Ghana receives IFAD financing

....to help smallholder farmers boost

agricultural production and transformation

Rome, 18 May 2015 – Today the Government of the Republic of Ghana and

the International Fund for Agricultural Development (IFAD) signed a

US$36.6 million loan and $10 million grant agreement to finance the

Ghana Agricultural Sector Investment Programme (GASIP).

This new programme will link smallholder farmers to agribusinesses to

enhance growth by helping them access the assets they need to increase

their productivity, competitiveness and incomes. The grant component

is intended to promote climate change adaptation under IFAD’s

Adaptation for Smallholder Agriculture Programme.

With a total cost of $113 million, the programme is cofinanced with a

$7.6 million contribution from the Government of Ghana, a $1.7 million

contribution from the participating districts, and a $4.6 million

contribution from the beneficiaries themselves.

It is expected that this investment will leverage additional private

investment of at least $17.5 million of agricultural loans from

financial institutions over the initial six years of implementation.

An additional $35 million will be sought from IFAD’s country

allocation for the period 2016-2018.

The financing agreement was signed today in Rome by Fifi F. Kwetey,

Minister of Food and Agriculture of Ghana, and by Michel Mordasini,

Vice President of IFAD.

“In partnership with Ghana, we are bringing together climate change

resilience with smart marketing approaches to strengthen each part of

the value chain, which in turn ensures more profits for small

farmers,” Mordasini said. “Programmes such as these create a

favourable environment for smallholder farmers, particularly for women

and youth, to engage in profitable agriculture businesses.”

Domestic and regional demand for food and cash crops is high, and

agribusinesses are interested in working with smallholder farmers.

However, there is the need to build and strengthen these business

relationships along the value chains.

The programme will initially concentrate on cassava, yam, maize,

sorghum, fruits and vegetables; and will leverage investments in

productive infrastructure and facilities for the selected value

chains. It will promote modern forms of conservation agriculture and

agroforestry systems to enhance productivity, climate resilience and

environmental sustainability of production systems.

GASIP will be implemented by a dedicated unit in the Ministry of Food

and Agriculture of Ghana and will help 12,000 rural households,

particularly women and young people, to improve their economic

activities and livelihoods.

Since 1980, IFAD has invested a total of $271.5 million in 17

programmes and projects in Ghana, which have generated a total

investment of $780 million, benefiting about 3.5 million rural people.

Notes to Editors

Ulac Demirag, Country Programme Manager for Ghana will be available

for interviews in person or by phone.

Press release No.: IFAD/37/2015

IFAD invests in rural people, empowering them to reduce poverty,

increase food security, improve nutrition and strengthen resilience.

Since 1978, we have provided nearly US$16.6 billion in grants and

low-interest loans to projects that have reached about 445 million

people. IFAD is an international financial institution and a

specialized United Nations agency based in Rome – the UN's food and

agriculture hub.