WEF_GrowAfrica_AnnualReport2014

2013 in Review
2013 in Review
2.4
Country
Report
Ghana
Fostering public-private partnerships to
boost inclusive agricultural growth
2013 IN REVIEW
PROGRESS
Initiatives on multiple fronts are unlocking
opportunities for value-add and growth
Ghana was one of the first countries to sign a CAADP
compact in October 2009, with the national Medium-
Term Agriculture Sector Investment Plan (METASIP)
providing a 2011-2015 investment roadmap which
recognises the importance of supporting agriculture
through a value-chain approach and the inclusion of
smallholder farmers.
Amongst the identified priorities are improved growth
in incomes, increased economic competitiveness,
enhanced integration into domestic and international
markets, sustainable management of land and
the environment, and more robust institutional
coordination. Rectifying Ghana’s north-south
economic and social divide is also at the heart of its
economic and agricultural strategy, with the Savannah
Accelerated Development Authority (SADA) initiative
established precisely with the aim of attracting
investments to growth corridors in the north.
Ghana’s vision is that of creating “a modernised
agriculture culminating in a structurally transformed
economy and evident in food security, employment
opportunities and reduced poverty”.
Yet rapid urbanisation and rising per-capita income
have led to an increasing demand and consumption
of staple crops, widening the gap between demand
and supply that is currently filled through a boost
in imports. This is despite the country’s significant
potential to scale up its agricultural production to not
only meet rising domestic demand but also produce
staples for export within the region.
With a view to tapping this potential, a new approach
has been adopted focused on fostering public-private
partnerships (PPPs) to facilitate and accelerate privatesector
investment. Though much remains to be done
to improve coordination, scale up inclusive business
models and further develop commercial agriculture,
this shift in paradigm has begun to yield concrete
dividends for inclusive growth in Ghanaian agriculture.
Over the past year, some key initiatives have been
taken to support the implementation of the METASIP
national investment plan, including the introduction
by the Ministry of Finance of a PPP-based policy
approach.
Particular attention has been paid to reviewing seed
laws and regulations to facilitate private-sector
investment for the commercialisation of improved
inputs, with the aim of enhancing productivity and
increasing smallholders’ incomes. Patenting is also
being considered as an incentive for scientists involved
in plant breeding and other fields. Production of
certified seed and planting materials are as a result
already picking up.
Recent efforts of the Ghana Standards Authority on the
front of improved laboratory services have also allowed
Ghanaian products to reach new markets, such as
Lebanon (mangoes) and South Africa (bananas).
New instruments and institutions such as the
commodity exchange are being established, and the
Ghana Commercial Agriculture Project (GCAP), an
initiative supporting inclusive agribusiness, is now
operational and conducting a land diagnostic survey (of
land use and rights).
A new Agribusiness Development Division within the
Ministry of Food and Agriculture (MOFA) has also been
launched and is already up and running.
An increasing number of alternative financing
options are becoming available, including the Export
Development and Agricultural Investment Fund (EDAIF)
and the Out-grower and Value Chain Fund (OVCF),
though access to finance for domestic companies
seeking to expand remains a challenge.
Noteworthy private-sector investment and PPP
success stories to date include:
•¡
the launch of Eagle Lager beer by SABMiller and
MOFA in March 2013, based on locally-sourced and
processed cassava;
•¡
investments by Olam comprising $55 million in a
wheat processing plant in Tema, creating 650 jobs;
establishment of a new 60,000-tonne cotton ginning
facility at Wa in the northern sector, with 8,500
farmers engaged as suppliers; and $117 million in
small loans to farmers; and
•¡
the launch by leading quality rice producer GADCO
of a community private partnership in Sogakofe
currently cultivating 920 ha out of 5,000 ha available,
engaging smallholders through nucleus farms with
an investment of approximately $2 million.
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Ghana
Ghana
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