Ghana - Incentive-Based Risk-Sharing System for Agricultural Lending Project (GIRSAL)

Project Summary

Approval Date 26 Sep 2018
Signature Date 12 Mar 2019
Planned Completion Date 29 Feb 2024
Sovereign / Non-Sovereign Sovereign
Sector Agriculture and Rural Development
DAC Sector Code 31110
Commitment U.A 10,000,000
Status Implementation

Project General Description

The Ghana Incentive-Based Risk-Sharing System for Agricultural Lending Project (GIRSAL) is designed within the context of Ghana’s ongoing agricultural transformation including the Ghana Shared Growth and Development Agenda II” (GSGDA II). The Project will enhance agriculture financing and sector transformation through increased capital inflows into critical value chains. Indeed, the role of GIRSAL is to help accelerate financing and interconnectedness of the agriculture sector to ensure that across its key components, it is functioning at optimal levels. The project is structured to support agriculture across the nation and views its national footprint as critical to providing support for Ghana’s balance of payments, macroeconomic stability, economic growth, food and nutrition security, job creation and poverty reduction. GIRSAL’s catalytic role in mobilizing private sector financing for agriculture will be critical to the success of emerging Government of Ghana initiatives such as the One District One Factory (1D1F) initiative. The initiative promotes agro-industrialization that will provide massive employment and wealth through value addition activities. The Project will have two Components: (i) Promoting de-risking for the Agriculture Sector; (ii) Project Management, Monitoring and Evaluation. GIRSAL will also leverage on the activities of the Savannah Zone Agricultural Productivity Improvement Project (SAPIP) and link up with Transformation of the African Savannah Initiative (TASI) as a vehicle for attracting private sector investment in agriculture. Furthermore, the Project will provide technical assistance, entrepreneurship and business management training to value chain actors to improve their business operations. The total cost is estimated at UA 44.64 million.

Project Objectives

The integrated development objective of the Project is to transform access to finance and risk sharing across agricultural value chains. Doing so will boost food and nutrition security, job and wealth creation. The specific Project objective is : To increase formal sector lending to across the agricultural value chain especially the upstream, primary stages by sharing the risk of lending with financial institutions. Such increased lending backed by GIRSAL’s credit guarantee is expected to mobilize credit creation and strengthening of agribusinesses. That will in turn help to increase incomes of actors along selected value chains on a sustainable basis.


The direct beneficiaries of the project are commercial and universal banks, specialized lenders, microfinance companies, private sector investors and other types of private equity sources. Indirect beneficiaries include the majority of non-subsistence farmers, namely commercial farmers of all sizes, input suppliers, logistics service providers, processors and retailers.

Participating Organization

African Development Fund


IATI identifier 46002-P-GH-A00-006
Last Update 14 Jun 2021


Contact Details

Name SULEIMAN Farida Akello

Geographic Location

Country Ghana