Ghana targets 25 percent rice farmers under off-take agreements by 2028

Ghana's Minister for Food and Agriculture, Eric Opoku, announced comprehensive reforms to attract private investment into the country's rice value chain. The government aims to have at least 25 percent of rice farmers operating under structured off-take agreements by 2028. These reforms are critical for Ghana's goal of achieving rice self-sufficiency and reducing import dependence.

These changes include a new predictable producer pricing framework and a shift from broad subsidies to targeted credit arrangements. The reforms also tackle inefficiencies in rice processing, which currently cause annual losses of between US$15 million and US$19 million because of low milling conversion rates. Investments in modern infrastructure and improved rural roads are also part of the broader strategy.

These initiatives align with Ghana's wider economic strategy to strengthen food security and boost agricultural output. Agriculture is a major driver of economic growth and job creation in the country. Data indicates Ghana's reliance on imported rice, making domestic production crucial for economic stability and balance of payments. Prior government efforts to boost local food production, like the 'Planting for Food and Jobs' programme, also highlight this focus.

Minister Opoku emphasized the government's commitment to creating an investor-friendly environment. Speaking at the ECOWAS Rice Investment Roundtable in Accra, he stated, “The critical challenge before us is not simply introducing new interventions, but building the policy architecture that makes investment viable and sustainable.” He added that initiatives like satellite mapping of 100,000 hectares of rice farmland and a producer-importer quota policy aim to bolster domestic production.

The move towards off-take agreements will provide greater market certainty for farmers and agribusinesses. This will improve their access to financing and strengthen market linkages. The government also plans to establish a Rice Processing Modernization Facility through development finance institutions. This facility will offer grant funding and concessional financing for modern milling equipment, addressing inefficiencies of 50-55 percent milling conversion rates. Improved rural infrastructure, including rehabilitated feeder roads, will also reduce post-harvest losses and boost farmer incomes.

These reforms are expected to stimulate private sector participation, leading to increased rice production and processing capacity. Decision-makers and investors will closely monitor the implementation of these policies, particularly the effectiveness of the targeted credit arrangements and the modernization facility. Success in these areas could significantly reduce Ghana's GHS 4.2 billion annual rice import bill and create thousands of agricultural jobs. The ECOWAS Rice Investment Roundtable's goal of West African rice self-sufficiency by 2035 also depends on such national-level actions, making Ghana's reforms a significant step.