By Papisdaff Abdullah
The loan agreement was signed on behalf of the Government of Ghana by the Minister responsible for Finance Ken Ofori-Atta whilst the Ghana Country Manager of the Africa Development Bank Dr. Otto H. J. Baldeh, signed on behalf of the African Development Fund.
The loan is a concessionary facility of UA27.86 million (equivalent to US$39.01 million) from the African Development Fund to finance the Savannah Zone Agricultural Productivity Improvement Project (SAPIP).
The Project will be implemented over a five-year period commencing in 2018 and completing in 2022.
“The development objective of the Project is to transform agricultural value chains for food and nutrition security, job creation within the Savannah Zone,” said the Finance Ministry in a statement announcing the deal.
Per the loan agreement, three specific objectives are expected to be achieved and they are; “Increase farmers’ food and nutrition security, increase incomes through increased agricultural productivity and diversification and enhance the creation and strengthening of agribusinesses to increase incomes of actors along selected value chains in a sustainable basis.”
The Project has four main components namely; Crop Productivity Improvement Component, Value Chain and Agribusinesses Development Component, Infrastructure Development Component, Project Coordination, Management and M and E Component.
The project when completed “will directly benefit about 50,000 economically active small holders living in the Savannah zone” and “also contribute to the input support programme of the Ministry of the Food and Agriculture reaching about 250,000,” added the release.