Accra - The Development Bank Ghana (DBG) has revealed a set of strategic recommendations aimed at enhancing food security and economic growth in Ghana. These outcomes were announced following a series of multi-stakeholder value chain workshops conducted across several regions in the country.
According to Ghana News Agency, DBG's Chief Economist and Head of the Economic Research Department, the workshops focused on identifying effective measures to support commercial banking partners, participating financial institutions (PFIs), and Small and Medium Enterprises (SMEs). The goal is to drive national growth and transformation, particularly in the critical food supply chains of maize, soya, poultry, and rice.
DBG's approach includes collaborative efforts with the Ministry of Food and Agriculture (MoFA) and other partners to implement these recommendations. A Memorandum of Understanding (MoU) will be signed to formalize this collaboration. Already, 13 out of 29 SMEs identified from the workshops have been integrated into the pipeline by PFIs. The Ghana Commodity Exchange (GCX) has also agreed to work with DBG on implementing relevant recommendations.
Food security remains a pressing issue in Ghana, highlighted by the country's 83rd ranking out of 115 on the 2022 Global Food Security Index. The high volume of food imports, particularly staples like rice, sugar, and poultry, significantly contributes to food inflation and impacts the cost of living. Addressing this challenge is a key component of DBG's five-year strategic plan.
The workshops led to a comprehensive report covering five main areas: mapping the value chain, identifying SMEs for pipeline development, policy and regulatory reforms, financing, and implementation. DBG identified over 13 development partners operating in these value chains and pinpointed gaps where the Bank can play a crucial role.
In financing, DBG estimated a total requirement of US$1.04 billion over five years, with a current shortfall of US$354 million. GCX alone requires an estimated seed capital of US$200 million to enact proposed reforms. DBG plans to collaborate with various stakeholders, including equity funders, to secure this funding.
The implementation strategy is built on six pillars: production-related recommendations, aggregation, warehousing, storage and trading, agro-processing, policy advocacy, capacity building and technical assistance, and studies. Key recommendations include establishing an input credit system to enhance production, incorporating a subsidiary of GCX to address post-harvest losses, and leveraging technology for production and market information.
DBG's initiative marks a significant step towards addressing market failures in Ghana's food supply chain and aligns with the United Nations Sustainable Development Goals to end hunger and promote sustainable agriculture.