The funding recently given by the World Bank aims to improve access to affordable finance and support sustainable livelihoods in Ghana’s cocoa-growing communities. It forms part of the EnABLE project’s broader strategy to improve the socio-economic well-being of cocoa farming communities by enabling beneficiaries to invest in sustainable enterprises, strengthen household resilience, promote climate-smart economic activities and support sustainable rural development.
This disbursement represents the pilot phase of a $1 million revolving fund facility that will be provided to 103 Village Savings and Loans Associations established and strengthened under the project. It will also be provided to other women-led and vulnerable community groups across the six operational areas where the EnABLE project is being implemented. The first 18 beneficiary associations comprise 540 members drawn from communities across these operational areas.
Building Capacity for Long-Term Success
Unlike a one-time grant, the revolving fund is designed to keep supporting communities over time. Each beneficiary association received $10,000 to be managed by its members. Members can borrow from the fund to invest in cocoa production, trading, food processing and other income-generating enterprises, and repay with a small agreed interest. The repaid money is returned to the shared fund and lent to other members, allowing the same investment to circulate within the community and continue creating opportunities long after the initial investment.
Speaking at the disbursement ceremony, Alfred Fosu, Project Manager of the Ghana EnABLE project at Solidaridad West Africa, indicated that limited access to affordable credit remains one of the biggest challenges facing many people in Ghana’s cocoa-growing communities, particularly those in remote and underserved areas.
By expanding the financial resources available to community savings groups, the revolving funds will enable members to grow existing businesses, establish new enterprises, increase household incomes and build greater financial resilience, while reducing pressure on forest resources as a source of livelihood.
“The initiative recognises that improving access to finance helps cocoa-growing communities invest in sustainable livelihoods while reducing the economic pressures that contribute to deforestation. These resources belong to the communities and must be managed with transparency, accountability and collective responsibility. If properly managed and allowed to grow, the fund will continue to create opportunities for more people. Such confidence can attract additional investments into these communities.”
Evans Mensah Sampene, Programme Manager at Tropenbos Ghana, said the revolving funds demonstrate the project’s commitment to ensuring that vulnerable groups benefit from opportunities created through Ghana’s forest conservation and sustainable cocoa initiatives.
“One of the key objectives of EnABLE is to ensure that women, youth, migrants, persons with disabilities and other vulnerable groups can access and benefit from opportunities created through Ghana’s forest conservation and sustainable cocoa initiatives. The revolving funds are an important step towards achieving that goal.”
Evans Mensah Sampene, Programme Manager at Tropenbos Ghana
Before receiving the funds, the selected VSLAs underwent an assessment process and received training in financial management, record-keeping, leadership, accountability, loan administration, conflict resolution and revolving fund management. This was to ensure that each group has the knowledge and systems required to manage the funds responsibly, safeguard the investment and maximise its long-term impact within their communities.
“Our savings group has already helped us to save money and support one another when we needed help. This new fund means we can achieve even more together. As a cocoa farmer, I can buy fertilizer, hire labour and manage my farm effectively to enhance productivity. Because the money stays in our group, many more people will also have the opportunity to borrow, grow their businesses and improve their lives” — Mary Amoako, Member of “Wo Daakye Nti” VSLA in Yawmatwa in the Western North Region.
Supporting Inclusive and Sustainable Development
Implemented by Solidaridad West Africa and Tropenbos Ghana with funding from the World Bank, the EnABLE project helps cocoa-growing communities access opportunities created through Ghana’s Reducing Emissions from Deforestation and Forest Degradation (REDD+) Programme. This national framework rewards efforts to reduce deforestation and protect forests. Through awareness creation, training and community engagement, the project supports climate-smart farming, strengthens livelihoods and promotes the active participation of vulnerable groups in forest conservation efforts.
EnABLE works with 20,000 farmers across 100 cocoa-growing communities in Ghana.
The establishment of these revolving funds marks an important milestone for the EnABLE Project and reflects the shared commitment of the World Bank, Solidaridad West Africa and Tropenbos Ghana to expand economic opportunities, strengthen community resilience and promote sustainable development in Ghana’s cocoa-growing regions. Solidaridad West Africa and Tropenbos Ghana will continue providing technical support and monitoring to help the VSLAs manage the funds effectively to benefit current and future members.