A $27.9 million grant to Ghana has been authorized by the board of directors of the African Development Fund for the creation of agricultural value chains in the Savannah area.
The award will strengthen the value chain for chicken, enhance the production of maize, rice, and soybeans that are climate resilient, and create jobs for women and young people. Farmers’ incomes will rise, and the nutrition of households, particularly those headed by more vulnerable women, will be supported.
This might be done by encouraging private sector investment in integrated poultry value chains that will predominantly benefit women and young people, as well as in sustainable value chains linked to commercial production of maize, soybeans, and rice. Ghana’s Ministry of Food and Agriculture will carry out the Savannah Agriculture Value Chain Development Project from 2023 to 2027. In total, the initiative will profit 50,000 directly and at least 150 000 indirectly. It will increase the output of rice, maize, and soybeans by at least 8,000 hectares, which will increase the supply of feed for the poultry business.
This grant fits in with the Bank’s medium-term development framework for 2022–2025, which aims to establish the right conditions for the private sector to accelerate growth and generate plenty of employment opportunities, particularly for young people. It also fits in with the Bank’s priority area, which is focused on developing agro-ecological zones, particularly in Africa’s Savannah regions and providing opportunities for the continent’s youth.
Building local capability, according to Marie-Laure Akin-Olugbade, acting vice president of the Bank’s Regional Development, Integration and Business Delivery Complex, would assist Ghana reduce imports and lessen the detrimental effects of Russia’s invasion of Ukraine on the world food systems. According to the African Emergency Food Production Facility of the Bank, it would help lessen the effects of climate change.
“This builds on the Bank’s earlier investments in Ghana’s savannah regions, which used conservation agricultural techniques and technologies to put 20,000 hectares of maize and soybeans under production. Ghana is now working to increase domestic production and decrease imports, so this project is timely. Martin Fregene, the Bank’s Sector Director of Agriculture and Industry, outlined these as the main goals of the Feed Africa Strategy.
With the help of the award, farmers will be able to grow rice, maize, and soybeans that are resistant to climate change. Additionally, it will work closely with the Savannah Agriculture Research Institute to help smallholder farmers with equipment to enhance planting and crop husbandry. It will also encourage the production of certified seeds by commercial farmers. In addition to encouraging the use of hybrid seeds, solid agricultural practices, clean water, climate resilience and adaptation, and integrated pest control, this support will also involve the enforcement of local bylaws.
Through sustainable entrepreneurship and mentoring initiatives, particularly in the chicken value chain, the project will also increase the capacity of Micro and Small-sized Enterprises (SMEs) and offer skill development for adolescents and women.
The African Development Bank’s Ghana Country Manager, Eyerusalem Fasika, commented on the project’s approval by saying: “The approval of this project is a significant addition to the Bank’s active agriculture portfolio in the country with enormous potential to support sustainable food systems in Ghana. The Bank can assist the Government in its efforts to produce enough basic commodities to address issues with food security and encourage industrialization now that the project has been approved.