AGRISHOW 2019: MOFA / GIPC TOUTS GHANA’S POTENTIAL TO THE WORLD IN BRAZIL

by Bismark | May 10, 2019 | Article

“He who craves greatness must consider the path trodden by the great.” This apt aphorism mirrors increased attempts by government to actively partner other nations, particularly those who are standout agric powerhouses.

Today, globalization has opened a window of opportunity for collaboration and partnerships that if properly harnessed, has the potential to significantly bridge the gapping dichotomy that currently exists between Ghana and other great agric nations.

This narrative was recently demonstrated when the Embassy of Brazil, Agrihouse Foundation and the Ministry of Food and Agriculture led a strong Ghanaian contingent to participate in the 26^th edition of Agrishow in Ribeirao Preto, Brazil.

 

Led by the Deputy Minister for Food and Agriculture, Hon. Sagre Bambangi and Alberta Nana Akyaa Akosa, the Executive Director of Agrihouse Foundation, the high-powered delegation comprised; Ghana Investment Promotion Council, Ghana Commodity Exchange, Jospong Group, Accra Company and Recycling and Ghana Commercial Agric Project.

 

As the showpiece wore on, the Ghanaian delegation had the opportunity to make an investment presentation to the world’s topmost agribusiness investors.

 In a  presentation under the theme: Investment Opportunities In The Agriculture Sector, the Ministry of Food and Agriculture espoused the mammoth opportunities available to investors in the form of lands for farming, government policy intervention, strategic areas for investment and incentives provided by government for investors in Ghana.

“With an estimated 13.5 million hectors of agricultural lands, only 50% has been cultivated; which implies that investors have access to almost seven million uncultivated lands to choose from. Of the 50% cultivated land, only 31,000, representing 2% has been irrigated and so irrigation presents a very viable option for investments.”

“ With an Agricultural Sector consisting of Crop, Livestock, Forestry/Logging and Fishing, crop dominates the sector with 74%, followed by Livestock; Forestry & Logging; and Fisheries at 10%; 9; and 6%, respectively as far as their contribution to GDP is concerned. Ghana provides the perfect environment for investors to thrive because aside being one of the most politically stable on the continent, Ghana has consistently demonstrated the political will and quality leadership necessary for the preservation of investor interests.”

The presentation also took into account Ghana’s excellent air and sea port facilities which makes traveling and transportation of goods and services in and outside the country a lot easier.

“Traveling time from Europe (6hrs) and America (9hrs) to Ghana is considerably shorter and therefore makes the fair as much as 60% cheaper than that of many countries on the continent and some other parts of the world. Ghana also has favourable agric and investment policies that safeguards the investor and guarantees profitability.

 

Similarly, government has tailored policies that gives investors in agric a period of exemption from taxes depending on what is being planted, tax waiver on imported items and upon expiration of these periods, a location based tax system is applied in order to give investors who go on to the hinterlands and hence further away from the capital and extra funds to offset the cost of doing business in such areas. Investors in Tree Planting and cattle ranching get a tax holiday of 10 years whereas Cash Crops, Poultry, Fish Farming and Agro-Processing get exempted from paying taxes for five years.”

 

The ministry further informed the gathering that companies in the Northern Part of Ghana which is one of the best places for rice farming comes with 5% income tax while companies in Greater Accra, the nation’s capital and Tema attracts 20% income tax.

“Regional capitals attract income tax of 15% and 10% for companies outside the regionals capitals. We also provide exemption of custom duties on agricultural machinery and agricultural inputs. These incentives are meant to ensure that the investor makes profit and expand the business because it is by so doing that jobs can be created for country’s teeming youth population. We have existing rice mills with installed capacity and available lands in the Accra plains conducive for rice production and presence of water for irrigation purposes and areas in the Northern part of Ghana.”

 

Ghana is the best destination for investors- GIPC 

The Ghana Investment Promotion Council (GIPC) led by the Chief Operating Officer, Mr. Carl Nelson used the Agrishow Platform to show the rest of the world the competitive advantage Ghana offers investors and why it is the country of choice for investors.

In its Presentation, GIPC provided key statistics that underscores Ghana’s political stability.

 

“Ghana has a 27 year old sustained democracy, held five successful and peaceful elections and changed leadership from one political party to the other held five successful elections, three peaceful transitions and has a lower crime rate compared to most part of the continent.”

GIPC also took participants through the process of acquiring a business permit in Ghana.

