The Agricultural Development Bank (ADB) reported a remarkable loan portfolio of GH¢5 billion in the 2022 financial year, supporting a diverse range of activities such as agricultural input purchases, equipment acquisition, and raw material sourcing.
Alhassan Yakubu-Tali, the Managing Director of ADB, revealed this figure during the bank’s Annual General Meeting held on Wednesday, August 9, 2023.
Yakubu-Tali highlighted ADB’s commitment to its core mandate of agribusiness financing, positioning the bank as a leader across the agricultural value chain.
He stated, “Our corporate tagline, ‘truly agric and more,’ reflects our dedication to agribusiness financing for wealth creation along the entire value chain.”
In the preceding year, ADB extended its support to players within the Agricultural Value Chain, animal and crop farmers, aggregators, agro-processors, marketers, and input distributors.
Additionally, the bank actively participated in Ghana’s One-District-One-Factory Programme (1D1F), approving GH¢156.89 million for various projects encompassing broiler production, fruit processing, general manufacturing, and more.
To address the challenge of insufficient raw material supply for processing industries in the country, ADB took strategic steps to support the production of raw materials for specific 1D1F projects.
Yakubu-Tali noted that approvals amounting to GH¢154.0 million were granted to boost the production of fruits like citrus and pineapple, along with meeting other processing needs.
Despite these achievements, ADB faced a financial setback in 2022, posting a loss of GH¢371 million.
This departure from the trend of modest profitability observed since 2017 was attributed to the challenging economic environment.
Yakubu-Tali explained, “The Ghanaian economy witnessed an unexpected depreciation of the cedi and elevated inflation. The Domestic Debt Exchange Program (DDEP) also impacted ADB’s financial performance, with consequences extending into the future.”
Acknowledging the bank’s loyal customer base and strong brand presence, Yakubu-Tali affirmed ADB’s commitment to corrective actions.
He stated, “The ADB brand remains strong, and our customers continue to stand by us. We have instituted comprehensive measures to address these challenges and are working to swiftly restore sustainable profitability.”
Looking ahead to 2023, Yakubu-Tali unveiled ADB’s new strategic plan, titled ‘Going Above and Beyond the Predictable.’ The plan aims to enhance financial performance, risk management, regulatory compliance, and customer service through technology-enabled processes.
Expressing optimism about the bank’s future prospects, Yakubu-Tali underscored the opportunity for ADB to navigate transitions, manage shocks, and emerge as a stronger institution.
He noted that capital injection for shareholders, along with strategic shifts, would contribute to achieving these goals.