|Approval Date||11 Dec 2018|
|Signature Date||06 Nov 2019|
|Planned Completion Date||30 Dec 2021|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed operation concerns an ADF loan in the amount of UA 5,000,000 to the Republic of Ghana to finance the Cocoa Sector Institutional Support Project (COSISP). COSISP is an institutional support project to improve the performance of the Ghana Cocoa Board, COCOBOD. This project is designed to support reforms and build institutional capacity which will strengthen the resilience of the cocoa sector and improve farmers’ incomes. It aims to promote reforms and build capacity, including coordination with Côte d’Ivoire. The project is part of package of financial and technical support to the two countries by the AfDB and the World Bank. The different activities will contribute to an enabling cocoa sector environment through increased transparency and effectiveness in COCOBOD operations, which will promote higher productivity and prices for farmers. The project will also improve harmonization of policies between Côte d’Ivoire and Ghana, which will support productivity enhancement through collaboration on research, disease control, the prevention of smuggling, and better management of production and stocks, which may influence global cocoa prices.
The development objective is to improve the performance of the cocoa sector to increase cocoa farmers’ revenues and reduce poverty. The specific project objectives are i) to support institutional reforms, and ii) to support capacity-building. The two main components of the project correspond to these two objectives. A third component, for project management, will be funded by COCOBOD.
The project zone is roughly the southern half of the country. The Western Region will benefit in particular, since over half of all cocoa is grown in this region and future growth there is expected to remain strong. The primary beneficiaries will be cocoa farmers, many of whom are producing below the productive capacity of their cocoa farms and will therefore see their income increase. Shifting input supply to the private sector will reduce the industry costs, which are deducted from the f.o.b price before calculating the minimum 70% to be paid to the farmers through the farm gate price. Thus the price paid to farmers will increase. New investments in IT solutions will reduce or eliminate leakages so that subsidies reach the farmers.
African Development Fund
MINISTRY OF FOOD AND AGRICULTURE
|Last Update||20 Mar 2020|