Ghana Commercial Agriculture Project (GCAP)
“Commercial Agriculture, Investment Climate and PPP Opportunities” Alabi BORTEY, Project Coordinator - GCAP 2014 Ghana Agribusiness Investment Summit, Movenpick Ambassador Hotel, Accra – Ghana 29th April 2014 Ghana Commercial Agriculture Project (GCAP)
What is GCAP? GCAP is a Government of Ghana project.
Ghana Commercial Agriculture Project (GCAP)
What is GCAP? GCAP is funded by the World Bank and the USAID.
Ghana Commercial Agriculture Project (GCAP)
What is GCAP? GCAP is being implemented under the auspices of the Ministry of Food and Agriculture.
Ministry of Food & Agriculture Ghana Commercial Agriculture Project (GCAP)
What is GCAP? The project seeks to help develop the agricultural sector in Ghana by promoting inclusive commercialisation along selected commodity value chains, under outgrower schemes and contract farming arrangements.
Ghana Commercial Agriculture Project (GCAP)
Project Development Objectives GCAP seeks to ensure increased access to secured land, private sector finance, input and output markets by small-holder farms from public-private partnerships in commercial agriculture in the Accra Plains and the SADA zone.
Ghana Commercial Agriculture Project (GCAP)
Project Locations GCAP is being rolled out in two (2) strategically selected locations in Ghana: • The Accra Plains • Northern Ecological Zone (SADA Zone).
Ghana Commercial Agriculture Project (GCAP)
Project Locations – Accra Plains
Ghana Commercial Agriculture Project (GCAP)
Project Locations – SADA Zone
Ghana Commercial Agriculture Project (GCAP)
Focal Commodities – Accra Plains In the Accra Plains, GCAP is focusing on the entire commodity value chains of maize, rice and fruits and vegetables.
Ghana Commercial Agriculture Project (GCAP)
Focal Commodities – SADA Zone In the SADA Zone, GCAP is focusing on maize, rice and soya.
Ghana Commercial Agriculture Project (GCAP)
Project Implementation Partners GCAP is working with the following Implementation Partners, which form the Project Technical Committee: • • • • • • • • •
GIPC GIDA The Lands Commission Environmental Protection Agency (EPA) MoFA- PPMED MoFA – PPRSD MoFA - WIAD MoFA - CSD MoFA - AESD Ghana Commercial Agriculture Project (GCAP)
GCAP is promoting highflying agribusinesses, by addressing binding constraints to growth.
Ghana Commercial Agriculture Project (GCAP)
Investment promotion GCAP is providing support to GIPC: 1) To develop a strategic plan 2) Carry out research on the investment climate in agriculture 3) Develop the capacity of GIPC staff for commercial agriculture investments
Ghana Commercial Agriculture Project (GCAP)
Access to Land GCAP is working to develop land banks that will be used to attract investors. Proposed lands would be screened for inclusion to ensure that: ď ś They were participatory in nature, and ď ś They were made with the informed consent of communities: to verify that there were no objections from within the community, especially among land users, and vulnerable land users in particular. Ghana Commercial Agriculture Project (GCAP)
Access to Land Developing a Model Lease Agreement as the basis of community-level engagement between communities and investors. •
•
Undertaking a land diagnostic assessment on 400,000 ha in the Nasia-Nabogo valley, to inform the subsequent development of 20,000 ha of land in the valley In the Accra Plains, undertake land diagnostic assessment on 200,000 ha
Ghana Commercial Agriculture Project (GCAP)
National Outgrower Framework GCAP is also developing a national framework for nucleus-outgrowers schemes, contract farming, and similar arrangements.
Ghana Commercial Agriculture Project (GCAP)
Grievance Redress Mechanism GCAP is establishing a Grievance Redress Mechanism (GRM) that will enable a broad range of stakeholders (including investors, smallholders and community members) to channel concerns, questions and complaints to the Project.
Ghana Commercial Agriculture Project (GCAP)
Public Private Partnership The Public Investment Division of the Ministry of Finance, working under the Ghana PPP Project is providing technical support for GCAP. A Project Delivery Team (PDT) been established to lead the transaction as per the national PPP policy.
Ghana Commercial Agriculture Project (GCAP)
Accra Plains PPP Irrigation Project GCAP is making substantial investment in irrigation systems and infrastructure by developing a 69.8km gravity-based irrigation canal, under PPP arrangements.
Ghana Commercial Agriculture Project (GCAP)
Accra Plains PPP Irrigation Project This will irrigate 11,000ha under gravity within the immediate command area, and a substantially larger area using pumped irrigation in the out of command area.