“A Joint Venture with a Ghanaian partner required a minimum capital of Two Hundred Thousand Dollars minimum capital requirement, 100% foreign owned come with Five Hundred Thousand Dollars minimum capital whereas Trading Activity engaging a minimum of twenty skilled Ghanaians requires a minimum capital of one million dollars. Whereas other countries try to put limit on percentage of profit that can be repatriated, Ghana allows investors to repatriates 100% of their profit without any hindrance. These requirements and policy flexibilities makes Ghana one of the best investment destinations on the globe.”

GIPC and MoFA were part of 5 organizations that represented Ghana at this year’s Agrishow. To widen the scope of networking opportunities, a number of separate meetings were arranged for each Organisation by Agrihouse Foundation, the liaison organisation between Ghana and Brazil for the event.

The Ministry of Food and Agriculture and GIPC met with: Foreign Trade Chambers Federation, Association of Cocoa Processing Industry, PERFARM, BNDES, ABAG, Banco do Brazil, Agtech, Agres and Silomas.

Most potential investors expressed interest in doing business in Ghana with concrete agreements reached to see the first batch of investors visit the country in June while a second group will follow in September this year.

Agrishow is the World’s third largest Agric trade event and arguably the most important agricultural technology trade show in the world. It brings together agricultural solutions for all types of agribusiness and related sector needs.

Agrihouse Foundation, Ghana’s leading pro-agric event firm served as the liaison organization between the Embassy of Brazil, Ghana and the organizers for the 2019 edition of Agrishow in partnership with the Ministry of Food and Agriculture.

With over 800 national and international brands from different investment segments across the globe participating, the Ghanaian contingent had a unique opportunity to meet and create mutually beneficial partnership with peers along the value chain of agribusiness.

The global agric showpiece was a gathering of all who matter in agribusiness around the globe. It revolved around the goal of identifying new investment opportunities, groundbreaking technologies, partners and acquiring requisite knowledge to succeed.

 

 

The event highlighted the latest products, services and technology supporting the entire value chain in agribusiness and provided the Ghanaian delegation a pool of opportunities for networking and knowledge transfer. 

The Ghanaian delegation comprised of persons drawn from: Government Agencies, Organisations, Investors, Poultry and Livestock, Fisheries and Aquaculture, Producers, Packaging and Processing, Producers, Inputs Dealers, ICT, Finance and individuals with interest in the industry. 

The event provided a wonderful opportunity for the Ghanaian delegation particularly those looking to enhance their businesses through strategic partnerships, networking and exchange of ideas.

During the course of the four day event, the team participated in event activities like:

• Exhibitions
• Field Trips and Demonstrations
• Business Presentations and Investments
• Business – to – Business Meetings
• Formal Technical and Practical Training workshops and conferences

The 4-day event hosted over one hundred and sixty thousand visitors and is largely considered an improvement on the last edition which saw $808 million businesses initiated participants.

The host nation, Brazil is a major producer of a myriad of agricultural commodities like soya beans, maize, cotton, oranges and poultry meat- a feat achieved through exceptional national commitment to innovation and hard work.

Brazil’s transition from a country with an underdeveloped agricultural sector setting to one of the words breadbasket is an incredible feat that demonstrates how much of an impact a country can achieve through a deliberate effort to revolutionise agriculture.

While a national approach to agricultural excellence was key to getting the country this far, the country’s success is mostly attributable to the significant improvement in productivity made possible through the development of farming inputs relevant to the countries unique ecosystem. 

Though the country’s arable landmass has remained unchanged since the mid 1970’s, production has soared by as much as 300% -a rate believed to be faster than that recorded by other agriculturally successful nations like the United States, Canada and Netherlands.

PLANTING FOR EXPORT AND RURAL DEVELOPMENT (PERD): A PERSPECTIVE

by Bismark | May 3, 2019 | Article

Annually the value of imported food into the country stands at a whopping US $2.4 billion. Key products that are imported are frozen chicken, meat, and rice, tomato paste, cooking oil, sugar and sorghum.  “At US$2.4 billion, the cost of food imports is about a quarter of the value of non-oil imports, which closed 2017 at US$10.66 billion,” the Daily Graphic newspaper recently reported.

This huge amount of imports is a major concern and it has many unpremeditated effects. Business people who import the food need foreign currency (usually US dollars) to pay their suppliers abroad and this puts pressure on the local cedi leading to volatilities. Paying for these suppliers abroad means farmers and agro-business people in those foreign supplier countries stay in business and create more jobs. But locally, our farmers cannot compete and are thrown out of business. The recent dip in the value of the cedi is perfect example of the negative implications of unbridled import.

