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| (Dr. Kwabena Opuni Frimpong) |
The Development Bank Ghana (DBG) has uncovered a pressing need for US$1.04 billion in financing over a five-year period to achieve food security in the country. This financial allocation is earmarked for an extensive overhaul of four vital food value chains, namely rice, soya, maize, and poultry sectors. While an encouraging US$686 million has been identified, a funding gap of US$354 million looms. This comprehensive and ambitious endeavor expects contributions from over 13 development partners entrenched within these crucial sectors.
As part of this strategic financial blueprint, the Ghana Commodity Exchange (GCX) is projected to necessitate approximately US$200 million in seed capital to realize the proposed reforms. Dr. Kwabena Opuni-Frimpong, Chief Economist and Head of the Economic Research Department of Development Bank Ghana (DBG) underscored the importance of this substantial amount, acknowledging the bank's inability to independently guarantee or provide the entire sum. The bank seeks to foster collaboration with equity funders within the country, akin to successful models in other regions such as Nigeria. Dr. Opuni-Frimpong emphasized the pivotal role of the private sector, including individuals and entities, in engaging with such initiatives. He also stressed the critical involvement of the government, given the national security implications associated with food production, highlighting the urgency of addressing food security concerns in Ghana.
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Moreover, DBG underscored its potential support for GCX following internal deliberations, recognizing the collaborative effort as essential in combating the national security threat of food scarcity. The prominence of food imports in driving Ghana's food inflation underscores the critical nature of food security, echoing the country's 83rd position on the Global Food Security Index in 2022. Committed to finding solutions and supporting GCX in overcoming challenges, DBG's workshops produced outcomes classified into five main areas: mapping the value chain, identifying SMEs for DBG and its partners' pipeline, policy and regulatory reforms, financing, and implementation.
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Aligned with DBG's 5-year strategic plan, the bank and its key partners have orchestrated deliberate efforts, including multi-stakeholder workshops, strategically aimed at addressing market failures within critical food supply chains of maize, soya, poultry, and rice. With a goal to seek consensus with stakeholders and partners for effective implementation, DBG aims to become an instrumental catalyst in contributing to national growth and transformation.
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