Ghana Commercial Agriculture Project (GCAP)
Accra Plains PPP Irrigation Project Work on this infrastructure is progressing steadily: • A Pre Feasibility Study for the Accra Plains Irrigation PPP project is complete. • The process for procuring the services of a Transaction Advisor, according to the PPP Policy is in progress. • A full Feasibility Study is about to start. Ghana Commercial Agriculture Project (GCAP)
PPPs for Storage Facilities and Warehouses Under PPP arrangements, GCAP will finance the rehabilitation and construction of agricultural storage infrastructure and processing facilities in the SADA zone.
These will include the rehabilitation of state-owned agricultural storage facilities, and warehouses; based on rigorous feasibility assessments. Ghana Commercial Agriculture Project (GCAP)
Nasia-Nabogo Valleys Land Development Together with LAP II, GCAP is undertaking a comprehensive aerial survey, using Lidar survey technology, to provide colour orthophoto maps and derivation of digital line maps for the NasiaNabogo Valley in the Northern Region.
Ghana Commercial Agriculture Project (GCAP)
Nasia-Nabogo Valleys Land Development GCAP is also undertaking a Technical Feasibility Study to develop the Nasia and Nabogo valleys that will eventually provide information for investor promotion packs, marketing of the opportunities, attracting investors and facilitating their entry and operations in the Nasia-Nabogo valleys.
Ghana Commercial Agriculture Project (GCAP)
Public Infrastructure GCAP is delivering public infrastructure on a demand-driven basis for investments in the project areas. These may include: • • • •
Electricity connections Farm house Access roads Water management structures
Ghana Commercial Agriculture Project (GCAP)
Matching Grant Scheme GCAP is implementing a Matching Grant Scheme to help remove binding constraints for investments in agribusiness. •
The first call for proposals for existing investments in the Accra Plains and SADA has just closed.
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A total of US$ 9.50m is being disbursed to 31 investments this cropping season.
•
A rigorous monitoring process in place to ensure success. Ghana Commercial Agriculture Project (GCAP)
Social and Environmental Safeguards GCAP is ensuring that Social & Environmental Safeguards (accountability in accordance with World Bank Guidelines) are factored into all investments by working with: • • • •
EPA, PPRSD of MOFA, and Community Based NGO’S Other social and environmental CSOs
Ghana Commercial Agriculture Project (GCAP)
Collaboration with other FtF Projects GCAP is collaborating closely with its implementation partners, other GoG Agricultural Projects in its operational areas, and with various USAID Projects to achieve its Project Development Objectives. The USAID Ghana Feed the Future projects include: • Financing Ghanaian Agriculture Project (FinGAP) • Agriculture Technology Transfer Project (ATTP) • Agricultural Development and Value Chain Enhancement (ADVANCE) • Agriculture Policy Support Project. (APP) Ghana Commercial Agriculture Project (GCAP)
M&E System • GCAP has established a robust M&E System to assure reportage and accountability of resources. This includes: • A Baseline Study covering both SADA zone & Accra Plains • Operationalised M&E Framework • An MIS
Ghana Commercial Agriculture Project (GCAP)
M&E System • GCAP is also collaborating with the Gender Innovation Lab (GIL) of the World Bank to establish processes, procedures and structures for Impact Evaluation. • GCAP is also pioneering the use of Mobile Devices for data collection on projects in Ghana.
Ghana Commercial Agriculture Project (GCAP)
Conclusion •
Opportunities exist for the development of commercial agriculture in Ghana.
•
GCAP has taken the lead on this and is making sure the smallholder farmer is carried along in this forward march.
•
GCAP will help them change their “subsistence” and “way-of-life“ attitude to farming becoming commercially oriented.
Ghana Commercial Agriculture Project (GCAP)
Conclusion •
The PPP approach is to provide space for all who want to invest in agriculture. GCAP is providing this space, and making things happen.
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Our doors remain always open and we welcome collaborations and interesting ideas that fall within our mandate.
Ghana Commercial Agriculture Project (GCAP)
Thank You!
Ghana Commercial Agriculture Project (GCAP)
Ghana Commercial Agriculture Project (GCAP)
“The GCAP First Call for Matching Grant Assistance.” Galina OKARTEI-AKKO, GCAP Agribusiness Analyst 2014 Ghana Agribusiness Investment Summit, Movenpick Ambassador Hotel, Accra – Ghana 29th April 2014
Ghana Commercial Agriculture Project (GCAP)
Background GCAP has set up a Competitive Matching Grant Scheme (the Scheme) to: • • • •
Leverage private investment Spur inclusive, competitive agricultural growth Integrates smallholder farms into commercial agriculture in Ghana, Focus on the value chains for maize, rice, and soybeans.
