The Government of Ghana led by the Ministry of Food and Agriculture (MOFA), in collaboration with the World Bank and USAID has been implementing the Ghana Commercial Agriculture Project (GCAP).
The project is to improve the investment climate for agri-business and establish inclusive PPPs aimed at increasing on-farm productivity and value addition in selected value chains. The project has four components: (i) strengthening investment promotion infrastructure and facilitating secure access to land;
(ii) securing PPPs and small-holder linkages in the Accra Plains;
(iii) securing PPPs and small-holder linkages in the area under the Savannah Accelerated Development Authority (SADA); and
(iv) Project Management and Monitoring & Evaluation.
The project’s Development Objective (DO) is to improve agricultural productivity and production of both smallholder and nucleus farms in selected project intervention areas with increased access to reliable water, land, finance, and agricultural input and output market. The project orientation focuses on commercial agricultural development through public-private partnership (PPP), with the public sector laying the foundational policy, legal, and institutional framework and providing initial financial support to make commercial agriculture attractive to private sector investment.
The broad activities under each Component is as follow:
Component 1: Strengthening investment promotion infrastructure, facilitating secure access to land. This component promotes a secure investment climate that clarifies and strengthens the rights and obligations of investors, government and affected communities, and support an improved mechanism for facilitating access to land by reducing the search costs to potential investors through an expansion of a database of land suitable and available for investors and by building on nascent mechanisms for actively matching potential investors with suitable land owners.
Component 2: Securing Public Private Partnerships (PPPs) and smallholder linkages in the Accra Plains. This component focuses on the identification and realization of private investments in the agricultural value chain through irrigation-based PPPs in the Accra Plains. (ii) New focus on rehabilitation of selected smaller irrigation schemes. There exists a number of other non-performing irrigation assets in both the Accra Plains and the SADA zone, rehabilitation and modernization of which presents a profitable entry point for GCAP investment.
Component 3: Securing PPPs and smallholder linkages in the Savanna Accelerated Development Authority (SADA) region. This component involves the identification and realization of private investments in the agricultural value chain through PPPs. Investors could be local or international and would cover both production and processing activities as well as ancillary businesses. It will also strengthen community benefit sharing mechanisms by directly supporting smallholder linkages through out-grower schemes and contract farming arrangements as well as other improved arrangements for benefit sharing through corporate social responsibility and revenue management at the local level.
Component 4: Project Management and Monitoring & Evaluation. This component finances the operational costs of project management including monitoring and evaluation activities. It would also include necessary training and capacity building for the staff.
Project Duration: 2012 to 2017
Rationale for Financing of GCAP: The Ghana Commercial Agriculture Project was approved by the Board of Executive Directors of the World Bank on March 22, 2012 and by Ghana’s Parliament on August 16, 2012, and it became effective on April 8, 2013. The Project is financed by an International Development Association (IDA) credit of SDR 64.5 million (US$100 million equivalent at the time of approval) and is co-financed by the United States Agency for International Development (USAID) through a US$50 million Trust Fund (TF071935; TF Grant No. 014170) managed by the World Bank. The original amount of the TF was US$ 50 million, out of which US$45 million was the Recipient Executed Trust Fund (RETF). The Trust Fund was modified to reduce the total amount of the grant from US$50 million to US$ 19.81 million. This modification was approved on February 23, 2018.
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