The effect of credit on agribusiness Development in Northern Ghana

The study was to determine the effects of credit on agribusiness in Northern Ghana using the MiDA CDFO credit scheme in the Tamale Metropolis as a case study. To achieve this, purposive and simple random sampling methods were used to select 120 respondents from six beneficiary groups. Primary and secondary data were collected for the study. Rice processing, Shea butter extraction, and crop farming were the main agribusinesses identified. The credit was timely but inadequate for most of the beneficiaries. 75% of the respondents agreed that the credit that was given to them mainly in groups was difficult to access. The credit has impacted significantly on consumption as agreed by 95.8% of the respondents. Incomes and savings levels of beneficiaries have also appreciated marginally. 75.8 % of the respondents agreed that the credit has improved their businesses. The MiDA CDFO credit scheme was generally good and timely, and should be sustained and expanded so that others could also benefit.