US$200m IDA funding to transform agriculture through GTCDP

By Christabel DANSO ABEAM

The government has acquired a US$200million credit from the International Development Association (IDA) of the World Bank Group (WBG) to finance the Ghana Tree Crop Diversification Project (GTCDP).

The strategic six-year initiative, launched in Accra under the theme ‘Sowing the seeds of the future: Unlocking Ghana’s tree crop potential for inclusive and sustainable transformation’, aims to diversify the agricultural sector beyond cocoa while targeting high-value tree crops like cashew, coconut, rubber, shea, mango and oil palm.

According Dr. Bryan Acheampong – Minister of Food and Agriculture, the project aims to support sector-wide activities, reforms and investments in priority agro-ecological areas to maximise effectiveness and enhance the national institutional framework and governance of the tree crops sector for sustainable economic, social and environmental outcomes.

In addition, it seeks to promote inclusivity by leveraging existing national institutions such as  the Ministry of Food and Agriculture (MoFA), Ghana Cocoa Board (COCOBOD), Tree Crop Development Authority and other stakeholders to scale up existing initiatives in tree crop development.

He further added that the GTCDP, which is managed by the TCDA and the COCOBOD under the supervision of MoFA, will take a demand-driven approach. “The project will take a demand-driven approach to enhance access to inputs, services and economic opportunities, while fostering social inclusion and strengthening relationships between beneficiary communities and local governments”.

It will also address issues of child labour in the tree crops sub-sector through an integrated prevention, identification and remediation system.

On digitalisation and the establishment of traceable value chains, Dr. Acheampong said it will enable certification and provide further income opportunities.

The GTCDP is estimated to directly benefit cocoa, cashew, coconut and rubber farmers, improving productivity and incomes for about 52,775 farmers and their households, where 40 percent will be women located across eleven districts in six selected regions – Western  North, Eastern, Savannah, Bono, Bono East and Eastern.

Other benefits include supporting five to ten input suppliers and ten nurseries through matching grants, technical assistance and improved access to markets. An estimated 185 small and medium-sized enterprises involved in processing cocoa, cashews and cocoanuts will also benefit.

Additionally, the project is expected to create around 20,000 jobs at an investment of US$4,200 per job, with significant focus on employing 60 percent women and engaging youth and impacting the environment positively by restoring degraded lands and rehabilitating devastated cocoa farms through agroforestry.

The sector minister highlighted the importance of collaboration and called on all stakeholders, including government agencies, non-governmental organisations, the private sector and farmers to join forces in order to attain the set goals.

“Together, we can build a resilient tree crop sector that supports farmers, protects the environment and fosters sustainable growth for further generations,” he noted.

Commenting, Country Director – World Bank, Robert Taliercio O’Brien, said the GTCDP focuses on productivity and markets access improvements; enhancement of private sector competitiveness in value-addition and processing based on commodity market demands as well as institutional strengthening, value chain governance, among others.

He added that these interventions by the World Bank aim to support Ghana’s efforts to diversify and grow the economy by modernising agriculture, accelerating industrialisation and prioritising climate resilience and mitigation.

“They align with the objectives pf the National Medium-Term Development Policy Framework (2022-2025) and the ‘Ghana Beyond Aid’ reform agenda.”

Mr. O’Brien further established that the success of GTCDP depends on the engagement and dedication of all stakeholders, and reiterated World Bank’s commitment to ensuring that the project delivers long-term, shared benefits for all Ghanaians.

Joseph Boahen Aidoo, The Chief Executive Officer (CEO) – COCOBOD, in his speech during the lunch, disclosed that COCOBOD has committed an in-kind counterpart contribution of US$27.5million, which is aimed to ensure that the full benefits of the project is obtained and to establish the institution’s full commitment to ensuring an effective and efficient implementation of the project.

For his part, TCDA’s Chief Executive Officer, William Agyapong Quaitto, expressed appreciation to World Bank and all stakeholders. He noted that all resources from the GTCDP will be allocated to support inclusive and sustainable transformation in the cashew, coconut and rubber value chains.

To transform the mango, oil palm and shea value chains, he added that the authority is planning new strategic partnerships to attract resources.

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