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Submitted by Seye Olowu on
Indeed, Agriculture has great potentials for creating jobs, but access to finance remains an essential ingredient towards actualising this goal. Using Africa as an example, agricultural financing has a wide and deep history in the continent, owing to the fact that the African economy has huge potentials for growth especially from its agriculture sector which is one of the largest contributors to GDP in most States. For instance, the establishment of the Agricultural Credit Guarantee Scheme in Nigeria has over the years provided a total sum of 647,351 loans amounting to over N34 billion disbursed to farmers as at 2009. The impact of this finance has been effective on providing agricultural financing as well as stimulating agricultural production in Nigeria. The credit provided under the Scheme has had a significant effect on aggregate output. Therefore, governments around the world should replicate, promote and support the operations of such agricultural scheme in favour of the agriculture sector in order to encourage investment in food production, enhance agricultural export and most importantly create jobs for the ‘second economy’. However, in this age of market liberalisation, globalisation and expansion of agri-businesses, a strategy to realise an optimal job advantage from agriculture, is that African governments takes a tow from Nigeria, by adopting efficient credit finance schemes to encourage farmers and potential farmers to invest their best efforts in chains of agricultural production, which increases GDP output. This will also resuscitate agricultural production which leads to food security. Finally, in order to achieve FAO’s millennium development goal (MDG) of halving the number of the hungry by 2015 (currently estimated at close to 1 billion people), it will be in Africa’s interest to follow suit by enhancing agricultural production, investment and agri-businesses through access to finance.

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