Parliament Approves $52.5 Million Loan for Agricultural Advancement

By Prince Opoku Dogbey

In a significant move to boost the agricultural sector and drive economic transformation, Ghana’s Parliament has approved a $52.5 million loan agreement between the government of Ghana and the International Fund for Agricultural Development (IFAD).

The loan will support the implementation of the Promoting Rural Opportunities, Sustainable Profits, and Environmental Resilience (PROSPER) project, aimed at addressing pressing challenges in the agriculture sector and promoting increased productivity.

The approved loan consists of a blended loan of $35.175 million and a concessional loan of $17.33 million. The facility is specifically designed to bolster the country’s agricultural potential, revitalize rural communities, and foster sustainable practices.

Presenting the agreement to the House, the Majority Leader and Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, highlighted agriculture’s pivotal role in the government’s economic transformation agenda.

He underscored the significance of various policy interventions already in place, such as Planting for Food and Jobs and Rearing for Food and Jobs, to augment food production, enhance food security, and expand agriculture.

Patrick Yaw Boamah, the Vice Chairman of the Finance Committee and Member of Parliament for Okaikwei Central, emphasized that the PROSPER project would address key impediments in the agricultural sector and pave the way for a revolution in Ghana’s agriculture.

The project’s primary goal is to strengthen the integration, climate resilience, and environmental sustainability of smallholder farmers and businesses in the priority value chain, focusing on the Northern and Middle Ecological belt. Additionally, it will capitalize on the increased demand created by the national agro-processing strategy.

The loan approval is expected to usher in a new era of agricultural development, providing much-needed financial support to enhance farming practices, increase productivity, and uplift rural livelihoods. By bolstering the agricultural sector, Ghana aims to position itself for sustained economic growth, job creation, and improved food security for its citizens.

“The approved loan consists of a blended loan of $35.175 million and a concessional loan of $17.33 million.”