Ghana Commercial Agriculture Project (GCAP)
Rationale for GCAP Matching Grant Scheme • The purpose is to remove binding constraints faced by commercial farmers; using the nucleus-outgrower model or similar relationship models to reach out and strengthen the capacity of outgrowers, making them competitive and profitable. • • • • •
80:20 sharing of eligible costs Focal area Focal crops Eligible costs Non eligible costs Ghana Commercial Agriculture Project (GCAP)
Eligibility Criteria • Be located in the Accra Plains (areas along the east bank of the Volta River downstream the Kpong dam), or/and the SADA Zone, • Be involved in cultivation of maize, rice, soybeans, as well as fruits and vegetables. • Be implementable, at the latest, by the next growing season (i.e. May/June 2014) over of a period of up to two years henceforth. • Be supported by a business or FBO registered in Ghana, with demonstrated profitability and capability to manage the proposed project. Ghana Commercial Agriculture Project (GCAP)
Eligibility Criteria • Show verifiable evidence of access to land owned or leased by the project beneficiary and smallholders in the arrangement. • Show verifiable evidence of an existing nucleus-outgrower scheme or contract farming arrangement focusing on food crop production (rice, maize, soya as well as fruits and vegetables). • Show verifiable evidence of contractual arrangements upstream and downstream the value chain, which provide smallholders— including women—access to output markets, inputs, farm equipment services and extension services. • Compliance with GCAP Environmental and Social Management Framework and its Resettlement Policy Framework. Ghana Commercial Agriculture Project (GCAP)
The Evaluation Process Processes to ensure INTEGRITY, FAIRNESS AND QUALITY. • • • • • • • •
Pre screening External evaluation Due diligence (Field visits) No Objection from World Bank Grant Awards Committee Negotiations with beneficiaries and prepare contracts. Submission of contracts to the World Bank for approval Disbursement of funds
Ghana Commercial Agriculture Project (GCAP)
The Big Picture Region Accra Plains Northern Region Upper East Region Upper West Region Other SADA Zone Total Qualified Region Accra Plains Northern Region Upper East Region Upper West Region Other SADA Zone Outside Project Location Total Not qualified
Number 28 48 15 25 13 129 Number 6 7 6 13 3 11 46
% of Qualified 22% 37% 12% 19% 10% 100% % of Not qualified 13% 15% 13% 28% 7% 24% 100%
% of Total 16% 27% 9% 14% 7% 74% % of Total 3% 4% 3% 7% 2% 6% 26%
Total Application received 175 100% * Other SADA Zone comprises of northern Volta and northern Brong Ahafo Regions Ghana Commercial Agriculture Project (GCAP)
Qualified Applicants for Due Diligence Region
Number
%
Accra Plains
10
23%
Northern Region
19
44%
Upper East Region
8
19%
Upper West Region
3
7%
Other SADA Zone
3
7%
Total Passed
43
100% Ghana Commercial Agriculture Project (GCAP)
Final Allocations Region
Number
%
Amount US$
%
Accra Plains
9
29%
3,671,000
38%
SADA
22
71%
5,905,000
62%
Total Passed
31
100%
9,576,000
100%
SADA Breakdown Northern Region Upper East Region Upper West Region Other SADA Zone Total Passed
12 7 2 1 22
39% 23% 6% 3% 71%
3,720,000 1,665,000 400,000 120,000 5,905,000
39% 17% 4% 1% 62%
Ghana Commercial Agriculture Project (GCAP)
Activities funded Project proposals funded under this first call included: • • • • • • •
Land development Irrigation Warehouse construction Electricity Access roads Capacity building/training Technical assistance for short-term advice / managerial support
Ghana Commercial Agriculture Project (GCAP)
Monitoring Activities •
M &E specialist role • Baseline data collection • Quarterly data review • Regular monitoring by project and awards committee
• • •
Lesson learning sessions to guide next calls Documentation of best practices Impact evaluation
Ghana Commercial Agriculture Project (GCAP)
Thank You OUR CONTACT INFORMATION The Project Coordinator Ghana Commercial Agriculture Project (GCAP) P.O. Box M37, Ministries, Accra. Tel: +2333-302-686-944 Email: info@gcap.org.gh Website: www.gcap.org.gh
Ghana Commercial Agriculture Project (GCAP)