Government secures $200m World Bank fund for Tree Crops sector advancement
In a significant stride towards agricultural diversification, the government of Ghana has successfully procured a US$200 million fund from the World Bank to bolster the tree crops sector.
The funds will play a pivotal role in facilitating research and development for novel crop varieties, augmenting value addition processes, and expanding cultivation capacities.
Diversification Drive: The allocation of the funding seeks to elevate the tree crop sector’s contribution to the country’s gross domestic product (GDP), strategically reducing reliance on cocoa. The initiative targets a broader spectrum of cash crops, such as cashews and rubber trees, thereby advancing sectoral diversification.
Strategic Allocation: Notably, US$100 million of the fund will be channeled into enhancing the value chains of coconut, cashew, and rubber, administered under the Tree Crop Development Authority (TCDA). The remaining US$100 million will be utilized for transforming the existing cocoa value chain, under the oversight of the Ghana Cocoa Board (COCOBOD) and other relevant stakeholders.
Six-Year Vision: Named the ‘Tree Crop Diversification’ project, this ambitious endeavor spans a six-year period. It aims to exponentially boost the export potential of the three key tree crops, propelling their combined value from less than US$1 billion to an impressive US$2.5 billion within five years.
Strategic Interventions: The fund is earmarked for several vital interventions, including the establishment of robust institutional frameworks, enhancing the productivity and resilience of tree crops, and bolstering post-harvest management, value addition, and market access strategies.
Collaborative Execution: Implementation of the tree crop diversification project will be a joint effort between the Tree Crop Development Authority and the Ghana Cocoa Board, with the Ministry of Food and Agriculture providing guidance.
Coconut’s Untapped Potential: Experts believe that the coconut value chain holds exceptional promise, with its multifaceted applications spanning pharmaceuticals, cosmetics, and food. While the market demand is significant, production capacity remains constrained by limited research into high-yield varieties.
Untapped Regions for Cultivation: The favorable climate of regions including Western, Central, Western North, Volta, Eastern, and Oti positions them as potential hubs for coconut cultivation, as emphasized by the Deputy CEO of Ghana Export Promotion Authority (GEPA), Albert Kassim Diwura.
As Ghana embarks on this transformative initiative, the tree crops sector, once hampered by challenges, is poised for revitalization.
Through collaboration between government, development partners, and industry stakeholders, the nation aspires to unlock the bountiful potential of its agricultural landscape.
