Earlier this year at the new year school held at the Great Hall, University of Ghana, Legon under the theme “Promoting National Development Through Agricultural Modernization: The Role of ICT”, the Minister for Agriculture, Dr. Owusu Afriyie Akoto (then nominated) laid out the vision of the Agricultural Sector under the new NPP Administration. This was re-affirmed in the 2017 Budget statement as focusing on the “Planting for Food and Jobs” campaign. The campaign has been launched and I offer my ideas to helping build a better Ghana.

As an Agribusiness Consultant and having developed, managed and consulted for Programmes/ Projects across the African continent (Ghana, Liberia, Burkina, Senegal, Zambia and South Africa) for over 10 years now, I have listed some key areas that the government must focus on to transform the agribusiness/Agriculture landscape in Ghana. The recommendations are situated in our local context and based on my interactions with over 10,000 members of the Agribusiness community (Agro processing firms, Farmers, graduates, Agri-preneurs, etc) in Ghana for the past decade.

Business Model

• I propose the government adopts the market first approach by undertaking a quick scan of the specific value chain to understand key issues before providing interventions. It is imperative to understand the market requirements and dynamics before working backwards with producers and other actors to supply to meet consumer/buyer requirements. Failure to consider market first or the off-taker for these produce/products will be a disincentive to the young entrepreneurs leading to a total collapse of the project in less than four (4) years.
• It is crucial to link the “one village one dam” to this campaign. The “Planting for Food and Job” campaign should be situated on the “one village one dam” project as irrigation will be key in successfully delivering this programme as the country has only 0.4% of cultivated lands under irrigation.

NB: Government must consider the possible effects of glut on these young entrepreneurs as prices may dip during the major production season and consider possible mitigation measures so as not derail gains made by the system. Similarly, an increase in production of particular commodity in the lean season may not necessarily lead to higher prices for which reason it is important to consider figures that are used to compute the profitability of these value chains. Profitability of these farming enterprises should therefore be based on relatively low prices to assist the youth in their decision making on the choice of value chain for investment. For the youth to continue being in business, Government must introduce improved seeds that are high yielding and drought tolerant (dams may run dry) thus increasing productivity and lowering production cost drastically (refer to the national seed plan).

 

• Government must focus on possible five (5) value chains with greater potential to achieve higher impact. Production should be zonal/cluster focussed to be able to generate the critical mass that will exert a pull of investment in the area to support interventions within the value chain. Production zones with the comparative advantage can then be easily supported with lesser resources to support growth.

• Additionally, not all new entrants (graduates and school dropouts) need to go into production. New entrants could be supported to provide support to other sections of the value chain that will help smoothen the value chain operations. The young entrepreneurs can be supported to setup cottage level processing, serve as transport service providers (Tri-cycle) or aggregators, input dealers and other service providers. Example of simple cottage level processing are

• Producing packaged dry fermented corn dough for the increasing supermarkets
• Pressing of hay/grass for animal feed for urban animal traders
• Mobile fruit juice processors for offices
• Production of High quality Pork using the IMO technology to serve the ever increasing demand for pork
• Production of simple honey pressed seeds/nut cake (using, honey, nuts and seeds)
• Processing of cassava into cassava chips or HQCF
• Drone system for monitoring field pest/disease and spraying farms as paid extensions system

These are but just a few enterprises covering different sectors the government can support the entrepreneurs to develop.

• In designing the agricultural system to use, Government should adopt the integrated system which makes use of waste from one activity to develop the other such as integrated fish, crop and animal farming under the one village one dam concept thus making the entrepreneur more income resilient to the effects of climate change.
• Setting up a well-developed criterion for selecting entrepreneurs during the initial stages is critical to the success of this programme. These enterprises should be supported by other Agribusiness Firms providing technical and business support services (handholding and business mentorship).
• Financing Model: Facilities provided to the entrepreneurs should consist of the grant and loan component. In providing soft landing packages, the Government should consider bearing the cost of registering the enterprises, site identification, land preparation, etc whilst providing seeds and other agro input under a loan repayment plan. Loan repayment should be made into a revolving fund account that will be used to support other entrepreneurs.

Some National Enabling Factors that can Trigger Growth in the Agribusiness Sector

Financial Sector

Government should work with the BoG to provide attractive packages such as huge tax cuts for banks that use 20% of their loan to service the Agribusiness sector (10% production for the Smallholder Producers and 10% other functions within the value chain) at a 10% discounted Interest Rate (IR) with GoG absorbing the difference. For the model to become operational and not become like the EDAIF, Government must bear part (50%) of the banks risk by providing guaranteed funds. Considering the possible effect of the climate, the model, should make room for deferred payment should there be crop failure without growing interest rate. Similarly, crop insurance should be an integral part of this model. Government can partner with the RDF in designing this model.

Electricity Provision

In a phased approach, these small farms should be made to adopt solar for their operations freeing the nation grid to service other sectors of the economy. The setup for storing solar power in batteries makes the cost unbearable if not well thought through coupled with shortages that may arise in times of the year with very little sunshine. It will be good to develop a model that allows farmers to transfer their excess power generation to the national grid for use by GRIDCo and later claim in other times of the year when needed without paying for it in some collaborative arrangement (consider collaboration with MCA).

Research

Government funding to the National Agricultural Research Institutions focused mainly on recurrent (personnel) costs with only a small share covering operational and program costs. The benefit sharing modalities where income from new seeds bred are kept by government without the lead researcher keeping part is also a disincentive to the system. Remodelling will provide a new impetus to the ailing research sector. The NARI’s are also under the MESTI whilst the end users of their research are serviced by MoFA. It will be beneficial should the two ministries be talking to each other and collaborate on most projects.

International Associations/Protocols

Ghana is signatory to most international treaties and protocols that must be considered in the project design. In selecting the value chains to be developed, the country must ensure it contributes to the SDGs focusing on ending hunger whilst meeting the nutritional requirements of the nation.

It is also worth considering the possible effects of increased production on the climate, such as excessive use of agrochemicals, clearing of secondary forest, pollution of underground water, increased pest and diseases beyond the acceptable threshold, etc.

The country faces a serious threat from the Herdsmen from other West African Countries and the Galamsey Operators. These will destroy developed field or introduce metals into the food chain when crops are irrigated with polluted water or taken up by plants in the polluted soils.  

These issues when not considered will overturn progress made in minimizing Ghana’s contribution to climate change effects.

The issue of Land Tenure System, developing Land Banks and Soil maps will be in the Next Episode on My Thoughts.

In undertaking these tasks, let us consider a holistic approach to Agribusiness development and whilst doing that, adopt a Responsible Scaling Model that is environmentally, socially and economically balanced. In conclusion, these are just highlights of my views to making the planting for food and jobs campaign a success.

 

 

Writer: Larry Selorm Amekuse (Agribusiness Consultant)

Larry Amekuse is a Value Chain/Development Specialist with extensive experience working as business analyst and project manager and coordinator with expertise in managing and facilitating agribusiness value chain projects, project conceptualization. His wealth of knowledge stems from 10 years experience in business and enterprise development and executing several high value horticultural initiatives in West Africa. He has served as a consultant/Implemented programmes for institutions including the EU/STEM-VCR, FED/USAID, AFRICALEAD, TRIAS, USAID, SPEED Ghana, IFDC, UNDP/AFIM, ICCO, RMSC, RUTGERS UNVIERSITY, KNUST and TETRATECH-ARD