The Government of Ghana has secured funds through bilateral Financial Cooperation with the Federal Republic of Germany through KfW Development Bank for the establishment of an Outgrower and Value.

Chain Fund (OVCF) through the Ministry of Food and Agriculture (MoFA) for the promotion and financing of outgrower and value chain development. The primary objective of the Fund is to finance and support Outgrower (OG) schemes and facilitate the integration of smallholder farmers into commercial agriculture, thereby enhancing their participation in competitive value chains.

The Fund operates as a refinancing instrument, specifically designed to address the financing gap for medium- to long-term investments (with a minimum tenure of three years). It provides financial support to small-scale farmers (Outgrowers) and their Technical Operators (TOs) – such as processors, exporters, aggregators, and bulk buyers – through the financial institutions, termed Financial Operators (FOs).

The overarching goal of the Fund is to foster rural economic growth and contribute to poverty reduction, through

• improved incomes of smallholder farmers and other targeted groups,
• enhanced competitiveness of smallholder commercial farmers and their agribusiness partners, and
• promoting development and sustainability of inclusive Outgrower.

Since its inception in April 2011, the OVCF has focused on providing affordable credit through financial intermediaries at highly competitive interest rates. The Fund has also collaborated with other MoFA projects and development partners to address non-credit needs of the supported schemes.