Ghana Secures US$227 Million World Bank Loan for Tree Crop Diversification Project

The Ministry of Food and Agriculture has secured a US$227 million credit facility from the World Bank to support the Ghana Tree Crop Diversification Project, a major initiative aimed at improving the country’s tree crop sector.

According to Bryan Acheampong, Minister of Food and Agriculture, the project is designed to strengthen the capacity of stakeholders within the tree crop sector and enhance their competitiveness.

Specifically, it will focus on supporting the production of key tree crops such as cocoa, coconut, cashew, and rubber, which are vital to Ghana’s agricultural economy.

The project will promote sector-wide reforms, investments, and activities aimed at boosting the production of these crops. As part of the initiative, commercial nursery operators will be supported to provide high-quality planting materials to farmers, while the government will facilitate the distribution of planting materials and other agricultural inputs to around 52,000 farmers.

Transforming the Tree Crop Value Chains

Minister Acheampong emphasized that the project has the potential to transform the value chains for cocoa, cashew, coconut, and rubber by improving connections between upstream and downstream actors. “The project will adopt a demand-driven approach to enhance access to inputs, services, and economic opportunities,” he said. “It will also foster social inclusion and strengthen relationships between local communities and local governments.”

Additionally, the project aims to address the issue of child labor in tree crop farming by implementing an integrated prevention, identification, and remediation system. “By improving production and productivity in selected value chains, the project will drive income growth at the farm level and across the entire value chain,” Minister Acheampong added.

Key Project Goals and Expected Outcomes

The Ghana Tree Crop Diversification Project will focus on strengthening demand-driven research to enhance the quality and competitiveness of tree crop production, processing, and trading. The project’s key objectives include increasing yields, adding value to target crops, improving climate resilience, and reducing greenhouse gas emissions.

William Agyapong Quaittoo, Chief Executive of the Tree Crops Development Authority (TCDA), noted that the project will help address some of the persistent challenges that have hindered the growth of the tree crop sector.

“This project will be instrumental in resolving challenges in the tree crop industry and will open up significant economic opportunities for farmers and communities,” Quaittoo said.

Impact on Farmers and Job Creation

The Ghana Tree Crop Diversification Project is expected to benefit approximately 53,000 farmers and create around 20,000 jobs in the process. The project will be rolled out in eleven districts across six regions, carefully selected for their potential to maximize impact, including Essam in the Western North, Adabokrom, and Asamankese in the Eastern Region, where it will provide support to the cocoa sector.

With the World Bank’s backing, the initiative seeks to significantly enhance the productivity and sustainability of Ghana’s tree crop sector, improving livelihoods for farmers while contributing to the country’s broader agricultural development goals.