Background

The U.S. Government's Economic Growth Program enhances the competitiveness of Ghanaian private sector agri-businesses to compete nationally, regionally and within the global marketplace. The program supports strengthening an enabling environment for private sector development as well as modernizing the agricultural sector. Significant focus is on increasing the private sector's capacity to produce quality agricultural and agro-processed products to strengthen food security in the region.

USAID/Ghana Economic Growth activities include:

Improving the enabling environment for private sector: USAID's attention is focused on improving the macroeconomic management of policy reforms, improving agricultural policy analysis, strengthening public-private dialogue on policy and regulatory reform, and removing barriers for agricultural commodities to enter into the market place. USAID supports access to credit by guaranteeing bank loans.

Strengthening the capacity of the private sector to respond to market demands:USAID works on enhancing the capacity of the private sector to access and supply foreign and regional markets and to integrate smallholder farmers into the supply chain of agro-processing and export markets. The focus is on improving access to international and regional markets through better market information, and meeting required food safety regulations, health and phyto-sanitary standards; increasing the production capacity of firms through improved technologies and environmentally sound production practices; improving the management capacity of firms; applying best practices in sustainable resource management in agriculture; and strengthening business associations to provide better services to their members. All of these measures will help improve regional food security.

Expanding and improving economic and social infrastructure: USAID is providing technical assistance and training to promote reforms of the regulatory framework in the banking sector and developing applications to improve market information for selected staple food crops and non-traditional exports.

Improving sustainable management of natural resources and biodiversity: Starting in 2009, USAID is working with local communities and district governments to protect ecosystems and fisheries in the Western Region.

Key achievements in 2008 include:

• With USAID support, agri-business in Ghana significantly increased the production and value of crops for the local and export markets in the following areas:

  • Eleven new firms achieved the international certification for compliance to food safety standards and best farming practices, resulting in improved access to the export market and contributing to increased export volume and value of horticulture exports.
    
    
  • The value of horticulture exports increased by $6.5 million in 2008 over the past year, rising to about $38 million.
    
    
  • Approximately 37,900 metric tons of horticulture crops, primarily pineapples were exported from USAID-assisted farms.
    
    
  • Over 16,000 households adopted best farming practices, resulting in improved productivity in maize, fruits and vegetables. Accordingly, households and smallholder farmers have doubled their income from sale of farm products.
    
    
  • Partnership with Aqua Farms, a major maize buyer and marketing firm, and Premier Industries, a large scale maize processor and its smallholder maize farmers, resulted in the use of certified seeds, dryers, weighing scales, moisture meters, and packaging material.
    
    
  • Improved practices in the production of crops including maize, citrus, onion, mango, pineapple, papaya, cashew, and soy bean have increased produce quality and volume, and deepened the link between the smallholder farmer and the export market.
    
    
• USAID technical advisors to Ghana's Ministry of Finance have provided assistance on the implementation of a Treasury Single Account to reduce weekly borrowing needs and manage government cash more efficiently through central accounts at Ghana's central bank.
  
  
• USAID-supported community-based ecotourism increased land conservation in Ghana by 132,000 hectares through community protection of two new unprotected lands. The project also increased the knowledge of the White-necked rockfowl, an endangered bird on the African continent.
  
  
• USAID-assisted community ecotourism triggered an increase in tourism, recording more than 200,000 site visitors in 2007 and 2008, and registering a 19 percent annual growth of tourists.