Recently, Parliament has given the green light to three pivotal loan agreements crucial for the funding of significant projects in Ghana. These agreements, amounting to a total of $500 million, represent a strategic partnership between the government of Ghana and the International Development Association (IDA) of the World Bank Group.
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The Agreements
The series of loan agreements include a $200 million credit agreement aimed at supporting the Ghana Tree Crop Diversification Project (GTCDP), alongside $150 million allotted for the Ghana Productive Safety Net Project II (GPSNP). Moreover, an additional $150 million has been allocated to the West Africa Coastal Areas Resilience Investments Programme. These financial injections are set to play a pivotal role in addressing key developmental needs within the country.
Project Overview
The Ghana Tree Crop Diversification Project (GTCDP) is designed to elevate production and add value to six strategic tree crops. Meanwhile, the Ghana Productive Safety Net Project II (GPSNP) aims to bolster the government's initiatives to eradicate extreme poverty. Lastly, the West Africa Coastal Areas Resilience Investments Programme is geared towards fortifying the resilience of coastal communities in the face of the adverse impacts of global warming.
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Strategic Planning and Implementation
The Chairman of the Finance Committee, Kwaku Kwarteng, highlighted in his pre-approval presentation to Parliament the strategic scope of the GTCDP. Specifically, the project aims to enhance economic, climate, and social resilience in the productivity and value addition of seven strategic tree crops, including cocoa, cashew, shea, mango, coconut, rubber, and oil palm. Kwarteng emphasized that these crops would be cultivated in 11 carefully selected districts spanning five regions: Western North, Eastern, Savannah, Bono, and Bono East regions.
The project is slated for implementation from 2023 to 2029 and aims to provide critical sector-wide activities, reforms, and investments in key agro-ecological areas chosen for optimal impact and efficient intervention.
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Breakdown of Financing and Beneficiaries
In further detailing the project, Kwarteng outlined that the total cost amounts to $227.5 million, with contributions from various sources, including the IDA and counterpart financing from COCOBOD. He emphasized how the geographical areas were chosen based on their potential impact and capacity for effective scaling up of interventions, thereby addressing relatively high poverty rates in those locations.
Kwarteng also highlighted the direct beneficiaries, stating that improved productivity and increased incomes would directly impact 52,775 farmers and their households. Furthermore, approximately 40% of the beneficiaries are expected to be women. The initiative will also benefit an estimated 185 small and medium-sized enterprises involved in adding value to cocoa, cashews, and coconuts, through provisions such as project matching grants, technical assistance support, and access to markets and services.
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