In the words of Henry Kerali, World Bank country director for Ghana, “Agriculture is an important contributor to Ghana’s export earnings, and a major source of inputs for the manufacturing sector. It is also a major source of income for a majority of the population, but we have seen a recent reduction in growth in agriculture, which needs to be reversed through appropriate policies and increased investments.”

This call by the Mr. Kerali seems to have found the listening ears of no less an entity than the central government.

This is demonstrated in the newly inaugurated Planting for Export and Rural Development (PERD) programme which is expected enhance the country’s foreign exchange-earning capacity and generate jobs.

According to President Nana Addo Dankwa Akufo-Addo the new programme will ensure that Ghana’s economic fundamentals are restructured in the right shape.
Speaking at the launch of PERD, a module under the government’s Planting for Food and Jobs programme, the President said his government will be committed to developing a designated list of tree crops, all of which are grown in Ghana but are currently non-traditional exports.

He further noted that PERD, which is tailored towards increasing cultivation of foods such as cashew nuts and mangoes, presents Ghana with opportunities for diversifying her economy and will open up new revenue streams even as
the government the makes effort  to establish an institution to regulate tree crop development in the country.

“A draft bill for the development of the tree crop sector will shortly be approved by cabinet, prior to its submission to Parliament.
“The bill, when passed by Parliament, will establish the Tree Crop Development Authority (TCDA). The proposed Authority will provide policy direction and regulation for the development of the sector,” he assured.

Four crops are covered in the draft law: cashew nuts, oil palm, rubber and shea. It is hoped that two more will boost the final legislation and bring the total to six – coconuts and coffee.

Programme Overview

The Planting for Export and Rural Development (PERD) Programme is a decentralized National Tree Crop Programme to promote rural economic growth and improve household incomes of rural farmers through the provision of certified improved seedlings, extension services, business support and regulatory mechanisms.

To create a legacy towards the realization of the Ghana Beyond Aid Agenda, the Government of Ghana through the joint effort by the Ministry of Local Government and Rural Development and Ministry of Food and Agriculture rolled out the PERD programme to develop nine (9) commodity value chains namely Cashew, Coffee, Cotton Coconut, Citrus, Oil Palm, Mango, Rubber and Shea through a decentralized system.

The programme seeks to create sustainable raw material base to spur up the decentralized industrialization drive through One District Factory initiative. The 5-year PERD programme will support 1million farmers in 170 districts with certified free planting materials to cover over one (1) million hectares of farmlands and engage 10,000 young graduates as crop specialized extension officers.
The President noted that aside from the benefit of a diversified revenue base for Ghana, PERD will link agriculture to industry by providing a solid raw material base for industrialization will also help develop rural economies and support the structural transformation of the economy.

“The selection of crops in each district depends upon the ecological zone,” he announced. “The initial effort in preparation of the PERD has met with resounding success, with the establishment of nurseries all over the country.
“In the initial years of the programme, a total of 32,591 hectares will be planted with the tree crops in 191 districts.

“Some seedlings have been displayed at this event today. The enthusiasm with which the district chief executives have embraced the PERD is very commendable, and the intense interest clearly indicates that leadership of the programme at the local level is assured.”

He said with the government having revamped agriculture, PERD will complement other flagship policies and programmes such as One Village, One Dam, One District, One Factory and One District, One Warehouse to provide a historical opportunity to change the direction of agriculture in Ghana.

Other institutional measures such as the Ghana Commodity Exchange, the Ghana Incentive-based Risk-Sharing System for Agricultural Lending (GIRSAL) and a refocusing of the mandate of the Agricultural Development Bank are being rolled out to support the government’s transformation agenda, President Akufo-Addo said.

He expressed confidence that once all these initiatives are serving their purpose, his government’s bold approach will be vindicated.
“The overarching vision of a Ghana Beyond Aid is not mere rhetoric, nor political gimmickry. As a government, we are determined through action to achieve this vision, and today’s programme is a clear indication of our genuine commitment.

According to a 2018 World Bank report dubbed “The Third Economic Update, Agriculture as an Engine of Growth and Jobs Creation”, the agriculture sector’s potential to be one of the leading sectors for a more diversified is clear as the light of day.

