Risk Analysis for Green Agricultural Lending

Program Description

Agriculture is both a contributor to and a victim of climate change. Financing green agricultural initiatives is essential for food security, climate resilience, and sustainable development. However, financial institutions often lack the capacity to assess and manage the unique risks associated with green lending. They must understand taxonomy-based definitions, value chain greening, and risk mitigation strategies to unlock sustainable financing opportunities while complying with Bank of Ghana directives and Ghana Green Bond Framework. This course fills that gap by providing practical tools and insights to support responsible and profitable green agricultural finance.

 LEARNING OBJECTIVES

 • Define green agriculture using Ghana’s Green Bond Framework and EU Taxonomy.

 • Apply Bank of Ghana directives on climate-related financial risks and sustainable banking principles. • Identify green components in agricultural value chains.

• Assess and manage risks in green agricultural lending.

• Structure financing for export-oriented and import-substitution green agricultural projects

COURSE FOCUS

This programme equips participants with advanced knowledge and tools to finance green agricultural projects responsibly, using Ghana’s regulatory frameworks and international standards. It emphasizes taxonomy-based definitions, value chain greening, risk management, and strategic financing for export and import substitution projects

 COURSE CONTENTS

• Day 1: Foundations of Green Agricultural Finance o Introduction to green finance and sustainable agriculture o Regulatory Frameworks:

  Bank of Ghana Climate-Related Financial Risk Directive (2024)

  Ghana Sustainable Banking Principles (2019) o Defining Green Agriculture and its value chain:

 Value chain of key agricultural exports and imports

 Practical value of understanding the end-to-end processes in Agricultural Projects/Activities

  Bank-wide support for key agricultural value chains and related institutions in Ghana

  Ghana Green Bond Framework (eligible sectors: agriculture, renewable energy, water)

 EU Taxonomy for Sustainable Activities (Agriculture section) o Framework of Agricultural Lending

  Characteristics of the product

 Competition and consumption

 Production process and quality standards

 Efficiency and profitability analysis

 Insurance  Security taking

  Provisioning (IAS 16, IAS 41 and IFRS 9) and regulatory challenges

 o Case studies:

Global and Ghanaian examples

 • Day 2: Risks in Rice Lending (Import Substitution)

o The Rice Value Chain

 Production Risk

  Storage Risk

  Processing Risks

 Marketing and Packaging Risks

  Implications for Bank Lending Strategy

 • Day 3: Industrial Agricultural Products Value Chain

 o Key Cereals: Sorghum, Soya and Maize

 Production Risk

 Storage Risks

 Processing Risks

  Marketing and Packaging Risks

  Implication for Bank Lending Strategy

 • Day 4: Horticulture and Tree Crop including Cocoa, Cashew and Coffee

o Production Risks

 o Storage Risks

 o Processing Risks

o Marketing and Packaging Risks

 o Implications for Bank Lending Strategy •

 Day 5: Aquaculture, Poultry and Animal Husbandry

 o Production Risks

 o Processing Risks

 o Marketing, Packaging and off-taker Risks

 o Insurance

 o Implications for Bank Lending Strategy