This case study describes the history and business model of the Rural and Community Bank (RCB) network in Ghana, analyzes its performance, identifies key issues, and makes recommendations on the way forward. The study analyzes the service delivery and financial performance of the RCBs. Before the establishment of RCBs in the late 1970s and the subsequent expansion of other service providers into rural areas, access to institutional credit for farm and nonfarm activities was scarce. The main sources of credit were moneylenders and traders that charged very high interest rates.
Despite the positive attributions ascribed to Digital Platforms (DPs), empirical studies that explore the role of DPs in smallholder credit access are lacking, particularly that which takes into account the dynamics of trust in complex actor interactions in the value chain. Consequently, it remains unclear whether, and how DPs influence trust and actor cooperation in value chain financing of maize production in Ghana.
Maize production is of critical importance to smallholder farmers in Ghana. Various factors limit the productivityof smallholder maize farming systems undergirded by the lack of capital for critical investments both at the farmand at national policy levels. Using a value chain approach, this diagnostic study explains how a complex configuration of actor interaction within an institutionally and agro-ecologically challenged value chain leads tothe enduring absence of maize farming credit support.
Value chain partnerships face difficulties achieving inclusive relations, often leading to unsustainable collaboration. Improving information flow between actors has been argued to contribute positively to a sense of inclusion in such partnership arrangements. Smallholders however usually lack the capability to use advanced communication technologies such as smartphones which offer a means for elaborate forms of information exchange.