“The economy is again rapidly expanding,” said Michael Geiger, World Bank senior economist and co-author of the report. “There is need to channel public resources into research to increase the use of technology, invest in irrigation infrastructure to increase productivity and mitigate the potential adverse effects of climate change, and leverage increased private sector investment in agriculture,”

One challenge, the report notes, is the weak legal and regulatory framework for attracting private sector investment into agriculture. According to the 2017 World Bank’s Enabling the Business of Agriculture (EBA) report , reforms are needed to improve the quality and efficiency of regulatory systems that govern access to key agricultural factors such as seed, fertilizer, machinery, finance, markets, transport and information and communication technologies. While the Planting for Export and Rural Development (PERD) program is a step in the right direction, the enthusiasm that was noticeable among key stakeholders during the launch must not fizzle out any time soon. Indeed we expect government and other relevant stakeholders to sustain the policy through practical input that are relevant and responsive to 21^st century dynamics. This way, we can genuinely expect to reap the optimum dividends of what is clearly an ingenious policy direction for Ghanaian agriculture.

IRRIGATED AGRICULTURE AS A PATH FOR INCREASED FOOD PRODUCTION

by Bismark | Apr 15, 2019 | Article

Agriculture has a central socioeconomic position in Ghana. This sector accounts for about 65 percent of the work force, about 40 percent of the gross domestic product, and about 40 percent of foreign currencies acquired through exports. Although agriculture is a key part of the country’s economy, the structure of the sector is vulnerable because it relies on rain- fed agriculture during a roughly six-month rainy season.

Droughts and other types of unseasonable weather pose risks for farmers. Under these conditions, irrigation development offers the promise of greater food security and the rural-area development by ensuring yearlong agricultural production.
Despite considerable potential for development and the emphasis placed on irrigation development in many plans, less than two percent of the total cultivatable area in Ghana is irrigated. Moreover, even within this small area, researchers lack a clear understanding of where in Ghana different types of irrigation infrastructure are used and to what effect.

 Less than a third of the estimated total irrigated land in Ghana lies within 22 well-known public schemes, and not enough is known of the location, development and management of the informal irrigation schemes that account for the remaining two-thirds of total irrigated land. Although donors and policymakers express interest in providing new funds for irrigation development, the lack of reliable data on where irrigation currently exists, trends in its development, and opportunities and constraints within formal and informal schemes undermines consensus about how to build on what already exists in the sector.

With rhetoric’s for a Ghana beyond aid gaining momentum, the agricultural sector must lead the way in achieving this national goal, as agriculture employs more than 50 percent of the total economically active population.

Cultivable land is still abundant as only 38.9 percent of total agricultural land area is currently cultivated. Yet productivity of existing farmland is generally low and uncertain, because of prevailing traditional low-input, shifting-cultivation farming systems and dependence on rainfall.

According to FAO, Ghana is endowed with sufficient water resources for irrigation-based intensification. Estimates of Ghana’s irrigation potential are wildly divergent, ranging from 0.36-1.9 million hectares to slightly more than 33,000 ha under irrigated cultivation.

Despite irrigation’s considerable potential and the emphasis placed on it in recent plans, the proportion of potential irrigable land actually under irrigation is insignificant. In addition, the performance and productivity of existing irrigation schemes, particularly those that were publicly developed, are generally low.

Governments Renewed Commitment

For Ghana, the need to take irrigation farming a notch high is long overdue. A simple technique like harvesting and accumulation   of rainwater for reuse by farmers is one that we have to quickly put in place for our hard working farmers to take advantage of. Ethiopia, Senegal and Guinea-Bissau, have already led the way in similar innovative techniques that we can borrow a leaf from in developing ours.

The government’s One Village, One Dam initiative is a welcome development that can’t wait longer if the huge potential in agriculture will be realized for   the benefit of the country. The times the rains begin presents a challenge for farmers. Many of our farming practices rely heavily on rain-fed agriculture so the One Village One Dam principle will be very helpful in helping Ghana make a pronounced mark.

The One Village One Dam policy will upgrade farmers from having to constantly depend on rainfall to ensure their farms are watered to more effective and convenient irrigation systems.

The introduction of One Village One Dam Policy will undeniably increase food productivity and security, meet agricultural sector growth targets and fast-track the country’s efforts towards achieving the Sustainable Development Goals (SDGs) particularly the goals on eradication of extreme poverty and hunger.

When completed, the project would not only serve as a storage for harvested rain water for agricultural activities mostly in the dry season, It would also help to mitigate the perennial challenge of flooding which affects most communities whenever the spillway of the Bagre Dam in Burkina Faso is opened, leading to loss of human lives, animals and the destruction of farmlands and other valuable properties.

Another significant irrigation infrastructure that the government has committed to executing is theTorgorme irrigation project.

It has been projected that the 2,000-hectare irrigation project will generate about GH¢28million yearly after completion. Direct farm income per year after completion of the project and commencement of production is expected to increase from the current, GH¢1,653 per hectare to GH¢14,253 per hectare.

