000 borrowers, who are traditionally excluded from financing systems and have to deal with informal lenders at higher interest rates. With SASL, they will be able to benefit from small loans customized to finance agricultural inputs or equipment with technical assistance. I greatly encourage all components of the EU-GAP programme to get in contact with SASL and spread among their beneficiaries the information about these financing solutions,” added Paulina Rozycka, the Head of the Infrastructure and Sustainable Development of the EU Delegation to Ghana.

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About EDFI AgriFI (Agriculture Financing Initiative)

EDFI AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness. As part of the EU Gap project, a specific country window with targeting fundings benefiting to Ghana is currently financed by the EU. The support provided to Sinapi Aba is provided as part of this Ghana window.

AgriFI is managed by EDFI Management Company on behalf of the 15 European Development Finance Institutions (DFI).

About Sinapi Aba

Sinapi Aba Savings & Loans (SASL) is the microfinance arm of Sinapi Aba Trust (SAT), an NGO founded in 1994 aiming to ensure that the economically disadvantaged are given the right opportunities to make a dignified living for themselves. Created in 2013, SASL is committed to providing innovative financial solutions and training to individuals and entrepreneurs in micro, small and medium enterprises in Ghana to improve their standard of living, and positively transform their lives.

About the “EU GAP” project funded by the EU in Ghana:

The 11th EDF intervention, also referred as the European Union Agriculture Programme in Ghana – EUGAP, contributes to higher annual incomes for smallholder farmers’ households and secured permanent jobs along the supported value chains. To do this, EUGAP seeks to increase agricultural productivity, protect natural resources, improve access to markets, to essential infrastructure and to capital.

It is implemented in the Upper West, Savannah and North East Regions of Ghana, with some specific activities covering the five northern regions. The supported value chains are: cashew, groundnut, mango, rice, sorghum, soybean and vegetables. The EUGAP has three components: i) value chain develompment (including access to finances to farmers and agri Micro, small and medium enterprises), ii) environmental sustainable practices and iii) infrastructure (feeder roads and irrigation).

 

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