A former Director of the Peasant Farmers Association of Ghana (PFA), Dr Charles Nyaaba, is advocating for targeted green financing schemes to help farmers replace fuel-powered irrigation systems with solar-powered alternatives. He notes that rising fuel costs and changing weather patterns are pushing more farmers to rely on irrigation to sustain production, particularly during the off-season. This call was made at the Ecobank-JoyBusiness Financial Dialogue Series. Dr Nyaaba emphasizes the need for financial institutions and other stakeholders to design support systems that will enable farmers to acquire solar-powered pumping machines.
Currently, many farmers in Ghana use ordinary water pumping machines powered by fuel, which significantly adds to their production costs. Dr Nyaaba believes that moving to solar-powered irrigation could reduce the cost burden on farmers while also contributing to efforts to reduce carbon emissions from agricultural activities. He questions the kind of support system that can be put in place for farmers who use ordinary water pumping machines to now begin to use solar-powered pumping machines, renewable energy. This, he says, is crucial as some farmers are increasingly shifting production towards the off-season due to their recent experiences with changing weather conditions.
Dr Nyaaba stresses that access to affordable renewable energy could make it easier for farmers to continue production while reducing their dependence on fuel. He therefore urges banks and other financial institutions to consider agricultural financing products specifically designed to support investments in renewable energy technologies. According to him, green financing should not be limited to large businesses and projects but must also reach smallholder farmers, who form a significant part of Ghana's agricultural sector.
The need for such interventions has become more urgent as farmers are increasingly shifting production towards the off-season. Dr Nyaaba explains that financing solar-powered irrigation could simultaneously address production costs, climate-related challenges and the country's broader efforts to transition towards more sustainable agricultural practices. He made these remarks at the Ecobank-JoyBusiness Financial Dialogue Series, a platform that brings together stakeholders to discuss critical issues affecting the business and financial landscape in Ghana.
Dr Nyaaba's call for green financing for farmers comes at a time when the country is grappling with the impact of climate change on agricultural production. Changing weather patterns have resulted in more farmers relying on irrigation to sustain production, particularly during the off-season. However, the high cost of fuel-powered irrigation systems is a significant challenge for many farmers. Dr Nyaaba's advocacy for solar-powered irrigation systems is seen as a way to address this challenge while promoting sustainable agricultural practices.
The Peasant Farmers Association of Ghana (PFA) has been actively advocating for policies and interventions that support smallholder farmers. Dr Nyaaba's call for green financing is part of this broader effort to promote sustainable agricultural practices and improve the livelihoods of smallholder farmers. He believes that with the right support systems in place, farmers can adopt solar-powered irrigation systems and reduce their dependence on fuel-powered systems.
Dr Nyaaba's remarks have sparked a renewed conversation about the need for green financing in Ghana's agricultural sector. Stakeholders are now calling for a more comprehensive approach to addressing the challenges facing farmers, including climate change, high production costs, and limited access to finance. As the country seeks to promote sustainable agricultural practices, Dr Nyaaba's advocacy for green financing for farmers is seen as a critical step in the right direction.
Key points
- Dr. Charles Nyaaba calls for targeted green financing schemes to help farmers replace fuel-powered irrigation systems with solar-powered alternatives.
