business

Darko Farms recounts how government policy impacted the company’s $10million loan loss in 1972

Darko Farms recounts how government policy impacted the company’s $10million loan loss in 1972

Founder of Darko Farms, Rev. Dr. Kwabena Darko, is imploring the government to consider local business owners in local and international economic policy formulation. Dr. Darko, sharing his experience at the launch of his memoir, “Courage To Lead”, revealed that Darko Farms lost a World Bank loan of ten million dollars due to government policy in 1972.

Founder of Darko Farms, Rev. Dr. Kwabena Darko, is imploring the government to consider local business owners in local and international economic policy formulation.

He says dealings that are not done in the interest of Ghanaian businesses may collapse them, with major implications for the country's economic growth.

Dr. Darko, sharing his experience at the launch of his memoir, "Courage To Lead", revealed that Darko Farms lost a World Bank loan of ten million dollars due to government policy in 1972.

Darko Farms, founded in 1967, pioneered commercial poultry farming in the country. The business subsequently grew to become one of the largest poultry farms on the African continent owned by an African.

He ascribes part of the success to the Kwame Nkrumah administration, which offered him an opportunity to study poultry farming abroad, but says some policies of subsequent governments negatively affected his business.

According to him, an opportunity to scale up his business with a $10 million investment at about 5 percent interest was lost following Ghana's repudiation of foreign debts after the 1972 coup.

In an interview, Dr. Darko recounted, "Some foreign friends introduced me to the World Bank. They were prepared to give you 10 million dollars with interest at only about 5 percent. And one policy that the government said it won’t pay its foreign debt made the World Bank cancel the support for me.

“Wherever you are, it's always good to live by the truth. And therefore, we should pray for our leaders to live by truth."

For this reason, he believes government must extensively consider local industries in making decisions on foreign trade and investments.

The book launch attracted business leaders, clergy and academia, including former Rector of GIMPA, Prof. Stephen Adei.

Prof. Adei used the Darko Farms experience to make a case for depoliticized support for businesses, noting that Dr. Darko's contributions go beyond poultry.

He described Dr. Darko as instrumental in bringing microfinance banking to Ghana through Opportunity International and Sinapi Aba Savings and Loans, institutions that have provided credit to hundreds of thousands of small traders and farmers.

Prof. Adei said Ghana must take a cue from South Korea, which identified genuine entrepreneurs irrespective of political affiliation and supported them with policy and affordable credit to build global giants.

"In South Korea, they sat down and actually identified entrepreneurs irrespective of their party affiliations. And then they put them together. And then they supported them with policy and with money, but not at cut-throat prices. And just look at them, they employ thousands, hundreds of people," he said.

"Imagine, each of these companies in South Korea has an economy that is more than the whole economy of Ghana - Samsung, the shipbuilding, Hyundai, and the rest.

”The true entrepreneur doesn't want free money. They just want the environment. Unless our governments identify people who are not political entrepreneurs, but identify those who are already doing things in the private sector and help them to scale up, you will then be employing millions of people, without the government having to worry," he stated.

Aside from being a renowned businessman, Rev. Dr. Kwabena Darko remains a mentor through the Scripture Union, Full Gospel Business Men's Fellowship and the Oasis of Love Church.

  • darko
  • government
  • policy
  • farms
  • business
  • company
  • loan
  • poultry

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