Strengthening Ghana’s youth-led farming ventures through the BRIDGE-in Agriculture program

In Ghana, agriculture contributes to about 19.6% of the country’s GDP, yet only receives 3.2% of bank loans – presenting a challenge and an opportunity for Ghana’s agricultural sector. This disparity is even more pronounced among young farmers and entrepreneurs who struggle to secure the capital needed to scale their operations.

In celebration of International Youth Day 2024, CrossBoundary Advisory and Mastercard Foundation are highlighting the critical role of youth in agriculture through the BRIDGE-in Agriculture program. This initiative enables Ghanaian entrepreneurs in agriculture to access affordable capital for expansion and innovation and the youth to access technical support to secure dignified and fulfilling work.

Agri-entrepreneurs are vital to Ghana’s agricultural sector, providing critical employment opportunities and improving agricultural productivity. However, they struggle to access the capital needed to scale their operations. Banks often perceive the agricultural sector as high-risk, leading to reluctance in extending loans to AgriSMEs. Over time, this has led to significant underfinancing of the sector, with annual agriculture financing representing a small fraction of all bank loans and advances.

This shortfall is further exacerbated for youth, who often lack the collateral and credit history required by traditional financial institutions. According to the Ghana Statistical Service, youth unemployment stands at about 32.8%, and underemployment at 50.5%, indicating a pressing need for targeted financial support to foster youth-led agricultural ventures.

Moreover, the average age of a Ghanaian farmer is 55 years, according to the Youth in Agriculture Programme run by Ghana’s Ministry of Food and Agriculture. This trend mirrors the global aging farmer population, as reported by the Food and Agriculture Organization (FAO), where the average age of farmers worldwide is approximately 60 years. This aging demographic underscores the urgent need to attract and empower younger generations to sustain and innovate within the agricultural sector.

Recognizing the challenges faced by young people and agri-entrepreneurs, the Mastercard Foundation launched the Building Resilience and Investing in the Development and Growth of Entrepreneurs in Agriculture (BRIDGE-in Agriculture) program. CrossBoundary is leading this transformative five-year initiative and a consortium of seven partners, leveraging their combined expertise to maximize impact and reach.

The program works with three banks – Access Bank Ghana, Fidelity Bank Ghana, and First National Bank – who provide tailored and affordable financing solutions to address the challenges AgriSMEs face in accessing credit. Additionally, two Business Development Service providers, Africa Skills Hub and Mind Builders Africa, offer targeted capacity building and skills training to the youth and SMEs, while Peswa, the technology partner, delivers digital solutions and connectivity to facilitate the smooth running of the program’s loan and capacity building initiatives.

The program’s mission is clear: to build resilience and foster the growth of Ghanaian entrepreneurs in agriculture. What sets BRIDGE-in Agriculture apart is its commitment to inclusivity through women and youth empowerment. The program aims to support over 400,000 youth in Ghana, with a particular focus on women, who will make up at least 70% of participants. It falls within The Mastercard Foundation’s Young Africa Works strategy in Ghana, which seeks to enable 3 million young Ghanaians to access work they see as dignified and fulfilling by 2030.

BRIDGE-in Agriculture focuses on five key intervention areas: 

Working across four continents in over 75 markets, CrossBoundary Advisory has pioneered finance and investment solutions that bridge capital gaps in underserved markets. Since 2011, we have partnered with companies, investors, and donors to unlock capital and build reliable, resilient agricultural systems in these markets. 

Our team in Ghana recently held the first Pitch Competition under the BRIDGE-in Agriculture program in May 2024. This inaugural event showcased the innovation and potential of young Ghanaian entrepreneurs, with 10 participants pitching ventures ranging from cocoa-based black soap to climate-smart rabbit feed.

The competition identified one winner and two runners-up, who received cash prizes ranging from $2,000 to $5,000. The winning innovations were: 

• Winner: Tropical Snacks – Producing tasty snacks using locally sourced ingredients from smallholder farmers in Ghana. 

• 1st Runner Up: Edible Treats – Creating innovative chocolate bars infused with local fruits and nuts. 
• 2nd Runner Up: Husk Technologies – Developing mobile cocoa pod-breaking machines to enhance efficiency and sustainability in cocoa farming. 

Follow us on LinkedIn and X (formerly Twitter) where we’ll be highlighting more insights about the BRIDGE-in program and its impact on Ghana’s agricultural landscape for our International Youth Day campaign. 

About the Mastercard Foundation  

The Mastercard Foundation is a registered Canadian charity and one of the largest foundations in the world. It works with visionary organizations to advance education and financial inclusion to enable young people in Africa and Indigenous youth in Canada to access dignified and fulfilling work. Established in 2006 through the generosity of Mastercard when it became a public company, the Foundation is an independent organization separate from the company, with offices in Toronto, Kigali, Accra, Nairobi, Kampala, Lagos, Dakar, and Addis Ababa. Its policies, operations, and program decisions are determined by the Foundation’s Board of Directors and leadership.

For more information on the Foundation, please visit: www.mastercardfdn.org 

BRIDGE-In Agriculture Program contact details: in case of any questions, please get in touch with Fanta Condé.