Speaking at the sod cutting of the project, President Akufo-Addo noted that a minimum of 17 communities with a combined population of over 6,000 would have direct access to water supply that would increase the earnings of small holder farmers through double-cropping under irrigated conditions, and the creation of jobs in addition to the completion of various agri-businesses down the value chain.

The project, which has been described as a game changer in the transformation of Ghana’s agriculture sector into an international one, is being undertaken by OM Metals/SPML (JV). It will be supersized by Messrs WAPCOS Limited in association with Messrs AGRARTEC with HMD Africa as the leading supplier of all machinery and equipment for the project.

The rejuvenation of the project has received $50million in addition to an earlier $100million committed six years ago from the World Bank and USAID as part of a larger nationwide irrigation project spearheaded by GCAP. The project covers three irrigation schemes including the KLBIP at Torgorme. The other two are the Kpong Irrigation Scheme and the Tolon Irrigation Scheme in the North.

The Ethiopian example

After rapid economic growth averaging 10% every year between 2004 and 2014, Ethiopia has emerged as an engine of development in Africa.
And there are no signs that ambitions for further growth are fading. This is clear from the government’s blueprint to achieve middle-income status – or gross national income of at least US$1006 per capita – by 2025. This would see a rapid increase in per capita income in Ethiopia, which is
currently US$783 , according to the World Bank.

Ethiopia’s growth has been propelled by at least two factors: the prioritization of agriculture as a key contributor to development and the fast-paced adoption of new technologies to boost the sector.

A third of Ethiopia’s GDP is generated through agriculture, and more than 12 million households rely on small-scale farming for their livelihoods.
One of the drivers of growth in the agricultural sector has been the expansion of irrigation. The country has seen the fastest growth in irrigation of any African country. The area under irrigation increased by almost 52% between 2002 and 2014.

This was achieved by investing in the sector, and by harnessing technology to expand irrigation to farmers who traditionally relied on rainfall to water their crops. This boosted productivity and income for farmers by helping them extend the growing season and become more consistent in their production.
Meanwhile, only 6% of arable land is currently irrigated across the whole of Africa. This means that there’s huge potential to expand irrigation and unlock economic growth.

These factors are highlighted by a new report from the Malabo Montpellier Panel. The panel convenes experts in agriculture, ecology, and nutrition and food security to guide policy choices by African governments. The aim is to help the continent accelerate progress towards food security and improved nutrition.
The panel’s latest report analyses progress – and highlights best practice – in irrigation in six countries. These include Kenya, Mali, Morocco, Niger and South Africa. Other African countries can draw lessons from the report’s insights.

The report identified a number of common factors in countries where significant progress has been made to expand irrigation, including key policy and institutional innovations.

In the case of Ethiopia, one of the main reasons for its success is that agriculture and irrigation have been featured on the Ethiopian policy agenda since 1991. In addition, specialised institutions have been set up with clear commitments to maximise the benefits of water control and irrigation systems.
In addition, the government has invested in the sector and has plans to continue doing so. It aims to allocate US$15 billion to irrigation development by 2020.
The investment is expected to deliver a number of returns. These include: more efficient use of fertilizers reduction in the seasonal variability in productivity and better yields from irrigated crops grown.

Another major area of development has been the collection of data. This is an invaluable asset that allows for careful monitoring and management of resources such as water, especially in times of drought.
In 2013, Ethiopia’s Agricultural Transformation Agency began mapping more than 32,400 sq kms to identify water resources, particularly shallow groundwater, with the potential for irrigation development.

The final results of this mapping in 89 districts revealed nearly 3 billion cubic metres of water at a depth of less than 30 meters. This could allow approximately 100,000 hectares of land to be brought under irrigation, benefiting 376,000 families.

Finally, Ethiopia has harnessed the value of a full range of irrigation technologies. These have ranged small-scale interventions to large infrastructure.

A joint project between the Ethiopian Bureau of Agriculture, local extension officers, and an NGO called Farm Africa, for example, helped women and young people adopt small-scale irrigation. This was part of an initiative to increase their incomes and improve their nutrition. Overall, the project reached nearly 6,400 women and landless people. The irrigation project also benefited 700 farming families.

In order to have food and income security and to attain broader development goals, countries need to make sure that all levels of government are engaged in planning and implementation. The private sector and farming communities also need to be involved to expand irrigation.

The experience of Ethiopia and other countries leading on irrigation can help Ghana develop country-specific strategies to effectively take irrigation to scale. The benefits of doing so, such as enhancing on-farm productivity and income, and improving resilience and livelihoods, are transformational.